Global Data Center Interconnect
Market Report
2024
Delivery Includes:- Market Timeline 2019 till 2031, Market Size, Revenue/Volume Share, Forecast and CAGR, Competitor Analysis, Regional Analysis, Country Analysis, Segment Analysis, Market Trends, Drivers, Opportunities, Restraints, ESG Analysis, Porters Analysis, PESTEL Analysis, Market Attractiveness, Patent Analysis, Technological Trend, SWOT Analysis, COVID-19 Analysis, Consumer Behavior Analysis, etc.
The base year for the calculation is 2023 and 2019 to 2023 will be historical period. The year 2024 will be estimated one while the forecasted data will be from year 2025 to 2031. When we deliver the report that time we updated report data till the purchase date.
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Base Year | 2023 |
Historical Data Time Period | 2019-2023 |
Forecast Period | 2024-2031 |
Global Market Size | 121212 |
Country Market Size | 121212 |
North Americ Market Size | 121212 |
Europe Market Size | 121212 |
Asia Pacific Market Size | 121212 |
South America Market Size | 121212 |
Middle East and Africa Market Size | 121212 |
Market Split by Type |
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Market Split by Application |
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List of Competitors |
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Regional Analysis |
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Country Analysis |
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Key Qualitative Information Covered |
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Data Center Interconnect Market is Segmented as below. Particular segment of your interest can be provided without any additional cost. Download the Sample Pages!
According to the Cognitive Market Research Report, the Data Center Interconnect Market size in 2023 was XX Million and is projected to have a compounded annual growth rate of XX% from 2024 to 2031.
The unprecedented increase in internet traffic, along with a rapid shift to cloud-based services, is putting pressure on content producers and internet service providers to improve network connection, resulting in industry growth throughout the projection period. Interconnection of data centres offers access to several internet service providers, which is crucial if a consumer lives in a different region. Businesses may utilize this to build a strong domestic and worldwide presence, boosting their customer base and operations.
Furthermore, financial services digitalization, particularly in emerging nations, is a significant industry development driver. Data Centre Interconnect (DCI) also exchanges data with financial transactions and third-party suppliers that are already integrated into a bank's digital services ecosystem. The key incentive is the rapid rise of video and OTT traffic. OTT material is compressed locally in data centres to decrease total bandwidth costs before being sent via DCI. Furthermore, the development of cloud services to lower individual capital expenditures typically propels industry expansion.
Moreover, as 5G technology becomes more widely used in the data centre interconnect industry, it will deliver bigger, quicker, and denser data streams, demanding more data centre capacity. It is intended to allow 5G, which requires a seamless network that links all interactions and devices, hence simplifying information transfer, storage, and transmission. As a result, organizations foresee a substantial potential in the data centre interconnects industry with the introduction of 5G.
Furthermore, the rising number of data centers and increased use of cloud storage is driving the market expansion. The Datacenter Interconnect market is further segmented by type and end-use. The hardware type and Communications Service Providers dominate their particular segment.
Data centres, with house computers for data storage and processing, have expanded fast in response to increasing demand. The United States has more data centres than any other market, as it is home to major data producers and consumers such as Facebook, Amazon, Microsoft, and Google. Data servers and data centres are in high demand due to increased data output and utilization across sectors.
According to CloudScene data6 from 110 countries, there were almost 8,000 data centres worldwide. Six nations account for the bulk of data centres which are the United States (33%), the United Kingdom (5.7%), Germany (5.5%), China (5.2%), Canada (3.3%), and the Netherlands (3.4%). OECD member nations account for 77%, while NATO members account for around 64%.
Furthermore, data centre service providers are increasing their colocation and cloud offerings. End-user firms (such as telecom and financial organizations) that choose to establish their data centres are primarily responsible for the interconnected data centre sector becoming a worldwide investment hotspot.
Due to data centre expansion and spread, enhanced fibre utilization, and low-cost pluggable modules, industries, namely OTT, ISPs, the financial industry, and the public sector, are creating use cases for DCI networks.
The proliferation of data centres is also fueling a surge in DCI, which helps businesses to link their data centres, cloud providers, and other data center operators for easier data and resource sharing.
Hence with such rise of data centers and the benefits provided drive the market growth.
Cloud-based storage solutions are today's most practical and effective way to keep data online. There are various cloud computing solution vendors. Because this industry is so large, every major technology business now has its own data centre, which dramatically boosts user income. The migration to cloud-based solutions, as well as the increase in organizational data traffic and big data analytics, are expected to drive development in the data centre interconnect market. Backup and storage are becoming increasingly important as the quantity of data created grows.
Data centre interconnect tools to enable communication and information exchange between its linked components, as well as the data centres' internal and external networks. Companies employ these solutions to establish solid connections between data centres and their linked devices, allowing for faster and more secure data transfers. Furthermore, the usability and accessibility of cloud-based apps have contributed to the expansion of the data centre interconnect industry.
For instance, Equinix is a leading global provider of digital infrastructure. They link industry-leading organizations in banking, manufacturing, retail, transportation, government, healthcare, and education in a digital-first world. Business leaders use their trusted worldwide platform to safely and sustainably link the core infrastructure that drives their success. (Source: http://https://www.equinix.com/about)
With the introduction of web-based applications, app building became so simple that hosting several apps on a single server became straightforward. This procedure had no meaningful impact on performance. However, as the number of subscribers and the variety of apps expanded, shared hosting became ineffective. Businesses migrated their programmes to dedicated VPS hosting alternatives,
Furthermore, business owners were obliged to purchase a dedicated server. A significant portion of server resources was regularly left idle. Furthermore, dedicated servers proved to be a terrible financial decision because companies were paying for the entire server regardless of resource usage. This led businesses to embrace cloud-based solutions.
As a result, the move to the cloud makes it easier to create programmes that users can use in their browsers rather than downloading on their devices. This greatly accelerates market expansion.
Data centres require low-latency connections to provide robust interconnections between them. When data centres are apart, latency increases.
Moreover, the data sets that enter and exit data centers are frequently quite enormous, ranging from 100s of GBs to TBs. This has an impact on the data centres' efficiency. To address this issue, data centre providers must provide transmission speeds ranging from 40G to 100G and greater across nearly any distance. This will significantly enhance the capacity limitations of data centres.
The old technique of manually maintaining and inputting data into data centre storages is quite complicated as they are labor-intensive, complicated, sluggish, and prone to high mistake rates.
Moreover, the most significant difficulty is to safeguard any organization's data in the data centre while avoiding security breaches and data loss. Data centre providers have traditionally struggled to scale data in tandem with bandwidth expansion at a reasonable cost.
Hence, such cost, capacity, operation as well as security risks hamper the market.
Since the resurgence of the epidemic, the average home uses 38% more bandwidth each day. Operators suggest that clients are modifying their network connections as needed by the masses. Even before the crisis, more than 90% of providers intended to increase capacity. Most providers report that their supply networks have not been significantly disrupted.
Operators have devised workarounds to address shipping interruptions and manufacturing closures that impede data centre equipment supply. Pandemic lockdowns have increased demand for capacity in carrier-neutral data centres, and as a result, costs have risen. Only the financially healthiest and strongest businesses will survive the crisis, and they will want to purchase existing capacity. IT behemoths have strong business strategies and nearly complete monopolies in numerous sub-sectors. This crisis made them stronger to sustain in the market with rising growth.
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Leading market companies are investing extensively in R&D to extend their product lines, which will fuel further growth in the data centre interconnect market. Market participants are also engaged in a variety of strategic initiatives to broaden their worldwide presence, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. To grow and thrive in a more competitive and expanding market, the data centre interconnect business must provide cost-effective products.
Manufacturing locally to reduce operating costs is one of the most important business strategies used by manufacturers in the global data centre interconnect industry to serve customers and expand the market sector. Ciena Corporation (US), Nokia Corporation (Finland), Huawei Technologies (China), Juniper Networks, Inc. (US), Infinera Corporation (US), and others are attempting to boost market demand by investing in R&D operations.
For instance, Ciena Corp. said in November 2020 that NTT Communications Corp. improved its DCI network by introducing a single-wave 800G line speed solution to meet rising demand for cloud and gaming services as 5G networks continue to be rolled out. (Source: https://investor.ciena.com/news-releases/news-release-details/ntt-com-rollout-cienas-optical-technology-enables-first-800g)
Top Companies Market Share in Data Center Interconnect Industry: (In no particular order of Rank)
If any Company(ies) of your interest has/have not been disclosed in the above list then please let us know the same so that we will check the data availability in our database and provide you the confirmation or include it in the final deliverables.
Europe accounted for the highest revenue share in the year 2023. The expanding number of data centres, increased investment in cloud technologies, and the development of end-user markets are among the primary reasons driving European data centres' investment in the interconnect industry. Stringent regional rules, such as GDPR and the Personal Data Protection Initiative (Gaia-X), help to support the region's local data centre building and growth.
Some of the market's biggest investors and adopters include Germany, the United Kingdom, the Netherlands, and France. Investment and growth in the region's data centre sector have increased. This is mostly due to the fast pace of adoption of cloud technology. For example, Microsoft has just increased its European data centre capacity.
Furthermore, data traffic increase is expected to contribute to the market's growth significantly. The fast proliferation of cloud computing services, as well as the increasing usage of big data analytics throughout the continent, are driving demand for dependable and high-capacity interconnection solutions. The proliferation of 5G networks, the Internet of Things (IoT), and cutting-edge technologies such as edge computing and artificial intelligence are all driving this demand, demanding efficient data processing and transport. Europe’s emphasis on data privacy and security encourages businesses to invest in robust and compliant Data Center Interconnect solutions.
For instance, In November of this year, Nokia announced the availability of its 7220 IXR data centre hardware systems running SR Linux to DCspine, a subsidiary of Eurofiber Cloud Infra that delivers digital infrastructure and connectivity services to data centres across Europe. With this solution, DCspine will be able to provide additional cloud and connectivity services, grow the network more easily, and automate network operations. (Source: https://www.nokia.com/about-us/news/releases/2022/09/06/nokia-provides-data-center-switching-platforms-to-enable-growth-of-dcspine-cloud-services/)
The current report Scope analyzes Data Center Interconnect Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com
The above graph is for illustrative purposes only.
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Global Data Center Interconnect Market Report 2024 Edition talks about crucial market insights with the help of segments and sub-segments analysis. In this section, we reveal an in-depth analysis of the key factors influencing Data Center Interconnect Industry growth. Data Center Interconnect market has been segmented with the help of its Type, Application , and others. Data Center Interconnect market analysis helps to understand key industry segments, and their global, regional, and country-level insights. Furthermore, this analysis also provides information pertaining to segments that are going to be most lucrative in the near future and their expected growth rate and future market opportunities. The report also provides detailed insights into factors responsible for the positive or negative growth of each industry segment.
In 2023, the hardware segment dominated the industry, accounting for nearly XX% of total sales. The growing volume of big data is causing cloud service providers to seek more storage capacity. The DCI sector is developing mostly because of increased demand for switches, routers, cables, servers, storage capacity, and server racks. The software category is expected to increase at the quickest rate throughout the projection period.
DCI software solutions assist network operators in ensuring an optimum combination of DCI-optimized packet, security, and virtualization technologies to connect data centres, adding to the segment's development. Furthermore, DCI software solutions aid in resource balancing and sharing as network traffic and the need for suitable bandwidth grow. Various DCI software capabilities can assist network operators in modifying bandwidth in real time to meet changing demand.
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In 2023, the Communications Service Providers (CSPs) end-use sector led the market, accounting for the largest part of total revenue. CSPs are making aggressive investments to meet the rising need for more capacity to provide managed services. CSPs are also focused on managed DCI and cloud interconnect services, as well as employing their data centre assets and central office resources to provide virtual private cloud services.
The Internet Content Providers and Carrier Neutral Providers (ICPs/CNPs) market is expected to expand the quickest throughout the projection period. Some of the major ICPs, such as Facebook (Meta), Google, and Microsoft, are generating massive amounts of Internet traffic. As a result, many ICPs are choosing to create fibre networks to connect their data centres. Given the significance of flexibility for carrier-neutral colocation facilities, some of them are investing heavily in DCI technology.
Others
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Senior Research Analyst at Cognitive Market Research
ResearchGate Profile: https://www.researchgate.net/profile/Kalyani-Raje
An optimistic Senior Research Analyst with years of experience in competitive assessment and business consulting. A seasoned professional and subject-matter expert (SME) in the Automobile and transportation vertical.
With a work experience of over 10+ years in the market research and strategy development. I have worked with diverse industries, including FMCG, IT, Telecom, Automotive, Electronics and many others. I also work closely with other departments such as sales, product development, and marketing to understand customer needs and preferences, and develop strategies to meet those needs.
I am committed to staying ahead in the rapidly evolving field of research and analysis. This involves regularly attending conferences, participating in webinars, and pursuing additional certifications to enhance my skill set. I played a crucial role in conducting market research and competitive analysis. I have a proven track record of distilling complex datasets into clear, concise reports that have guided key business initiatives. Collaborating closely with multidisciplinary teams, I contributed to the development of innovative solutions grounded in thorough research and analysis.
Our study will explain complete manufacturing process along with major raw materials required to manufacture end-product. This report helps to make effective decisions determining product position and will assist you to understand opportunities and threats around the globe.
The Global Data Center Interconnect Market is witnessing significant growth in the near future.
In 2023, the Hardware segment accounted for noticeable share of global Data Center Interconnect Market and is projected to experience significant growth in the near future.
The Communications Service Providers (CSPs) segment is expected to expand at the significant CAGR retaining position throughout the forecast period.
Some of the key companies Ciena Corporation, Nokia Corporation and others are focusing on its strategy building model to strengthen its product portfolio and expand its business in the global market.
Please note, we have not disclose, all the sources consulted/referred during a market study due to confidentiality and paid service concern. However, rest assured that upon purchasing the service or paid report version, we will release the comprehensive list of sources along with the complete report and we also provide the data support where you can intract with the team of analysts who worked on the report.
Disclaimer:
Type | Hardware, Software, Services |
Application | Communications Service Providers (CSPs), Internet Content Providers and Carrier-Neutral Providers (ICPs/CNPs), Government/Research and Education (Government/R&E), Others |
List of Competitors | Ciena Corporation, Huawei Technologies, Nokia Corporation, Juniper Networks, Infinera Corporation, ADVA Optical Networking, Cisco Systems, Fujitsu Ltd, Extreme Networks, Others |
This chapter will help you gain GLOBAL Market Analysis of Data Center Interconnect. Further deep in this chapter, you will be able to review Global Data Center Interconnect Market Split by various segments and Geographical Split.
Chapter 1 Global Market Analysis
Global Market has been segmented on the basis 5 major regions such as North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America.
You can purchase only the Executive Summary of Global Market (2019 vs 2024 vs 2031)
Global Market Dynamics, Trends, Drivers, Restraints, Opportunities, Only Pointers will be deliverable
Chapter 2 North America Market Analysis
Chapter 3 Europe Market Analysis
Chapter 4 Asia Pacific Market Analysis
Chapter 5 South America Market Analysis
Chapter 6 Middle East and Africa Market Analysis
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Chapter 7 Top 10 Countries Analysis (Only Available with Corporate User License)
Competitor's Market Share and Revenue (Subject to Data Availability for Private Players)
Chapter 8 Competitor Analysis (Subject to Data Availability (Private Players))
(Subject to Data Availability (Private Players))
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Data Subject to Availability as we consider Top competitors and their market share will be delivered.
Chapter 9 Qualitative Analysis (Subject to Data Availability)
Segmentation Type Analysis 2019 -2031, will provide market size split by Type. This Information is provided at Global Level, Regional Level and Top Countries Level The report with the segmentation perspective mentioned under this chapters will be delivered to you On Demand. So please let us know if you would like to receive this additional data as well. No additional cost will be applicable for the same.
Chapter 10 Market Split by Type Analysis 2019 -2031
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Chapter 11 Market Split by Application Analysis 2019 -2031
This chapter helps you understand the Key Takeaways and Analyst Point of View of the global Data Center Interconnect market
Chapter 12 Research Findings
Here the analyst will summarize the content of entire report and will share his view point on the current industry scenario and how the market is expected to perform in the near future. The points shared by the analyst are based on his/her detailed in-depth understanding of the market during the course of this report study. You will be provided exclusive rights to interact with the concerned analyst for unlimited time pre purchase as well as post purchase of the report.
Why Hardware have a significant impact on Data Center Interconnect market? |
What are the key factors affecting the Hardware and Software of Data Center Interconnect Market? |
What is the CAGR/Growth Rate of Communications Service Providers (CSPs) during the forecast period? |
By type, which segment accounted for largest share of the global Data Center Interconnect Market? |
Which region is expected to dominate the global Data Center Interconnect Market within the forecast period? |
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