Data Center Interconnect Market Size, Share & Trends Analysis Report By End-use (CSPs, ICPs/CNPs, Government/R&E), By Type (Hardware, Software, Services), By Region, And Segment Forecasts, 2022 - 2030

Data Center Interconnect Market Size, Share & Trends Analysis Report By End-use (CSPs, ICPs/CNPs, Government/R&E), By Type (Hardware, Software, Services), By Region, And Segment Forecasts, 2022 - 2030

Data Center Interconnect Market Growth & Trends

The global data center interconnects market size is expected to reach USD 21.7 billion by 2030, growing at a CAGR of 12.6% from 2022 to 2030, according to a new report by Grand View Research, Inc. The emphasis by the data center providers on latency, throughput, streamlined operations, intelligence, security, and maintenance is expected to drive the growth of the industry during the forecast period. The growing need to reduce the number of hops, and subsequently, the points of failure while routing the internet traffic is also expected to drive the demand for the market over the forecast period.

The demand for Over-The-Top (OTT) services increased during the COVID-19 pandemic, and organizations opted for cloud computing and pure colocation to support remote working, thereby driving the demand for DCI solutions. However, the industry also had to confront a looming shortage of DCI hardware as production activities at various manufacturing facilities across Taiwan, China, Mexico, Malaysia, and the U.S. were suspended temporarily. North America dominated the industry in 2021 and accounted for the maximum revenue share.

North America is home to several leading telecommunications companies, well-established suppliers, and incumbents of various end-use industries and industry verticals. Asia Pacific is expected to emerge as the fastest-growing region over the forecast period. Implementation of optical transportation networking equipment in data centers and the continued rollout of long-haul and metro networks are expected to contribute to the growth of the APAC regional market.

Data Center Interconnect Market Report Highlights

• The hardware segment dominated the industry in 2021 and accounted for the largest revenue share
• The software segment is anticipated to grow at the fastest CAGR during the forecast period
• DCI software solutions help network operators ensure an appropriate combination of DCI-optimized packet, security, and virtualization technologies to link data centers, thereby contributing to the segment growth
• The Communications Service Providers (CSPs) segment dominated the industry in 2021 and accounted for the largest revenue share
• CSPs are investing aggressively to cater to the growing demand for an increased capacity for facilitating managed services
• Furthermore, CSPs are focusing on managed DCI and cloud interconnect services and are also leveraging their data center assets & central office resources to offer virtual private cloud services