Data Center Colocation Market by Type (Retail Colocation and Wholesale Colocation), End-User (Large Enterprises and Small and Medium Enterprises) and Industry Vertical (BFSI, Government & Public sector, Telecom & IT, Healthcare & Life sciences, Energy) - Global Opportunity Analysis and Industry Forecast, 2021 – 2027

ID: VPR/ICT/169 Publishing Year: January 2021 Pages: 62 Format:   


Market Overview:

 The Data Center Colocation Market was valued at $XXX billion in2019, and it is expected to reach $XXX billion by 2027, registering a CAGR of XX% from 2021 to2027. Colocation is a Data Center facility that provides data center space and infrastructure, including power, network bandwidth, physical security, and cooling component to small and large enterprises. Based on customer requirements, the colocation facility is bifurcated into retail colocation and wholesale colocation each giving different facilities to the end-users. There are several benefits of colocation for storing users IT equipment. No matter the geographical location of the enterprise, data center colocation is beneficial for them. The enterprises have a power redundancy facility for enterprise’s server storage equipment.

The major factors driving the Datacenter Colocation Market are the scalable data centers, reduction in the overall IT expenditure, growth in complex data structures, and also the growing awareness towards reduction of carbon footprints. Reduction in IT costs is the major catalyst in the growth of the data center location market. further, Data Center Colocations reduce the enterprise’s cost on storing the servers on their premises which saves room, heating, and cooling of machines along with the IT expertise support needed. However, due to the high initial cost, the end-users hesitate to adopt Data Center Colocation. The shipment of the initial deployment of data infrastructure solutions cause high expenditure and complexity. The cost required for further maintenance is also high after the deployment of equipment. The security requirements at data centers also can lower the market of colocation. Although in general, for a small to medium-sized business, the advantages of colocation hosting far outweigh the disadvantages because you are getting more bandwidth than you could afford on your own. All businesses in rural locations can obtain Ethernet by utilizing colocation facilities. The trend of digitalization is leading to an increase in the need for data center colocation for all enterprises and eventually growing Data Center Colocation Market share.

Segment Overview:

The Data Center Colocation Market is segmented by type, end-user, and industry vertical.

Type Insights:

This segment is bifurcated into retail colocation and wholesale colocation. The facilities provided by retail locations such as power, space, cooling, cabling, and support services. Also, it provides flexible infrastructure which is beneficial for small and large enterprises. It has been seen that retail colocation is gaining more demand in the market than wholesale colocation.

End-User Insights:

End-User Enterprises are divided into small, bid, and medium enterprises. Large enterprises are liable for adopting colocation services, as they can lease large spaces on rent and meet their power and computational requirements. Large enterprises have complete control over their data infrastructures due to colocation services.

Industry Vertical Insights:

This segmented are divided into BFSI, Government & Public sector, Telecom & IT, Healthcare & Life sciences, Energy. The telecom and IT industry are investing more in the Data Center Colocation Market. Large organizations are adopting colocation on a large scale and taking advantage of the facilities provided.

Colocation Market Key Segments:

The market is segmented by type, end-user, industry vertical, and geography.

By Type:

  • Retail Colocation
  • Wholesale Colocation

By End-User:

  • Large Enterprises
  • Small and Medium Enterprises (SME)

By Industry Vertical:

  • BFSI
  • Government & Public sector
  • Telecom & IT
  • Healthcare & Life sciences
  • Energy
  • Others

By Geography:

  • North America
  • Europe
  • Asia Pacific
  • LAMEA

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