Colocation Edge Data Center Market Analysis

Type (Retail, Wholesale)

The retail segment in the colocation edge data center market is estimated to gain the a share of about 54% in 2036. The segment growth can be attributed to its growing usage as it allows businesses to scale their infrastructure as needed, without having to invest in and manage their data centers. According to a report, the spending on retail cloud infrastructure increased by 23% in 2023.

Moreover, retail colocation facilities are well-connected to various network providers, enabling businesses to access high-speed internet connectivity and interconnect with other organizations, increasing demand for scalable and flexible IT infrastructure solutions. For instance, with a 41% market share in 2022, Cisco maintained its position as one of the top manufacturers of enterprise network infrastructure.

Retail colocation allows businesses to rent space in a shared data center, allowing them to easily scale up or down as their needs change. Furthermore, the growth of retail colocation is highly cost-efficient, and by opting for retail colocation, businesses can also avoid such expenses and can instead pay for the space and services they need. Therefore, altogether these factors are propelling the growth of the segment.

End-user (SMEs, Large Enterprises)

The SME segment in the colocation edge data center market is set to garner a notable share during the forecast period due to the availability of several affordable ways for outsourcing IT infrastructure, which lowers operating costs and also improves scalability. Additionally, the advancements in technology have also leveled the playing field for SMEs, which allows them to compete with larger companies. Digital tools, online platforms, and e-commerce have made it easier for SMEs to reach customers globally for marketing their products or services, and streamline their operations.

Moreover, the changing consumer preferences and demands have created opportunities for SMEs. Consumers are increasingly seeking personalized and niche products or services; which SMEs are often well-positioned to provide. Therefore, these factors are accelerating the growth of the segment.

Our in-depth analysis of the colocation edge data center market includes the following segments: