Data Center Interconnect

Global Data Center Interconnect Market to Reach US$32.3 Billion by 2030

The global market for Data Center Interconnect estimated at US$14.5 Billion in the year 2024, is expected to reach US$32.3 Billion by 2030, growing at a CAGR of 14.3% over the analysis period 2024-2030. Hardware, one of the segments analyzed in the report, is expected to record a 13.4% CAGR and reach US$16.3 Billion by the end of the analysis period. Growth in the Software segment is estimated at 15.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$5.0 Billion While China is Forecast to Grow at 16.2% CAGR

The Data Center Interconnect market in the U.S. is estimated at US$5.0 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$2.8 Billion by the year 2030 trailing a CAGR of 16.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 11.9% and 13.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.2% CAGR.

Global Data Center Interconnect Market - Key Trends & Drivers Summarized

Data Center Interconnect (DCI) technology is a critical infrastructure solution that enables the seamless connection of multiple data centers, enhancing the performance, reliability, and scalability of modern enterprise and service provider networks. DCI solutions facilitate the transfer of data, applications, and workloads across geographically dispersed data centers, ensuring business continuity, disaster recovery, and optimal resource utilization. The primary technologies used in DCI include optical transport networks (OTN), Ethernet, and wavelength-division multiplexing (WDM). These technologies provide high-bandwidth, low-latency, and secure communication channels necessary for handling the increasing volume of data generated by digital transformation initiatives, cloud computing, and the Internet of Things (IoT).

The implementation of DCI is driven by the growing demand for data processing and storage capabilities, as organizations strive to maintain competitive advantage through digital innovation. Cloud service providers, financial institutions, healthcare organizations, and content delivery networks are among the key adopters of DCI solutions. They require robust and efficient methods to synchronize data across multiple locations, ensure redundancy, and manage dynamic workloads effectively. Advanced DCI solutions also incorporate software-defined networking (SDN) and network functions virtualization (NFV) to provide greater flexibility, automation, and programmability in managing inter-data center traffic. This convergence of optical and packet technologies within DCI frameworks supports higher degrees of scalability and operational efficiency.

The growth in the DCI market is driven by several factors. Foremost among these is the exponential increase in data traffic due to the proliferation of cloud services, big data analytics, and IoT applications. The rapid adoption of 5G technology also contributes significantly, as it generates substantial data volumes requiring efficient transport between data centers. Furthermore, the rise in data sovereignty regulations necessitates local data storage and processing, thus increasing the need for interconnected regional data centers. Enterprises are increasingly adopting hybrid and multi-cloud strategies, which require robust DCI solutions to manage data flows seamlessly across different cloud environments. Additionally, advancements in optical transport technologies, such as coherent optics and advanced modulation formats, are enhancing the capacity and reach of DCI solutions, making them more cost-effective and accessible. These trends collectively propel the expansion of the DCI market, as organizations seek to build resilient, high-performance, and scalable data center infrastructures to support their evolving digital requirements.

SCOPE OF STUDY:

The report analyzes the Data Center Interconnect market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Type (Software, Products, Services); Application (Real-Time Disaster Recovery & Business Continuity, Shared Data & Resources / Server High-Availability Clusters, Workload (VM) & Data (Storage) Mobility); End-Use (Communications Service Providers (CSPs), Internet Content Providers & Carrier-Neutral Providers (ICPs / CNPs), Government, Research, Education, Other End-Uses)

Geographic Regions/Countries:
World; USA; Canada; Japan; China; Europe; France; Germany; Italy; UK; Rest of Europe; Asia-Pacific; Rest of World.

Select Competitors (Total 55 Featured) -

• ADVA Optical Networking SE
• Ciena Corp.
• Cisco Systems Inc.
• Colt Technology Services Group Ltd.
• Equinix, Inc.
• Extreme Networks, Inc.
• Fujitsu Ltd.
• Huawei Technologies Co. Ltd.
• Infinera Corp.
• Juniper Networks Inc.
• Nippon Telegraph and Telephone Corporation
• Nokia Oyj

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TARIFF IMPACT FACTOR
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