Colocation Market

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 2021 – 2028

  • Report ID: ICT-SE-3611
  • Author: Growth Market Reports
  • Rating: 4.8
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  • No. Of Pages: 165
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The global colocation market size is anticipated to register a considerable CAGR during the forecast period, 2021-2028. The growth of the market is attributed to the rising concern regarding operating data center expenses.

Colocation Market key takeaways

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.

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 the 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.

Attributes

Details

Report Title

Colocation Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast

Base Year

2020

Historic Data

2018–2019

Forecast Period

2021–2028

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)

Regional Scope

Asia Pacific, North America, Latin America, Europe, and Middle East & Africa

Report Coverage

Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast

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.

 

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.

Colocation Market by types

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.

Colocation Market by org

 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

Segments Covered in the Report
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.

Colocation Market by key players

1. Executive Summary
2. 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.

Segments Covered in the Report
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.

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.

Colocation Market by key players

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