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Growing Number Of Data Centers Is Anticipated To Fuel Data Center Interconnect (DCI) Market : Critical Driver Shaping the Global Data Center Interconnect (DCI) Market in 2025
Use code ONLINE20 to get 20% off on global market reports and stay ahead of tariff changes, macro trends, and global economic shifts.How Large Will the Data Center Interconnect (DCI) Market Size By 2025?
The rapid expansion of the data center interconnect (dci) market has been observed in the past few years. Predictions suggest it will surge from $13.47 billion in 2024 to $15.38 billion in 2025, with a compound annual growth rate (CAGR) of 14.1%. The phenomenal growth during the said period can be traced back to the proliferation of big data, increasing demands for document management, automation in business undertakings, regulatory compliance obligations, and the upsurge in e-commerce activities.
How Big Is the Data Center Interconnect (DCI) Market Size Expected to Grow by 2029?
Anticipated to witness significant expansion in the coming years, the data center interconnect (dci) market size is projected to reach a valuation of $26.11 billion in 2029, with a compound annual growth rate (CAGR) of 14.2%. This upward trend during the forecast period is largely due to factors such as integration of AI and machine learning, the ability to extract data in real-time, handling of unstructured data, compatibility across various platforms, and tailor-made solutions for specific industry requirements. Key patterns expected during the forecast period include heightened digitization, progress in OCR technology, increased automation facilitated by AI and machine learning, cloud-centric solutions, and the inclusion of natural language processing (NLP).
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Which Key Market Drivers Powering Data Center Interconnect (DCI) Market Expansion and Growth?
The data center interconnect (DCI) market is anticipated to be fueled by the growing number of data centers. A designated room, building, or facility custom-made to accommodate IT infrastructure, store data and support the execution and operation of apps and services is termed as a data center. By linking numerous data centers, data center interconnect (DCI) technology allows them to integrate and distribute resources. A precise real-time cloud-based analysis platform is used to monitor and optimize data center infrastructure. For example, the Campfil Group, an air filter firm based in the US, reported that the number of data centers in the US had grown to 2,751 in 2022 by January of that year. Additionally, data centers numbered at about 484 in Germany, 458 in the UK, 447 in China, and 324 in Canada. As a result, the escalating number of data centers is a key factor propelling the data center interconnect (DCI) market.
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Which Fast-Growing Trends Are Poised to Disrupt the Data Center Interconnect (DCI) Market?
Leading entities in the data center interconnect (DCI) market are pushing boundaries by creating cutting-edge tools like Global Data Center Interconnect (GDCI) to streamline complexity and broaden their global footprint in the industry. The GDCI technology allows linking of multiple data centers for resource sharing and transferring crucial assets across varying distances, facilitated by swift packet-optical connectivity. For instance, in July 2022, Juniper Networks Inc., an American frontrunner in AI-fueled and secure networking solutions, introduced new breakthroughs to support their Cloud Metro strategy which is targeted at service providers aiming for metropolitan transformation and long-term business prosperity. The Cloud Metro solution amalgamates AI-powered automation and sophisticated security measures to augment data movement across both regional and global networks, simultaneously advocating for energy efficiency. These cutting-edge offerings by Juniper's Cloud Metro aid service providers in improving operations, attaining scalability, effectively handling network intricacy, and fulfilling 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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