Data Center Interconnect Market Statistics: 2027

Data centers interconnect develops a network of two or more different data centers aiming to achieve business or IT objectives. This interconnectivity enables them to work together, pass workloads among one another, and share knowledge as well as resources. 

Data center interconnection provides access to various internet service providers, which are crucial if a customer is located at a different location. By this, businesses are able to exhibit strong presence both domestically and internationally to expand their customer base and business operations. Some large organizations use data center interconnect to connect their own data centers with their extended infrastructure, while other connect to partners or cloud providers, or data center operators to enable simple data, resource sharing, and handle disaster recovery needs. 

Market scope and structure analysis:

COVID-19 scenario Analysis:

• The impact of COVID-19 can be seen very clearly on foreign and domestic small 7 medium enterprises (SMEs) and multinational companies (MNCs) as they are suffering huge loses and some are even shutting down there operations. 
• Presently, the demand for colocation data center space appears to be strong. Sectors such as over-the-top, video streaming, and gaming are expected to use cloud at the highest rate. There has also been aggressive growth in demand for educational access to cloud platforms. Thus, COVID-19 has led to an explosive growth in cloud computing, which is expected to increase the size and economic impact of data center interconnect investments made by the large enterprises of data center interconnect.
• However, the data center industry would be adversely affected by COVID-19, in terms of supply of electronic component, which is required for network infrastructure. The industry is experiencing supply shortages or halted shipments of data center equipment around the globe as workforces are reduced and non-essential businesses stopped operations. The impact is majorly seen in the Asia-Pacific region, where majority of data center hardware components are produced and then rippled out to North America and Europe. COVID-19 has resulted into slowdown in production and unavailability of certain components, which has extended release time of new components. 
• Further, in the long run, this crisis is expected to cause many networks to bolster their colocation deployments as they plan for more robust service delivery in a world increasingly reliant on network connectedness.

Top impacting factors: Market Scenario Analysis, Trends, Drivers and Impact Analysis

Growth in awareness about numerous benefits of data center interconnect such as easy access, better convenience, strong encrypted data, interconnection with different data segments, and others majorly drive the growth of the data center interconnection market. However, huge investments for configuration restrain the data center interconnect market growth. Furthermore, factors such as growth in deployment of 5G technology provide major opportunities for the market. 

Growth in deployment of 5G network : 

As the 5G technology is about to rise in the data center interconnect market, it is expected to come with huge, fast, and denser streams of data, which would demand for more data center capacity. It is expected to enable 5G, which requires seamless network and connects every interaction and devices, making data transferring, storage, and proceeding quite easy. In this way, organizations are expecting a huge opportunity in the data center interconnect data center interconnect market with the deployment of 5G. 

High investments required in data center interconnect: 

The major challenge, especially for small & medium enterprises is the cost associated with data center interconnect services. As a new data center requires high investment for building and maintenance. In addition, distance between data center also plays a major role as it may reduce efficiency of working of a data center, hence it hinders growth of the data center interconnect market. 

Key Segments covered: 

Key benefits of the report:

• This study presents analytical depiction of the global data center interconnect industry along with the current trends and future estimations to determine the imminent investment pockets.
• The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the data center interconnect market share.
• The current market is quantitatively analyzed from 2019 to 2027 to highlight the data center interconnect market growth scenario.
• Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market. 
• The report provides detailed data center interconnect market analysis based on competitive intensity and how the competition will take shape in coming years.