Data Center Interconnect Market, By Product (Product, Software, Services), Technology (CSPs, CNPs/ICPs, Government, Enterprises), Application (Real-Time Disaster Recovery and Business Continuity, Shared Data and Resources/Server High-Availability Clusters (Geo clustering) Consumer and Workload (VM), Data (Storage) Mobility), and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America), The global Data Center Interconnect (DCI) Market size was estimated at USD 11.31 billion in 2023 and is projected to reach USD 28.47 billion in 2030 at a CAGR of 14.1% during the forecast period 2023-2030.
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The prominent players in the Data Center Interconnect (DCI) Market are
· ADVA Optical Networking
· Ciena Corporation
· Cisco Systems (US),
· Colt Technology Services Group Limited
· Digital Realty Trust
· Equinix, Inc.
· Extreme Networks, Inc.
· Fiber Mountain, Inc.
· FUJITSU
· Huawei Technologies Co., Ltd.
· Infinera Corporation.
· Juniper Networks, Inc.
· Mega port
· Nokia and More
Data center interconnect, a term that refers to the approach used for establishing connectivity and facilitating networking between multiple data centers, is a crucial technique employed in the realm of enterprise environments with the aim of attaining various IT and business objectives. In this context, the utilization of the cutting-edge technology known as Data Center Interconnect (DCI) becomes paramount, as it leverages the power of high-speed packet-optical connectivity to seamlessly link data centers situated at varying distances, be it short, medium, or long. The significance of data center interconnect lies in its ability to foster efficient communication and collaboration between these geographically dispersed data centers, thereby enhancing overall operational efficiency and enabling the seamless exchange of critical business data and information within and across organizations.
The surge in migration towards cloud computing across the entire globe serves as one of the primary catalysts propelling the expansion of the data center interconnect market. Organizations utilize data center interconnects to facilitate various applications, including business continuity and disaster recovery, contributing to the heightened demand for cloud infrastructure in order to achieve enhanced flexibility and agility, which in turn accelerates the growth of this market. Furthermore, the increasing emphasis on efficiency and cost reduction within data centers, coupled with the burgeoning prevalence of cloud computing and the recent surge in consumption of over-the-top (OTT) services due to nationwide lockdown measures, exert a significant influence on the market. Moreover, the advent of industry 4.0, rapid advancements in infrastructure, the rising trend of digitization, and the expanding scope of end-use industries all contribute positively to the data center interconnect market.
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With the advent of web-based applications, the architecture of the application was rendered so effortless that multiple applications could be easily hosted on a shared server. This transpired without any noteworthy compromises on performance. Nevertheless, as the number of users and the intricacy of applications grew, shared hosting became ineffectual. Businesses consequently shifted their applications to dedicated VPS hosting solutions, which were not sustainable in the long run and began to disappoint users.
Regional Analysis
Asia Pacific to Dominate the Market
· The market in the Asia-Pacific (APAC) region is anticipated to demonstrate the highest compound annual growth rate (CAGR) over the projected period.
· This remarkable growth potential is attributed to the abundance of emerging economies in the APAC region, including China, Japan, South Korea, and several others.
Business proprietors were left with no alternative but to procure an entire dedicated server. The initial hurdle they encountered was the migration of the application to the new VPS server. However, businesses swiftly recognized that the exorbitant cost of the server was not justifiable. A substantial portion of server resources were frequently left idle. Since businesses were obligated to pay for the entire server irrespective of resource utilization, the dedicated server proved to be an erroneous business decision. This compelled businesses to embrace cloud-based solutions.
Key Findings
· On the basis of product, the optical DCI product category is projected to experience significant growth during the forecast period due to the rising demand for such products. This increased demand can be attributed to the various advantages that optical DCI products offer, including enhanced capacity and reduced power consumption for high-performance DCI. Furthermore, these products play a crucial role in meeting the bandwidth requirements of highly demanding cloud applications and data services, further contributing to their popularity in the market. In comparison to electrical transmission systems, optical DCI transmission technologies have the ability to provide higher data rates over longer distances.
· On the basis of services, the anticipated surge in demand for services can be attributed to a multitude of advantages that they offer to organizations. These benefits encompass the ability to accomplish critical objectives and enhance their skillset. By doing so, companies can effectively improve their internal planning and control processes. Additionally, services enable businesses to remotely manage the IT infrastructure and systems of their customers, who are end users. The market for managed services is projected to experience substantial growth in the coming years. This growth can be primarily attributed to the numerous advantages that these services provide.
· The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. The market in the Asia-Pacific (APAC) region is anticipated to demonstrate the highest compound annual growth rate (CAGR) over the projected period.
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