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.
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
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Details
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Report Title
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Data Center Colocation Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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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)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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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
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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.
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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.
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.
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.
