Data Center Interconnect Market to Grow at CAGR of 13.04% through 2032 – Rising Demand for Cloud Services for Business Continuity Applications


The data center interconnect market size is anticipated to grow from USD 8.32 Billion in 2022 to USD 28.34 Billion in 10 years. The market should witness a moderate growth rate owing to the increasing demand for high throughput, latency and streamlined operations among government and commercial organizations. Further, the increasing investment in the Internet of Things and big data provides a lucrative opportunity for the diagnostics market.

Newark, Oct. 05, 2023 (GLOBE NEWSWIRE) — The Brainy Insights estimates that the data center interconnect market will grow from USD 8.32 Billion in 2022 to USD 28.34 Billion by 2032. The data center interconnect market is expanding due to the ease of configuration, which leads to seamless integration in automation services. Further, many organizations invest in edge computing to interconnect their data centres.

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Key Insight of the Data Center Interconnect Market

North America region to account for the largest market size during the forecast period.

North America region will hold a significant market share due to the rising number of data centres in the past decade. Most major global companies are present in the U.S. and Canada due to the presence of developed Internet of Things technology. Further, many organizations in the region are adopting data centre interconnect networks due to an increase in the volume of data required to be shared among them for operational purposes. The stakeholders, government agencies and telecom carrier providers are investing in collaborative innovations.

The software segment is expected to augment the market during the forecast period.

The product type segment is divided into hardware, software and services. The hardware segment further includes optical DCI and packet-switching networking. The software segment further includes professional services and managed services. The software segment is expected to augment the market during the forecast period. With robust analytics, continuous validation, and root-cause detection, data center interconnect-based networking software automates the whole network lifecycle—from design to routine operations—across multivendor data centres. The use of software in DCI ensures stability and increases the efficiency of bandwidth.

The MPLS/IP segment is expected to augment the market during the forecast period.

The technology segment is divided into Ethernet DCI, optical networking, multiplexing, wavelength division and MPLS/IP. The MPLS/IP segment is expected to augment the market during the forecast period. Enterprise networks have been powered by multi-protocol label switching, a tried-and-true networking technology, for over 20 years. In contrast to conventional network protocols, MPLS routes traffic based on specified labels rather than source and destination addresses.

The share data & resources/server high-availability clusters segment is expected to augment the market during the forecast period.

The application segment is divided into share data & resources/server high-availability clusters, data & workload mobility and real-time disaster recovery & business continuity. The share data & resources/server high-availability clusters segment is expected to augment the market during the forecast period. DCI platforms exchange resources among linked data centres, allowing businesses to share data and resources according to performance, demand, or proximity.

The internet content & carrier-neutral providers segment will augment the market during the forecast period.

The end-user segment is divided into government, internet content providers and carrier-neutral providers, communication service providers and enterprises. The enterprise segment further includes healthcare, media & entertainment, banking & finance, retail & e-commerce and others. The internet content & carrier-neutral providers segment will augment the market during the forecast period. Data centres supporting interconnection between numerous providers and colocation customers are known as carrier-neutral data centres. Carrier-neutral data centres offer variety and flexibility for clients seeking service because they are not linked to any service provider.

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Market Dynamics

Driver: Rising demand for disaster recovery in organizations

Management of crucial data is one element that goes into a business’s success. Unfortunately, there will always be factors beyond their organization’s control when it comes to its own operations, and in today’s market, even a tiny bit of useless downtime can have a pronouncedly negative impact. Data center interconnect services offer rapid data recovery in emergencies, including power outages and natural disasters. A lot of business continuity and disaster recovery plans are based on active standby configurations, with DCI mostly being utilized for replication, data backup, and mirroring. Applications can be restarted, and data copied to the standby site can be retrieved within a brief outage window if the primary data centre site goes down.

Restraint: Limitations related to capacity

The dataset size can often be enormous, ranging from up to Terabytes for certain applications. Certain applications, such as social media, skyrocketing video, etc., require enormous capacity for carrying out the applications. Thus, it is becoming a challenge for most data center interconnects. Companies need help scaling up to the requirements of client organizations.

Opportunity: Increasing investment in IoT and big data

Big data technology and analytics make new digital services possible, which are frequently linked to higher performance. Businesses are shifting from generalized ideas of data and analytics to specific business issues that data can solve. Companies in the professional services sector use big data and analytics to support enhanced project management activities and 360-degree customer and client management efforts. Banks utilize BDA technology to enhance customer onboarding, automate business processes, and find and stop fraud. Banking, professional services and discrete manufacturing are the sectors now investing the most in big data and analytics solutions. Data centre interconnect is essential for big data and cloud computing data centres that handle and store enormous volumes of data.

Challenges: Data privacy issues

Many network operators are looking for new security techniques and technologies in data center interconnect software as worries over data security and privacy and the dangers and expenses of data breaches continue to rise. The concerns over data privacy issues can cause challenges for the service providers.

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Some of the major players operating in the Data Center Interconnect market are:

• Equinix, Inc.
• Ciena Corporation
• Digital Realty Trust
• Nokia
• Infinera Corporation
• Huawei Technologies Co., Ltd.
• Juniper Networks, Inc.
• ADVA Optical Networking
• Colt Technology Services Group Limited
• Fiber Mountain, Inc.
• Extreme Networks, Inc.
• Pluribus Networks
• ZTE Corporation
• Megaport
• Cisco Systems

Key Segments Cover in the Market:

By Product Type:

• Hardware

o Optical DCI
o Packet Switching Networking

• Software
• Services

o Professional Services
o Managed Services

By Technology:

• Ethernet DCI
• Optical Networking
• Multiplexing
• Wavelength Division

By Application:

• Share Data & Resources/Server High-Availability Clusters
• Data & Workload Mobility
• Real-Time Disaster Recovery & Business Continuity

By End-user:

• Government
• Internet Content Providers and Carrier Neutral Providers
• Communication Service Providers
• Enterprises

o Healthcare
o Media & Entertainment
o Banking & Finance
o Retail & E-Commerce
o Others

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, the U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America)
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

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About the report:

The market is analyzed based on value (USD Billion). All the segments have been analyzed on a global, regional, and country basis. The study includes the analysis of more than 30 countries for each part. The report analyzes driving factors, opportunities, restraints, and challenges to gain critical market insight. The study includes Porter’s five forces model, attractiveness analysis, product analysis, supply and demand analysis, competitor position grid analysis, distribution, and marketing channels analysis.

About The Brainy Insights:

The Brainy Insights is a market research company, aimed at providing actionable insights through data analytics to companies to improve their business acumen. We have a robust forecasting and estimation model to meet the clients’ objectives of high-quality output within a short span of time. We provide both customized (clients’ specific) and syndicate reports. Our repository of syndicate reports is diverse across all the categories and sub-categories across domains. Our customized solutions are tailored to meet the clients’ requirement whether they are looking to expand or planning to launch a new product in the global market.

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