PUBLISHER: The Business Research Company | PRODUCT CODE: 1455209
PUBLISHER: The Business Research Company | PRODUCT CODE: 1455209
Data center interconnect (DCI) pertains to a technology that establishes connections among multiple data centers spanning varying distances, ranging from short to long distances, utilizing high-speed packet-optical connectivity. DCI links offer enhanced encryption to ensure secure information sharing, enable companies to enforce quality of service (QoS) for optimal performance, and facilitate the distribution of workloads across different connection types.
The primary categories of data center interconnect (DCI) encompass products, software, and services. DCI products, including packet-switching networking, are instrumental in transferring small data segments across diverse networks. These products find applications in various areas such as disaster recovery and business continuity, shared data and resources, data (storage) mobility, among others. End users, including communication service providers, internet content providers, governments, and others, utilize these products for their specific needs.
The data center interconnect (dci) market research report is one of a series of new reports from The Business Research Company that provides data center interconnect (dci) market statistics, including data center interconnect (dci) industry global market size, regional shares, competitors with data center interconnect (dci) market share, detailed data center interconnect (dci) market segments, market trends, and opportunities, and any further data you may need to thrive in the data center interconnect (dci) industry. This data center interconnect (dci) market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The data center interconnect (dci) market size has grown rapidly in recent years. It will grow from $11.73 billion in 2023 to $13.47 billion in 2024 at a compound annual growth rate (CAGR) of 14.8%. The growth observed in the historical period can be attributed to the rise of big data, increasing demands for document management, automation in business processes, regulatory compliance requirements, and the expansion of e-commerce activities.
The data center interconnect (dci) market size is expected to see rapid growth in the next few years. It will grow to $23.08 billion in 2028 at a compound annual growth rate (CAGR) of 14.4%. The anticipated growth in the forecast period can be attributed to the integration of AI and machine learning, real-time data extraction, handling of unstructured data, cross-platform compatibility, and customization tailored for industry-specific needs. Prominent trends expected in the forecast period involve heightened digitization, advancements in OCR (Optical Character Recognition) technology, increased automation through AI and machine learning, the prevalence of cloud-based solutions, and the integration of natural language processing (NLP).
The upward trend in the number of data centers is anticipated to drive the growth of the Data Center Interconnect (DCI) market in the future. A data center serves as a dedicated facility designed to house IT infrastructure, support application deployment, and store data. DCI technology facilitates the connection of multiple data centers, enabling the pooling and sharing of resources. In January 2022, the Campfil Group reported that the United States had 2,751 data centers in 2022. Additionally, there were 484 data centers in Germany, 458 in the UK, 447 in China, and 324 in Canada. Consequently, the increasing prevalence of data centers is a key driver for the Data Center Interconnect (DCI) market.
The expansion of digitization is expected to fuel the growth of the Data Center Interconnect (DCI) market. Digitization involves converting analog information into digital format, using discrete numerical values to represent data, media, or objects. DCI plays a crucial role in ensuring seamless and secure communication between geographically dispersed data centers, facilitating efficient data exchange, scalability, and enhanced performance for interconnected digital infrastructure. According to Augusta Free Press, global digital transformation spending reached $1.85 trillion in December 2022, marking a 16% increase from the previous year. Moreover, StockApps projects a 57% increase in global digital transformation spending by 2026. Thus, the ongoing digitization efforts are a significant factor driving the growth of the Data Center Interconnect (DCI) market.
The limited availability of skilled professionals is anticipated to hinder the growth of the Data Center Interconnect (DCI) market. A shortage of skilled professionals can impact the effective implementation, maintenance, and optimization of interconnected data centers, leading to operational inefficiencies and hindering the essential seamless scalability for sustained market expansion. Advantis Global reported a potential global human talent shortage of over 85 million people by 2030, equating to about $8.5 trillion in unrealized annual revenues. Additionally, a report from ManpowerGroup indicated that 77% of global businesses faced challenges in finding the required skilled talent. Therefore, the scarcity of skilled professionals is a constraint on the growth of the Data Center Interconnect (DCI) market.
Major companies in the Data Center Interconnect (DCI) market are focusing on developing advanced products such as Global Data Center Interconnect (GDCI) to address complexity and extend their global market reach. GDCI involves technology that links multiple data centers to share resources and facilitate the transit of critical assets over various distances using high-speed packet-optical connectivity. NTT Ltd., a UK-based technology services company, launched GDCI in June 2021, offering secure connections between NTT's global data centers and major cloud providers. This network service is built on advanced software-defined network technology, allowing customers to link up with multiple cloud providers across different regions through a single port.
In March 2021, Cisco Systems Inc., a US-based networking-related products manufacturer, acquired Acacia Communications Inc. for $4.5 billion. This acquisition aligns with Cisco Systems Inc.'s 'Internet for the Future' strategy, aiming to support Acacia's global customer base seeking coherent optics and data center modules. Acacia Communications Inc. is a US-based provider of high-speed optical interconnect solutions.
Major companies operating in the data center interconnect (dci) market report are Nippon Telegraph and Telephone Corporation, Huawei Technologies Co. Ltd., Cisco Systems Inc., Fujitsu Limited, Nokia Corporation, ZTE Corporation, Equinix Inc., Juniper Networks Inc., Digital Realty Trust Inc., Arista Networks Inc., Ciena Corporation, Microsemi Corporation, Infinera Corporation, Extreme Networks Inc., Colt Technology Services Group Limited, ADVA Optical Networking SE, Cyxtera Technologies, Reichle and DeMassari AG, CoreSite Realty Corporation, Flexential Corp., Ekinops SA, Megaport Limited, Interxion Holding NV, Cologix Inc., Evoque Data Center Solutions LLC, Innovium Inc., Pluribus Networks, XKL LLC, Fiber Mountain Inc., Ranovus Inc.
North America was the largest region in the data center interconnect (DCI) market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center interconnect (dci) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the data center interconnect (DCI) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The data center interconnect (DCI) market includes revenues earned by entities by providing services such as professional services and managed services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included. The data center interconnect (DCI) market consists of sales of products such as packet-switching networking and optical DCI. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Data Center Interconnect (DCI) Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on data center interconnect (dci) market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for data center interconnect (dci) ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The data center interconnect (dci) market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.