Data Center Interconnect Market: A Realm of Bazillion Opportunities

July 3, 2024
The data center interconnect market is expected to hit $26 billion by 2036. Understand DCI and discover the factors impacting this market's growth.

The internet is reaching the hinterland of the world and has become an integral part of development. It has been estimated that there are almost 5.3 billion internet users present in the world. The need for the internet is expected to rise exponentially in the future as a result of widespread usage of smartphones, IoT devices, and various other technological upgrades. Recent data has revealed that almost 97.1% of businesses are using the Internet for various purposes such as marketing, communication, sales, etc. The below-written data shows the ubiquitous presence of the internet:

-         In the year 2019, almost 86.1% of healthcare organization were using IoT

-         Almost 70.1% of hotel executives are willing to use IoT proactively.

-         In the United States, almost 35.2% of the manufacturers collect and use data generated from the smart sensors

-         In India, almost 34.1% of schools in India have internet access

Hence, the internet has reached and been used in almost every domain. As the internet user global base is growing daily internet usage is also rising exponentially. This simply means more data will be produced, used, and stored. In the year 2023, almost 120.1 zettabytes of data were generated. It is estimated that by the end of the year 2024, the figure will increase by almost 150.1%.

In order to manage and store this humongous amount of data centers are being made. Data centers play a crucial role in storing and managing tremendous amounts of data on day-to-day basis. By the beginning of the year 2024, it was calculated that almost 8100 data centers in the world were established. Furthermore, with the arrival of the latest technological trends, technicians have started interconnecting multiple data centers. In this blog, we will discuss various aspects related to the DCI (data center interconnect) technology and market.

DCI- Definition

The data center interconnects or the DCI technology is used to link 2 or more data centers. The DCI is a networking solution and technology that enables seamless communication and data exchange.

The DCI renders numerous key benefits that are pivotal for modern businesses and organizations.  Most of the businesses today are relying on data-intensive operations. Some of the common benefits of DCI, owing to which various businesses are opting for it:

·      Enhanced reliability and performance

The data center interconnects offer reliable and faster data transfer between data centers. It ensures high-speed connectivity, eradicates latency, and enhances networked applications' overall performance. 

It is projected that ideally, a commercial high-speed internet connection of almost 3 Mbps of upload speed and 25 Mbps of download speed is required to conduct business operations. DCI technology eradicates the round trip latency and increases the throughput.

·      Business continuity and disaster recovery

Businesses are opting for DCI technology as data loss has become a serious predicament for businesses. Almost, 94.1% of the companies have witnessed catastrophic loss of data that did not even survived.

With the help of interconnecting various data centers, entrepreneurs are able to replicate data. The replication of data and applications can be done across various geographical locations. It also ensures that in a circumstance of system failure or disaster at one site, crucial operations would go to another site. 

·      Robust Security

In the year 2021, almost 70.5% of small businesses reported cyber-attack. Also, by the year 2023, almost USD 11 million is anticipated to be the average cost of the ransomware attack.

Advanced secure and encrypted transmission protocols in Data center architecture ensure that the data remains secure during the transit.

·      Cost efficiency

 It was calculated that by using Data Center Interconnected techniques, monthly cloud costs can be eradicated by almost 27.2%. Organizations can optimize resource utilization and lessen the costs. Other than this, the DCI can eradicate the requirement for physical infrastructure by permitting organizations to leverage shared resources.

Data Center Interconnect Market Analysis

Per Research Nester, the data center interconnect market size is projected to garner USD 26 billion by the year 2036. The market thrives at a CAGR of almost 14% during the forecasted period which is 2024-2036. Also, the market size reached almost USD 11 billion in the year 2023. The growth of the market can be attributed to the factors such as:

-         Exponential growth of data due to digital transformation

-         DCI services provide flexibility and scalability

-         Expansion of edge computing infrastructure

-         Rising adoption of hybrid and multi-cloud strategies

-         Growing number of Data centers globally

Some of the prominent companies in the domain are Nokia Corporation, Ciena Corporation, Huawei Technologies, Juniper Networks Inc., Infinera Corporation, Cisco Systems, ADVA Optical Networking SE, Equinic Inc., and Evoque Data Center Solutions.

Furthermore, the North American region is expected to garner significant market share of almost 35% in the year 2023. The growth of the market in the region can be attributed to the rising trend of acquiring DCI portfolios. Various companies are acquiring DCI solutions to enhance service offerings and meet the rising demand for high-speed connections.

Wrapping up

The above data illustrates that the market offers lucrative opportunities for the growth of entrepreneurs. However, before delving into the competition, the market leaders are required to understand the intricacies of the market. Factors such as regional analysis, market constraints, latest trends, growth driving factors, etc. are crucial to understanding to make sound business decisions. Furthermore, the exhaustive market research reports are helpful in navigating the way to success. 


About the Author

Shalini Nagar

Shalini Nagar, a content associate brings a wealth of writing experience to the table through her work. She has gained proficiency in areas such as crafting website content, writing press releases and articles, creating engaging blog posts, editing work conducting research, and designing infographics. These diverse skills have made her a rounded writer and a valuable member of the team, at Research Nester Pvt. Ltd. Her experience has honed her attention to detail, and provided her with a deep understanding of different writing formats. In her leisure time, she enjoys browsing the internet immersing herself in books and exploring her creativity through cooking endeavours.

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