Data Center Colocation Market Forecast 2020 by Current & Upcoming Trends | COVID-19 Effects


Data Center Colocation Market | Forecast to 2030

The global data center colocation market is gaining significant traction. The market growth attributes to the augmenting demand led by the increasing numbers of data centers and leasing companies across the globe. Besides, the proliferation of digital technology & cloud computing drives market growth, creating the need for data center colocation. Moreover, the rising adoption of cloud computing escalates market growth. 

According to Market Research Future (MRFR), the global data center colocation market is poised to create a valuation of USD 172.36 BN by 2030, registering around 14.4 % CAGR throughout the forecast period (2020-2030). Burgeoning IT sectors worldwide foster market growth,  demonstrating a huge need for resources, delivery methods, expansion strategies, and disaster recovery methodologies.

Additionally,  the increasing market penetration of green data centers boosts the market’s growth, lowering energy consumption by increasing the energy efficiency of overall systems. The increasing demand for such cost-effective services influences market growth, prompting investments by key players and IT companies. 

Furthermore, the growing data and storage requirements increase the size of the market, increasing data center assets while reducing data center operating costs. Organizations are increasingly adopting more scalable and efficient data center management solutions of colocation, which, as a result, propel market growth. Furthermore, increasing requirements for improved inventory and asset management in data centers push the growth of the market.

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On the flipside, the lack of awareness of the importance of data center services and their flexibility are the major factors expected to impede market growth. Also, staff expertise and managing portability restrain the growth of the data center colocation market.

Data Center Colocation Market   – Segments

The report is segmented into four dynamics;

By Type: Retail and Wholesale Colocation.

By Deployment Type: On-cloud and On-premises.

By End-user: IT & Telecom, BFSI, Government & Defense, Healthcare, and others.

By Regions: Europe, Americas, Asia Pacific, and the Rest-of-the-World.

Global Data Center Colocation Market   – Geographical Analysis

North America dominates the global data center colocation market. The largest market share attributes to the presence of many industry players and data centers in the region. Besides, burgeoning end-user industries, such as IT & telecom, BFSI, government & defense, and healthcare, substantiate the market growth in the region. 

Moreover, the proliferation of cloud computing in increasing numbers of businesses fosters regional market growth. Datacenter colocation providers in the region are planning expansions to provide better services. The North American colocation data centers market is projected to retain its dominance throughout the estimated period. 

Europe stands second in the global data center colocation market. The market growth is driven by the increasing numbers of notable players in the region. Additionally, substantial investments in data center developments positively impact the growth of the regional market. 

Also, the increasing implementation of cutting-edge technologies in the BFSI and IT & telecommunication sectors boosts the regional market growth. The European colocation center market is forecasted to create a substantial revenue pocket during the review period. 

The Asia Pacific region is a promising market for data center colocation globally. Factors such as technological advances and well-established infrastructure in the region influence market growth. Furthermore, increasing numbers of SMEs in the region positively impact the growth of the market.

Moreover, increasing the adoption of colocation data centers in medium-sized businesses to lower operational costs and reduce latency fosters market growth. The APAC server colocation market is anticipated to grow at the fastest rate during the forecast period.

Global Data Center Colocation Market   – Competitive Analysis

Highly competitive, the global data center colocation market appears to be fragmented, characterized by the presence of several well-established players. These players in corporate strategic initiatives such as acquisition, collaboration, expansion, and technology launch to gain a competitive advantage in this market. Strategic partnerships between these players support their growth and expansion plans. 

Major Players:

Players leading the global data center colocation market include Fibernet Inc. (US), Equinix, Inc. (US), Keppel Data Center Pte Ltd. (Singapore), AT&T Inc. (US), NTT Communications Corporation (Japan), Cogent Communications (US), Cyxtera Technologies, Inc. (US), CoreSite Realty Corporation (US), Digital Realty Trust, Inc. (US), Rahi Systems Inc (US), DuPont Fabros Technology, Inc. (US), and Verizon Communications, Inc. (US), among others. 

Innovation/ Industry/Related News: 

November 17, 2020 —- vXchnge (the US), a leading carrier-neutral colocation data center operatorannounced its partnership with MOD Tech Labs, an AI platform that processes imagery data, moved its servers to vXchnge to meet the company’s need for a highly secure data center with the ability to scale deployments quickly across a broad footprint. 

MOD Tech Labs sought a data center company with locations across the country to meet the current and future needs of the growing business. The company demands for the GPU (graphics processing unit) usage expects to increase significantly as it expands into new 3D processing solutions. In such situations, MOD Tech Labs would require a partner who can quickly scale their deployments within a given location for edge-sensitive applications.

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About Market Research Future:

At Market Research Future (MRFR), we enable our customers to unravel the complexity of various industries through our Cooked Research Report (CRR), Half-Cooked Research Reports (HCRR), Raw Research Reports (3R), Continuous-Feed Research (CFR), and Market Research & Consulting Services.

MRFR team has the supreme objective to provide the optimum quality market research and intelligence services to our clients. Our market research studies by products, services, technologies, applications, end-users, and market players for global, regional, and country-level market segments, enable our clients to see more, know more, and do more, which help to answer all their most important questions.


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