Global Data Colocation Market Information, By Service Type (Small Scale, Large Scale), by Components (Network Hardware, Server & Storage, Cooling Units), by End Users (Banking, IT, Healthcare, Government) - Forecast 2027

Market Insights

Data colocation primarily refers to data center services which are rented out to business to power services, storage, networking, cooling of services and various other computing services. Data colocation leases a variety of equipment required to support the physical infrastructure for computing. Market Research Future has studied the global data colocation market with great care to arrive at educated conclusions regarding the growth of the market over the forecast period from 2020 to 2027. Valued at USD 26 Bn in 2016, the market is expected to nearly double in value to reach USD 51 Bn by the end of 2027. MRFR has calculated the growth of the market at a CAGR of 12% during the assessment period.

Data centers colocation market often serve as a connection point between on-premise and on-cloud data centers. Various advantages of adopting data colocation are that it helps an organization save time, money and reduces the problems associated with on-premise data centers which often demand constant maintenance. Another vital growth-promoting factor for the market is the capability of data colocation to enable enterprises to increase business potential by allowing them to focus on core activities. Moreover, data colocation provides access to central data storage, backups, environmental controls, firewalls, and security or hosting serves to name a few. The reduced need for constant maintenance is a strong driving factor of growth.

Notably, the market is challenged by the lack of availability of large locations close to organizations for the establishment of data centers. Moreover, companies often do not maintain complete control over servers which can be discouraging of adoption of data colocation.

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Market Segmentation

The global data colocation market has been segmented on the basis of service type, components, end-users, and region. Service type available in the data colocation market has been segmented into small scale and large scale. Large scale businesses are more likely to avail of data colocation services.

Components have been segmented into network hardware, cooling units, server & storage, and others.

End-users of data colocation have been segmented to include banking & insurance, IT & telecom, healthcare, government, energy, and others.

Regions covered in the report include Europe, North America, Asia Pacific and the Rest of the World.

Regional Analysis

North America is likely to dominate the market due to the regions possession of the largest share of the global data colocation market. The region has an increasing number of data center requirements in IT capacity. The presence of market leaders in the region who are using advanced infrastructural architecture to promote market growth will likely impact the data colocation market positively. Meanwhile, the Asia Pacific is expected to grow rapidly over the next few years due to the substantial increase in data production. Additionally, the European market carries great promise for the forecast period as there is a high growth opportunity in the region. Market leading players are increasing investments in Europe for the set up of data colocation centers. Market players like Facebook and Apple are investing in the set up of data colocation centers in countries like Denmark, Ireland, and Sweden.

Key Players

MRFR has analysed leading players such as SunGard availability services (U.S.), DuPont Fabros Technology, Inc.(U.S.), Equinix, Inc. (U.S.), American Telephone & Telegraph, Inc. (U.S.), Interxion Holding NV (Netherlands), Verizon Communication, Inc. (U.S.), CenturyLink, Inc. (U.S.), CoreSite Realty Corporation (U.S.), KDDI Telehouse Corporation (Japan), and Global Switch Corporation (UK) among others in its report on the global data colocation market. The report also contains an understanding of the market strategies employed by these market players.

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