Europe Data Center Colocation Market | Industry: Analysis, Trends, Forecast, Overview, Research, Opportunity, Growth and Potential.
Europe Data Center Colocation Market - By Type (Retail Colocation, Wholesale Colocation), End User (SME, Large Enterprise), Industry, Geography, Trends, Forecast - (2017 - 2022)


DEC 2017

Europe Data Center Colocation Market - By Type (Retail Colocation, Wholesale Colocation), End User (SME, Large Enterprise), Industry, Geography, Trends, Forecast - (2017 - 2022)

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The Europe data center colocation market is expected to grow from $6.05 billion in 2014 to $10.82 billion by the end of 2020 at a CAGR of 10.18%. The European Data center market is growing rapidly with new entrants and data centers appearing particularly in Western Europe. The necessity of space and utilities has increased to unprecedented levels with expanding businesses. Shrinking IT budgets and economical infeasible requirements are making it impossible for businesses to have their own data centers. This is being driven by the increasing concerns regarding the expenses associated with running a data center. Data storage and non-availability of strategic location for data centers has always been a key issues faced by the organizations in the today’s environment. There has been increase in the investments expenses along with the increasing cost to maintain the infrastructure faced by the organizations. Deployment of data center colocation has led enterprises to cut down their maintenance cost and has increased safety & high bandwidth availability.

With businesses expanding, the need for space and utilities has increased to unprecedented levels. Data Center colocation helps businesses to strengthen operation in their specific industries by taking advantage of high quality managed data center services. This is enabling companies to focus on revenue generation by streamlining their workflows and reducing operating IT expenses.

The demand for colocation services is on the rise and vendors are now providing unique scalability features with increased control to enterprises. Colocation providers are partnering with cloud providers or hardware vendors to offer turnkey clouds for their colocation clients. The level of flexibility now being offered by colocation providers is unprecedented with solutions ranging from simple data warehousing to high velocity data analytics solutions. These features along with the reduced expenses and greater ease of use make colocation a very lucrative business for investment.

Data center Management is currently undergoing transformation. Data Center managers are struggling to keep abreast with growing capacity needs while working under the constraints of tightened budgets and energy efficiency initiatives. Under this norm, managers are working towards adopting colocation as a viable solution.

Colocation enables companies to rent specific space to house their servers along with the servers of other companies in a common physical location. Colocation offers the flexibility to upscale or downscale a company’s technology as per their requirements. Another major advantage of colocation is cost savings. The present market scenario is forcing companies to keep check on the spending pattern and hence, focus on cost savings is expected to be a major driver for the growth of the data center colocation market. Whereas regulatory & compliance problems, fluctuating operating expenditure and location of these colocation centers not ideal for firms are some of the key challenges faced by the industry/market.

The European data center colocation market has been broadly segmented into different types of solutions and verticals. On the basis of type of solutions the market has been bifurcated into retail colocation and wholesale colocation. Whereas, by verticals the market has been segmented into banking/financial services, manufacturing, technology, energy, healthcare, central/local government, entertainment and media and others.

In 2015, wholesale colocation held the largest market share in the European data center colocation market owing to availability of lower power and space availability at the wholesaler site/market.

The European market has also been geographically segmented into countries such as United Kingdom, Germany, France and others. The biggest hub of data centers in Europe is the United Kingdom with 224 data centers.  London alone accounts for 69 of them. Paris comes second with 48 followed by Amsterdam with 38. The numbers are expected to grow with increasing optimism in the market and vendors responding to the increasing demand by expanding their facilities.

Some of the companies mentioned in the report are AT&T, IBM, Fujitsu, Reliance Communications, Tata Communications, China Telecom Corporation, British Telecom and NTT Communications.

Pan-European colocation provider Interxion has planned a significant new expansion of their Schiphol-Rijk Amsterdam data center hub.  Amsterdam 7, or Ams7, will offer up to 7300m2 of net technical space or 13MW of customer power. There are a number of new entrants into the Dutch data center market such as Evoswitch, who recently opened the 6th phase of their site bringing total capacity to 12,200m2 of net tech, with potential capacity of 40,000 m2.

Key Deliverables in the Study

  • Market analysis for the Europe data center colocation market, with country specific assessments and competition analysis on a country scales
  • Market definition along with the identification of key drivers and restraints
  • Identification of factors instrumental in changing the market scenarios, rising prospective opportunities, and identification of key companies that can influence this market on a country scale
  • Extensively researched competitive landscape section with profiles of major companies along with their market shares
  • Identification and analysis of the macro and micro factors that affect the Europe data center colocation market on a country scales
  • A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information
  • A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market
  • Insights on the major countries in which this industry is blooming and to also identify the regions that are still untapped

1. Introduction

1.1 Study Deliverables

1.2 Study Assumptions

1.3 Report Description

2. Research Methodology

3. Executive Summary

4. Market Dynamics

4.1 Overview

4.2 Drivers

4.3 Restraints

4.4 Opportunities in the market

4.5 Industry Attractiveness - Porter's Five Forces Analysis

          4.5.1 Bargaining Power of Suppliers

4.5.2 Bargaining Power of Consumers

4.5.3 Threat of New Entrants

4.5.4 Threat of Substitute Products or Services

4.5.5 Intensity of Competitive Rivalry

5. Technology Snapshot

6. Europe Data Center Colocation Market Segmentation

6.1 By Type

6.1.1 Retail Colocation

6.1.2 Wholesale Colocation

6.2 By End-user

6.2.1 Small & Medium-sized Enterprises

6.2.2 Large scale Enterprises

6.3 By Vertical

                        6.3.1 Banking/Financial Services

                        6.3.2 Telecom & IT

                        6.3.3 Manufacturing

                        6.3.4 Energy

                        6.3.5 Healthcare

                        6.3.6 Government

                        6.3.7 Entertainment & Media

                        6.3.8 Others

6.4 By Country

6.4.1 United Kingdom

6.4.2 Germany

6.4.3 France

6.4.4 Russia

6.4.5 Spain

6.4.6 Others

7. Competitive Intelligence – Company Profiles (list populated globally)

7.1 AT&T

            7.2 IBM

            7.3 NTT Communications

            7.4 Verizon Terremark

            7.5 Fujitsu

            7.6 Reliance Communications

            7.7 SoftBank Group Corporation

            7.8 Tata Communications

            7.9 China Telecom Corporation Limited

            7.10 British Telecommunications Plc.

            7.11 KT Corporation

8. Investment Outlook

            8.1 Recent mergers and Acquisitions

            8.2 Investment Analysis

9. Future of Europe Data Center Colocation Market

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