Data Center Colocation Market Size, Share, Growth, and Analysis Forecast to 2022


According to a new market research report ”Data Center Colocation Market by Type (Retail and Wholesale), End-user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research & Academic, Retail, Energy and Manufacturing), and Region – Global Forecast to 2022″, published by MarketsandMarkets™, The data center colocation market is expected to grow from USD 31.52 Billion in 2017 to USD 62.30 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60%.

The major forces driving the data center colocation market are the requirement for reliability, security and scalability of infrastructure, growing data center complexities, and the need for reduction of overall IT costs. The data center colocation market is expected to be growing rapidly because of the increasing number of users opting for cost-effective and energy-efficient data center solutions.

Browse 52 Market Data Tables and 69 Figures spread through 137 Pages and in-depth TOC on “Data Center Colocation Market by Type (Retail and Wholesale), End-user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research & Academic, Retail, Energy and Manufacturing), and Region – Global Forecast to 2022″

Major Key Players

The report also encompasses different strategies, such as mergers and acquisitions, partnerships and collaborations, and developments, adopted by the major players to increase their shares in the market. Some of the major technology vendors include AT&T Inc. (US), China Telecom (China), Cogent Communications (US), Contegix (US), CoreSite Realty Corporation (US), CyrusOne (US), Cyxtera Technologies, Inc. (US), Digital Realty Trust, Inc. (US), DuPont Fabros Technology, Inc. (US), Equinix, Inc. (US), Fibernet Inc. (US), Global Switch (UK), Internap (US), Interxion (Netherland), Keppel Data Center Pte Ltd. (Singapore), Level 3 Communications Inc. , NTT Communications Corporation (Japan), PhoenixNAP (US), Rahi Systems Inc (US), Singtel (Singapore), STT GDC Pte Ltd. (Singapore), Telehouse-KDDI (UK), Telstra (Australia), TeraGo Networks Inc. (Canada), and Verizon (US).

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Data center colocation services are witnessing major technological changes and evolving with technological advancements. Data center colocations offer economical solutions that facilitate reduced capital and operational expenditures. In the future, data center colocation service providers are expected to introduce smart technologies into their facilities, wherein managers would be able to keep track of real-time status of components and environmental measurements to keep the operations flowing smoothly. Data center colocations have also adopted advanced power efficiency measurement metrics to provide real-time status of the data center operations.

The wholesale colocation segment in the data center colocation market is expected to grow at a faster rate during the forecast period. Wholesale colocation services are adopted by customers that require complete control over the infrastructure. Data center colocation vendors can take advantage of this by providing scalable and resilient wholesale colocation services that can be upgraded and expanded to cope with the increasing data volumes.

IT and Telecom industry to account for the largest market size in the data colocation market

The IT and telecom industry is expected to hold the largest market size owing to the need for secure, scalable, and flexible data center infrastructure to store the ever-increasing data in the industry. Moreover, low capital and operational cost, and continuous data transaction among the potential companies over a high-speed connection is fueling the demand for data center colocation services in the IT and telecom industry.

Small and Medium-Sized Enterprises (SMEs) to grow at a higher CAGR in the data colocation market during the forecast period

The data colocation market, by end-user, has been segmented into SMEs and large enterprises. The higher growth rate of SMEs is attributed to the lesser infrastructure autonomy requirements that can be fulfilled by availing data center colocation services, which also provide security and flexibility to the enterprise. Growth in the numbers of SMEs using a data center to store essential data would further accelerate the adoption of colocation services in SMEs.

The global data center colocation market is segmented based on regions into North America, Asia Pacific (APAC), Europe, Middle East & Africa (MEA), and Latin America. North America is expected to hold the highest share of the data center colocation market in 2017, owing to the presence of a large number of data center collocation service providers, and increasing investments and innovations in the region. The market in APAC is expected to grow at the highest CAGR during the forecast period due to the increasing data traffic from social media and gaming sectors and the surge in usage of mobile devices in this region.

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