Tuesday, October 17, 2017

LATAM’s interconnection bandwidth set for world’s fastest CAGR

Global interconnection installed bandwidth capacity is projected to grow at a CAGR of 45% to 4,991 Tbps by 2020 with private data exchange between businesses expected to outpace public internet.

The Latin America region is posed for a 62% compound annual growth rate (CAGR) up to 2020 in relation to interconnection bandwidth, the highest across the globe.

However, in terms of terabytes per second (Tbps), the region is set to only grow to 626 Tbps by the end of the decade from today’s 154 Tbps, far behind from the US, whose CAGR is the lowest regionally at 40% but with the highest projected value of Tbps at 1795 (2017: 654 Tbps), according to the Global Interconnection Index market study published by Equinix (NASDAQ: EQIX).

Sitting in between, Asia-Pacific is expected to register a CAGR of 46% topping 1120 Tbps by 2020 (2017: 355 Tbps) and Europe has a CAGR of 44% with a Tbps capacity projected to reach 1451 (2017: 473 Tbps).

Globally, interconnection installed bandwidth capacity is projected to grow at a CAGR of 45% to 4,991 Tbps.

The value represents a jump in interconnection from 2017’s global availability of 1,636 Tbps.

According to the research, the capacity for private data exchange between businesses is projected to outpace the public Internet, growing at nearly twice the rate and comprising nearly six times the volume of global IP traffic by 2020.

Enterprise usage of digital environments is posed to shoot up capacity at a CAGR of 285% over the next three years, with capacity reaching 2,578 Tbps (2017: 611 Tbps).

As for services providers, Tbps are expected to grow 49% on a CAGR average, from today’s 753 Tbps to 1,707 Tbps.

In terms of industry use, interconnection installed bandwidth capacity is to grow the most in the banking and insurance sector at a CAGR of 61%, from 2017’s 230 Tbps to 958 Tbps by 2020.

This will be followed by telecommunications players, which will amount to 826 Tbps in 2020, up from this year’s 409 Tbps (CAGR: 27%).

The third largest industry will be cloud and IT services, where a CAGR of 39% will transport capacity to 820 Tbps by 2020, up from the current 314 Tbps availability.

Sara Baack, Chief Marketing Officer for Equinix, said: “Some of the greatest technology trends of our lifetime, including mobile, social, cloud and the explosion of data, are creating disruption on the scale of the Industrial Revolution.

“In this new reality, it’s a ‘scale-or-fail’ proposition and companies are succeeding by adopting Interconnection, locating their IT infrastructure in immediate proximity to an ecosystem of companies that gather to physically connect their networks to those of their customers and partners.

“Interconnection helps fuel digital transformation by supporting multicloud consumption at scale, improving network latency and performance, enabling greater operational control, and reducing security risk.”