Data Center Colocation Market Revenue to Cross USD 145 Bn by 2027: Global Market Insights Inc.

9/28/2021, 12:00 PM (Source: GlobeNewswire)

SELBYVILLE, Del., Sept. 28, 2021 (GLOBE NEWSWIRE) -- According to latest report "Data Center Colocation Market by Type (Retail Colocation, Wholesale Colocation), End-Use (SMEs, Large Enterprises), Application (BFSI, Energy, Government & Defense, Healthcare, Manufacturing, IT & Telecom, Retail), Regional Outlook, Price Trends, Competitive Market Share & Forecast 2027", by Global Market Insights Inc., the market valuation of data center colocation will cross $145 billion by 2027. The market growth can be attributed to the high expenses of owning and operating a data center, particularly for businesses that generate irregular data quantities.

Large enterprises tend to use colocation services as they can lease large premises while meeting their power and processing needs. Furthermore, colocation services enable large enterprises to have total control over their data center infrastructure. Due of their catastrophe recovery capabilities, these services also help in business continuity. Globally, large enterprises from different industries create massive amounts of data, necessitating infrastructure with better and high scale storage capacity. Data center colocation allows large enterprises to lease vast floor space close to consumers while also ramping up infrastructure based on demand from that specific region. Tech giants, such as Google and Facebook, make extensive use of data center colocation.

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The new norms enabled by recent IT breakthroughs are substantially transforming all areas of the automotive industry including manufacturing, distribution, leasing, and servicing. The global car market is already in a transformation phase, necessitating the incorporation of smart vehicles. Real time information is required for autonomous vehicles to operate properly, necessitating the use of data center colocation services. The advent of edge computing is changing the automobile sector by boosting vehicle economy through technological improvements. Consequently, data centers are likely to become the cornerstone of the manufacturing sector. The growing penetration of digital technologies across the manufacturing sector will foster the demand for data center colocation services.

The expanding e-commerce industry, contributing to the surging amounts of data in the U.S. and Canada, will support the data center colocation market expansion. According to U.S. Census Bureau, the total retail sales in the U.S. for Q1 of 2021 was USD 215.3 billion with 39.3% change as compared to Q1 of 2020, while for Q2 of 2021 was USD 222.5 billion with 9.1% change as compared to Q2 of 2020. Retailers are substantially investing in their IT infrastructures to protect consumer data that can be used to determine customer buying behavior and product needs. The rising amounts of data with the growth of the online retailing industry will encourage retailers to adopt data center colocation services.

Major companies operating in the data center colocation market include NTT Communications Corporation, China Telecom Corporation Limited, China Unicom, Digital Realty, Cogent Communications, Inc., Singapore Telecommunications Limited, Cologix, Inc., CyrusOne, Cyxtera Technologies, Inc., eStruxture Data Centers, Equinix, Inc., Internap Corporation, Interxion Holding NV, KDDI Corporation, Ltd., Rackspace Inc., Sungard Availability Services, TeraGo Networks, Telstra Corporation Limited, Verizon Communications Inc., and Zayo Group, LLC.

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Some major findings of the data center colocation market report are:

  • The market will witness growth owing to the growing demand to reduce IT spending on commissioning mission-critical data center infrastructure. Data center colocation services provide the agility and cost-effectiveness necessary for handling the ongoing data requirements, fueling the data center colocation market.
  • The market is also led by hyperscale data center users, such as big internet companies and cloud service providers, with high demand for colocation services. The expanding use of cloud computing and the growing prevalence of cloud service providers serve as a stimulus for the expansion of the market.
  • The IT & telecom segment in the data center colocation market is expanding as a result of the rising popularity of smartphones, increasing proportion of internet subscribers, and the industry's ongoing innovation of new apps & software. Additionally, the introduction of 5G is projected to promote the expansion of IT and telecom sectors, resulting in a huge volume of data and impelling data center market progression.
  • The growing demand for retail colocation is associated with a multitude of advantages including flexibility of managing data volumes, resulting in inexpensive data center maintenance costs and enhancing data protection. In retail colocation, a client rents a space within a data center facility, depending on the IT requirements. In contrast to wholesale colocation that typically involves the renting of an entire data center, retail colocation is suitable for businesses that have budgetary constraints.
  • The increasing volume of patient data collected globally will boost data center colocation penetration in the healthcare industry. The increasing use of technologies, such as telemedicine and online consulting, is contributing to increasing data storage demands.

Table of Contents (ToC) of the report:

Chapter 3   Data Center Colocation Market Insights

3.1    Industry segmentation

3.2    Data center industry landscape

3.3    Impact of coronavirus (COVID-19) pandemic on data center colocation market

3.3.1    Global outlook

3.3.2    Regional impact

3.3.3    Industry value chain

3.3.4    Competitive landscape    Strategy    Distribution network    Business growth

3.4    Industry ecosystem analysis

3.4.1    Distribution channel analysis

3.4.2    Vendor matrix

3.5    Technology & innovation landscape

3.5.1    Cloud computing and virtualization

3.5.2    Edge computing

3.5.3    Green data center

3.5.4    Converged and hyper-converged infrastructure

3.6    Regulatory landscape

3.7    Industry impact forces

3.7.1    Growth drivers

3.7.2    Industry pitfalls & challenges

3.8    Growth potential analysis

3.9    Porter's analysis

3.10    PESTEL analysis

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About Global Market Insights Inc.

Global Market Insights Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider, offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy, and biotechnology.

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Arun Hegde
Corporate Sales, USA
Global Market Insights Inc.
Phone: 1-302-846-7766
Toll Free: 1-888-689-0688

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Image 1: Data Center Colocation Market Growth Predicted at 15% Through 2027: GMI

The data center colocation market growth can be attributed to the high expenses of owning and operating a data center, particularly for businesses that generate irregular data quantities.

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Data Center Colocation Market Growth Predicted at 15% Through 2027: GMI

Data Center Colocation Market Growth Predicted at 15% Through 2027: GMI
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