Data Center Interconnect Market to Grow at CAGR of 16.03% through 2028 – Rising Demand for Disaster Recovery and Data Backup Services Propel Growth, Says The Brainy Insights


The increased demand from vertical industries such as retail, healthcare, banking and manufacturing will provide huge opportunity to the data center interconnect market. Increasing numbers of new data centers, joint initiatives conducted by many regional governments and industry players and technical developments are projected to provide immense opportunities to the market in the years ahead. The North America region emerged as the largest market for the data center interconnect, with a 34.2% share of market revenue in 2020.

Newark, April 05, 2023 (GLOBE NEWSWIRE) — As per the report published by The Brainy Insights,the global data center interconnect market is projected to grow from USD 5.08 billion in 2020 to USD 17.37 billion by 2028, at a CAGR of 16.03% over the forecast period 2021-2028. Asia Pacific is anticipated to grow at the highest CAGR over the forecast period. Increasing adoption of optical interconnections in data centers and metro and long-haul networks are the key drivers for this region’s growth. Digital technology and cloud computing are increasingly transforming the communications landscape of enterprises across China and driving the need for more scalable, flexible and effective DCI services.

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This information is provided by The Brainy Insights, in its report titled, “Data center interconnect Market byType (Product, Services and Software), Application (Workload (VM) and Data (Storage) Mobility, Shared Data and Resources/Server High-Availability Clusters, Real-Time Disaster Recovery and Business Continuity), End-User, Regions, Global Industry Analysis, Share, Growth, Trends, and Forecast 2021 to 2028.”

The data center interconnect market refers to the networking technologies and services used to connect and facilitate communication between data centers. With the growing demand for data storage and processing, as well as the increasing adoption of cloud computing, data center interconnect has become a critical component of the IT infrastructure for many businesses. The increasing demand for high-speed data transfer and the need for seamless connectivity between geographically dispersed data centers are the key factors driving this growth.

Key players in the global data center interconnectmarket are ADAVA Optical Networking, Ciena Corporation, CISCO Systems, Inc., Colt Technology Services Group Limited, Digital Realty Trust, Equinix, Inc., Extreme Network, Fujitsu, Huawei Technologies Co., Ltd., Infinera Corporation, Juniper Network Inc., Megaport, NOKIA Corporation, Pluribus Networks and RANOVUS Inc. among others. The market growth is fuelled by a number of factors, including growing emphasis on reducing high power usage and data center bandwidth requirements; increasing demand for disaster recovery, data backup, and business continuity solution; and accelerated shift to cloud based services.

Get additional highlights on the growth strategies adopted by vendors and their product offerings:

The type segment is divided into product, software and services. The services segment is anticipated to grow at the highest CAGR of around 18.05% over the forecast period. This is because the DCI-related services such as managed services and professional services (integration and consulting, support, training, and maintenance) have resulted in the overall high-performance system allowing efficient processes, cross-area optimization, and intelligent networks contributing to robust DCI market adoption of these services. The application segment includes real-time disaster recovery and business continuity, shared data and resources/server high-availability clusters and workload (VM) and data (storage) mobility. Real-time disaster recovery and business continuity application held the largest market share of around 38.7% in 2020. DCI allows data transfer between backup and active data centers utilizing 3 interconnection modes: layer 3 IP interconnection, layer 2 interconnection and layer 1 optical transmission interconnection. Therefore DCI is commonly used for applications for the real-time recovery of disasters and for business continuity. The end-user segment includes communication service providers, government, carrier neutral providers/internet content providers and enterprises. The enterprises segment is anticipated to grow at the highest CAGR of around 18.5% over the forecast period. Adoption of bring-your-own-application, bring-your-own-device, increased employee mobility and the introduction of big data impact potential demands and corporate DCI solutions requirements. These involve high-performance solutions, secure optical WDM solutions, and low latency solutions.

Big data, cloud computing and compelling economics of virtualization boost the global data center interconnect market. The growing need for disaster recovery and data backup are the factors which are projected to boost the growth of the data center interconnect market significantly. On the other hand, large initial investment is likely to curb the growth for data center interconnect market.

Report Scope & Segmentation:

Report Coverage Details
Forecast Period 2021-2028
Forecast CAGR 16.03%
2028 Value Projection USD 17.37 Billion
Base Year 2020
Data Center Interconnect Market Size in 2020 USD 5.08 Billion
Historical Data 2018-2029
No. of Pages 230
Segments Covered Type, Application, End-User, Regions
Data Center Interconnect Market Growth Drivers Financial services digitization
Exponential rise in video and OTT traffic

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