Data Center Colocation Market - Global Industry Analysis

Data Center Colocation Market By Type (Retail colocation, Wholesale colocation), By End-User (Small and Medium-Sized Enterprises (SMEs), Large Enterprises), By Industry (Banking, Financial Services, and Insurance (BFSI), IT and telecom, Government and defense, Healthcare, Research and academics, Retail, Energy, Manufacturing, Others (media and entertainment, and transportation and logistics)), and By Region – Global and Regional Industry Overview, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecasts 2022 – 2028

Published Date: 14-Apr-2022 Category: Technology & Media Report Format : PDF Pages: 110 Report Code: ZMR-1082 Status : Published

The global Data Center Colocation market was worth around USD 56291.70 million in 2021 and is estimated to grow to about USD 1350315.73 million by 2028, with a compound annual growth rate (CAGR) of approximately 15.7 percent over the forecast period.

Description

Industry Prospective:

The global Data Center Colocation market was worth around USD 56291.70 million in 2021 and is estimated to grow to about USD 1350315.73 million by 2028, with a compound annual growth rate (CAGR) of approximately 15.7 percent over the forecast period. The report analyzes the Data Center Colocation market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Data Center Colocation market.

Data Center Colocation Market: Overview

Data center colocation market is expected to see exponential increase in demand over the coming years owing to rising demand for digital solutions and increasing digital infrastructure on a global level. The data center colocation market is expected to be driven by rising demand for data centers owing to increasing demand for large volume of data that is to be managed. Data center colocation enables cost cutting and reduction of expenses in lieu of rising IT spending for organizations.

Rapid urbanization and digitization, increasing technological proliferation, rising adoption of cloud solutions, increasing investments in data center establishment are some of the other factors that will influence the data center colocation market potential through 2028.

COVID-19 Impact:

The COVID-19 pandemic provided a boost for the data center colocation market as the world moved towards the digital technology trend to manage life during the situation of a worldwide pandemic. Lockdown restrictions prohibited outdoor activity and shuttered multiple office spaces which affected businesses on a large scale and these organizations then shifted to a digital approach of work to keep operations running in these times.  

Increasing adoption of cloud based technology and more organizations shifting on a cloud infrastructure resulted in a sudden surge of increase in data volumes and hence boosted the data center colocation market potential. However, the market did not attain its full growth due to restrictions in 2020.

In the post-pandemic era the data center colocation market is expected to grow at exceptional CAGR through 2028. Increasing digitization and rising volume of data are predicted to be prominent trend driving data center colocation market potential.

Data Center Colocation Market: Growth Drivers

Increasing Digitization and Adoption of Cloud Technology

Digitization has substantially increased over the past few years and this is anticipated to be a major trend driving the data center colocation market growth through 2028. Increasing adoption of cloud technology by large enterprises and SMEs is also expected to further cement the data center colocation market potential over the forecast period. Increasing focus on managing IT expenditure and efforts of SMEs to mitigate cost of data center operations and manage spending to maximize profits and minimize risks.

Data Center Colocation Market: Opportunities

Increasing Popularity of OTT  

Streaming services have become immensely popular in recent times and this trend has substantially increased the demand for data centers and data management services across the world. The increasing penetration of OTT platforms on a global scale is also expected to boost the data center colocation market growth over the forecast period. These platforms will be increasing their streaming capacities by deploying new data centers across the world and increase the scope of their offerings on a global scale through 2028.

Global Data Center Colocation Market: Segmentation

The global Data Center Colocation market is segregated based on type, end user, industry, and region.

By industry, the market is divided into Banking, Financial Services, and Insurance (BFSI), IT and telecom, Government and defense, Healthcare, Research and academics, Retail, Energy, Manufacturing, and Others (media and entertainment, and transportation and logistics). The IT and telecom industry is expected to account for a major market share over the forecast period. Increasing technological proliferation and rising digitization are expected to be prominent trends propelling the growth of data center colocation market via this segment.

By end user, the Data Center Colocation market is segmented into Small and Medium-Sized Enterprises (SMEs) and large enterprises. Large enterprises are expected to hold a dominant market share over the forecast period and adoption colocation is increasing in these enterprises to decrease IT spending and maximizing profit margins.

Report Scope:

Report Attribute Details
Base Year 2020
Historic Years 2016 - 2020
Forecast Years 2021 - 2028
Segments Covered By Product Type, By Application, and By End Use
Forecast Units Value (USD Billion), and Volume (Units)
Quantitative Units Revenue in USD million/billion and CAGR from 2021 to 2028
Regions Covered North America, Europe, Asia Pacific, Latin America, and Middle East & Africa, and Rest of World
Countries Covered U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Brazil, Argentina, GCC Countries, and South Africa, among others
Number of Companies Covered 10 companies with scope for including additional 15 companies upon request
Report Coverage Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, market attractiveness analysis by segments and region, company market share analysis, and COVID-19 impact analysis.
Customization Scope Avail customized purchase options to meet your exact research needs.

Recent Developments

  • In May 2020 – Zadara Storage Inc. and Cyxtera announced their collaborative effort to provide progressive capacity for data and power centers by established server farms all over the world.

Regional Landscape

North America region leads the global Data Center Colocation market in terms of revenue and volume share and is anticipated to maintain this stance over the forecast period. Presence of key data center colocation companies and rapid adoption of novel technologies in this region are anticipated to be major factors driving the growth of data center colocation market in this region. The United States is anticipated to be the most lucrative market in this region owing to presence of key data center colocation companies and rising demand for cloud technology and platforms from organizations as they move to a digital infrastructure. Rapid technological proliferation will play a crucial role in propelling data center colocation market potential through 2028.

Competitive Landscape

Some of the main competitors dominating the global Data Center Colocation market include -  NTT Communication Corporation (Japan), Digital Realty Trust, Inc. (US), Cyxtera Technologies, Inc. (US), CyrusOne Inc. (US), Equinix, Inc. (US), Global Switch (UK), AT&T, Inc. (US), CoreSite Realty Corporation (US), China Telecom Corporation Limited (China), Verizon Enterprise Solutions, Inc. (US)

Global Data Center Colocation market is segmented as follows:

By Type

  • Retail colocation
  • Wholesale colocation

By End-User

  • Small and Medium-Sized Enterprises (SMEs)
  • Large Enterprises

By Industry

  • Banking, Financial Services, and Insurance (BFSI)
  • IT and telecom
  • Government and defense
  • Healthcare
  • Research and academics
  • Retail
  • Energy
  • Manufacturing
  • Others (media and entertainment, and transportation and logistics)

By Region

  • North America
    • The U.S.
    • Canada
  • Europe
    • France 
    • The UK
    • Spain
    • Germany
    • Italy
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Table Of Content

Methodology

Free Analysis

Data center colocation provides services for space, storage, power, cooling and physical security of the server, and networking devices to integrate them with several network facilities and telecommunications providers at a low cost. Colocation is a data center facility, wherein a firm can rent their servers and computing hardware devices. Server workload is growing every year along with depicting the ill-effects on IT operations. But, data center colocation has reduced the investment cost related to the construction of data centers, which has further lowered the operational cost for many enterprises.

Cloud computing is one of the sectors that is likely to drive the data center colocation market in the future, due to its low operational cost. The cloud market comprises large global companies, such as Microsoft Cloud and Amazon Web Services along with the companies operating in the provider segment. In terms of infrastructure, third-party vendors and renowned corporations support their services with large-scale data centers and rent spaces to colocation service providers. Besides, combining colocation with the cloud can increase security, create cloud interconnection opportunities, and reduce latency. Moreover, digitization of consumer health records has also been contributing to the data increment in the last few years. Modernization of legacy operating systems, innovations in the medical equipment industry, and improvement in patient response systems help in data generation, which, in turn, is projected to further boost the data center colocation market in the upcoming years.

Global Data Center Colocation Market

The market for data center colocation is segmented on the basis of lease type and end-user. By lease type, the market is bifurcated into retail and wholesale. By end-user, the market is segmented into small and medium enterprises and large enterprises.

By region, North America is anticipated to dominate the market for data center colocation and hold a major market share in the forecast period, due to the emergence of a large number of data centers in this region. The Asia Pacific data center colocation market is a developed hub for e-trading. The region holds huge growth potential for trading associations which is looking to access colocation services and upgrade their network. Japan, China, and India account for a large number of data centers owing to the increasing demand from IT, BFSI, telecom, and social media sectors in these countries, and thus, boosting the region’s data center colocation market.

Some leading players in the data center colocation market include ANEXIO, Inc., Atlantech Online, Inc., CE Colo, Coreix Limited, CYRUSONE, Digital Realty Trust, Inc., Equinix, Inc., First Colo GmbH, H5 DATA CENTERS, IBSCY Ltd., Interoute Communications Limited, Linxdatacenter, Netmagic Solutions, NextraOne, North Shore, RACKSPACE US, Inc., Red Level Networks, Sabey Data Center Properties, Sentinel Data Centers, and Viettel IDC.

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FrequentlyAsked Questions

Increasing digitization, rising adoption of cloud technology, and increasing demand for data management are some major trends that guide Data Center Colocation market growth.

According to the Market Research report, the global Data Center Colocation market was worth about US$ 56291.70 million in 2021 and is predicted to grow to around US$ 1350315.73 million by 2028, with a compound annual growth rate (CAGR) of around 15.7 percent.

North America region leads the global Data Center Colocation market in terms of revenue and volume share and is anticipated to maintain this stance over the forecast period. Presence of key data center colocation companies a major trend.

Some of the main competitors dominating the global Data Center Colocation market include -- NTT Communication Corporation (Japan), Digital Realty Trust, Inc. (US), Cyxtera Technologies, Inc. (US), CyrusOne Inc. (US), Equinix, Inc. (US), Global Switch (UK), AT&T, Inc. (US), CoreSite Realty Corporation (US), China Telecom Corporation Limited (China), Verizon Enterprise Solutions, Inc. (US)

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