Data Center Colocation Market Share & Growth | Forecast 2031

Segments - Global Data Center Colocation Market by Solution Types (Retail Colocation and Wholesale Colocation), Organization Size (Large Enterprises and Small and Medium Enterprises), End-user Verticals (IT and Telecom, Government, Banking and Financial Services, Healthcare & Life Sciences, Entertainment and Media, Manufacturing, and Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

Author : Raksha Sharma

Fact-checked by : Vineet Pandey

Editor : Shruti Bhat

Report Description

The global data center colocation market size was valued at USD 46.08 billion in 2020 and is anticipated to expand at a CAGR of 13.3% during the forecast period, 2021–2028. The growth of the market is attributed to the growing demand for hybrid cloud technology, rising reliability, virtualization, and safety requirements.

Data center colocation is a large data center facility that rent out space to different third parties for their network equipments and servers. It is mainly used by various businesses that have limited resources and need to maintain their own data center. The hardware is mostly possess by the company’s and housed as well as maintain by the data center. It is vital for the companies what have large footprints.

Global Data Center Colocation Market Summary

The data center colocations have various benefits for individuals and companies such as easy scalability, reliable, reduced costs, and lesser technical staff. The increasing volume of data from over-the-top and social media platforms has fueled the demand for data centers colocation market. Data centers are located away from the user’s premises and are less prone to disasters.

Market Trends, Drivers, Restraints, and Opportunities

Increasing requirement for scalable data centers is estimated to push the market growth during the forecast period.
Rapid growth of the IT and telecom industry is major factor spurring the market expansion.
Growing network complexities in data centers facilities is projected to fuel the market growth in the coming years.
High initial investment and maintenance cost in data centers is expected to hinder the market expansion during the forecast period.
Rising disaster recovery and business continuity requirements is estimated to offer immense opportunities for the market players.

Scope of Data Center Colocation Market Report

The report on the global data center 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	Data Center Colocation Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Base Year	2020
Historic Data	2018–2019
Forecast Period	2021–2028
Segmentation	Solution Types (Retail Colocation and Wholesale Colocation), Organization Size (Large Enterprises and Small and Medium Enterprises), End-user Verticals (IT and Telecom, Government, Banking and Financial Services, Healthcare & Life Sciences, Entertainment and Media, Manufacturing, and Others)
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	KDDI Telehouse Corporation; CenturyLink, Inc.; Global Switch Corporation; Fabros Technology, Inc.; Equinix Inc.; SunGard Availability Services; NTT Communications Corporation; Digital Reality Trust, Inc.; SoftBank Group Corporation; and Fujitsu Ltd.

Market Segment Insights

Retail colocation segment is projected to account for a large market share

Based on solution types, the global data center colocation market is divided into retail colocation and wholesale colocation. The retail colocation segment is expected to constitute a key share of the market during the forecast period owing to its flexibility provided to IT infrastructure, lower costs of maintenance of data centers, and its importance for small and medium enterprises. Retail colocation supplies space, cabling, cooling, power, and support services along with high security of data. However, the wholesale colocation segment is anticipated to expand at a rapid pace during the forecast period due to high density computing and it permits organizations to deploy thousands of servers at one place.

Global Data Center Colocation Market Types

Large enterprises segment is projected to hold a key market share

On the basis of organization size, the market is segmented into large enterprises and small and medium enterprises. The large enterprises segment is expected to represent a key share of the market in the coming years due to high investment of large enterprises in data centers and increasing requirement of data storage. Colocation services helps to control over the data infrastructure and fulfill their power and computational requirement. On the other hand, the small and medium enterprises segment is anticipated to expand at a rapid pace during the forecast period owing to shift of business toward digitization and acquiring internet of things that creates large amount of data.

Healthcare & life sciences segment is projected to constitute a major market share

In terms of end-user verticals, the global data center colocation market is segregated into IT and telecom, government, banking and financial services, healthcare & life sciences, entertainment and media, manufacturing, and others. The healthcare & life sciences segment is expected to account for a key share of the market during the forecast period owing to rising technological advancement in the hospital industry. However, the IT and telecom segment is anticipated to expand at a rapid pace during the forecast period due to growing number of mobile internet users and continuous development of various software and applications in the industry.

Global Data Center Colocation Market End Users

North America is expected to dominate the market

On the basis of regions, the global data center colocation market is categorized as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market of North America is anticipated to expand at an impressive CAGR during the forecast period. The regional market growth can be attributed to large number of data centers in the region and rapid adoption owing to accessibility of comprehensive solutions. On the other hand, the market of Asia Pacific is expected to exhibit a rapid growth rate in the coming years due to economic growth and various organizations are investing in data centers to improve productivity and sustain growth.

Segments

The global data center colocation market has been segmented on the basis of

Solution Types

Retail Colocation
Wholesale Colocation

Organization Size

Large Enterprises
Small and Medium Enterprises

End-user Verticals

IT and Telecom
Government
Banking and Financial Services
Healthcare & Life sciences
Entertainment and Media
Manufacturing
Others

Regions

Asia Pacific
North America
Latin America
Europe
Middle East & Africa

Key Players

KDDI Telehouse Corporation
CenturyLink, Inc.
Global Switch Corporation
Fabros Technology, Inc.
Equinix Inc.
SunGard Availability Services
NTT Communications Corporation
Digital Reality Trust, Inc.
SoftBank Group Corporation
Fujitsu Ltd.

Competitive Landscape

Key players competing in the global data center colocation market include KDDI Telehouse Corporation; CenturyLink, Inc.; Global Switch Corporation; Fabros Technology, Inc.; Equinix Inc.; SunGard Availability Services; NTT Communications Corporation; Digital Reality Trust, Inc.; SoftBank Group Corporation; and Fujitsu Ltd. Some of these players are engaged in several market strategies such as mergers, acquisitions, partnerships, collaborations, capacity expansion, and product launches to enhance their market shares.

Global Data Center Colocation Market Key Players

Table Of Content

1. Executive Summary
2. Assumptions and Acronyms Used
3. Research Methodology
4. Data Center 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. Data Center Colocation Market Dynamics
     4.3.1. Market Drivers
     4.3.2. Market Restraints
     4.3.3. Opportunity
     4.3.4. Market Trends
  4.4. Data Center Colocation Market - Supply Chain
  4.5. Global Data Center Colocation Market Forecast
     4.5.1. Data Center Colocation Market Size (US$ Mn) and Y-o-Y Growth
     4.5.2. Data Center Colocation Market Size (000â€™ Units) and Y-o-Y Growth
     4.5.3. Data Center Colocation Market Absolute $ Opportunity
5. Global Data Center 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. Data Center Colocation Market Size and Volume Forecast by Types
     5.3.1. Retail Colocation
     5.3.2. Wholesale Colocation
  5.4. Absolute $ Opportunity Assessment by Types
  5.5. Market Attractiveness/Growth Potential Analysis by Types
6. Global Data Center Colocation Market Analysis and Forecast by Region
  6.1. Market Trends
  6.2. Introduction
     6.2.1. Basis Point Share (BPS) Analysis by Region
     6.2.2. Y-o-Y Growth Projections by Region
  6.3. Data Center Colocation Market Size and Volume Forecast by Region
     6.3.1. North America
     6.3.2. Latin America
     6.3.3. Europe
     6.3.4. Asia Pacific
     6.3.5. Middle East and Africa (MEA)
  6.4. Absolute $ Opportunity Assessment by Region
  6.5. Market Attractiveness/Growth Potential Analysis by Region
  6.6. Global Data Center Colocation Demand Share Forecast, 2019-2026
7. North America Data Center Colocation Market Analysis and Forecast
  7.1. Introduction
     7.1.1. Basis Point Share (BPS) Analysis by Country
     7.1.2. Y-o-Y Growth Projections by Country
  7.2. North America Data Center Colocation Market Size and Volume Forecast by Country
     7.2.1. U.S.
     7.2.2. Canada
  7.3. Absolute $ Opportunity Assessment by Country
  7.4. North America Data Center Colocation Market Size and Volume Forecast by Types
     7.4.1. Retail Colocation
     7.4.2. Wholesale Colocation
  7.5. Basis Point Share (BPS) Analysis by Types
  7.6. Y-o-Y Growth Projections by Types
  7.7. Market Attractiveness/Growth Potential Analysis
     7.7.1. By Country
     7.7.2. By Product Type
     7.7.3. By Application
  7.8. North America Data Center Colocation Demand Share Forecast, 2019-2026
8. Latin America Data Center 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
     8.1.3. Latin America Average Pricing Analysis
  8.2. Latin America Data Center Colocation Market Size and Volume Forecast by Country
      8.2.1. Brazil
      8.2.2. Mexico
      8.2.3. Rest of Latin America
   8.3. Absolute $ Opportunity Assessment by Country
  8.4. Latin America Data Center Colocation Market Size and Volume Forecast by Types
     8.4.1. Retail Colocation
     8.4.2. Wholesale Colocation
  8.5. Basis Point Share (BPS) Analysis by Types
  8.6. Y-o-Y Growth Projections by Types
  8.7. Market Attractiveness/Growth Potential Analysis
     8.7.1. By Country
     8.7.2. By Product Type
     8.7.3. By Application
  8.8. Latin America Data Center Colocation Demand Share Forecast, 2019-2026
9. Europe Data Center 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. Europe Average Pricing Analysis
  9.2. Europe Data Center Colocation Market Size and Volume Forecast by Country
     9.2.1. Germany
     9.2.2. France
     9.2.3. Italy
     9.2.4. U.K.
     9.2.5. Spain
     9.2.6. Russia
     9.2.7. Rest of Europe
  9.3. Absolute $ Opportunity Assessment by Country
  9.4. Europe Data Center Colocation Market Size and Volume Forecast by Types
     9.4.1. Retail Colocation
     9.4.2. Wholesale Colocation
  9.5. Basis Point Share (BPS) Analysis by Types
  9.6. Y-o-Y Growth Projections by Types
  9.7. Market Attractiveness/Growth Potential Analysis
     9.7.1. By Country
     9.7.2. By Product Type
     9.7.3. By Application
  9.8. Europe Data Center Colocation Demand Share Forecast, 2019-2026
10. Asia Pacific Data Center 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. Asia Pacific Average Pricing Analysis
  10.2. Asia Pacific Data Center Colocation Market Size and Volume Forecast by Country
     10.2.1. China
     10.2.2. Japan
     10.2.3. South Korea
     10.2.4. India
     10.2.5. Australia
     10.2.6. Rest of Asia Pacific (APAC)
  10.3. Absolute $ Opportunity Assessment by Country
  10.4. Asia Pacific Data Center Colocation Market Size and Volume Forecast by Types
     10.4.1. Retail Colocation
     10.4.2. Wholesale Colocation
  10.5. Basis Point Share (BPS) Analysis by Types
  10.6. Y-o-Y Growth Projections by Types
  10.7. Market Attractiveness/Growth Potential Analysis
     10.7.1. By Country
     10.7.2. By Product Type
     10.7.3. By Application
  10.8. Asia Pacific Data Center Colocation Demand Share Forecast, 2019-2026
11. Middle East & Africa Data Center 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. Middle East & Africa Average Pricing Analysis
  11.2. Middle East & Africa Data Center Colocation Market Size and Volume Forecast by Country
     11.2.1. Saudi Arabia
     11.2.2. South Africa
     11.2.3. UAE
     11.2.4. Rest of Middle East & Africa (MEA)
  11.3. Absolute $ Opportunity Assessment by Country
  11.4. Middle East & Africa Data Center Colocation Market Size and Volume Forecast by Types
     11.4.1. Retail Colocation
     11.4.2. Wholesale Colocation
  11.5. Basis Point Share (BPS) Analysis by Types
  11.6. Y-o-Y Growth Projections by Types
  11.7. Market Attractiveness/Growth Potential Analysis
     11.7.1. By Country
     11.7.2. By Product Type
     11.7.3. By Application
  11.8. Middle East & Africa Data Center Colocation Demand Share Forecast, 2019-2026
12. Competition Landscape
  12.1. Global Data Center Colocation Market: Market Share Analysis
  12.2. Data Center Colocation Distributors and Customers
  12.3. Data Center Colocation Market: Competitive Dashboard
  12.4. Company Profiles (Details: Overview, Financials, Developments, Strategy)
     12.4.1. KDDI Telehouse Corporation
     12.4.2. CenturyLink, Inc.
     12.4.3. Global Switch Corporation
     12.4.4. Fabros Technology, Inc.
     12.4.5. Equinix Inc.
     12.4.6. SunGard Availability Services
     12.4.7. NTT Communications Corporation