Research Nester’s recent market research analysis on “Data Center Interconnect Market: Global Demand Analysis & Opportunity Outlook 2036” delivers a detailed competitors analysis and a detailed overview of the global data center interconnect market in terms of market segmentation by type, application, end-user, and by region.
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Increased Advancements by Data Center Providers to Promote Global Market Share of Data Center Interconnect
Data center providers are improving their cloud and co-location offerings, which is one of the major factors propelling the growth of the market. The public, financial, OTT, and ISP sectors will all be developing use cases for DCI networks as a result of the expansion and dispersion of data centers, increased fiber consumption, and affordable pluggable modules. Product innovation is a crucial way for market players to set themselves apart. Vendors like Ciena, Infinera, Huawei, and Nokia have been pushing the limits of contemporary optics since the beginning of 2020. For instance, in 2022, one of the top digital network integrators in the country, STL unveiled India's first multicore fiber and cable. This innovative breakthrough will transform India's optical connection environment. This has been conceptualized and developed in-house with leading interdisciplinary R&D specialists at STL's Centre of Excellence in Maharashtra. Using space division multiplexing, STL's Multiverse increases transmission capacity per fiber by 4X while maintaining the same diameter.
Some of the major growth factors and challenges that are associated with the growth of the global data center interconnect market are:
Growth Drivers:
• Increase in the Number of Data Centers
• Surge in the Global Demand for 5G Network
Challenges:
Several factors must be considered when preparing for the construction of the data center. Some of these aspects are engineering, authorizations and approvals, power systems, insulated generators, conduits or cables for electrical equipment, data center lighting, illumination protection, air quality control, fire suppression, etc. These expenses may soon be compensated for by capital investments. Consequently, the growth of the data center interconnect market may be hindered by this factor.
Some other factors such as data privacy issues and capacity limitations may impede the growth of the data center interconnect market.
By end-user, the global Data Center Interconnect market is segmented into communication service providers, internet content providers/ carrier-neutral providers, governments, and enterprises. The internet content providers/carrier neutral providers segment is expected to hold a share of 32% during the forecast period. Several of the biggest ICPs, like Microsoft, Google, and Facebook (Meta), are producing enormous amounts of internet traffic. For this reason, to connect their data centers, many ICPs are also choosing to construct fiber networks. Several carrier-neutral colocation facilities are making significant investments in DCI technology since flexibility is crucial for these types of facilities. Therefore, this factor is accelerating the growth of the segment.
By region, the Middle East & Africa data center interconnect market is anticipated to hold a share of 15% by the end of 2036. Major international cloud service providers are present in the Middle East and Africa (MENA) region. These providers include Amazon Web Services, Tencent, Microsoft, Google, Alibaba, Oracle, and Huawei Technologies. Microsoft, for example, plans to set up a cloud region in Saudi Arabia. Operators in several Middle Eastern and African nations are encouraged to build data centers by the availability of industrial parks, land, and government assistance. With the introduction of new submarines, the connectivity of the Middle East and Africa data center interconnect market is continuously expanding. It is anticipated that these factors will bolster the market growth in the region.
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