Data Center Interconnect Market Size & Share, by Type (Products, Software, Services, Hardware); Application (Real-time Disaster Recovery and Business Continuity, Shared Data and Resources/Server High-availability Clusters, Workload and Data Mobility); End-user (Communication Service Providers, Internet Content Providers/ Carrier-Neutral Providers, Governments, Enterprises) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2024-2036

  • Report ID: 5904
  • Published Date: Mar 19, 2024
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2024-2036

Data Center Interconnect Market size is anticipated to reach USD 26 Billion by the end of 2036, growing at a CAGR of 14% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of data center interconnects was USD 11 Billion. The shift towards cloud solutions is a catalyst for the expansion of the market, requiring strong, fast, scalable, and secure connections to meet increasing demands from businesses. For instance, the cloud applications industry is estimated to be worth USD 168.6 billion in 2025.  Because of the growing number of applications that are stored, processed, or operated in clouds, a need for high-speed and reliable data transfer from one data center to another has become increasingly relevant. The increasing need for cloud services is supported by data center interconnect solutions that facilitate efficient and secure data transmission.

Furthermore, to provide distributed processing and analysis of data at the network edge, it is necessary to create interconnected edge data centers as a result of the increasing deployment of edge computing. The DCI solution enables seamless integration of edge resources with centralized data centers and cloud environments by extending connectivity to remote points. This interconnected infrastructure supports latency-sensitive applications and increases the overall performance of edge computing ecosystems.

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Data Center Interconnect Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Disaster Recovery and Business Continuity Requirements - For users of data centers worldwide, disaster recovery is a top priority. Facilities with IT infrastructure are vulnerable to unforeseen incidents including fires, earthquakes, and security breaches. Appropriate disaster recovery procedures need to be in place to prevent firms from suffering significant losses as a result of such events. Facilities for connecting data centers are situated far from users' homes and are less vulnerable to natural disasters. The ability to remotely operate these facilities increases their dependability for disaster recovery plans. Because they allow companies to store important data in a remote location, interconnection facilities are therefore expected to develop into the perfect backup and recovery solution. Therefore, the availability of a robust and secure DCI solution enables business continuity, which is why there will likely be an increase in demand for these solutions.
  • Growing Number of Data Centers Globally - To fulfill the demands of rapid service development, data communication network (DCN) and data center interconnect (DCI) solutions are becoming more and more focused on swiftly rising DCN and DCI capacity. This is done to assure zero packet loss, low latency, and high throughput of lossless networks. DCI, which enables enterprises to connect their data centers with providers of computing services and other data center operators in order to facilitate the sharing of information and resources, is also growing as a result of the increasing use of data centers. As per a report, the United States, the world's most populous country, had reported 5,375 data centers as of September 2023.
  • Increased Demand for 5G Networks in Various Industries - The increase in deployment of 5G networks globally is expanding the data center interconnect market. The ease of transferring, transmitting, and storing data from various Internet of Things devices is facilitated by the use of 5G. This is leading to increased demand for data centres with greater capacity, more precise network synchronization and a wider range of telecommunication services. In connection with hyperscale data centers, DCI solutions have traditionally played a small role.


  • High Initial Investment Costs - When preparing to build up a data center, several factors must be considered. Engineering, permissions & approvals, power systems, enclosed generators, conduit & cabling for generators, data center lighting, lighting protection, HVAC, fire suppression, etc. are some of these aspects. The capital investments can soon be offset by these expenses. Therefore, this factor may hinder the growth of the data center interconnect market.
  • Capacity Limitations may Hinder the Growth of the Market
  • Concerns Regarding Data Privacy Issues may Hamper the Growth of the Market

Data Center Interconnect Market: Key Insights

Base Year


Forecast Year



~ 14%

Base Year Market Size (2023)

 ~ USD 11 Billion

Forecast Year Market Size (2036)

 ~ USD 26 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Data Center Interconnect Segmentation

Type (Products, Software, Services, Hardware)

The software segment in the data center interconnect market is anticipated to hold a share of 48% during the forecast period. DCI software solutions contribute to the segment's expansion by assisting network operators in ensuring that the right mix of virtualization, security, and DCI-optimized packet technology is used to link data centers. In addition, DCI software solutions assist in resource sharing and balancing when network traffic rises and the need for sufficient bandwidth follows. Network operators can adapt the bandwidth in real-time to changing demand with the use of several features linked to the DCI software. Also, increased launches by various key players are also propelling the growth of the DCI software solutions segment. For instance, rekeying data may be eliminated and data quality can be improved with the help of Hawthorn River, a reputable leader in lending software solutions for community banks, which has successfully launched its real-time interface to DCI's iCore360 platform. Therefore, these factors are propelling the growth of the segment.

End-users (Communication Service Providers, Internet Content Providers/ Carrier-Neutral Providers, Governments, Enterprises)

The communication service Providers segment in the data center interconnect market is anticipated to hold a share of 45% during the forecast period. One important factor influencing the segment's growth is network expansion. CSPs are always expanding their network infrastructure to meet the growing need for dependable and high-quality data transfer. For instance, the Service Provider Network Infrastructure industry is expected to generate USD 143.21 billion in revenue by 2024. Also, as part of this development, data centers will be built or upgraded, and in order to connect them effectively, reliable data center interconnect solutions are needed. CSPs may better service consumers' ever-increasing connectivity needs and stay competitive in the telecoms sector by extending their network footprint and ensuring smooth data access. Therefore, altogether these factors contribute to the expansion of the market.

Our in-depth analysis of the global market includes the following segments:


  • Products
  • Software
  • Services
  • Hardware


  • Real-time Disaster Recovery and Business Continuity
  • Shared Data and Resources/Server High-availability Clusters
  • Workload and Data Mobility


  • Communication Service Providers
  • Internet Content Providers/ Carrier-Neutral Providers
  • Governments
  • Enterprises

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Research Nester
Data Center Interconnect Market Size
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Companies Dominating the Data Center Interconnect Landscape

    • Nokia Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Ciena Corporation
    • Huawei Technologies
    • Juniper Networks, Inc.
    • Infinera Corporation
    • ADVA Optical Networking SE
    • Cisco Systems
    • Equinix, Inc.  
    • Megaport
    • Evoque Data Center Solutions


In The News

  • October 2021 - Nokia announced that it has provided ESpanix, the biggest neutral internet exchange provider in Spain, with a modular optical data center interconnect (DCI) solution. Using dual optical lines for redundancy, the solution unites three data centers in the Madrid metro region. ESpanix can address the constantly growing internet connectivity needs of its customers by offering more dependable and responsive connectivity with an initial capacity of 4 Terabits Per Second (Tb/sec) between data centers thanks to this technology.
  • November 2022 - The first and largest supplier of integrated telecommunication services in Oman, Oman Telecommunications Company (Omantel), announced the introduction of a 400GbE DCI service that makes use of Ciena's data center interconnect technology. The service is intended to give a better customer experience through optimal performance while satisfying the quickly increasing connection needs of Omantel's wholesale, cloud, and content provider customers.

Author Credits:  Abhishek Verma, Hetal Singh

  • Report ID: 5904
  • Published Date: Mar 19, 2024
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Growing disaster recovery and business continuity requirements, a growing number of data centers globally, and increased demand for 5G networks in various industries are the major factors driving the growth of the data center interconnect market.

The market size of data center interconnect is anticipated to attain a CAGR of 14% over the forecast period, i.e., 2024-2036.

The major players in the market are Nokia Corporation, Ciena Corporation, Huawei Technologies, Juniper Networks, Inc., Infinera Corporation, ADVA Optical Networking SE, Cisco Systems, Equinix, Inc., Megaport, Evoque Data Center Solutions, and others.

The software segment is anticipated to garner the largest market size by the end of 2036 and display significant growth opportunities.

The market in the North American region is projected to hold the largest market share by the end of 2036 and provide more business opportunities in the future.
Data Center Interconnect Market Report Scope

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