Equinix: Interconnection bandwidth growth

Equinix is projecting that interconnection bandwidth will grow to 8,200+ Terabits per second (Tbps) of capacity by 2021, or the equivalent of 33 Zettabytes (ZB) of data exchange per year.

Equinix's newly issued Global Interconnection Index (GXI) forecasts a significant five-year compound annual growth rate (CAGR) of 48%, almost double the expected 26% CAGR of global IP Traffic as cited in Cisco's VNI report. The forecast also represents a dramatic increase over the previous year's projection.

Interconnection bandwidth is defined in this study as direct and private traffic exchange between key business partners.

"Significant macro, technology and regulatory trends are converging to form an unprecedented era of complexity and risk and forcing the integration of physical and digital worlds," said Sara Baack, Chief Marketing Officer for Equinix, Inc. "The second volume of the Global Interconnection Index has found that companies are solving their increasing digital requirements by directly connecting to key business partners through Interconnection, as traditional forms of connectivity do not meet the demanding requirements of today's businesses."

Some highlights

• The United States is expected to see compound growth of 45% per annum, contributing more than 40% of Interconnection Bandwidth globally.
• A growing number of regulations requiring data compliance is serving as a catalyst of growth for Europe, which is predicted to grow 48% per annum, contributing to 23% of Interconnection Bandwidth globally.
• Asia-Pacific is anticipated to grow 51% per annum, contributing more than 27% of Interconnection Bandwidth globally.
• Telecommunications will remain the largest industry user of interconnection bandwidth in 2021, representing 24% of the market.
• Enterprises interconnecting to network providers will represent the largest volume (66%) of total interconnection bandwidth.
• Emerging market dynamics and growing digital business adoption positions Latin America for expected 59% per annum growth, contributing more than 9% of Interconnection Bandwidth globally.
• Enterprises interconnecting to cloud & IT services will represent the fastest growth (98%) in interconnection bandwidth.
• The industries with the fastest Compound Annual Growth Rate (CAGR) of interconnection Bandwidth Consumption include: Energy & Utility (73% CAGR), Healthcare & Life Sciences (70% CAGR) and Wholesale & Retail Trade (67% CAGR).

https://www.equinix.com/global-interconnection-index-gxi-report/