Data Center Colocation Market To Reach USD 95.89 Billion By 2026 | Reports And Data

5 February 2020

New York, Feb. 05, 2020 (GLOBE NEWSWIRE) -- The global data center colocation market is expected to reach USD 95.89 Billion by 2026, according to a new report by Reports and Data. Datacenter colocation provides two major advantages, namely scalability and improved operational efficiency. It lets enterprises to better allot their budgets to activities that are crucial to the functioning of their core business, while still having the option for improvement when the need for upgradation arises. For instance, 365 Data Centers provides right-sized colocation facilities in 10 key cities all over the U.S. This offers small and medium-sized data colocation options that local presence, yet can be accessed nationally through all leading carriers.

Renting space in a data center colocation facility enables organizations to keep complete control over IT hardware without the concern associated with incurring high cost storing, powering, securing, and cooling the servers in house. The benefits provided by the colocation providers to scale up the storage capacity while cutting down on maintenance and security costs is offering businesses especially, small & medium-sized enterprises substantial advantage enabling them to concentrate their efforts on achieving core business goals.

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A significant factor driving the market growth of data center colocation is the reduction of CAPEX (capital expenditure) on physical infrastructure and the growing adoption of cloud computing, which results in lowering implementation and maintenance cost. By deploying data center colocation services businesses can effectively manage their process, including data recovery and secure back-up system. Datacenter colocation offers flexibility to downscale or upscale enterprise technology as per the demand; thus many enterprises are opting for data center colocation services.

High initial cost and compromised data security associated with the usage may hamper the growth of the market in the forecast period.     

Further key findings from the report suggest

  • By type, retail colocation contributed to the largest market share in 2018 and is likely to grow at a rate of 12.7% in the forecast period. The market dominance of this segment is owing to the fact that retail colocation providers can accommodate enormous footprints while providing on-site staff, managed services, and carrier and cloud connectivity.
  • By organization size, large enterprises dominated the market in 2018 and is expected to grow at a rate of 12.4% in the forecast period. Reductions in OPEX and the ability to emphasize IT capabilities on core business, by data center colocation allows large organizations to maximize the potential within their companies.
  • By industry vertical, the healthcare sector is forecasted to witness the fastest CAGR of 13.7% in the forecast period. Increasing digital innovations and technological advancements are augmenting the growth of data in the healthcare industry. Several healthcare departments are gathering data from clinical trials and several outpatient records to analyze and derive meaningful insights from the collected data.
  • The market in the North America region held the largest market share in 2018 and is estimated to grow at a rate of 12.6% in the forecast period. The increasing demand from the end-user industries, as well as rapid increase in data traffic, are the factors causative of the growth of the market in the region.
  • Key participants include IBM Corporation, NTT Communications, Fujitsu Ltd., SoftBank Group Corporation, KT Corporation, British Telecommunications PLC, China Telecom Corporation Ltd., Tata communications, Terremark Worldwide Inc., and AT&T Inc., among others.

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Segments covered in the report:

For the purpose of this report, Reports and Data have segmented the global data center colocation market on the basis of type, organization size, industry vertical, and region:                     

Type Outlook (Revenue, USD Million; 2016-2026)

  • Retail Colocation
  • Wholesale Colocation

Organization Size Outlook (Revenue, USD Million; 2016-2026)

  • Small & Medium-Sized Enterprises
  • Large Enterprises

Industry Vertical Outlook (Revenue, USD Million; 2016-2026)

  • BFSI
  • Manufacturing
  • IT & Telecom
  • Energy
  • Government
  • Healthcare
  • Media & Entertainment
  • Others

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Regional Outlook (Revenue, USD Billion; 2016-2026)

  • North America
    • U.S.
  • Europe
    • France
    • UK
  • Asia Pacific
    • China
    • India
    • Japan
  • Latin America
    • Brazil
  • Middle East and Africa

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