Data center interconnect market to reach $17 billion by 2026
The data center interconnect market is projected to grow from $8.6 billion in 2021 and is projected to reach $17 billion by 2026; it is expected to grow at a CAGR of 14.5 % from 2021 to 2026, according to ResearchAndMarkets.
The rising migration to cloud-based solutions, growing borderless nature of global economy coupled with surging consumption of OTT services due to nationwide lockdown imposed on account of COVID-19 is expected to fuel the growth of the data center interconnect industry. However, high initial investments required in setting up data centers is a prominent factor limiting the growth of the data center interconnect market.
Shared data and resources/server high-availability clusters app market to grow the most
The shared data and resources/server high-availability clusters is expected to exhibit highest growth during the forecast period. Shared data and resources/server high-availability clusters detect hardware/software faults and instantly provide a path to the application on the different system without needing administrative intervention.
The need for the deployment of DCI for the shared data and resources/server high-availability clusters application is increasing due to the benefit it provides for the security of workloads over globally distributed data centers.
Market for products type segment to dominate the market
The DCI market for products type held the largest market in the year 2020 and is expected to witness a surge in the coming years due to benefits offered by these products which include enhanced capacity and lower power consumption which is extremely crucial in today’s age. These products help meet the bandwidth needs of the most demanding cloud applications and data services, thus leading to their high demand.
Data center interconnect market for CSP’s to hold the second-largest share by 2021
The data center interconnect market for communication service providers is expected to account for the second-largest share by 2021. The communication service providers held a significant share of the global DCI market by end-user in 2020 and is expected to retain to hold a significant share throughout the forecast period.
DCI solutions are widely being deployed by the communication service providers to meet the increased bandwidth requirements and facilitate seamless service delivery by interconnecting their data centers.
Europe to hold a significant share of the data center interconnect market
Europe is expected to hold a significantly large share for data center interconnect market during the forecast period. Europe has a large selection of colocation data centers and service providers. The European market has various financial companies such as ING, AXA, and Allianz that generate a large amount of data; hence, the highest density of data centers is found in cities such as Frankfurt (Germany), Amsterdam (Netherlands), London (UK), and Paris (France).
The major economies in the region, such as the U.K., Germany, France, and other European nations, are increasingly investing in DCI solutions. The European DCI market is expected to witness significant growth opportunities, as the major players in the region are focusing on expanding their presence in various verticals.