Data Center Interconnect Market

The data center interconnect market is projected to grow from USD 8.6 billion in 2021 and is projected to reach USD 17.0 billion by 2026; it is expected to grow at a CAGR of 14.5 % from 2021 to 2026.

The rising migration to cloud-based solutions, growing borderless nature of global economy coupled with surging consumption of OTT services due to nationwide lockdown imposed on account of COVID-19 is expected to fuel the growth of the data centre interconnect industry.

Key strategies adopted by the players in the data center interconnect ecosystem to enhance their product portfolios, increase their market share and expand their presence in the market mainly include new product launches and partnerships and acquisitions.

Major Data Center Interconnect Suppliers Include: 

• Ciena Corporation (US)
• Nokia Corporation (Finland)
• Huawei Technologies (China)
• Juniper Networks, Inc. (US)
• Infinera Corporation (US)
• ADVA Optical Networking SE (Germany)
• Cisco Systems (US)
• Extreme Networks, Inc. (US)
• Fujitsu Ltd (Japan)
• Colt Technology Services Group Limited (UK)
• Eqiunix (US).

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For instance, in November 2021, Infinera Corporation (US) signed an agreement with Saudi Telecom Company (STC) to deploy Infinera’s industry-leading ICE6 800G-capable technology on STC’s submarine cable networks enabling new regional and international connectivity services and infrastructure development including the development of cognitive cities. This project will expand STC’s international network, using Infinera’s ICE6 800G-capable technology and GX Series Compact Modular Platform. These development projects will increase the capacity of the international network by 10-fold based on initial design capacity.

In May 2020, Ciena Corporation (US) partnered with Deutsche Telekom Global Carrier (Germany). The international wholesale unit of Deutsche Telekom, recently turned up the first European 800G network connecting its data centers in Vienna, Austria. The technology provided in cooperation with Ciena Corporation will satisfy customers’ demands for higher speeds and efficiency, which are especially important for applications such as IoT, cloud computing and video.

Ciena Corporation is among the major companies in the data center interconnect market. The company significantly invests in R&D, which has improved its product portfolio and position in the DCI market. The company’s focus currently lies in accelerating the Blue Planet’s software strategy of providing closed-loop, intelligent automation solutions that help communications service providers improve operational agility while delivering a highly differentiated customer experience. Service providers use Ciena’s Blue Planet Packet DCI solution, powered by the Blue Planet MDSO, to intelligently automate operations and end-to-d service fulfillment across multi-vendor domains. The company’s strategy is focused on innovation leadership, diversification and global scale. The company delivered a strong financial performance in 2020 by resorting to both organic as well as inorganic growth strategies. For example, recently, Ciena Corporation acquired the privately-held Centina, a leading provider of service assurance analytics and network performance management solutions. The company also makes significant investments in R&D, which accounted for nearly 15% of its revenue in 2020, to keep abreast of the innovations in the field and incorporate technological innovations in their offerings.

Huawei Technologies is a leading global provider of information and communications technology (ICT) infrastructure and smart devices. Huawei Technologies holds a strong portfolio of products and solutions in the data center interconnect market. The company’s broad range of DCI products and solutions are used across diverse verticals such as government, financial institutions, healthcare IT and technology providers. Huawei’s next-generation DCI transmission solution helps combat increasing bandwidth needs as a result of the growing cloudification of employees. Huawei’s data center infrastructure has been adopted by more than 12,000 customers worldwide in industries including government, finance, energy, and transportation, helping customers upgrade to intelligent business systems. Besides its headquarters in China, the company has 66 offices in more than 60 countries. Huawei has recently been focusing on the limitations such as traffic migration and bandwidth malfunctioning faced by data centers which operate on cloud computing and big data. It places paramount importance on next-generation networks and continuously accelerates technological innovation. Huawei Technologies focuses on both organic and inorganic growth strategies to expand its market presence. The company considerably relies on new product developments and product launches to consolidate its market share in existing operational markets. To expand its presence in high-growth potential markets, Huawei Technologies undertakes partnership and collaboration exercises with key local players in the target market. This helps the company penetrate the market where it has a limited presence. The company makes significant investments in R&D. It invests more than 10% of its sales revenue in R&D every year.

Related Reports:

Data Center Interconnect Market by Type (Products, Software, Services), Application (Real-Time Disaster Recovery and Business Continuity, Workload (VM) and Data (Storage) Mobility), End User and Region - Global Forecast to 2026

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