Data Center Colocation Market Size to Hit

WASHINGTON, Feb. 15, 2023 (GLOBE NEWSWIRE) — The global data center colocation market is valued at US$50.1 billion in 2021 and is projected to reach US$105.4 billion by 2028, at a CAGR (Compound Annual Growth Rate) of 13.2% over the forecast period 2022-2028.

Market Overview

The increasing digitization of various industries along with the increasing adoption of hybrid cloud computing and virtualization systems is one of the main reasons for the rise of the market. The increasing adoption of secure, scalable and trusted infrastructure for business continuity and data recovery needs is another driver for the growth of the market.

We forecast that the IT and colocation category in the data center colocation market revenue will account for more than 35% of total revenue by 2028. A significant share of this market is related to the growth of mobile internet users and the ongoing development of new software in the industry and applications. Meanwhile, the development of 5G is expected to greatly boost the growth of IT and telecom industries, produce significant amounts of data and drive market expansion.

Get access to the detailed free sample report @ https://www.vantagemarketresearch.com/data-center-colocation-market-2012/request-sample

market dynamics

Reducing overall IT costs to drive market expansion
IT professionals with the required skills are needed to manage operations while hosting an on-premises data center infrastructure. On-premises hosting also comes with a variety of server management and infrastructure maintenance costs. In addition, setting up a new data center requires a significant initial investment and increases the company’s overall investment. As a result, organizations are increasingly considering the CAPEX spent on commissioning mission-critical data center facilities and are looking for ways to save costs and increase return on investment (ROI). A key driver encouraging organizations to seek new IT infrastructure solutions is the pressure to reduce IT costs. In order to obtain power, space, bandwidth and value-added services, companies are increasingly turning to data center colocation providers.

Increasing the need for business continuity and disaster recovery to support market expansion
Data center users around the world are particularly concerned about disaster recovery. Facilities hosting IT infrastructure are vulnerable to disasters such as earthquakes, security breaches, fires and other unforeseen events. In order for organizations to avoid severe losses due to such events, disaster recovery plans must be in place. Colocating data center facilities are farther from user locations and less vulnerable to natural disasters. Because they can be managed remotely, these facilities are more reliable for disaster recovery plans. The ability for organizations to store critical data in a remote location makes colocation facilities a viable backup and recovery solution. Business continuity can be achieved through the availability of resilient and secure colocation facilities, which is why the demand for these facilities is expected to increase.

Major players in the global data center colocation market

• China Telecom Corporation Limited (China)
• Coresite Realty Corporation (US)
• Cyrusone Inc. (US)
• Cyxtera Technologies Inc. (USA)
• Digital Realty Trust Inc. (USA)
• Equinix Inc. (USA)
• Global Switch (UK)
• KDDI Corporation (Japan)
• NTT Communications Corporation (Japan)
• Verizon Enterprise Solutions Inc. (USA)

For more information on the Data Center Colocation Market Players and a detailed list, download a Report PDF Brochure

Top trends in the global data center colocation market

• One trend Vantage Market Research (VMR) anticipates in the data center colocation industry is the need for green data centers. The need to achieve maximum energy efficiency is increasing rapidly around the world due to increasing environmental concerns brought on by rising emissions of dangerous greenhouse gases (GHG). There is a growing need for green data centers.
• Another trend that VMR predicts will continue in the US data center colocation industry is the growing need for edge data centers. These are modest data colocation facilities with caching and various cloud computing resources close to the companies that serve them. These facilities are connected to other centers or larger facilities that use machine learning and analytics to process the data and offer cloud computing services centrally.

Top report results

• Based on the types, most of the revenue of the Data Center Colocation market is controlled by the Retail Colocation category. Retail colocation provides power, cooling, space, cabling and support services. In addition, it offers flexibility in terms of IT infrastructure, which benefits SMEs. The value of retail colocation is predicted to increase their market share in data center colocation globally.
• The Big Corporate category, which can rent out significant space and meet its performance and processing needs, controls most of the money generated by the data center colocation industry, according to end users. Large companies can control the infrastructure of the data center thanks to colocation services.
• Based on Industry, most of the revenue of Data Center Colocation Market is controlled by IT & Telecom category as huge amounts of data are produced as a result of rapid adoption of cutting-edge technologies such as Cloud Computing, Internet of Things (IoT). , and artificial intelligence (AI).

Limited Time Offer | Buy This Premium Research Report With Exclusive Discount And Immediate Delivery@ https://www.vantagemarketresearch.com/buy-now/data-center-colocation-market-2012/0

Recent developments in the global data center colocation market

• In April 2022, Compass Datacenters, an American colocation company, has developed a new business unit called Compass Quantum that will offer modular data centers as a service. Each module provides enough space, power and cooling to power 100 kW of IT equipment in a 2N redundant arrangement.
• In March 2021, Digital Realty Trust, Inc. announced the acquisition of InterXion to address the growing need for colocation and hyperscale infrastructure in the Americas, Europe and Asia Pacific. This acquisition has expanded the company’s customer base and product portfolio.

Retail colocation category in the data center colocation market to generate over a large chunk of revenue

Vantage Market Research has analyzed the data center colocation market to understand its current state and potential future growth factors. For better understanding, the data center colocation market is segmented into retail colocation and wholesale colocation based on the type.

During the forecast period, the data center colocation market is expected to experience the highest CAGR for the retail colocation category. Businesses can lease part of a data center space through retail colocation. This gives organizations flexibility when dealing with modest amounts of data or temporary infrastructure needs. Small organizations can benefit the most due to their lower need for data storage than large organizations.

On the other hand, the wholesale colocation category is expected to grow significantly as several major hyperscalers and cloud service providers transition to wholesale colocation. The enormous customer base of large companies leads to the production of significant amounts of data and the need for considerable commercial space to accumulate their servers, which in turn creates a demand for wholesale colocation.

Region North America in the data center colocation market is projected to generate the largest revenue

North America dominates the market over the projection horizon due to the strong presence of many major cloud service providers and the widespread deployment of colocation data centers by SMBs. In addition, the expansion of the regional marketplace is supported by rising e-commerce sales in the United States.

Browse market data tables and numbers across 148 pages and a detailed table of contents Data center colocation Market Forecast Report (2022-2028).

Global segmentation of the data center colocation market

By types

• Retail colocation
• Wholesale colocation

By end users

• Small and medium-sized enterprises (SMEs)
• Large companies

By Sectors

• Banking, Financial Services and Insurance (BFSI)
• IT & Telecom
• Government & Defense
• health care
• Research & Teaching
• retail trade
• energy
• manufacturing
• Other (media, entertainment, transportation, logistics)

By region

• North America
  • United States
  • Canada
  • Mexico
• Europe
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South East Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC countries
  • South Africa
  • Rest of MEA

Read full story @ https://www.vantagemarketresearch.com/industry-report/data-center-colocation-market-2012

Scope of the report:

report attributes	details
Market size in 2021	$50.1 billion
Sales forecast up to 2028	$105.4 billion
CAGR	13.2% from 2022 to 2028
base year	2021
forecast year	2022 to 2028
key figures	China Telecom Corporation Limited, Coresite Realty Corporation, Cyrusone Inc., Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Global Switch, KDDI Corporation, NTT Communications Corporation, Verizon Enterprise Solutions Inc.
customization options	Custom purchase options are available to meet any research needs. Discover individual purchasing options

Browse more reports from the Vantage library:

About Vantage Market Research:

At Vantage Market Research, we provide high-quality, quantified B2B research on more than 20,000 emerging markets, helping our clients identify constellations of opportunities for their businesses. As a market research and competitive intelligence consulting firm, we provide end-to-end solutions for our client companies to achieve their critical business goals. Our customer base includes 70% of the Global Fortune 500 companies.

Follow us on: LinkedIn | Twitter | Facebook | youtube

Contact us

Eric Kunz

6218 Georgia Avenue NW Ste 1 – 564

Washington D.C. 20011-5125

United States Tel: +1 202 380 9727

E-mail: [email protected]

Website:

Blog: