According to the latest report by IMARC Group, titled "Data Center Colocation Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2021-2026," the global data center colocation market size reached US$ 45.30 Billion in 2020. Data center colocation is a solution that allows enterprises to rent out a physical facility, network bandwidth and other computing resources within an existing data center. The leased space is often equipped with power backup facilities, in-built networking components, information protocol (IP) systems and cooling units that are widely accessible in retail and wholesale setups. These services are extensively used by companies as they improve their business potential by enabling the employees to focus on core business functions and reducing the overall operational expenditure. These solutions are extremely reliable and easily scalable, due to which they are widely utilized across numerous industry verticals, including energy, retail, government, healthcare and information technology (IT).
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Data Center Colocation Market Trends:
The global market is primarily driven by the increasing adoption of digitization across several industries. This has led to the rising demand for hybrid cloud computing and virtualization systems, which has provided an impetus to the demand for data center colocation services across the globe. Additionally, there has been an escalating demand for secure and scalable infrastructure for efficient data recovery and business continuity requirements, which is acting as another major growth-inducing factor. The market is further driven by the increasing volumes of data from social media platforms and over-the-top (OTT) media services, which has created an escalating need for reliable data centres. Moreover, the increasing adoption of the Internet-of-Things (IoT) across numerous organizations has led to the growing demand for higher network bandwidths and faster data processing with lower latency and faster connectivity. Colocation data centers are increasingly preferred by end users to fulfill such requirements in an efficient manner. Some of the other factors contributing to the market growth include the emergence of 5G, widespread demand for data storage facilities from the e-commerce sector and the continual improvements in the IT infrastructure. On account of the aforementioned factors, thes market is anticipated to grow at a CAGR of 14.3% during 2021-2026.
- On the basis of the type, the market has been bifurcated into retail and wholesale colocations.
- Based on the organization size, the market has been divided into small and medium enterprises, and large enterprises.
- On the basis of the end use industry, the market has been classified into BFSI, manufacturing, IT and telecom, energy, healthcare, government, retail, education, entertainment and media, and others.
- On the geographical front, the market has been segregated into North America (the United States and Canada), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Latin America (Brazil, Mexico and others), and Middle East and Africa.
- The competitive landscape of the market has been studied in the report with the detailed profiles of the key players. Some of these players include AT&T, Inc., CenturyLink Inc., China Telecom Corporation Limited, Coresite Realty Corporation, Cyrusone Inc., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Global Switch Limited, Internap Corporation, KDDI Corporation, NTT Communications Corporation (Nippon Telegraph and Telephone Corporation) and Verizon Enterprise Solutions Inc.
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