The report “Data Center Interconnect Market by Type (Product, Software, Services), Application (Real-Time Disaster Recovery and Business Continuity, Workload (VM) and Data (Storage) Mobility), End User, and Region – Global Forecast to 2025″, is projected to grow from USD 7.9 billion in 2020 to USD 14.0 billion by 2025, at a CAGR of 12.1% from 2020 to 2025. Drivers such as the migration toward the cloud and the growing borderless nature of global economy and opportunities such as the anticipated deployment of 5G and proliferation of applications are expected to fuel the growth of the data center interconnect industry.
The market for managed services is expected to grow at a higher rate during the forecast period
Managed services are expected to witness an above-average growth owing to several benefits, including remote management of customers IT infrastructure and systems of end-users, typically on a proactive basis and under a subscription model. The services market is expected to grow at the highest rate during the forecast period, as services help in achieving critical targets, developing a skillset for improving the internal planning and control process, and remotely managing customers IT infrastructure and systems of end-users.
“North America held the largest share of data center interconnect market in 2019.”
North America accounted for the largest share of the data center interconnect industry in 2019. An increase in the use of data centers across various business verticals and early adoption of the latest technologies in the region is expected to drive the market in this region. Several US-based companies such as Amazon Web Services (AWS), Google, and Microsoft are increasing their investments in data center construction. The growth will be driven by the US, where data centers manage high volumes of data generated. Extensive use of optical interconnects in the data centers of the US is another driving factor for the market in this region.
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The major players in the data center interconnect market are Ciena Corporation (US), NOKIA Corporation (Finland), Huawei Technologies Co., Ltd. (China), Juniper Network Inc. (US), Infinera Corporation (US), ADAVA Optical Networking (Germany), CISCO Systems, Inc. (US), Extreme Network (US), and Fujitsu (Japan).
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