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The North America - Colocation and Managed Hosting (CMH) Services size is forecast to increase by USD 88.66 billion, at a CAGR of 14.09% between 2023 and 2028. The growth rate of the market depends on several factors, including the increase in the adoption of cloud-based storage services, the growing interest in green data centers, and the growing demand for colocation data centers from SMEs. The colocation service provider designs the data center facility in such a way that it can offer the most cost-effective solutions to the end-user. Enterprises that prefer to have direct control over the infrastructure prefer colocation data centers. There are different types of services provided by data center service providers, including colocation services, hosting services, and interconnection services. The scope of this report includes data center colocation and managed hosting services. A managed hosting services provider not only hosts the IT infrastructure but also manages the operations.
The report offers extensive research analysis on North America - Colocation and Managed Hosting (CMH) Services, with a categorization based on End-user, including BFSI, communication and IT, manufacturing, government and public sector, and others. It further segments the market by Type, encompassing wholesale and retail. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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One of the key factors driving the North America colocation and managed hosting services market growth is the increase in the adoption of cloud-based storage services. The use of cloud-based storage services is increasing rapidly across enterprises, where data can be stored in a cloud-based system and utilized to derive optimal insights. In addition, several computing resources are offered to users without the need for hardware; users can save text, files, or images on a cloud-based platform.
Moreover, these cloud computing services charge a nominal subscription fee and allow users to access computing resources anytime and at any location without the need for supporting hardware. In addition, cloud computing operates through the infrastructure provided by a data center. Furthermore, the development of cloud computing platforms has been one of the major reasons for the high growth of colocation data centers. Hence, such factors are positively impacting the North America - colocation and managed hosting services market. Therefore, it is expected to drive the North America colocation and managed hosting services market growth during the forecast period.
A key factor shaping the North America colocation and managed hosting services market growth is the emergence of containerized and micro-mobile data centers. Containerized data centers are also referred to as modular data centers. In addition, a containerized data center is a portable data center that can be used for increasing the data center capacity as and when required. Furthermore, these data centers can be placed in any location, as per the capacity requirement.
Moreover, these data centers are integrated with several modules, which can be shipped, retrofitted, and added to an existing data center. In addition, these modular data centers use standard components for construction in order to allow easy integration with existing data center networks. Furthermore, the setting up of containerized data centers reduces the environmental impact of data centers considerably. Therefore, it is positively impacting the colocation and managed hosting (CMH) services market. Hence, such factors are driving the North America colocation and managed hosting services market growth during the forecast period.
Increasing adoption of public cloud services is one of the key challenges hindering the North America colocation and managed hosting services market growth. There is an increasing preference by enterprises for public cloud services over managed hosting services and colocation services. In addition, public cloud services are ideal for certain workloads due to scalability, cost-effectiveness, and accessibility.
However, not all workloads are ideal for the public cloud, especially those requiring specific compliance, low-latency access, or extensive control. In addition, colocation facilities cater to these needs by providing a secure environment for critical or sensitive workloads. Therefore, it is negatively impacting the colocation and managed hosting (CMH) services market in North America. Furthermore, advancements in cloud technology, including increased security measures, improved reliability, and broader service offerings, have led some businesses to opt for a full transition to public cloud environments, reducing the demand for colocated infrastructure. Hence, such factors are hindering the North America colocation and managed hosting services market growth during the forecast period.
The BFSI segment is estimated to witness significant growth during the forecast period. The BFSI segment deals with sensitive customer data and financial transactions, making security and regulatory compliance top priorities. In addition, colocation and managed hosting providers often offer robust security measures and compliance protocols, meeting the stringent requirements set by regulations like GDPR. Furthermore, the driver for the banking and financial services sector is the growth of m-commerce and e-commerce in North America.
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The BFSI segment was the largest segment and was valued at USD 12.43 billion in 2018. Moreover, colocation facilities and managed hosting providers in North America often offer advanced security measures, including firewalls, encryption, intrusion detection, and physical security measures to safeguard sensitive financial data. In addition, colocation and managed hosting services allow BFSI companies to gain access to an interconnected infrastructure, reduce costs, and enable a high level of network security and flexibility. Furthermore, North America BFSI companies prioritize robust disaster recovery and business continuity plans. In addition, colocation and managed hosting providers offer solutions that ensure quick recovery and minimal downtime in case of unforeseen events. Hence, such factors are fuelling the growth of this segment which in turn drives the North America colocation and managed hosting services market growth during the forecast period.
The advantages offered by colocation services in the wholesale segment will increase the market growth. The demand for colocation and managed hosting services in the wholesale segment is increasing due to the scalability and flexibility of these services. In addition, colocation grants wholesalers full control over their hardware, allowing them to customize configurations to meet specific requirements. Moreover, the increasing reliance on digital operations, the need for flexible and scalable IT solutions, and the desire to optimize operational efficiency are driving wholesalers to seek colocation and managed hosting services. Furthermore, these services offer a way for wholesale businesses to access advanced IT infrastructure and support without having to build and maintain it entirely in-house. Hence, such factors are fuelling the growth of this segment which in turn drives the North America colocation and managed hosting services market growth during the forecast period.
North America Colocation and Managed Hosting Services Market forecasts include the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their colocation and managed hosting services market in North America growth and trends strategies.
North America Colocation and Managed Hosting Services Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
China Telecom Corp. Ltd: The company offers colocation and managed hosting services through China Telecom America colocation services.
Cogent Communications Holdings Inc: The company offers colocation and managed hosting services through Cogent Tier 1 Optical backbone.
Colocation America: The company offers colocation and managed hosting services to ensure clients get the redundant DDoS protected network they want with the highest level of security they need.
The North America Colocation and Managed Hosting Services Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
North America Colocation and Managed Hosting Services Market market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The North America colocation and managed hosting services market research report forecasts market growth and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
North America Colocation And Managed Hosting Services Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 14.09% |
Market Growth 2024-2028 |
USD 88.66 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
13.32 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AT and T Inc., China Telecom Corp. Ltd., Cogent Communications Holdings Inc., Colocation America, Colt Technology Services Group Ltd., CyrusOne LLC, Digital Realty Trust Inc., Equinix Inc., Fidelity National Information Services Inc., Flexential Corp., International Business Machines Corp., Iron Mountain Inc., Koch Industries Inc., Lumen Technologies Inc., QTS Realty Trust LLC, Rackspace Technology Inc., TeraGo Inc., UnitedLayer LLC, Verizon Communications Inc., and Wow Technologies Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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