Data Center Interconnect Market by Type [Products (Packet Switching Network, Optical DCI), Software, Services (Professional, Managed)], Application (Real-time Disaster Recovery & Business Continuity, Workload & Data Mobility) - Global Forecast to 2030

The DCI market is projected to grow from USD 15.38 billion in 2025 to USD 25.89 billion by 2030, with a CAGR of 11.0%. The data center interconnect (DCI) market is set for substantial growth, fueled by the rapid increase in edge computing and the rising demand for low-latency, high-bandwidth connections between geographically spread data centers. Growing consumption of data-heavy services is speeding up infrastructure upgrades. Moreover, opportunities like implementing open and disaggregated networking architectures and the increasing adoption of cloud-native network functions are supporting more scalable, flexible, and cost-efficient DCI deployments across enterprises and service providers.

“Services are projected to record the highest CAGR during the forecast period”

The services segment is expected to experience the highest CAGR in the data center interconnect (DCI) market due to the increasing complexity of interconnection infrastructures and the rising demand for specialized support throughout deployment, integration, and maintenance phases. As organizations adopt hybrid and multi-cloud environments, they need expert services to manage secure and high-performance DCI networks that facilitate seamless data exchange across geographically dispersed data centers. The demand for real-time monitoring, traffic optimization, and disaster recovery planning is also boosting the need for managed and professional services. Additionally, the growth of outsourcing IT infrastructure operations to service providers and the shift toward software-defined and virtualized network management are reinforcing the importance of service offerings in achieving agility, scalability, and cost-efficiency in DCI deployments.

“Communications service providers (CSPs) will hold the second-largest market share during the forecast period”

The communications service providers (CSPs) segment is expected to hold the second-largest market share in the data center interconnect (DCI) market because of their crucial role in supporting high-bandwidth, low-latency connections across large and dispersed network infrastructures. As demand for high-speed internet, 5G deployment, and mobile data usage increases, CSPs are heavily investing in expanding their network capacity and interconnection capabilities. To maintain service quality and uptime, these providers require robust DCI solutions to ensure smooth data transfer between core, edge, and regional data centers. Furthermore, CSPs are adopting network virtualization, SDN, and NFV to deliver scalable and efficient services, which further drives the need for advanced DCI technologies to accommodate evolving telecom and enterprise workloads.

“Europe to grow at a significant rate in the DCI market by 2030”

Europe is expected to grow at the second-highest CAGR in the data center interconnect (DCI) market due to the region’s rapid push toward digital transformation, rising adoption of cloud-based services, and the expansion of hyperscale and colocation data centers. The European Union’s strong focus on data sovereignty, GDPR compliance, and sustainable IT infrastructure is fueling demand for secure, energy-efficient DCI solutions. Additionally, governments and businesses in countries such as Germany, the UK, France, and the Netherlands heavily invest in advanced connectivity infrastructure to support AI, IoT, and edge computing initiatives.

Extensive primary interviews were conducted with key industry experts in the DCI market to verify and define the market size for various segments and subsegments identified through secondary research. The list of primary participants involved in the report is shown below.

The study contains insights from various industry experts, from equipment suppliers to Tier 1 companies and service providers. The break-up of the primaries is as follows:

• By Company Type: Tier 1–40%, Tier 2–40%, and Tier 3–20%
• By Designation: C-level Executives–20%, Directors–30%, and Others–50%
• By Region: Asia Pacific–40%, Europe–30%, North America–20%, and RoW–10%

The DCI market is led by a few global players, including Ciena Corporation (US), Huawei Technologies Co., Ltd. (China), Cisco Systems, Inc. (US), Nokia (Finland), Juniper Networks, Inc. (US), Fujitsu (Japan), ADTRAN (US), Ribbon Communications Operating Company, Inc. (US), Extreme Networks (US), Colt Technology Services Group Limited (UK), Marvell (US), ePlus Inc. (US), ZTE Corporation (China), Cologix (US), Megaport (Australia), Ranovus (Canada), Lightmatter (US), Celestial AI (US), Ayar Labs (US), Edgecore Networks Corporation (Taiwan), RtBrick (India), DriveNets (Israel), Oriole Networks (UK), EFFECT Photonics (Netherlands), and Xscape Photonics (US).

The study includes an in-depth competitive analysis of these key players in the DCI market, with their company profiles, recent developments, and key market strategies.

Research Coverage:

The report segments the DCI market based on type (product, software, services), applications (real-time disaster recovery and business continuity, shared data and resources/server high-availability clusters (geo clustering), workload (VM), and data (storage) mobility), and end users (communication service providers (CSPs), carrier-neutral providers (CNPs)/internet content providers (ICPs), government, and enterprises). It also discusses the market’s drivers, restraints, opportunities, and challenges. Additionally, it provides a detailed view of the market across four main regions (North America, Europe, Asia Pacific, and RoW). The report includes an ecosystem analysis of key players.

Key Benefits of Buying the Report:

• Analysis of key drivers (surge in cloud computing and SaaS applications, rise in hyperscale data centers and colocation facilities, growing need for business continuity and disaster recovery), restraints (high initial capital investment, complex network management and integration issues), opportunities (adoption of AI and machine learning workloads, transition to 400G and 800G optical transceivers, integration of software-defined networking (SDN) and network function virtualization (NFV)), challenges (security and compliance risks, interoperability among vendors, latency and network congestion)
• Service Development/Innovation: Detailed insights on upcoming technologies, research and development activities, and new product launches in the DCI market
• Market Development: Comprehensive information about lucrative markets through the analysis of the DCI market across varied regions
• Market Diversification: Exhaustive information about new products and services, untapped geographies, recent developments, and investments in the DCI market
• Competitive Assessment: In-depth assessment of market shares, growth strategies, and product offerings of leading players, such as Ciena Corporation (US), Huawei Technologies Co., Ltd. (China), Cisco Systems, Inc. (US), Nokia (Finland), Juniper Networks, Inc. (US), Fujitsu (Japan), ADTRAN (US), Ribbon Communications Operating Company, Inc. (US), Extreme Networks (US), Colt Technology Services Group Limited (UK), Marvell (US), ePlus inc. (US), ZTE Corporation (China), Cologix (US), Megaport (Australia), among others

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