Data Center Colocation Market Segmentation By Type (Retail And Wholesale Colocation); By Industry (Education, Entertainment, Healthcare, Industrial Manufacturing, Retail, Surveillance And Others) – Global Demand Analysis & Opportunity Outlook 2027
Buy Now Report ID: 2001 | Published Date: Feb 14, 2023
Increased Adoption of Data Center Colocation
With an increase in adoption of data center colocation across numerous business verticals across the globe, on account of, the scalability and flexibility provided by the data centers to ensure data security along with the ability to recover data in case of any unseen adversities, the market is anticipated to observe significant growth over the forecast period. Further, data center colocation provides cost effectiveness and energy efficiencies to all the organizations as it reduces the implementation and maintenance cost of information technology infrastructure. These are some of the notable factors that are predicted to boost the growth of the market in upcoming years.
Mergers of Colocation Centers
Mergers of small and medium colocation centers in order to save costs and raise the security levels by adhering to compliances, are anticipated to drive the growth of the market in near future. Additionally, data center colocation provides an efficient, effective and high bandwidth connectivity at significantly lower price. These factors are estimated to support the growth of the market.
Data center colocation market is anticipated to witness significant opportunities and is estimated to grow at a CAGR of around 13 % over the forecast period i.e. 2019-2027. Data center colocation market is segmented by type and industry. On the basis of type, it is segmented into retail and wholesale colocation, out of which, the retail colocation segment is anticipated to hold the major share during the forecast period on account of increased data center outsourcing among small businesses due to increased costs and space constraints to set up their own servers with their expanding businesses. Moreover, retail data centers are also increasingly adopted among large scale businesses on the back of their ability to provide small setup at multiple geographical regions. On the basis of industry, healthcare sector is expected to account for highest growth rate over the forecast period. Rising need for standardized and secure digital infrastructure to keep records of the patients in an effective storage facility, is anticipated to drive the adoption of datacenter colocations in healthcare sector.
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Security Concerns
Security concerns pertaining to damage of hardware or loss of data, coupled with, the concerns related to inability of service providers to resolve IT issues in a timely manner are estimated to hamper the adoption of data center colocations, thereby negatively impacting the growth of the data center colocation market.
Our in-depth analysis of the data center colocation market includes the following segments:
By Type
By End-Users
On the basis of regional analysis, the data center colocation market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region, out of which, the market in North America is anticipated to hold significant share over the forecast period owing to presence of key players along with growing technological advancements leading to rise in number of data centers in the region. Further, the market in Europe is expected to witness growth at an incremental rate owing to implementation of strict regulations coupled with increasing investments in the data center colocation market. Furthermore, the market in Asia Pacific is expected to project highest growth rate on account of increased penetration of data centers across numerous sectors, combined with, rising investments in research and development of the market in the region.
The data center colocation market is further classified on the basis of region as follows:
In Sept 2019, Cyxtera has collaborated with Unitas Global to offer direct connections in its London area data centers
In July 2019, Interxion, colocation data centre service provider in Europe, was selected for the NVIDIA DGX-Ready Data Centre program, as a colocation provider
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
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