The global Data Center Colocation market size is expected to be worth around US$ 104.76 billion by 2028, according to a new report by Vision Research Reports.
The global Data Center Colocation market size was valued at US$ 40.30 billion in 2020 and is anticipated to grow at a CAGR of 12.8% during forecast period 2021 to 2028.
Colocation is the practice of renting infrastructure and space for servers and various storage devices at a third-party provider’s facility. Colocation providers provide enterprises with infrastructure, along with other related services, such as physical security, networking, and power and cooling components. Reduction in the overall IT cost, enhanced security for the data, free maintenance of servers, and predictable yearly or monthly costs are motivating enterprises to adopt colocation services.
Rising adoption of online shopping is anticipated to upkeep the market growth over the next fewyears.Rising number of online shoppers directly translates to an increased volume of data across the retail industry. Large volume of data has led to increased investments in IT infrastructure, especially in data centers.In order to save IT costs, more and more retailers are opting for colocation centers, which is driving the market in the retail sector.
Increasing number of smartphone users has led to a large volume of data for telecom operators to manage. Considering the rising disposable income in developing economies, the number of smartphone users is bound to rise, which will result in additional volume of data. Telecom operators are opting for colocation centers to minimize their IT expenditure and manage data efficiently, thus fueling the market growth. However, security concerns among customers can hinder the market growth over the forecast period. Colocation providers are offering additional services such as facility monitoring over CCTV cameras to gain the trust of their customers.
the retail colocation dominated the market with a share of 73.68% in 2019. Retail colocation allows enterprises to rent a set of space within a data center. Owing to the option of renting limited racks for a limited time, retail colocation offers various advantages, such as flexibility in terms of infrastructure, for managing the small volume of data or requirement of infrastructure for a limited period. It is beneficial for small scale organizations as their requirement for data storage is limited as compared to large organizations. Moreover, retail colocation is highly suitable for companies having a limited budget and want to take advantage of colocation services.
The wholesale colocation segment is anticipated to expand at the fastest CAGR of 16.3% from 2020 to 2027. This growth is attributed to the rising need for data centers for organizations operating in multiple regions and that have a broad customer base. These companies have a large volume of data to be stored and require large commercial space for accumulating their servers. Furthermore, hyper-scale cloud service providers such as IBM Corporation and Salesforce.com, Inc. have leased wholesale data centers in the U.S. This trend is expected to continue with the increasing adoption of cloud technology.
The SMEs segment is estimated to expand at the fastest CAGR of 15.4% during the forecast period. This is attributed to an increasing number of SMEs in developing countries, such as India and China. Moreover, SMEs have financial limitations due to which cost reduction becomes a major factor for the organization’s growth. The adoption of colocation services plays a key part in reducing costs associated with building infrastructure and other related services.
the market is segregated into IT and telecom, retail, BFSI, healthcare, media, and entertainment. In terms of revenue, the IT and telecom segment dominated the market with a share of 26.57% in 2019. The segment is anticipated to maintain its lead in the near future due to the rising number of mobile internet users. According to the GSM Association (GSMA), in 2018, about 300 million people connected to the mobile internet for the first time due to which the total population connected over mobile internet was more than 3.5 billion. This number is bound to rise due to the increasing adoption of smartphones with advanced features.
The healthcare segment is expected to expand at the fastest CAGR of 18.4% from 2020 to 2027owing to increasing technological advancements in the hospital industry. Additionally, certain government regulations such as the American Recovery and Reinvestment Act in 2014 have made it essential for public and private healthcare service providers in the U.S. to maintain electronic health records of patients. This has led to the need for data storage solutions among healthcare service providers. The growing volume of patient data across the globe is anticipated to increase the adoption of colocation services in the healthcare sector.
North America dominated the market for data center colocation with a share of 42.02% in 2019. This is attributed to the presence of major market players in the region, such as Digital Realty Trust, Inc., Equinix, Inc., Cyxtera Technologies, Inc., and CyrusOne Inc. Moreover, increasing e-commerce sales in the U.S. is fueling market growth. Retailers are significantly investing in their IT infrastructure for storing customer data, which can be used for identifying customer buying patterns and product demand based on various categories, such as region, gender, and age group.
China Telecom Corporation Limited
CoreSite Realty Corporation
Cyxtera Technologies, Inc.
Digital Realty Trust, Inc.
NTT Communications Corporation
Colocation Type Outlook
Enterprise Size Outlook
IT & Telecom
Media & Entertainment
Middle East & Africa
The Data Center Colocation market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Data Center Colocation market for the base year 2020 and the forecast between 2021 and 2028. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Data Center Colocation market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Data Center Colocation market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Data Center Colocation market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Data Center Colocation capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Data Center Colocation by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Data Center Colocation market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2028. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Data Center Colocation market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Data Center Colocation market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Data Center Colocation industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
The Data Center Colocation market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Data Center Colocation market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Data Center Colocation market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Data Center Colocation market. These factors have benefited the growth of the global market for Data Center Colocation. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Data Center Colocation. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Data Center Colocation are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
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