Data Center Interconnect Market To Reach $20.37 Billion By 2030

Data Center Interconnect Market Growth & Trends

The global data center interconnect market size is estimated to reach USD 20.37 billion by 2030, expanding at a CAGR of 13.1% from 2025 to 2030, according to a new report by Grand View Research, Inc. The emphasis by the data center providers on latency, throughput, streamlined operations, intelligence, security, and maintenance is expected to drive the growth of the industry during the forecast period. The growing need to reduce the number of hops, and subsequently, the points of failure while routing the internet traffic is also expected to drive the demand for the market over the forecast period.

The demand for Over-The-Top (OTT) services increased during the COVID-19 pandemic, and organizations opted for cloud computing and pure colocation to support remote working, thereby driving the demand for DCI solutions. However, the industry also had to confront a looming shortage of DCI hardware as production activities at various manufacturing facilities across Taiwan, China, Mexico, Malaysia, and the U.S. were suspended temporarily. North America dominated the industry in 2021 and accounted for the maximum revenue share.

North America is home to several leading telecommunications companies, well-established suppliers, and incumbents of various end-use industries and industry verticals. Asia Pacific is expected to emerge as the fastest-growing region over the forecast period. Implementation of optical transportation networking equipment in data centers and the continued rollout of long-haul and metro networks are expected to contribute to the growth of the APAC regional market.

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Data Center Interconnect Market Report Highlights

• The hardware segment dominated the industry in 2024 and accounted for the largest revenue share.

• The software segment is anticipated to grow at the fastest CAGR during the forecast period.

• DCI software solutions help network operators ensure an appropriate combination of DCI-optimized packet, security, and virtualization technologies to link data centers, thereby contributing to the segment growth.

• The Communications Service Providers (CSPs) segment dominated the industry in 2024 and accounted for the largest revenue share.

• CSPs are investing aggressively to cater to the growing demand for an increased capacity for facilitating managed services.

• Furthermore, CSPs are focusing on managed DCI and cloud interconnect services and are also leveraging their data center assets & central office resources to offer virtual private cloud services.

Data Center Interconnect Market Segmentation

Grand View Research has segmented the global data center interconnect market based on type, application, end use, and region:

Data Center Interconnect Type Outlook (Revenue, USD Billion, 2018 - 2030)

• Hardware

• Software

• Services

  • Professional Services

  • Managed Services

Data Center Interconnect Application Outlook (Revenue, USD Billion, 2018 - 2030)

• Disaster Recovery and Business Continuity

• Shared Data & Resources

• Workload and Data Mobility

Data Center Interconnect End Use Outlook (Revenue, USD Billion, 2018 - 2030)

• Communications Service Providers (CSPs)

• Internet Content Providers and Carrier-Neutral Providers (ICPs/CNPs)

• Government/Research and Education (Government/R&E)

• Others

Data Center Interconnect Regional Outlook (Revenue, USD Billion, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • UK

  • Germany

  • France

• Asia Pacific

  • China

  • India

  • Japan

  • Australia

  • South Korea

• Latin America

  • Brazil

• Middle East & Africa (MEA)

  • UAE

  • Saudi Arabia

  • South Africa

List of Key Players in the Data Center Interconnect Market

• Cisco Systems, Inc.

• Juniper Networks, Inc.

• Broadcom Inc.

• Arista Networks, Inc.

• Nokia Corporation

• Huawei Technologies Co., Ltd.

• Mellanox Technologies (now part of NVIDIA)

• Ciena Corporation

• Extreme Networks, Inc.

• Fujitsu Limited

• IBM Corporation

• Infinera Corporation

• Adtran

• ZTE Corporation.