Data Center Interconnect Market Set for Rapid Growth, Reaching USD 34.42 Billion by 2034 at 14.2% CAGR

Data Center Interconnect Market

Polaris Market Research has recently published its latest research report, titled "Data Center Interconnect Market Share, Size, Trends, & Industry Analysis Report: By End Use (Communication Service Providers, Internet Content Providers/Carrier-Neutral Providers, Government, Enterprises, and Others), By Type, By Application, By Region; Segment Forecast, 2025-2034."

The report analyzes the market to exhibit a CAGR of 14.2% during 2025-2034. The market for data center interconnect was valued at USD 9.28 billion in 2024 and is projected to grow to USD 34.42 billion by 2034.

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What Is Data Center Interconnect?

Data Center Interconnect (DCI) is a technology that connects multiple data centers together. The connection of these data centers facilitates seamless communication and data transfer, regardless of whether they are in the same building, across a city, or even across different countries. It also allows organizations to pool resources like computing power and storage across multiple data centers, enabling on-demand scaling and resource utilization. In addition, DCI can optimize application performance, reduce latency, and improve overall network efficiency. Furthermore, DCI enables data replication and disaster recovery capabilities, which ensures business continuity in case of outages at one data center.

What's Propelling Market Forward?

• Rising Focus on Network Virtualization and Automation: With the rising adoption of cloud computing and software-defined data centers, the need for faster and more flexible methods to connect multiple data centers has increased. Virtualization allows data centers to operate more efficiently by managing resources through software, while automation reduces manual tasks and supports quicker scaling. Thus, the rising focus on network virtualization and automation is fueling the data center interconnect market development.
• Demand for Sustainable and Energy-Efficient Infrastructure: The rising global data usage has led to an increased need for high-performance, energy-saving interconnect solutions. Governments and private organizations globally are advocating for greener IT operations to lower carbon footprints. These sustainable efforts are propelling the adoption of advanced DCI technologies that can connect several data centers while consuming less power.

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Who Are Major Market Players?

The market has the presence of both established players and new entrants. A few of the major market participants include:

• Adtran
• Arista Networks, Inc.
• Broadcom Inc.
• Ciena Corporation
• Cisco Systems, Inc.
• Extreme Networks, Inc.
• Fujitsu Limited
• Huawei Technologies Co., Ltd.
• IBM Corporation
• Infinera Corporation
• Juniper Networks, Inc.
• Mellanox Technologies (now part of NVIDIA)
• Nokia Corporation
• ZTE Corporation

Which Segment Leads Market Demand?

• The data center interconnect (DCI) market is primarily segmented on the basis of type, application, end use, and region.
• By type, the product segment is projected to lead the market from 2025 to 2034, driven by the growing need for secure and fast data transfer between data centers. The rising investment by companies in DCI products, such as optical switches and routers, further contributes to the segment's growth.
• Based on end use, the communications service providers segment accounted for the largest share in 2024. The rapid rollout of 5G networks globally has led to increased demand for robust and efficient DCI solutions. 5G networks rely on DCI solutions that facilitate low-latency and high-reliability connections between central data centers and edge locations.

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Which Region Leads Market Growth?

Regional analysis provides an examination of the key variables, including social, physical, and economic, in a regional context. It helps companies understand the needs and wants of their customers in target markets. Thus, stakeholders can make informed decisions about their products or service offerings. Also, regional analysis assists businesses in identifying regions with high growth potential and where they should focus their efforts. Furthermore, it can help stakeholders understand local conditions to analyze policy related to global change.

The key regions and sub-regions of the Data Center Interconnect Market covered in the research report are:
• North America (U.S., Canada)
• Europe (France, Germany, UK, Italy, Netherlands, Spain, Russia)
• Asia Pacific (Japan, China, India, Malaysia, Indonesia. South Korea)
• Latin America (Brazil, Mexico, Argentina)
• Middle East & Africa (Saudi Arabia, UAE, Israel, South Africa)

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