Data Center Colocation Market Size & Share Analysis In Terms Of Value & Volume By 2024

Global Data Center Colocation Market: Overview

Data center colocation is the service offered by data centers to lease a space for hardware and networking bandwidth to enterprises, which require system administration supplier at affordable prices. This service will allow companies to install their servers at center service provider’s location. Data center colocation will increase business potential, minimize the operational expenditure, and enhance the ability to focus on core business. Several colocation service providers are adopting expansion strategies in order to address the rising demand for colocation of data centers from different industry verticals. Colocation facilities are not only available online but also available physical so that they can move and maintain data centers near significant power hubs in order to take advantages of accessible connectivity.

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Global Data Center Colocation Market: Growth Factors

The major factor driving the global data center colocation market is increasing awareness towards the reduction of carbon footprints. Data center collocation is a cost-effective solution available for the enterprises that reduce space and cost for cooling and heating; this is anticipated to fuel the global market growth. Adoption of the data center colocation services by the various end-use industries such as telecom & IT, and BFSI and others may further enhance the global market growth.

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Global Data Center Colocation Market: Segmentation

The global data center colocation market is fragmented based on end-user as large enterprises, and small and medium enterprises. Of these, large enterprises segment accounted for the largest market share compared to small and medium enterprises. Based on the type, the global data center colocation market is classified as wholesale colocation and retail colocation. On the basis of industry vertical, the global market is segregated as telecom & IT, BFSI, energy, government & public sector, healthcare & life sciences, and others. Of these, telecom & IT contributed for the largest market share and is considered as the highest revenue generating industry for collocation. BFSI and healthcare & life sciences segments follow the same trend.

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Global Data Center Colocation Market: Regional Analysis

Geographically, the global data center colocation market is categorized as North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia Pacific holds the largest market share as it is emerging as a dynamic hub for e-trading across the world. It is looking forward for potential expansion of the market and upgrades its network fostering the global data center colocation market growth. Additionally, it enhances the access colocation services. Asia-Pacific is expected to witness higher growth in the near future owing to a large number of data centers and rising demand from BFSI, telecom, social media, and IT sector.

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Global Data Center Colocation Market: Competitive Players

Key players in the global data center colocation market are American Telephone & Telegraph, Inc., Equinix, Inc., SunGuard Availability Services, Interxion Holding NV, CenturyLink Technology Solutions, Verizon Communication Ltd., and KDDI Corporation. Other major players dominating the global market include Navisite, Inc., DuPont Fabros Technology, Inc., Telecity Group, Global Switch Corporation, NTT Data Corporation, Rackspace, and Digital Reality.

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