Data Center Interconnect Market

Ciena Corporation (US) and Huawei Technologies Co., Ltd. (China) are the Top 2 Players in the Data Center Interconnect Market

The growth of the Data Center Interconnect (DCI) market is driven by various factors, such as increasing focus on high power consumption and bandwidth requirements in data centers; growing demand for disaster recovery, data backup, and business continuity solutions; and rapid migration to cloud-based services.

The data center interconnect market was valued at USD 3.61 Billion in 2017 and is expected to reach USD 6.41 Billion by 2023, at a Compound Annual Growth Rate (CAGR) of 10.04% during the forecast period. The market is further driven by an increase in the number of data centers across the regions. The market in Asia Pacific (APAC) is expected to grow at the highest CAGR during the forecast period. North America is one of the top contributors for this market and is expected to grow due to the presence of major players in the region.

Some of the major companies operating in the global data center interconnect market are Ciena Corporation (US), Nokia Corporation (Finland), Huawei Technologies Co., Ltd. (China), Juniper Networks, Inc. (US), Cisco Systems, Inc. (US), Extreme Networks, Inc. (US), Fujitsu Ltd. (Japan), Infinera Corporation (US), and ADVA Optical Networking SE (Germany).

Top 2 players in the DCI market:

Ciena Corporation held the leading position in the global DCI market, in 2016. Ciena Corporation is a network specialist focused on providing communications networking solutions that enable a wide range of network operators to adopt next-generation architectures. The company provides equipment, software, and services that support the transport; switching; aggregation; service delivery; and management of voice, video, and data traffic on communications networks. Ciena broadened its portfolio by focusing on high-growth applications for products, including metro networking, DCI, and submarine networks, as well as by integrating the Blue Planet software platform into its business. In 2016, the company completed the strategic acquisition of the high-speed photonics components business of TeraXion, which provides greater control over important component technologies used in business and helps accelerate the further development of company’s coherent packet-optical solutions.

Huawei Technologies Co., Ltd. has established a competitive ICT portfolio of end-to-end solutions in telecom and enterprise networks, devices, and cloud technology and services. The company’s ICT solutions, products, and services are used in more than 170 countries and regions, serving over one-third of the world's population. Huawei offers a wide range of products and services in the DCI market. The company’s offerings in the DCI market include OptiX OSN 9800, OptiX OSN 8800, OptiX OSN 1800, OptiX PTN 7900 Transmission Systems, OptiX PTN 3900 Transmission Systems, OptiX PTN 1900 Transmission Systems, Transmission Platforms, Enhanced OSN Series MSTPs, OptiX RTN 900 Hybrid TDM, and OptiX RTN 300 Microwave Transceivers. Huawei has continued to increase its investment in forward-looking fundamental research and innovation, and has made great advances at the frontiers of ICT. For instance, it invested 14.65%, 15.09%, and 14.17% of its total revenue in 2016, 2015, and 2014, respectively.

The stakeholders involved in the value chain of this market include companies in the DCI market, investment community interested in the data center interconnect market, research institutes and organizations, government and financial institutions, and end users, such as Communication Service Providers (CSPs), Carrier Neutral Providers (CNPs), Internet Content Providers (ICPs), government, enterprises, and healthcare organizations.

Related Reports:

Data Center Interconnect Market by Type (Product, Software, Services), Application (Real-Time Disaster Recovery and Business Continuity, Workload (VM) and Data (Storage) Mobility), End User, and Geography - Global Forecast to 2023

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