Data Center Colocation Market | Growth, Trends, and Forecast (2020

ABOUT THIS REPORT
- Market Snapshot
- Market Overview
- Scope of the Report
- Key Market Trends
- Competitive Landscape
- Major Players
TABLE OF CONTENTS

Market Snapshot

Study Period:

2019-2025

Base Year:

2019

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

10.92 %

Major Players:

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

Market Overview

The data center colocation market was valued at USD 31.39 billion in 2019, and is expected to reach a value of USD 58.28 billion by 2025, at a CAGR of 10.92% over the forecast period (2020 - 2025).

Increasing generation of data has raised the demand for data centers globally. It is estimated that the global data center IP traffic will reach 20.6 Zettabytes by the end of 2021, up from 6.8 Zettabytes per year in 2016, according to the Cisco Systems. The single largest driver of such expansion in the data center capacity is the demand generated by the cloud services providers and the IT industry.
It is estimated that there is an increase of 35% in data generated every year, globally, which has resulted in many organizations, doubling their on-premises storage over a three-year period interval.
With the advent of colocation services, it has become an attractive solution to many small-scale and hyper-scale players equally, as it allows organizations to address their storage issues without substantial upfront costs. Globally, North America and Asia-Pacific are the largest markets for collocation industry, responsible for over 78% of the industry’s capacity.
However, owing to the increasing demand from the hyper-scale vendors in the region, Europe is increasingly turning into a primary hotspot for the colocation industry. It is estimated that the region’s colocation footprint is expected to dominate the global market, with over 2148 facilities across the region, most of them concentrated in demand zones, such as the United Kingdom, the Netherlands, Germany, France, and Denmark. With the increasing number of investments into the region, it is expected to be one of the fastest growing markets over the forecast period.

Scope of the Report

Colocation is a data center facility, where a corporation can rent space for servers and other computing hardware. Data center colocation is being used in wholesale colocation and retail colocation. Based upon the need, it is being used in various industries like BFSI, manufacturing, energy, among others.

By Solution Type
		Wholesale colocation
		Retail colocation

By Organization Size
		Small and Medium Enterprises
		Large Enterprises

By End-user Vertical
		Banking and Financial Services
		Manufacturing
		IT and Telecom
		Energy
		Healthcare
		Government
		Entertainment and Media
		Other End-user Verticals

Geography

North America
	US
	Canada

Europe
	UK
	Germany
	France
	Denmark
	Rest of Europe

Asia-Pacific
	China
	Japan
	India
	Singapore
	Rest of Asia-Pacific

Rest of the World

Report scope can be customized per your requirements. Click here.

Key Market Trends

Healthcare Sector to register the Fastest Growth Rate

Data in the healthcare industry is increasing with the latest digital innovations in technologies for various domains. Many healthcare departments are collecting data from clinical trials and several outpatient records, to analyze such data and derive meaningful analysis from such data.
However, most of the hospitals involved in such data collections are not equipped with relevant infrastructure. Increasing regulations on data acquisition and records, especially the ones related to clinical trials are drawing several healthcare clients toward datacenters.
Furthermore, several government initiatives taken up globally are expected to boost the colocation market. For instance, in China, the country’s government has pledged to create an industrial scale of medical services by 2020. The increasing generation of data in the healthcare sector is driving the requirement of data centers.

To understand key trends, Download Sample Report

Asia-Pacific to Grow at a Faster Pace

Asia-Pacific is a hub for major IT outsourcing destinations for the major market players, across the industry verticals. Power, space, and IP transit cost more in China, emphasizing the difficulties in maintaining a data center.
China has 50 internet users per 100 people, indicating the scope for immense development and the connectivity ecosystem is made up of 73 colocation data centers and 52 cloud service providers. Japan has 93 internet users per 100 people, showing high internet literacy in Japan.
Japan has a high density of colocation, owing to such generation of data. Digital Realty has launched its first data center in Japan, named ‘Digital Osaka 1’, indicating increasing investment in the region. Singapore is considered one of the largest shipping ports in the world, ensuring connectivity. With its stable government committed to driving prosperity through economic development and innovation, Singapore continues to attract major investments from the technology industry.

To understand geography trends, Download Sample Report.

Competitive Landscape

The data center colocation market depicts a fragmented stage, owing to the presence of many players in the market. Some of the predominant players of the market are AT&T Inc., NTT Communications, IBM Corporation, SoftBank Group Corporation, British Telecommunications PLC, among others. Owing to the intense competition, many market players are using various strategies to stay ahead of the competition. Mergers and acquisitions, partnerships and developments, are some of the strategies which the top players are following to increase their market penetration and strengthen their positions in the market.

February 2019: Digital Realty and Ascenty announced that they added dedicated and private access directly to the IBM Cloud in their connectivity portfolio through IBM Cloud Direct Link.
February 2018: Equinix acquired Infomart Dallas Colocation Data Center, including its operations and tenants, from ASB Real Estate Investments, in a USD 800 million debt and cash transaction.

Major Players

1. INTRODUCTION
1. 1.1 Study Deliverables
2. 1.2 Study Assumptions
3. 1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
1. 4.1 Market Overview
2. 4.2 Introduction to Market Drivers and Restraints
3. 4.3 Market Drivers
  1. 4.3.1 Reduction in Capital and Overall Costs
  2. 4.3.2 Increased Adoption of Cloud and IoT Center
4. 4.4 Market Restraints
  1. 4.4.1 Requirement of Skilled IT Staffing
5. 4.5 Value Chain Analysis
6. 4.6 Industry Attractiveness - Porter's Five Forces Analysis
  1. 4.6.1 Threat of New Entrants
  2. 4.6.2 Bargaining Power of Buyers/Consumers
  3. 4.6.3 Bargaining Power of Suppliers
  4. 4.6.4 Threat of Substitute Products
  5. 4.6.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
1. 5.1 By Solution Type
  1. 5.1.1 Wholesale colocation
  2. 5.1.2 Retail colocation
2. 5.2 By Organization Size
  1. 5.2.1 Small and Medium Enterprises
  2. 5.2.2 Large Enterprises
3. 5.3 By End-user Vertical
  1. 5.3.1 Banking and Financial Services
  2. 5.3.2 Manufacturing
  3. 5.3.3 IT and Telecom
  4. 5.3.4 Energy
  5. 5.3.5 Healthcare
  6. 5.3.6 Government
  7. 5.3.7 Entertainment and Media
  8. 5.3.8 Other End-user Verticals
4. 5.4 Geography
  1. 5.4.1 North America
    1. 5.4.1.1 US
    2. 5.4.1.2 Canada
  2. 5.4.2 Europe
    1. 5.4.2.1 UK
    2. 5.4.2.2 Germany
    3. 5.4.2.3 France
    4. 5.4.2.4 Denmark
    5. 5.4.2.5 Rest of Europe
  3. 5.4.3 Asia-Pacific
    1. 5.4.3.1 China
    2. 5.4.3.2 Japan
    3. 5.4.3.3 India
    4. 5.4.3.4 Singapore
    5. 5.4.3.5 Rest of Asia-Pacific
  4. 5.4.4 Rest of the World
6. COMPETITIVE LANDSCAPE
1. 6.1 Company Profiles
  1. 6.1.1 IBM Corporation
  2. 6.1.2 NTT Communications
  3. 6.1.3 Terremark Worldwide Inc., (Verizon)
  4. 6.1.4 Fujitsu Ltd
  5. 6.1.5 SoftBank Group Corporation
  6. 6.1.6 Tata Communications
  7. 6.1.7 China Telecom Corporation Limited
  8. 6.1.8 British Telecommunications PLC
  9. 6.1.9 KT Corporation
  10. 6.1.10 AT&T Inc.
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS

* List Not Exhaustive