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Data Center Interconnect (DCI) Industry Outlook 2025-2029: Market Set to Cross $26.45 Billion Milestone

07-25-2025 09:59 AM CET | IT, New Media & Software

Press release from: The Business Research Company

Data Center Interconnect (DCI)

Data Center Interconnect (DCI)

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How Large Will the Data Center Interconnect (DCI) Market Size By 2025?
The rapid expansion of the data center interconnect (DCI) market in recent years is quite remarkable. The market, which was valued at $13.47 billion in 2024, is projected to increase to $15.46 billion in 2025 with a compound annual growth rate (CAGR) of 14.8%. This significant growth observed in the historical period is credited to the emergence of big data, requirements for document management, the rise of automation in various business procedures, regulatory compliance necessities, and the increasing e-commerce activities.

How Big Is the Data Center Interconnect (DCI) Market Size Expected to Grow by 2029?
In the coming years, the data center interconnect (DCI) market is anticipated to experience significant expansion, growing to a worth of $26.45 billion by 2029. This represents an impressive compound annual growth rate (CAGR) of 14.4%. The predicted growth during this period can be credited to several factors, such as the inclusion of AI and machine learning, the ability to extract data in real time, handling of unstructured data, interoperability across various platforms, and tailoring to suit the needs of specific industries. The period is likely to witness certain trends, including a rise in digitization, progress in OCR technology, elevated automation powered by AI and machine learning, adoption of cloud-based solutions, and the integration of natural language processing (NLP).

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Which Key Market Drivers Powering Data Center Interconnect (DCI) Market Expansion and Growth?
The surge in data centers is anticipated to catalyze the data center interconnect (DCI) market's progression. A data center is essentially a designated building, room, or facility specifically constructed to accommodate IT infrastructure, allow applications and services to be implemented and function, and safeguard the data. DCI technology is instrumental in networking several data centers, making it possible for them to combine and allocate resources. For example, the Campfil group, an American air filter company, estimated that the number of data centers in the US had reached 2,751 in 2022. Similar figures were recorded in other countries, with Germany having around 484 data centers, the UK having 458, China having 447, and Canada having 324. Consequently, the surging count of data centers is a significant driver for the DCI market. The Influence of Data Center Interconnect (DCI) on Market Expansion in the Face of Global Digitization

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Which Fast-Growing Trends Are Poised to Disrupt the Data Center Interconnect (DCI) Market?
Leading corporations in the Data Center Interconnect (DCI) market are innovating technologically superior products such as the Global Data Center Interconnect (GDCI). These products are designed to deal with complex issues and widen their global footprint in the market. The GDCI technology connects two or more data centers for resource sharing and enables the transfer of vital assets through high-speed, packet-optical connectivity over a variety of distances. For example, in July 2022, the US-based Juniper Networks Inc., known for its AI-driven and secure networking solutions, unveiled groundbreaking innovations supporting their Cloud Metro strategy. This initiative is targeted at service providers who are aiming for metro transformation and sustainable business growth. The Cloud Metro solution incorporates AI-driven automation along with superior security measures, which increases the efficiency of data flow in both regional and international networks while also promoting energy efficiency. Through such advances, Juniper's Cloud Metro supports service providers in enhancing operations, ensuring scalability, handling escalating network complexity, and fitting in with sustainability targets.

What Are the Emerging Segments in the Data Center Interconnect (DCI) Market?
The data center interconnect (DCI) market covered in this report is segmented -

1) By Type: Products, Software, Services
2) By Application: Disaster Recovery And Business Continuity, Shared Data And Resources, Data (Storage) Mobility, Other Applications
3) By End-User: Communications Service Providers (CSPs), Internet Content Providers And Carrier-Neutral Providers (ICPs/CNPs), Government Or Research And Education (Government/R&E), Other End Users

Subsegments:
1) By Products: Optical Packet Platforms, Routers And Switches, Communication Platforms
2) By Software: Network Management Software, SDN (Software-Defined Networking), Virtualization Software
3) By Services: Consulting And Integration Services, Maintenance And Support Services, Managed Services

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Who Are the Global Leaders in the Data Center Interconnect (DCI) Market?
Major companies operating in the data center interconnect (dci) market report are Nippon Telegraph and Telephone Corporation, Huawei Technologies Co. Ltd., Cisco Systems Inc., Fujitsu Limited, Nokia Corporation, ZTE Corporation, Equinix Inc., Juniper Networks Inc., Digital Realty Trust Inc., Arista Networks Inc., Ciena Corporation, Microsemi Corporation, Infinera Corporation, Extreme Networks Inc., Colt Technology Services Group Limited, ADVA Optical Networking SE, Cyxtera Technologies, Reichle and DeMassari AG, CoreSite Realty Corporation, Flexential Corp., Ekinops SA, Megaport Limited, Interxion Holding NV, Cologix Inc., Evoque Data Center Solutions LLC, Innovium Inc., Pluribus Networks, XKL LLC, Fiber Mountain Inc., Ranovus Inc.

Which are the Top Profitable Regional Markets for the Data Center Interconnect (DCI) Industry?
North America was the largest region in the data center interconnect (DCI) market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the data center interconnect (dci) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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