Story image

APAC 's data center interconnect market the fastest growing in the world

18 Aug 2017

​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.

Dell EMC’s six server market trends
As the evolution of cloud-based computing continues, it is important to know what’s ahead to stay ahead of the market.
Huawei FusionServer Pro built for 'intelligent transformation'
The next generation X86 servers draw on an intelligent acceleration engine, an intelligent management ending, and intelligent data center solutions for ‘diverse’ scenarios as transformation shifts from digital to intelligent.
HFW deploys digital edge strategy on Equinix
Equinix announced that global law firm HFW has collaborated with Equinix to build out its digital edge in key markets including Dubai, London, Hong Kong, Melbourne and Paris.
SEAX Singapore hosts new Epsilon PoP in Kuala Lumpur
The partnership will allow Epsilon customers and partners to onnect at the new PoP through Epsilon’s Infiny by Epsilon Software-Defined Networking (SDN) platform.
Teradata expands as-a-service offerings for Advantage platform
Data intelligence company Teradata has announced three new cloud and on-premise solutions that are now integrated into its Teradata Vantage platform.
AirTrunk raises $450m: Singapore hyperscale data center on the cards
Australian hyperscale data center specialist AirTrunk has raised SG$450 million in order to finance its expansion across Asia Pacific.
Cisco leads Australian network infrastructure market - IDC
Despite a drop in router and wireless LAN, ethernet switches are quickly gaining popularity, according to the latest statistics from IDC.
Hawaiki expands US point-of-presence to Seattle
The Hawaiki submarine cable that connects Australia, New Zealand, the Pacific Islands and Hawaii to the United States now has a new point of presence in Seattle.