USD 46.10 billion
Global Data Center Colocation Market Size, Share, Growth Analysis, By Type(Wholesale Colocation and Retail Colocation), By End-User(IT and Telecom, and BFSI) - Industry Forecast 2024-2031
Report ID:
SQMIG45C2036 |
Region:
Global |
Published Date: March, 2024
Pages:
157
|
Tables:
60 |
Figures:
75
Global Data Center Colocation Market Insights
Global Data Center Colocation Market size was valued at USD 46.10 billion in 2022 and is poised to grow from USD 53.15 billion in 2023 to USD 166.02 billion by 2031, growing at a CAGR of 15.3% during the forecast period (2024-2031).
High cost associated with owning and maintaining a data center, especially for companies that generate inconsistent data volumes, is driving market growth. Research shows that owning or constructing a data center facility can cost over USD 300 per square foot, in addition to the cost of laying the required fiber cabling. In-house handling of an entire data center facility is a high-cost component for SMEs, while larger organizations can easily absorb this cost. Data center colocation offers a viable and affordable alternative to renting data center space, which is expected to drive market growth over the forecast period. The growing volume of data from social media and Over-The-Top (OTT) platforms has increased the demand for data centers and colocation services. The emergence of technologies like IoT, cloud computing, autonomous vehicles, and advanced robotics has resulted in the increased demand for higher bandwidths and faster data processing. Colocation data centers are suitable to fulfill such requirements, as the operators can locate their data center facilities in proximity to the users, offering enhanced storage and networking services. However, the rising adoption of cloud data centers, owing to their lower costs, is expected to act as an inhibitor to market growth. Smaller organizations increasingly adopt cloud services as they offer scalable low costs, eliminate the need for IT staff, and have lesser overheads. Colocation centers offer cost benefits in the long run along with flexibility in terms of total server control, making them an attractive option for enterprises.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Wholesale Colocation
Fastest Growth
Wholesale Colocation
Growth Rate
15.3% CAGR
Global Data Center Colocation Market 2021-2030 ($ Bn)
Country Share for North America Region- 2021 (%)
Global Data Center Colocation Market Size By Type 2021-2030 ($ Bn)
Global Data Center Colocation Market Size By Type 2021-2030 (%)
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Global Data Center Colocation Market Segmental Analysis
Global Data Center Colocation market is segmented by type, end-user, and region. Based on type, the market can be segmented into wholesale colocation and retail colocation. Based on end-user, the market is segmented into IT and telecom, and BFSI. Based on region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Data Center Colocation Market Analysis by Type
By type, the market can be segmented into wholesale colocation and retail colocation. Wholesale colocation dominated the data center colocation market due to enterprises' high demand for large-scale infrastructure services. Many large organizations require customized solutions that can support their unique IT requirements, which wholesale colocation providers are well-suited to provide. As a result, wholesale colocation providers have been experiencing steady growth in the market.
Retail colocation is also a fast-growing segment of the market due to the increasing adoption of cloud-based services by small and medium-sized businesses. These businesses require affordable and flexible options to store and process their data, which retail colocation providers are well-positioned to offer. As a result, the retail colocation market is expected to continue growing rapidly in the coming years.
Data Center Colocation Market Analysis by End-User
By end-user, the market can be segmented into IT and telecom, and BFSI. IT and telecom industry dominated the data center colocation market due to the significant demand for data storage and processing capacity required to support the rapidly growing digital economy. This industry has been expanding rapidly over the past few years with the increasing adoption of cloud-based services and digital transformation initiatives, which has resulted in a high demand for data center infrastructure.
BFSI is expected to grow at a faster rate than the IT and telecom industry in the coming years. This is due to the increasing adoption of digital banking services, such as mobile banking and online payment systems, which require high data security and reliability levels. Additionally, the BFSI industry is subject to strict regulatory requirements, which make it imperative to have secure and compliant data center facilities.
Global Data Center Colocation Market Size By Type, 2021 (%), 2023 (%)
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Global Data Center Colocation Market Regional Insights
North America dominated the global data center colocation market due to the strong presence of established colocation providers in the region. The region is characterized by high technological advancements, with the US being one of the largest markets for data center colocation services globally. The demand for data center colocation services in North America is driven by the growth of e-commerce, social media, and cloud computing.
The APAC region is expected to be the fastest-growing market for data center colocation services. This growth is primarily due to the increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT) in the region. The growing number of data centers in countries like China, India, Japan, and Singapore is also expected to drive the demand for data center colocation services.
Global Data Center Colocation Market By Geography, 2021-2030, 2024-2031
- Largest
- Fastest
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Global Data Center Colocation Market Dynamics
Data Center Colocation Market Drivers
Increasing demand for cost-effective and scalable data storage
- One major driver for the global data center colocation market is the increasing demand for cost-effective and scalable data storage and processing solutions. Many businesses, particularly small and medium-sized enterprises, are unable to bear the high costs of building and maintaining their own data centers. Data center colocation provides an affordable alternative by allowing these businesses to rent space in a data center facility, while also offering flexibility in terms of server control and the ability to scale up as needed.
Data Center Colocation Market Restraints
Increasing adoption of cloud computing services
- One key restraint for the global data center colocation market is the increasing adoption of cloud computing services, which offer scalable and cost-effective data storage solutions. As more businesses shift to the cloud, there may be less demand for colocation services, particularly among smaller organizations. In addition, the rise of edge computing and decentralized data storage may also impact the demand for data center colocation, as businesses may choose to store data closer to their end-users to reduce latency and improve network connectivity.
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Global Data Center Colocation Market Competitive Landscape
The global data center colocation market is characterized by intense competition among key players, who are constantly striving to offer innovative solutions to customers. These companies are focused on expanding their market presence through strategic partnerships, mergers and acquisitions, and investments in new technologies. In addition, there is a growing trend towards offering specialized colocation services, such as edge computing and hybrid cloud solutions, to meet the specific needs of different industries.
Data Center Colocation Market Top Player’s Company Profiles
- China Telecom Corporation Limited (China)
- CyrusOne Inc. (US)
- Global Switch (UK)
- Interxion Holding NV (Netherlands)
- Level 3 Communications, LLC (US)
- Verizon Communications Inc. (US)
- CoreSite Realty Corporation (US)
- Telehouse (UK)
- China Unicom (China)
- AT&T Inc. (US)
- Zayo Group Holdings, Inc. (US)
- CenturyLink, Inc. (US)
- KDDI Corporation (Japan)
- Deutsche Telekom AG (Germany)
- Colt Technology Services Group Limited (UK)
- Digital Bridge Holdings, LLC (US)
- Corespace, Inc. (US)
Data Center Colocation Market Recent Developments
- In May 2023, CyrusOne announced plans to launch a new data center campus in Dallas, Texas.
- In April 2023, NTT Ltd. announced a partnership with Google Cloud to offer hybrid cloud solutions to customers.
- In March 2023, Iron Mountain announced plans to acquire a data center in Sydney, Australia for $100 million.
Global Data Center Colocation Key Market Trends
- One key trend in the global data center colocation market is the growing adoption of edge computing solutions. Edge computing involves processing data closer to the source, which helps to reduce latency and improve network connectivity. As businesses increasingly rely on real-time data processing for mission-critical applications, the demand for edge computing solutions is expected to rise. In addition, there is a growing trend towards hybrid cloud solutions, which combine the benefits of public and private cloud infrastructure with on-premises data storage.
Global Data Center Colocation Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global data center colocation market analysis, the market is driven by factors such as the increasing demand for data centers, the emergence of new technologies such as IoT and cloud computing, and the need for faster data processing and lower latency. However, the market is also constrained by factors such as the rising adoption of cloud services, which offer lower costs and flexibility, and the high costs associated with owning and maintaining a data center facility. The competitive landscape of the market is characterized by intense competition among key players who are focused on delivering reliable, secure, and cost-effective data storage and processing solutions.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 46.10 billion |
| Market size value in 2031 | USD 166.02 billion |
| Growth Rate | 15.3% |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Global Data Center Colocation Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Global Data Center Colocation Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Global Data Center Colocation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Global Data Center Colocation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Global Data Center Colocation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Global Data Center Colocation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global Data Center Colocation Market Report Snapshots
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