Colocation Market Analysis, Share, Industry & Revenue [2031]
Colocation Market Analysis, Share, Industry & Revenue [2031]
Segments - Colocation Market by Types (Wholesale Colocation and Retail Colocation), Organization Sizes (Large Enterprises and Small & Medium Enterprises), End-users (BFSI, IT & Telecom, Energy Sector, Healthcare & Life Sciences, and Government & Public Sectors), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
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| Report ID :ICT-SE-3611
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Report Description
Colocation Market Share, Size & Trends 2031
The global colocation market size was USD 61.68 Billion in 2022 and is anticipated to reach USD 229.16 Billion by 2031 register a considerable CAGR 15.7% during the forecast period, 2023-2031. The growth of the market is attributed to the rising concern regarding operating data center expenses.
Colocation data center, often known as colo is any big facility of data center, which provides rack space, room, cage, or cabinet to third parties on the rent for their network equipment or servers. This data centers is mainly used by businesses that may not have the capital required to maintain their own data center.
This service provides facility to users, such as network bandwidth, cooling component, data center space, physical security, infrastructure, and power on the basis of requirements of end-users. Colocation centers addresses the limitations of existing data centers. It offers several benefits to the organization, including higher scalability & flexibility, risk management, reduced expenses, improved security, interconnection, and connectivity with cloud.
The COVID-19 pandemic outbreak had positive impact on the market. During the pandemic, the colocation services are helping organizations to address the extensive capacity demand of internet traffic. Additionally, the amount of data generation was high due to digitalization, automation, remote software management, and digital transaction, which created the need of effective data storage and management solutions.
Colocation Market Trends, Drivers, Restraints, and Opportunities
- Growing digitalization across the industry verticals especially in developing economies is one of the key factors driving the market growth.
- Increasing data center complexities is projected to boost the market during the forecast period.
- High initial and set-up cost of these centers acts as a major challenge that can restrict the market growth in the coming years.
- Rising concern regarding network bandwidth issue is expected to hamper the market growth during the projected timeline.
- Escalating need of disaster management solution is anticipated to create significant growth opportunities for the market.
Scope of Colocation Market Report
The report on the global colocation market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes |
Details |
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Report Title |
Colocation Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
|
Base Year |
2022 |
|
Historic Data |
2016–2021 |
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Forecast Period |
2023–2031 |
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Segmentation |
Types (Wholesale Colocation and Retail Colocation), Organization Sizes (Large Enterprises and Small & Medium Enterprises), and End-Users (BFSI, IT & Telecom, Energy Sector, Healthcare & Life Sciences, and Government & Public Sectors) |
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Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
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Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast |
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Key Players Covered in the Report |
Interxion Holding; CenturyLINK Technology Solutions; KDDI Telehouse; Global Switch Ltd.; Rackscape Technology, Inc.; SunGuard Availability Services; Equinix Inc.; Verizon Communication Ltd.; NTT Corp.; Digital Realty Trust, Inc.; and DuPont Fabros Technology, Inc. |
Colocation Market Segment Insights
Retail Colocation Segment to Register a High CAGR
On the basis of types, the market is bifurcated into wholesale colocation and retail colocation. The retail colocation segment is projected to register at high CAGR in the projected timeline attributed to benefits offered by it, such as enhanced security, lower cost of maintenance, and flexibility to IT infrastructure.
However, the wholesale colocation segment is anticipated to register a substantial CAGR during the forecast period owing to it provides high density computing and enables organization for deployment of thousands of servers at one location.
Increasing Demand Drives the Large Enterprises Segment
Based on organization sizes, the global colocation market is divided into large enterprises and small & medium enterprises. The large enterprise segment is estimated to expand at robust growth rate during the forecast period due to growing demand of heavy data storage from enterprises.
Furthermore, colocation services helps large enterprises to have complete control over the data center infrastructure, which is driving the segment growth further. However, the small & medium enterprises segment is anticipated to expand at a substantial CAGR during the forecast period owing to increasing digitalization and implementation of internet of things technology in their operation, which generates large volume of data.
BFSI Segment to Grow at Rapid Pace
On the basis of end-users, the market is segmented into BFSI, IT & telecom, energy sector, healthcare & life sciences, and government & public sectors. The BFSI segment is expected to grow at a rapid pace during the forecast period due to data generated by the sector is critical and require efficient and secure data storage facility.
Additionally, the segment growth is further accelerated as large volume of data generating through online banking and contactless payment, which need to be store and manage. On the other hand, the IT & telecom segment is anticipated to expand at a substantial CAGR in the coming years attributed to the growing need of reducing IT expenditure as well as these centers provides high level of risk management and disaster recovery solutions.
North America to Constitute a Key Market Share
In terms of region, the global colocation market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to the presence of large scale IT companies in the region, which needs more space to data storage and increases the need of colocation data centers.
However, the market of Asia Pacific is anticipated to grow at a rapid pace during the forecast period due to expanding IT & telecom sector, strong economic growth, and rapid digitalization across organizations in the region.
Segments
The global colocation market has been segmented on the basis of
Types
- Wholesale Colocation
- Retail Colocation
Organization Sizes
- Large Enterprises
- Small & Medium Enterprises
End-Users
- BFSI
- IT & Telecom
- Energy Sector
- Healthcare & Life Sciences
- Government & Public Sectors
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- Interxion Holding
- CenturyLINK Technology Solutions
- KDDI Telehouse
- Global Switch Ltd.
- Rackscape Technology, Inc.
- SunGuard Availability Services
- Equinix Inc.
- Verizon Communication Ltd.
- NTT Corp.
- Digital Realty Trust, Inc.
- DuPont Fabros Technology, Inc.
Competitive Landscape
Key players competing in the global colocation market are Interxion Holding; CenturyLINK Technology Solutions; KDDI Telehouse; Global Switch Ltd.; Rackscape Technology, Inc.; SunGuard Availability Services; Equinix Inc.; Verizon Communication Ltd.; NTT Corp.; Digital Realty Trust, Inc.; and DuPont Fabros Technology, Inc.
Companies are focusing on investments in R&D sector for advancements in colocation data center market to maintain their competitive position in the market. Companies have been widely engaged in strategic partnership, merger & acquisition, new product launch, and collaborations to boost their market share and acquiring new buyers.
For instance, in June 2017, NTT Corp. Japan based Telecommunication Company announced a launch of 10Gbps large volume network to extend its network of data center. The recently launched product was to connect NTT’s Business Cloud for organizations collocated at more than 30 data centers around the globe.
In April 2021, Equinix, Inc. a US based digital infrastructure providers, declared the completion of an extension of Equinix's AM7 International Business Exchange in Amsterdam, AM7 phase 3. The AM7 phase 3 will rise the capability of international and local customers to be digitized. Equinix also capitalized more than USD 1 billion in data centers located in Amsterdam to date.
Table Of Content
1. Executive Summary2. Assumptions and Acronyms Used
3. Research Methodology
4. Colocation Market Overview
4.1. Introduction
4.1.1. Market Taxonomy
4.1.2. Market Definition
4.2. Macro-Economic Factors
4.2.1. Industry Outlook
4.3. Colocation Market Dynamics
4.3.1. Market Drivers
4.3.2. Market Restraints
4.3.3. Opportunity
4.3.4. Market Trends
4.4. Colocation Market - Supply Chain
4.5. Global Colocation Market Forecast
4.5.1. Colocation Market Size (US$ Mn) and Y-o-Y Growth
4.5.2. Colocation Market Size (000’ Units) and Y-o-Y Growth
4.5.3. Colocation Market Absolute $ Opportunity
5. Global Colocation Market Analysis and Forecast by Types
5.1. Market Trends
5.2. Introduction
5.2.1. Basis Point Share (BPS) Analysis by Types
5.2.2. Y-o-Y Growth Projections by Types
5.3. Colocation Market Size and Volume Forecast by Types
5.3.1. Wholesale Colocation
5.3.2. Retail Colocation
5.4. Absolute $ Opportunity Assessment by Types
5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Colocation Market Analysis and Forecast by End Users
6.1. Market Trends
6.2. Introduction
6.2.1. Basis Point Share (BPS) Analysis by End Users
6.2.2. Y-o-Y Growth Projections by End Users
6.3. Colocation Market Size and Volume Forecast by End Users
6.3.1. BFSI
6.3.2. IT & Telecom
6.3.3. Energy Sector
6.3.4. Healthcare & Life Sciences
6.3.5. Government & Public Sectors
6.4. Absolute $ Opportunity Assessment by End Users
6.5. Market Attractiveness/Growth Potential Analysis by End Users
7. Global Colocation Market Analysis and Forecast by Region
7.1. Market Trends
7.2. Introduction
7.2.1. Basis Point Share (BPS) Analysis by Region
7.2.2. Y-o-Y Growth Projections by Region
7.3. Colocation Market Size and Volume Forecast by Region
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa (MEA)
7.4. Absolute $ Opportunity Assessment by Region
7.5. Market Attractiveness/Growth Potential Analysis by Region
7.6. Global Colocation Demand Share Forecast, 2019-2026
8. North America Colocation Market Analysis and Forecast
8.1. Introduction
8.1.1. Basis Point Share (BPS) Analysis by Country
8.1.2. Y-o-Y Growth Projections by Country
8.2. North America Colocation Market Size and Volume Forecast by Country
8.2.1. U.S.
8.2.2. Canada
8.3. Absolute $ Opportunity Assessment by Country
8.4. North America Colocation Market Size and Volume Forecast by Types
8.4.1. Wholesale Colocation
8.4.2. Retail Colocation
8.5. Basis Point Share (BPS) Analysis by Types
8.6. Y-o-Y Growth Projections by Types
8.7. North America Colocation Market Size and Volume Forecast by End Users
8.7.1. BFSI
8.7.2. IT & Telecom
8.7.3. Energy Sector
8.7.4. Healthcare & Life Sciences
8.7.5. Government & Public Sectors
8.8. Basis Point Share (BPS) Analysis by End Users
8.9. Y-o-Y Growth Projections by End Users
8.10. Market Attractiveness/Growth Potential Analysis
8.10.1. By Country
8.10.2. By Product Type
8.10.3. By Application
8.11. North America Colocation Demand Share Forecast, 2019-2026
9. Latin America Colocation Market Analysis and Forecast
9.1. Introduction
9.1.1. Basis Point Share (BPS) Analysis by Country
9.1.2. Y-o-Y Growth Projections by Country
9.1.3. Latin America Average Pricing Analysis
9.2. Latin America Colocation Market Size and Volume Forecast by Country
9.2.1. Brazil
9.2.2. Mexico
9.2.3. Rest of Latin America
9.3. Absolute $ Opportunity Assessment by Country
9.4. Latin America Colocation Market Size and Volume Forecast by Types
9.4.1. Wholesale Colocation
9.4.2. Retail Colocation
9.5. Basis Point Share (BPS) Analysis by Types
9.6. Y-o-Y Growth Projections by Types
9.7. Latin America Colocation Market Size and Volume Forecast by End Users
9.7.1. BFSI
9.7.2. IT & Telecom
9.7.3. Energy Sector
9.7.4. Healthcare & Life Sciences
9.7.5. Government & Public Sectors
9.8. Basis Point Share (BPS) Analysis by End Users
9.9. Y-o-Y Growth Projections by End Users
9.10. Market Attractiveness/Growth Potential Analysis
9.10.1. By Country
9.10.2. By Product Type
9.10.3. By Application
9.11. Latin America Colocation Demand Share Forecast, 2019-2026
10. Europe Colocation Market Analysis and Forecast
10.1. Introduction
10.1.1. Basis Point Share (BPS) Analysis by Country
10.1.2. Y-o-Y Growth Projections by Country
10.1.3. Europe Average Pricing Analysis
10.2. Europe Colocation Market Size and Volume Forecast by Country
10.2.1. Germany
10.2.2. France
10.2.3. Italy
10.2.4. U.K.
10.2.5. Spain
10.2.6. Russia
10.2.7. Rest of Europe
10.3. Absolute $ Opportunity Assessment by Country
10.4. Europe Colocation Market Size and Volume Forecast by Types
10.4.1. Wholesale Colocation
10.4.2. Retail Colocation
10.5. Basis Point Share (BPS) Analysis by Types
10.6. Y-o-Y Growth Projections by Types
10.7. Europe Colocation Market Size and Volume Forecast by End Users
10.7.1. BFSI
10.7.2. IT & Telecom
10.7.3. Energy Sector
10.7.4. Healthcare & Life Sciences
10.7.5. Government & Public Sectors
10.8. Basis Point Share (BPS) Analysis by End Users
10.9. Y-o-Y Growth Projections by End Users
10.10. Market Attractiveness/Growth Potential Analysis
10.10.1. By Country
10.10.2. By Product Type
10.10.3. By Application
10.11. Europe Colocation Demand Share Forecast, 2019-2026
11. Asia Pacific Colocation Market Analysis and Forecast
11.1. Introduction
11.1.1. Basis Point Share (BPS) Analysis by Country
11.1.2. Y-o-Y Growth Projections by Country
11.1.3. Asia Pacific Average Pricing Analysis
11.2. Asia Pacific Colocation Market Size and Volume Forecast by Country
11.2.1. China
11.2.2. Japan
11.2.3. South Korea
11.2.4. India
11.2.5. Australia
11.2.6. Rest of Asia Pacific (APAC)
11.3. Absolute $ Opportunity Assessment by Country
11.4. Asia Pacific Colocation Market Size and Volume Forecast by Types
11.4.1. Wholesale Colocation
11.4.2. Retail Colocation
11.5. Basis Point Share (BPS) Analysis by Types
11.6. Y-o-Y Growth Projections by Types
11.7. Asia Pacific Colocation Market Size and Volume Forecast by End Users
11.7.1. BFSI
11.7.2. IT & Telecom
11.7.3. Energy Sector
11.7.4. Healthcare & Life Sciences
11.7.5. Government & Public Sectors
11.8. Basis Point Share (BPS) Analysis by End Users
11.9. Y-o-Y Growth Projections by End Users
11.10. Market Attractiveness/Growth Potential Analysis
11.10.1. By Country
11.10.2. By Product Type
11.10.3. By Application
11.11. Asia Pacific Colocation Demand Share Forecast, 2019-2026
12. Middle East & Africa Colocation Market Analysis and Forecast
12.1. Introduction
12.1.1. Basis Point Share (BPS) Analysis by Country
12.1.2. Y-o-Y Growth Projections by Country
12.1.3. Middle East & Africa Average Pricing Analysis
12.2. Middle East & Africa Colocation Market Size and Volume Forecast by Country
12.2.1. Saudi Arabia
12.2.2. South Africa
12.2.3. UAE
12.2.4. Rest of Middle East & Africa (MEA)
12.3. Absolute $ Opportunity Assessment by Country
12.4. Middle East & Africa Colocation Market Size and Volume Forecast by Types
12.4.1. Wholesale Colocation
12.4.2. Retail Colocation
12.5. Basis Point Share (BPS) Analysis by Types
12.6. Y-o-Y Growth Projections by Types
12.7. Middle East & Africa Colocation Market Size and Volume Forecast by End Users
12.7.1. BFSI
12.7.2. IT & Telecom
12.7.3. Energy Sector
12.7.4. Healthcare & Life Sciences
12.7.5. Government & Public Sectors
12.8. Basis Point Share (BPS) Analysis by End Users
12.9. Y-o-Y Growth Projections by End Users
12.10. Market Attractiveness/Growth Potential Analysis
12.10.1. By Country
12.10.2. By Product Type
12.10.3. By Application
12.11. Middle East & Africa Colocation Demand Share Forecast, 2019-2026
13. Competition Landscape
13.1. Global Colocation Market: Market Share Analysis
13.2. Colocation Distributors and Customers
13.3. Colocation Market: Competitive Dashboard
13.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
13.4.1. Interxion Holding
13.4.2. CenturyLINK Technology Solutions
13.4.3. KDDI Telehouse
13.4.4. Global Switch Ltd.
13.4.5. Rackscape Technology, Inc.
13.4.6. SunGuard Availability Services
13.4.7. Equinix Inc.
Methodology
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