Data Center Interconnect Market Size, Share, Trends, Growth and Forecast 2032

Data Center Interconnect Market Insights

Zion Market Research has published a report on the global Data Center Interconnect Market, estimating its value at USD 12.35 Billion in 2023, with projections indicating that it will reach USD 41.85 Billion by 2032. The market is expected to expand at a compound annual growth rate (CAGR) of 14.52% over the forecast period 2024-2032.

The report explores the factors fueling market growth, the hitches that could hamper this expansion, and the opportunities that may arise in the Data Center Interconnect industry. Additionally, it offers a detailed analysis of how these elements will affect market demand dynamics and market performance throughout the forecast period.

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Introduction

Data center interconnect also referred as DCI links two or more than two data centers over short, long, or medium distances by using high-speed packet optical connection and ensures smooth transition of critical assets. The technology, which is developed on coherent optics, connects routers as well as servers with each other. Furthermore, data center interconnect is predicted to be developed from optical layer with the help of packet-optical tools as well as router & switching.  Apparently, the technique plays a crucial role in fulfilling the data requirements and need for content & cloud-based solutions.

In addition to this, data center interconnect is primarily utilized in enterprise ecosystem for fulfilling business goals and objectives of IT firms. Apparently, the data center interconnect services are likely to fulfill ultra-high capacity needs along with requirement for power efficacy & scalability.

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Market Growth Dynamics

Benefits like lowering of operating costs, easy operability, programmability for automation of back office work, and facilitating rise in the target audience traffic will prop up the market growth trends. Furthermore, humungous focus on reduction of high bandwidth and requirement for reducing electricity bill charges in data centers have culminated into demand for data center interconnects in the recent years. Apparently, surge in the demand for disaster recovery as well as data backup solutions will translate into market expansion over the years to come.

Furthermore, need for maintenance, throughput, security, latency, and security have become a key focus for the vendors and this will result in the protruding demand for data center interconnect network facilities as well as creation of strong DCI infrastructure over the ensuing years. Onset of AI and high performance computing as well as 5G technology has paved the way for market growth with need for equipment to effectively interconnect data centers. Nonetheless, huge initial capital investments required for setting up data centers can be one of the major aspects restraining the market growth over the forecast timeline.

Data Center Interconnect Market: Report Scope

North American Market To Accrue Massive Returns Over 2024-2032

The growth of the market in North America over the estimated timespan is attributed to large-scale use of data center interconnect equipment in military, industrial, and commercial sectors. Escalating acceptance of cooled data center interconnect cameras in the countries like the U.S. and surge in the funding of defense activities will proliferate the regional market growth over the forecast timeline. In addition to this, presence of key players in the region will contribute massively towards the regional market revenue over the forthcoming years.

Key participants influencing the market growth are -

• Pluribus Networks Inc.
• Brocade Communications Systems Inc.
• Megaport Limited
• Viawest Inc.
• ADVA Optical Networking SE
• Cisco Systems Inc.
• Huawei Technologies Co. Ltd.
• Innovium Inc.
• XKL LLC
• Ciena Corporation
• Colt Technology Services Group Ltd.
• Infinera Corporation
• Cologix Inc.
• Coriant GmbH
• MRV Communications Inc.
• Coresite Realty Corporation
• Digital Realty Trust Inc.
• Fiber Mountain Inc.
• Extreme Networks Inc.
• Fujitsu Ltd.
• Ekinops S.A.
• Juniper Networks Inc.
• Nokia Corporation
• Ranovus Inc.
• ZTE Corporation.

The global data center interconnect market is segmented as follows:

By component:

• Solutions
• Services

By industry:

• Carrier Neutral Providers (CNP)/Internet Content Providers (ICP)
• Communication Service Providers (CSP)
• Healthcare
• Government & Public Sector
• Banking & Finance
• Media & Entertainment
• E-Commerce
• Retail
• Others

By application:

• Federated Data Storage
• Real-Time Disaster Recovery & Business Continuity
• Content Delivery

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa