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is projected to grow from USD 15.38 billion in 2025 to USD 25.89 billion by 2030, at a CAGR of 11.0% according to a new report by MarketsandMarkets™. The growth of the DCI market will be further propelled by the rapid expansion of edge computing and the rising need for real-time data synchronization between core and edge data centers. The increase in video streaming, gaming, and IoT applications is boosting demand for ultra-low latency and high-throughput interconnect solutions. Furthermore, opportunities like the adoption of open optical networking and the move toward disaggregated infrastructure enable greater flexibility and cost efficiency, encouraging wider adoption of DCI technologies by enterprises and service providers globally.

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Data Center Interconnect Market Scope:

Report Coverage

Details

Market Revenue in 2025

$ 15.38 billion

Estimated Value by 2030

$ 25.89 billion

Growth Rate

Poised to grow at a CAGR of 11.0%

Market Size Available for

2021–2030

Forecast Period

2025–2030

Forecast Units

Value (USD Million/Billion)

Report Coverage

Revenue Forecast, Competitive Landscape, Growth Factors, and Trends

Segments Covered

By Type, Application, End User, and Region

Geographies Covered

North America, Europe, Asia Pacific, and Rest of World

Key Market Challenge

Interoperability among vendorss

Key Market Opportunities

Transition to 400G and 800G optical transceivers

Key Market Drivers

Rise in hyperscale data centers and colocation facilities

By application, the real-time disaster recovery and business continuity segment will hold the largest market share by 2030.

The real-time disaster recovery and business continuity segment dominates the DCI market because of the vital need for uninterrupted access to data and services amid cyberattacks, natural disasters, and system failures. Enterprises and service providers are increasingly focusing on resilient infrastructure to reduce downtime and ensure data replication across geographically dispersed data centers. The rise in regulatory compliance standards, such as data protection and availability requirements, has further driven demand for real-time DCI capabilities. Moreover, with the expanding use of hybrid and multi-cloud environments, organizations are adopting DCI solutions to keep operations running continuously, enable seamless failover, and uphold business continuity strategies within complex and dynamic IT ecosystems.

The enterprise segment will grow at the highest CAGR during the forecast period.

The enterprise end-user segment is expected to grow rapidly in the DCI market due to the increasing adoption of hybrid IT environments, digital transformation efforts, and rising dependence on data-driven operations across sectors like banking, healthcare, retail, and manufacturing. Companies are deploying multi-site data centers to maintain business continuity, enable real-time analytics, and ensure efficient workload sharing, all of which demand secure, high-capacity, and low-latency interconnect solutions. The expanding use of cloud services, edge computing, and AI/ML workloads is also boosting the need for smooth data transfer between on-premises infrastructure and cloud platforms. Furthermore, growing concerns over data sovereignty, regulatory compliance, and cyber resilience are encouraging enterprises to invest in strong and scalable DCI architectures.

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North America is expected to grow at a significant rate by 2030.

The North American data center interconnect industry is seeing strong growth, fueled by the rapid rise in cloud services, edge computing, and AI-powered workloads. The region has a high concentration of hyperscale data centers and cloud giants, which require high-capacity, low-latency connections across spread-out facilities. An increase in data center usage across different business sectors and early adoption of new technologies are expected to drive the market locally. Several US-based companies, such as Amazon Web Services (AWS), Google, and Microsoft, are boosting their investments in building data centers. The growth is mainly driven by the US, where data centers handle the large volumes of data generated, propelling the market forward.

The widespread use of optical interconnects in US data centers is a key factor driving the market growth in this region. Ethernet, InfiniBand, and other interfaces are commonly used with DCIs due to the high volume of data center applications. The region hosts many technological innovators and is experiencing strong demand for emerging technologies like cloud computing and IoT, which demand robust data center infrastructure to support growing complexities. North America is home to several top DCI companies, such as Juniper Networks, Inc. (US), Ciena Corporation (US), Cisco Systems, Inc. (US), and Extreme Networks, Inc. (US), as well as emerging players like Cologix (US), Brocade Communication Systems (US), Ranovus (US), and Evoque Data Center Solutions (US).

Key Players

Key companies operating in the data center interconnect companies include Ciena Corporation (US), Huawei Technologies Co., Ltd. (China), Cisco Systems, Inc. (US), Nokia (Finland), and Juniper Networks, Inc. (US).

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