Data Center Colocation Market Size By Type (Retail Colocation, Wholesale Colocation), By End-Use (SMEs, Large Enterprises), By Application (BFSI, Energy, Government & defense, Healthcare, Manufacturing, IT & Telecom, Retail), Industry Analysis Report, Regional Outlook (U.S., Canada, UK, Germany, France, Spain, Italy, Benelux, Poland, China, India, Japan, Singapore, Australia, Brazil, Mexico, Colombia, Chile, Argentina, GCC, South Africa), Growth Potential, Competitive Market Share & Forecast, 2018 - 2024
Data Center Colocation Market is will surpass USD 90 billion by 2024. The adoption of cloud technologies for storing and processing a massive volume of data is growing at a rapid pace. This has resulted in an increased data load & congestion on the cloud infrastructure that needs to be managed and handled by the expansion of IT facilities. This expansion results in increased business expenses and the time spent on the maintenance of the devices. Such factors are encouraging the enterprises to shift their focus toward colocation services to reduce these additional expenses, thereby accelerating the data center colocation market. Moreover, the cloud providers are experiencing a high demand for these services to manage & store their cloud-based data in the IT infrastructure facilities.
The wholesale services are expected to witness a high adoption in the data center colocation market with the increasing flexibility in accessing and managing the internal resources in the dedicated space offered by service providers. These services allow enterprises to lease a data center space for designing and building their IT infrastructure facilities. They also allow businesses to take full responsibility of their data center devices. These businesses manage and maintain their equipment by setting up a separate expert team, which will allow them to modify their systems as per the business requirements. Such factors are predicted to drive the data center colocation market growth.
The data center colocation market will witness a high growth due to the rising demand for the hosting services from large enterprises. The companies are engaged in expanding their business operations to provide their innovative offerings to the customers present in global regions. The growing need for data storage facilities for setting up their business operations in these regions is expected to drive the data center colocation market. These companies find cost-effective techniques to manage their IT facilities. Colocation offers suitable options to these companies to reduce their business expenses and manage their IT systems effectively.
The government & defense sectors are adopting these services to manage the confidential & classified data that needs to be stored safely. The service providers ensure that the IT facilities are protected securely with advanced management solutions to protect the data loss. These players are integrating several solutions such as DCIM, which are used for several applications including asset management and device discovery. Moreover, the government institutions need to manage crucial data that will include the statistics related to the economic or political information of the country, thereby propelling the demand in the data center colocation market.
North America data center colocation market is growing at a rapid pace with the rising urbanization and industrialization in several economies of the region. Countries such as the U.S. and Canada are the fastest growing economies, where the global companies have established their business base. Several global companies that are generating massive volumes of business data due to their rapidly expanding operations are Facebook, Google, and Amazon. These companies are engaged in partnerships with the players in data center colocation market for the effective management of their IT facilities. For instance, Google partnered with Equinix, Inc. for the supply of colocation services.
Major players participating in the data center colocation market are Digital Realty Trust, Inc., Internap Corporation, Interxion Holding NV, NTT Data Corporation, Equinix, Inc., AT&T, Inc, Centurylink Technology Solutions, Global Switch Corporation, China Telecom Corporation Limited, Rackspace, Inc.Verizon Communication Ltd., China Unicom, CyrusOne, Inc., Cyxtera Technologies, Inc., and KDDI Corporation among others. Players in the data center colocation market are expanding their business activities internationally to cater to the widespread demand for such services.
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