Introduction of the Data Center Colocation Market Report

A colocation data center refers to a physical facility that offers data center space and infrastructure including the building, cooling, space, power, bandwidth, storage, networking equipment, and physical security while the customer provides servers and storage. At the colocation data center, the servers and other equipment from different companies are ‘co-located’ in one data center.

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Market Dynamic

Key Drivers and Emerging Trends

Increasing demand for colocation services among network providers, cloud providers, and enterprises owing to centralized IT operations, efficient architecture, scalability, and reduced costs is expected to drive the growth of the data center colocation market over the forecast period. In addition, colocation facilities offer security for applications, data and systems; access to advanced data center technology; and remove the requirement to build, staff and manage in-house server rooms, which further supports the market growth. Moreover, increasing internet traffic, digitalization of industries, and growing amount of data is anticipated to propel the demand of the colocation services. Furthermore, according to the International Energy Agency, the number of global hyperscale data centres is expected to reach 628 in 2021 with a share of 55% of all data centre traffic, which is projected to augment the growth and development of the colocation data center market.

Restraint in the Data Center Colocation Market

However, high cost of initial set-up of IT equipment in the data center facilities is one of the major factors expected to restraint the growth of the data center colocation market size. Lack of skilled workforce for the installation, operation, and maintenance of systems used at the colocation facilities may further hamper the market growth.

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Solution Type – Segment Analysis

Based on the solution type, the wholesale colocation segment is expected to grow at a substantial rate over the forecast period owing to the increasing demand of colocation from hyper-scale cloud service providers and large organizations requiring large commercial space for accumulating their servers and large volume of data. Additionally, wholesale colocation offer a fully built data center space usually at a cheaper rate than retail based can provide with flexible pricing options such as per kW, MW, or kVA as well as offering metered or sub-metered power pricing.

Organization Size – Segment Analysis

Based on the organization size, the small and medium sized enterprises segment is projected to witness notable CAGR over the forecast period. This is primarily due to benefits including support, security, redundancy, and connectivity at reduced cost compared to on-site hosting and saving on initial infrastructure investment. According to the World Bank Group, small and medium enterprises represent about 90% of businesses worldwide and estimated to provide 600 million jobs 2030. This is further contributing to the market growth.

End-Use Industry – Segment Analysis

Based on the end-use industry, the IT and telecommunication segment is projected to hold a significant share in the market owing to rise to the growing telecom industry and the rising number of mobile internet users.  According to the World Bank, in 2018, around 51% of the global population use internet via a computer, mobile phone, personal digital assistant, games machine, and digital TV among others. This is expected to support the market growth.

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Regional – Segment Analysis:

Based on region, North America is anticipated to account for a significant market share during the forecast period. This can be attributed to the growth in the growing Information Technology, e-commerce, and e-healthcare industries. Moreover, according to the World Bank, around 87% of the U.S. population use internet in 2019, which augments the market growth in the region. Presence of leading companies including CyrusOne Inc., Digital Reality Trust, Inc., and Cyxtera Technologies, Inc. will further escalate the market growth.

Top Market Players

Several leading Data Center Colocation companies operating in the market, include, Cyxtera Technologies, Inc., Digital Reality Trust, Inc., NTT Communications Corporation, Equinix, Inc., Fujitsu Limited, CyrusOne Inc., AT&T, Inc., CoreSite Realty Corporation, Global Switch, and Verizon Communications Inc. among others. 

Key Developments: 

• • In 2020, Cyxtera Technologies, Inc. partnered with Zadara Storage Inc., one of the leading storage-as-a-service providers. With this, Zadara’s fully managed storage-as-a-service will be available in Cyxtera’s 62 hybrid-ready data centers globally.

Segments covered in the Report:

The global Data Center Colocation Market has been segmented on the basis of solution type, organization size, end-use industry, and key regions. Based on solution type, the market is segmented into wholesale colocation and retail colocation. Based on organization size, the market is segmented into small and medium enterprises, and large enterprises. Based on the end-use vertical, the market is segmented into BFSI, manufacturing, it and telecommunications, healthcare & life sciences, government, entertainment and media, and others. 

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Key questions answered in this research report:

• • At what pace is global Data Center Colocation Market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in Data Center Colocation Market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Data Center Colocation Market?
  • Which solution type generated maximum revenues in 2019 and identify the most promising solution type during the forecast period?
  • What are the various end-use industries of global Data Center Colocation Market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Report Coverage	Details
Market Base Year	2019
Market Forecast Period	2020-2027
Market Revenues Currency	USD Million
Base Year & Forecast Units	Revenues (USD Million)
Market Segment	By Solution Type, By Organization Type, By End-Use Industry, By Region
Regional Coverage	Asia Pacific, Europe, North America, and RoW
Companies Profiled	Cyxtera Technologies, Inc., Digital Reality Trust, Inc., NTT Communications Corporation, Equinix, Inc., Fujitsu Limited, CyrusOne Inc., AT&T, Inc., CoreSite Realty Corporation, Global Switch, and Verizon Communications Inc. among others; a total of 10 companies covered.
25% Free Customization Available	We will customize this report up to 25% as a free customization to address our client’s specific requirements

Market Segmentation

Global Data Center Colocation Market by Solution Type

• • Wholesale Colocation
  • Retail Colocation

Global Data Center Colocation Market by Organization Size

• • Small and Medium Enterprises
  • Large Enterprises

Global Data Center Colocation Market by End-Use Industry

• • BFSI
  • Manufacturing
  • IT and Telecommunications
  • Healthcare & Lifesciences
  • Government
  • Entertainment and Media
  • Others

Global Data Center Colocation Market by Region

• • North America Data Center Colocation Market (Option 1: As a part of the free 25% customization)
    • North America Data Center Colocation Market by Solution Type
    • North America Data Center Colocation Market by Organization Size
    • North America Data Center Colocation Market by End-Use Industry
    • US Data Center Colocation Market All-Up
    • Canada Data Center Colocation Market All-Up
  • Europe Data Center Colocation Market (Option 2: As a part of the free 25% customization)
    • Europe Data Center Colocation Market by Solution Type
    • Europe Data Center Colocation Market by Organization Size
    • Europe Data Center Colocation Market by End-Use Industry
    • UK Data Center Colocation Market All-Up
    • Germany Data Center Colocation Market All-Up
    • France Data Center Colocation Market All-Up
    • Spain Data Center Colocation Market All-Up
    • Rest of Europe Data Center Colocation Market All-Up
  • Asia-Pacific Data Center Colocation Market (Option 3: As a part of the free 25% customization)
    • Asia-Pacific Data Center Colocation Market by Solution Type
    • Asia-Pacific Data Center Colocation Market by Organization Size
    • Asia-Pacific Data Center Colocation Market by End-Use Industry
    • China Data Center Colocation Market All-Up
    • India Data Center Colocation Market All-Up
    • Japan Data Center Colocation Market All-Up
    • Rest of APAC Data Center Colocation Market All-Up
  • RoW Data Center Colocation Market (Option 4: As a part of the free 25% customization)
    • RoW Data Center Colocation Market by Solution Type
    • RoW Data Center Colocation Market by Organization Size
    • RoW Data Center Colocation Market by End-Use Industry
    • Brazil Data Center Colocation Market All-Up
    • South Africa Data Center Colocation Market All-Up
    • Saudi Arabia Data Center Colocation Market All-Up
    • UAE Data Center Colocation Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Data Center Colocation Market All-Up

Major Players Operating in the Data Center Colocation Market (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Cyxtera Technologies, Inc.
  • Digital Reality Trust, Inc.​
  • NTT Communications Corporation
  • Equinix, Inc. 
  • Fujitsu Limited
  • CyrusOne Inc.
  • AT&T, Inc.
  • CoreSite Realty Corporation
  • Global Switch
  • Verizon Communications Inc.