Data Center Interconnect Market Expected to Reach USD 27.6 Billion by 2031 | Top Players such as - Juniper Networks, Extreme Networks and Colt Technology
Increase in adoption cloud-based solutions and the increase in the utilization of cloud storage for driving the adoption are driving the growth of the market. In addition, the cost-efficient benefits of data center interconnect solutions are fueling the growth of data center interconnect market. However, the significant upfront expenditure required to set data centers limits the growth of this market. Moreover, the escalating demands for business continuity and disaster recovery is expected to provide lucrative opportunities for market growth during the forecast period.
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The global data center interconnect market was valued at USD 8.2 billion in 2021, and is projected to reach USD 27.6 billion by 2031, growing at a CAGR of 13.1% from 2022 to 2031.
The data center interconnect market is segmented on the basis of type, application, end user and region. On the basis of type, it is segregated into hardware, software and services. On the basis of application, it is bifurcated into workload (VM) and data (storage) mobility, real-time disaster recovery and business continuity, and shared data and resources/server high-availability clusters. On the basis end user, it is classified into BFSI, IT & telecom, healthcare, media and entertainment, retail, education and other. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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Depending on the type, the data center interconnect market size is dominated by product segment in 2021 and is expected to continue this trend during the forecast period, owing to its advantages such as high-bandwidth and low-latency connectivity, network segmentation and security, reliability and predictability and compliance and regulatory requirements for various organizations such as private and public businesses, government, etc.
Based on application, real-time disaster recovery and business continuity segment dominated the data center interconnect market analysis in 2021 and is expected to maintain its dominance in the upcoming years, owing to the rise of automation and digitalization trends in various industries such as healthcare, banking and finance.
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Region wise, the data center interconnect market forecast was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to spread of 5G technologies worldwide and rise in demand for secured network service in U.S. and Canada. Moreover, the North America data center interconnect market includes a huge presence of leading data center interconnect providers and rapid expansion of the IT & telecom industry.
The key players operating in data center interconnect industry include Nokia Corporation, Ciena Corporation, Huawei Technologies Co., Ltd., Infinera Corporation, ADVA Optical Networking, Cisco Systems Inc., Extreme Networks, Inc, Fujitsu Ltd., Juniper Networks Inc., and Colt Technology Services Group Limited. Furthermore, it highlights the strategies of the key players to improve the data center interconnect industry share and sustain competition.
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● The impact of COVID-19 can be seen very clearly on foreign and domestic small 7 medium enterprises (SMEs) and multinational companies (MNCs) as they are suffering huge loses and some are even shutting down their operations.
● Presently, the demand for colocation data center space appears to be strong. Sectors such as over-the-top, video streaming, and gaming are expected to use cloud at the highest rate. There has also been aggressive growth in demand for educational access to cloud platforms.
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