Data Center Interconnect Market to Cross USD 37.53 Billion by 2032, at 14.10% CAGR | Report by SNS Insider

The increasing demand for high-speed, secure, and reliable data transfer between data centers is driving the growth of the Data Center Interconnect Market.

AUSTIN, TX, UNITED STATES, February 3, 2025 /EINPresswire.com/ -- Market Size & Industry Insights

According to the SNS Insider Report,“The Data Center Interconnect Market Size was valued at USD 11.45 billion in 2023 and is expected to reach USD 37.53 billion by 2032 and grow at a CAGR of 14.10% over the forecast period 2024-2032.”

Digital Transformation and 5G Drive Growth in the Data Center Interconnect Market

The growing dependence on digital services, cloud computing, and data centers is a key factor fueling the expansion of the Data Center Interconnect (DCI) market. As data generation accelerates among businesses and consumers, the demand for interconnected, secure, and efficient data centers is increasing. With the rise of edge computing, AI applications, and cloud services, DCI infrastructure plays a vital role in ensuring high-speed connectivity, scalability, and operational efficiency. Additionally, the ongoing shift toward 5G networks is driving the need for advanced interconnection solutions capable of managing larger data volumes at faster speeds, further propelling the market's growth.

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SWOT Analysis of Key Players as follows:
- Ciena Corporation
- Huawei Technologies
- Infinera Corporation
- Cisco Systems
- Fujitsu
- XKL
- Pluribus Networks
- Evoque Data Center Solutions
- Cyxtera Technologies
- Nokia Corporation
- Juniper Networks
- ADVA Optical Networking
- Extreme Networks
- Colt Technology Services
- Cologix
- ZTE Corporation
- Digital Realty Trust

Data Center Interconnect Market: Key Segments Driving Growth in Real-time Recovery, Shared Resources, and 5G Expansion

By Application
The Real-time Disaster Recovery segment leads the Data Center Interconnect Market, driven by the increasing need for businesses to maintain continuous service and data availability. As digital infrastructure becomes more critical, organizations are adopting disaster recovery solutions to protect against data loss from system failures or natural disasters, enabling rapid recovery and high-speed, low-latency interconnections.

The Shared Data & Resources segment is the fastest growing, propelled by the shift to hybrid cloud environments. This segment facilitates seamless workload mobility across multiple data centers, optimizing resource allocation, scalability, and operational flexibility. The growing demand for real-time data and application movement without latency is essential for businesses to stay agile and responsive in an increasingly data-driven world.

By End-User
The Communications Service Providers (CSPs) segment led the market, driven by the expansion of 5G networks. As 5G enables faster data transmission and supports a surge in IoT devices, CSPs face increased data traffic, requiring advanced Data Center Interconnect (DCI) solutions for low latency and high reliability. These solutions ensure seamless connectivity between centralized data centers and edge computing resources, optimizing infrastructure and network performance to meet 5G demands.

The Internet Content Providers and Carrier-Neutral Providers (ICPs/CNPs) segment is growing steadily, driven by multi-cloud adoption, allowing for efficient resource sharing and improved service delivery across diverse cloud environments.

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KEY MARKET SEGMENTS:

BY TYPE
Products
Software
Services

BY APPLICATION
Real-time Disaster Recovery.
Workload Mobility
Shared Data Clusters
Data storage Mobility
Others

BY END-USER
Communication Service Providers
Internet Content Providers/ Carrier-Neutral Providers
Enterprises
Governments
Other

North America and Asia Pacific Lead Data Center Interconnect Market Growth, Driven by Digital Transformation and Cloud Adoption

In 2024, North America captured the largest market share in the Data Center Interconnect (DCI) market. This region hosts several major telecommunications companies, suppliers, and diverse industries that are rapidly adopting advanced technologies to enhance efficiency and productivity. The region benefits from a well-developed ICT infrastructure and large data center hubs in cities like New York, Los Angeles, Chicago, and Washington D.C., fostering market growth. Meanwhile, the Asia Pacific region is experiencing significant digital transformation, with increasing adoption of cloud computing, big data analytics, and IoT technologies driving demand for DCI solutions. Countries like Japan are seeing rapid growth, as high internet penetration and a robust digital economy create a need for reliable data connectivity. Similarly, China holds a substantial market share, with a focus on building resilient data infrastructures to ensure business continuity and secure data, driving the demand for advanced DCI solutions.

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Recent Development

-November 27, 2024 – HGC Global Communications is deploying Ciena’s 6500 Packet-Optical Platform and 3928 routing and switching platform in the Philippines to support its new Data Centre Interconnect (DCI) service. The integration, powered by WaveLogic Ai, will enhance HGC’s network flexibility, scalability, and edge capabilities, improving connectivity across the Philippines and beyond.

-May 22, 2024 – Infinera has gained significant traction in India’s subsea and Data Center Interconnect (DCI) markets, securing the majority of new subsea cables landing in India, including IAX and IEX. Additionally, the company has won over 200 terabytes of metro DCI business from hyperscalers in the last six months, capitalizing on India’s booming data center industry.

TABLE OF CONTENT - Key Points

Chapter 1. Introduction

Chapter 2. Executive Summary

Chapter 3. Research Methodology

Chapter 4. Market Dynamics Impact Analysis

Chapter 5. Statistical Insights and Trends Reporting

Chapter 6. Competitive Landscape

Chapter 7. Data Center Interconnect Market Segmentation, by Type

Chapter 8. Data Center Interconnect Market Segmentation, by Application

Chapter 9. Data Center Interconnect Market Segmentation, by End-User

Chapter 10. Regional Analysis

Chapter 11. Company Profiles

Chapter 12. Use Cases and Best Practices

Chapter 13. Conclusion

Continued…

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Akash Anand
SNS Insider
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