The latest Global Interconnection Index (GXI Vol. 5) reveals that the pandemic has forced economies into digital overdrive, with digital leaders, businesses who were already implementing a digital-first strategy, moving four times faster than pre-pandemic levels.
The report called out that businesses in Asia-Pacific (APAC) have compacted the time to deploy their digital infrastructure to multiple regions, expand to multiple edge locations and integrate multiple clouds—what might have taken two years is now achievable within six months.
“While COVID has forced businesses to innovate in many ways, by both expanding existing and introducing new digital services, the infrastructure underpinning these services must keep pace,” said Claire Macland, senior vice president of marketing, Equinix.
“As a result, savvy businesses are now moving four times faster than pre-pandemic levels in deploying this necessary digital infrastructure.”
This accelerated pace of digital transformation is predicted to continue to fuel the rapid growth in interconnection bandwidth.
By the numbers
According to the GXI Vol. 5, overall interconnection bandwidth, the measure of private connectivity for the transfer of data between organizations, is forecast to reach 21,485+ terabits per second (Tbps), or 85 zettabytes, per year by 2024, representing a five-year compound annual growth rate (CAGR) of 44%.
This is in line with predictions for APAC, where interconnection bandwidth is expected to grow at a 46% CAGR by 2024, reaching 6,002 Tbps or 28% of global interconnection bandwidth.
This growth is aligned with the increasing demand for the digital infrastructure needed to bring more businesses online, facilitate electronic integration with partners and supply chains, and reach more people in distributed hybrid work environments.
Industries leading the rush
The report notes that the financial services sector is expected to deploy more than 50% of Enterprise interconnection bandwidth, with manufacturing the second-largest industry.
The banking and insurance, public sector, industrial services and transportation industries are expected to experience the fastest digital infrastructure growth, which is forecast to drive a 50% or more CAGR in interconnection bandwidth from 2020 to 2024.
As a result of the pandemic, the public sector, and industrial services and transportation industries that were previously lagging in interconnection adoption are now leading in interconnection growth rates.
“Companies that have adopted a comprehensive digital strategy as a core business pillar—connecting with and leveraging digital platforms with partners, ecosystems, and customers, consistently emerge as disruptive market leaders,” said Courtney Munroe, Research vice president, worldwide telecommunications research, IDC.
He continued that adopting digital platforms and services is essential to achieve the level of agility and resiliency that is required to outpace and out-innovate the competition.