New research from Reportlinker has revealed the Data Center Interconnect (DCI) market to be in good stead for the future.
The DCI market if expected to grow at a compound annual growth rate (CAGR) of 10.04 percent through to 2023, reaching USD$6.41 billion.
There are various factors driving the growth of the market, including the increasing focus on reducing high power consumption and bandwidth requirement in data centers, the growing demand for disaster recovery, data backup, and business continuity solutions, and the rapid migration to cloud-based services.
However, Reportlinker asserts the high initial investment involved with implementing the DCIs hinders the market growth.
Within the DCI market, the services segment is forecast to grow at the highest CAGR.
Professional services (consulting and integration, and training, support, and maintenance) and managed services contributed to the overall high-performance system that enables efficient processes, intelligent networks, and cross-area optimization, thus resulting in the high adoption of these services in the DCI market.
Despite this, real-time disaster recovery and business continuity application is expected to hold the largest share of the market during the forecast period.
Reportlinker affirms DCI enables data transmission between the active and backup data centers by using three interconnection modes – layer one optical transmission interconnection, layer two interconnection, and Layer three IP interconnection.
Because of this, DCI is widely deployed for the real-time disaster recovery and business continuity application.
In terms of regions, North America is expected to dominate the DCI market after holding the largest share of the DCI market in 2016 owing to the presence of major DCI vendors and the growing number of data centers in the region.
However, Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period.
The growth of the data center interconnect market in APAC is driven by the growing adoption of modern technologies, such as cloud computing and IoT, which generates a huge amount of data. To handle this data, a large number of data centers have been deployed in this region, resulting in high demands for DCIs.