Data center colocation Market Expected to Reach $ 202.71 billion by 2030

According to a recent report published by Allied Market Research, titled, “Data center colocation Market by Type, Enterprise Size and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021-2028,”

The global data center colocation market size was valued at $46.08 billion in 2020, and is projected to reach at $ 202.71 billion by 2030, growing at a CAGR of 15.7% from 2021 to 2030. The concept of data center colocation has gained attraction nowadays due to the increasing need for additional data storage capacity to meet the requirements of internal and external IT services. In order to increase the existing data center capacity, the colocation data center has emerged as a lucrative option to enhance the business continuity. Many enterprises, especially small- and medium-sized enterprises, prefer using data center colocation services rather than investing huge capital in developing their own data centers. Colocation data center mainly requires operating expenses, thus, avoiding the upfront costs. Enterprises with local presence, in particular, have been following the trend of leasing space from colocation providers.

Depending on type, retail colocation dominated the data center colocation market share in 2020, and is expected to continue this trend during the forecast period. The growth of the segment is attributed to numerous benefits provided by this type such as managed service which results in lower costs of maintenance of data center, high security of data and others. However, the wholesale colocation segment is expected to witness highest growth in the upcoming years, as the wholesale colocation allows organizations to deploy thousands of server at one location and provide high-density computing, which notably contributes toward the growth of the global market.

On the basis of enterprise size, large scale organization dominated the data center colocation market share and is expected to continue this growth during the forecast period. This growth is attributed to heavy investment of large scale organization in the data centers. Also, the growing requirement of heavy data storage in large scale organizations drives the data center colocation market globally. However the small and medium scale organization recorded highest growing segment due to major shift of small and medium scale business toward digitization and adoption of internet of things in the regular operation which creates the high amount of data, which drives the market globally.

The COVID-19 outbreak has a positively impact on the growth of the data center colocation industry as data center colocation technologies are helping enterprises to address the extensive capacity demand of data storage and data transfer. Rapid spread of COVID-19 has considerably increases data traffic. In addition, upsurge has been observed in the storage volume requirement due to the pandemic driven by proliferation of emerging technologies such as artificial intelligence (AI), big data, and Internet of things (IoT). This will continue to drive the data center colocation investments across the global market. The industry players such as Amazon, Google, Facebook, and NTT communication are continue to spending on data centers colocation. For instance, in January 2020, NTT communication setup its data center colocation facility on the Honolulu, Hawaii islands in Pacific ocean . There is growing need to ensure the data center colocation service providers are having enough ability and capacity to deliver data center colocation with high performance during the increased traffic demand.

Moreover, the COVID-19 pandemic is opportunistic for the data center colocation market growth as data center colocation help organization enable their business objective. Data center colocation industry is observing growing popularity and attention of researchers in both industry and academia as a means to data searching costs and produce the revenue streams for service providers due to the features in networking. During the COVID-19 pandemic, organizations that deployed data center colocation earlier have been able to quickly adjust to the new partners and business requirements that were resulting due to work-from-home mandates. Data center colocation help organizations to cope with the ongoing pandemic and maintain economically positive operations.

Key Findings of the Study

• By type, the retail colocation segment dominated the data center colocation market in 2020. However, the wholesale colocation segment is expected to exhibit significant growth during the forecast period.
• On the basis of enterprise size, the large scale segment accounted for the highest revenue of data center colocation market size in 2020; however, the small and medium scale segment is expected to witness the highest growth rate during the forecast period.
• Depending on industry vertical, the IT and telecommunication segment generated the highest revenue in 2020. However, the media and entertainment segment is expected to witness the highest growth rate in the near future.
• Region wise, the data center colocation market was dominated by North America. However, Asia-Pacific is expected to witness significant growth in the coming years.

This report gives an in-depth profile of some key market players in the data center colocation market, which include CHINA TELECOM CORPORATION LIMITED, CoreSite Realty Corporation, CYRUSONE INC, CYXTERA TECHNOLOGIES, INC., DIGITAL REALTY TRUST, INC., EQUINIX, INC., Global Switch, KDDI CORPORATION, and NTT Communications Corporation. This study includes data center colocation market trends, data center colocation market analysis, and future estimations to determine the imminent investment pockets