Data Center Colocation Market Size & Share to Hit US $105 Bn by 2026

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Zion Market Research has published a new report titled “Data Center Colocation Market by Lease Type (Retail and Wholesale) and by End-User (Small & Medium Enterprises and Large Enterprises): Global Industry Perspective, Comprehensive Analysis, and Forecast, 2018—2026”. According to the report, the global data center colocation market was valued at approximately USD 31 billion in 2017 and is expected to generate revenue of around USD 105 billion by 2026, growing at a CAGR of around 14.2% between 2018 and 2026.

Cloud computing is one of the sectors that are likely to drive the data center colocation market in the future, due to its low operational cost. The cloud market comprises large global companies, such as Microsoft Cloud and Amazon Web Services along with the companies operating in the provider segment. In terms of infrastructure, third-party vendors and renowned corporations support their services with large-scale data centers and rent spaces to colocation service providers. Besides, combining colocation with the cloud can increase security, create cloud interconnection opportunities, and reduce latency. Moreover, digitization of consumer health records has also been contributing to the data increment in the last few years.

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The market for data center colocation is segmented on the basis of lease type and end-user. By lease type, the market is bifurcated into retail and wholesale. The retail sector held a major share of the global market in 2017, as retail colocations offer great flexibility in terms of IT infrastructure scalability and are mostly preferred by enterprises with small to medium IT requirements. Besides, retail colocation also provides management software to integrate it with cooling, power, and IT rooms to facilitate easy management of data centers. Retail colocation facilities are provided by leading vendors, such as NTT Communications, Equinix, China Telecom, and AT&T.

By end-user, the market is segmented into small and medium enterprises and large enterprises. Large enterprises held a major market share in 2017. However, the small and medium enterprises (SME’s) are expected to grow at a higher rate of growth in the future, as SME’s have less requirement for infrastructure autonomy. Data center colocation also provides SMEs with flexibility and security that is likely to further boost their demand in the future.

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By region, North America is anticipated to dominate the data center colocation market and hold a major market share in the forecast period, due to the emergence of a large number of data centers in this region. The Asia Pacific data center colocation market is a developed hub for e-trading. The region holds huge growth potential for trading associations which is looking to access colocation services and upgrade their network. Japan, China, and India account for a large number of data centers owing to the increasing demand from IT, BFSI, telecom, and social media sectors in these countries, and thus, boosting the region’s data center colocation market.

Some leading players in the data center colocation market include ANEXIO, Inc., Atlantech Online, Inc., CE Colo, Coreix Limited, CYRUSONE, Digital Realty Trust, Inc., Equinix, Inc., First Colo GmbH, H5 DATA CENTERS, IBSCY Ltd., Interoute Communications Limited, Linxdatacenter, Netmagic Solutions, NextraOne, North Shore, RACKSPACE US, Inc., Red Level Networks, Sabey Data Center Properties, Sentinel Data Centers, and Viettel IDC.

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This report segments the global data center colocation market into:

Global Data Center Colocation Market: Lease Type Analysis


Wholesale
Retail


Global Data Center Colocation Market: End-User Analysis


Small and Medium Enterprises
Large Enterprises


Global Data Center Colocation Market: Regional Analysis


North America

The U.S.


Europe

UK
France
Germany


Asia Pacific

China
Japan
India


Latin America

Brazil


The Middle East and Africa


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