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.
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/