Data Center Colocation Market by Type and Geography - Forecast and Analysis 2020-2024

The data center colocation market share is expected to increase by USD 33.09 billion from 2019 to 2024, at a CAGR of 12%.

This data center colocation market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers data center colocation market segmentation by type (retail colocation and wholesale colocation) and geography (North America, APAC, Europe, MEA, and South America). The data center colocation market report also offers information on several market vendors, including AT&T Inc., BT Group Plc, China Telecom Global Ltd., Digital Realty Trust Inc., Equinix Inc., Fujitsu Ltd., Nippon Telegraph and Telephone Corp., Singapore Telecommunications Ltd., Switch Inc., and Telstra among others.

What will the Data Center Colocation Market Size be During the Forecast Period?

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Data Center Colocation Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a neutral impact on the market growth during and post COVID-19 era. The growing number of M&A is notably driving the data center colocation market growth, although factors such as the emergence of containerized data centers may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the data center colocation industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Data Center Colocation Market Driver

One of the key factors driving growth in the data center colocation market is the increasing number of investments in the construction of colocation data centers. Data centers have become an integral part of every organization. The massive growth in the amount of data being generated has compelled several companies to build data centers on their own or lease data center space. The increasing interest in cloud computing will further drive the need for data centers. There are several investments being made in the construction of data centers, which indicate the growing necessity for these data centers to support the enormous expansion of the volume of data. Increasing demand for colocation services will be observed due to the benefit of reduced costs and the need to support enormous amounts of data, which will drive the growth of the market during the forecast period.

Key Data Center Colocation Market Trend

The innovative approaches like submarine data centers is a data center colocation market trend that is expected to have a positive impact in the coming years. Traditional data centers generate a lot of heat. Many service providers are trying to change to the location of data centers to the cooler countries to save the investment on power and cooling systems. Cooling systems account for 30%-40% of the power consumed by data centers. Free cooling and liquid immersion cooling techniques are implemented by data center facilities to reduce the consumption of power. Many innovations are implemented by the data center service providers to improve the efficiency of a facility. Such innovative approaches will help reduce power consumption in data centers. SME, as well as large enterprises, will prefer submarine data centers, which help the enterprises to improve Internet speeds in areas that lack the required infrastructure. Therefore, submarine data centers may hinder the growth of the global data center colocation market during the forecast period.

Key Data Center Colocation Market Challenge

The emergence of containerized data centers will be a major challenge for the data center colocation market during the forecast period. A containerized data center is also known as a modular data center in which the data compartments are portable. These modular data centers can be placed at any location. Modular data centers consist of servers, storage, and networking equipment, which are fitted into a shipping container. With the growing need for the expansion and replacement of existing and traditional brick-and-mortar data centers, several market players are introducing new containerized data centers. Portable and containerized data centers are a top solution for several companies that need to install data centers within a short span of time to cater to the growing volume of data. Therefore, containerized data centers hinder the growth of the global data center colocation market.

This data center colocation market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2020-2024.

Parent Market Analysis

Technavio categorizes the global data center colocation market as a part of the global data processing and outsourced services market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the data center colocation market during the forecast period.

Who are the Major Data Center Colocation Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• AT&T Inc.
• BT Group Plc
• China Telecom Global Ltd.
• Digital Realty Trust Inc.
• Equinix Inc.
• Fujitsu Ltd.
• Nippon Telegraph and Telephone Corp.
• Singapore Telecommunications Ltd.
• Switch Inc.
• Telstra

This statistical study of the data center colocation market encompasses successful business strategies deployed by the key vendors. The data center colocation market is concentrated and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• AT&T Inc. - The company offers colocation ecosystem which integrates highly connected data center hubs to provide high performance private connections through more than 465 facilities globally.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The data center colocation market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Data Center Colocation Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the data center colocation market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the data processing and outsourced services market includes the following core components:

• Inputs
• Operations
• Marketing and sales
• Support activities
• Innovation

The report has further elucidated on other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Data Center Colocation Market?

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37% of the market’s growth will originate from APAC during the forecast period. China is the key market for data center colocation in APAC. Market growth in this region will be faster than the growth of the market in other regions.

North America is another region showing major market growth. The data center colocation market is expected to grow significantly in the region during the forecast period owing to the rising investments by hyperscale cloud providers, colocation service providers, and enterprises, which are upgrading their IT infrastructure to support edge computing, 5G, multi-cloud services, big data analytics, and IoT. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Type Segments in the Data Center Colocation Market?

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The data center colocation market share growth by the retail colocation segment will be significant during the forecast period. The market for retail colocation data centers is growing due to the increasing adoption of the data centers by SME, which usually opt for colocation to save on both CAPEX and operating expenditure (OPEX). The adoption of colocation facilities is growing due to the increase in CAPEX and OPEX for owning and maintaining in-house traditional data centers. There is a steady transition toward colocation data centers since companies will have total control over the IT infrastructure at affordable prices. This will propel the growth of the global data center colocation market.

This report provides an accurate prediction of the contribution of all the segments to the growth of the data center colocation market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Data Center Colocation Market Report?

• CAGR of the market during the forecast period 2020-2024
• Detailed information on factors that will drive data center colocation market growth during the next five years
• Precise estimation of the data center colocation market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the data center colocation industry across North America, APAC, Europe, MEA, and South America
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of data center colocation market vendors

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