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The Data Center Interconnect is a technology that uses high-speed optical communication to connect two or more data centers over short, medium, or long distances. Data centers are not accessible in isolated areas; these data centers need to communicate with each other simultaneously to submit information, data, or material, and provide back-up in the event of system failure. All these criteria were fulfilled by the platform for data center interconnect. In order to bring data and users to precise cloud services and applications, this interface allows servers and routers to communicate with each other. The advantages of data center interconnect include the reduction of power and space requirements, the size of transport capability, quality assurance, disaster recovery, reduction of latency, global networking, scalability, versatility, and operational simplicity.
With the rapid growth of big data, cloud computing, and mobile Internet, traffic between data centers is on the rise. Numerous organizations are choosing to develop their own data centers; making data centers a global hotspot for investment. Businesses face the challenges of high DCI costs and challenging management of multiple data centers as the size of data center development continues to expand year by year. Ultra-broadband, streamlined, and smart DCI networks are desperately needed. This is an important factor projected to drive the growth of the global market for interconnected platform data centers. Furthermore, various advantages provided by this technology, such as high-speed data transfer, power efficiency, and smooth connectivity that make it easy for data centers to perform tasks, are another factor that is projected to drive the growth of the market for the global data center to interconnect platforms.
Growth in the deployment of a 5G network
As 5 G technology is on the rise in the data center interconnect market, it is expected to come with massive, fast, and denser data streams that would require more data center capacity. 5 G, which includes a seamless network and links all communications and devices, is expected to be allowed, making data transmission, storage, and processing very simple. In this way, with the implementation of 5 G, companies foresee a massive opportunity in the data center interconnect sector.
Demand for a strong communication network has also risen with the growing urban population. Urban centers, which have increased demand for data centers, are evolving into business hubs. Hyperscalers such as Google and Facebook are now expanding to store and process heavy datasets in their data centers. In addition, the growing consumer connectivity demand has pushed providers of colocation data centers and communication service providers (CSPs) to expand their number of data centers. This rising demand for connectivity would increase the demand for interconnection solutions for data centers, accelerating market growth over the forecast period.
The main challenge, especially for small and medium-sized enterprises, is the costs associated with data center interconnect. As a new data center, construction and maintenance require a high level of investment. In addition, the distance between data centers also plays a key role as it can reduce the efficiency of the data center’s operation and therefore hinder the growth of the data center interconnected market. The risk of data loss is another factor which is expected to hamper the growth of the global market for data center interconnects.
With the increase in demand for wireless & touch interactivity, video, and demographic analytics, coupled with the presence of top organizations in the region, the North American region dominates the global data center interconnect market. In comparison, the European and Asian-Pacific regions are projected to show a significant growth rate due to growth over the forecast period in the adoption of optical interconnections in data centers and metro & long-haul networks.
- North America (U.S. & Canada)
- Europe (Germany, United Kingdom, France, Italy, Spain, Russia, and Rest of Europe)
- Asia Pacific (China, India, Japan, South Korea, Indonesia, Taiwan, Australia, New Zealand, and Rest of Asia Pacific)
- Latin America (Brazil, Mexico, and Rest of Latin America)
- Middle East & Africa (GCC (Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman), North Africa, South Africa and Rest of Middle East & Africa
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Timeline Considered for Analysis:
- 2019: Base Year
- 2020: Estimated Year
- 2020 to 2025: Forecast Period
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