Data Center Colocation Market Size, Industry Share, Forecast 2033

Description
Table of Contents

The global data center colocation market is expected to grow at a CAGR of around 12.8% during 2024-2033. This report on Global data center colocation market report provides holistic understanding of the market along with market sizing, forecast, drivers, challenges, and competitive landscape. The report presents a clear picture of the Global data center colocation market by segmenting the market based on type, organization size, end use and region. Also, detailed profiles of companies operating in the data center colocation market are provided in this report. We believe that this report will aid the professionals and industry stakeholders in making informed decision.

Market Drivers

The market for data center colocation is seeing substantial expansion thanks to recent advancements and efforts made by leading industry participants. The term “hyperscale data centers” emerged in response to the increasing demand for cloud computing and the establishment of mega data center facilities by cloud service providers like Amazon Web Services, Google, and Microsoft. These providers require extensive data center infrastructure to accommodate the soaring demand for their services. While they invest in constructing their own data centers, they also turn to colocation facilities to quickly expand their capacity and geographic reach. Colocation offers companies the ability to meet their business requirements at a reduced cost. Consequently, many organizations across the region have transitioned their operations from in-house server rooms to colocation facilities. By leasing space in a colocation facility, companies can avoid the high expenses associated with building a new data center, which is often financially prohibitive.

Market Restraints

Geopolitical and security considerations represent substantial barriers to the expansion of the Global data center colocation market. The complex geopolitical environment in Global, characterized by diverse regulations and compliance standards across countries, presents challenges for data center providers in navigating legal complexities and maintaining smooth operations. Additionally, intense competition poses significant hurdles for the data colocation center market. With numerous providers competing for market share, pricing pressures can undermine profit margins, making it challenging for companies to allocate resources towards advanced infrastructure and technology upgrades.

Market Opportunities

The rapid evolution of the IT industry is a significant driver fueling the demand for data center colocation services. As businesses across diverse sectors undergo digital transformation, their reliance on data-driven operations has surged. The data center colocation market is witnessing notable growth, largely propelled by the widespread adoption of artificial intelligence (AI). The deployment of AI applications such as deep learning and machine learning has resulted in heightened demands for robust computational power and extensive data storage capabilities. In this landscape, colocation data centers have emerged as crucial solutions to effectively meet these requirements. Moreover, the energy-efficient characteristics of data colocation facilities are playing a pivotal role in driving the growth of the data colocation market in Global. With growing Global concerns about environmental sustainability and energy conservation, data colocation providers are actively taking steps to minimize their carbon footprint and promote energy efficiency.

Recent Industry Development

In Nov 2023, Deft, a managed IT services company, extended its colocation presence into Frankfurt, Germany, by partnering with Digital Realty, a Global leader in data center and interconnection solutions.
In May 2023, Vantage Data Centers announced the inauguration of its latest data center located in Dublin, Ireland.

Data Center Colocation Market Report Highlights:

The retail colocation segment dominated the global data center colocation market by type with 57.5% in 2023. There are so many programs (apps) being generated and uploaded to the cloud right now, as a result retail colocation is likely to grow steadily.
Based on organization size, large enterprises dominated segment held the largest market share of 58.9% in 2023 and is anticipated to dominate the market over the forecast period. The growing adoption and heavy investments of large organizations in the data centers is augmenting the market in the segment.
Based on end use, IT and Telecom dominated segment held the largest market share of 27.9% in 2023. IT and Telecom encompasses a wide range of IT firms as well as telecommunications companies such as mobile number operators and wireless service providers.
Based on region, Asia Pacific dominated segment held the largest market share of 41.5% in 2023 and is anticipated to dominate the market over the forecast period. The region has been witnessing proliferating growth owing to the tremendous investments for data center allocation in countries such as China, India, Japan and Indonesia.

Historical & Forecast Period

Base Year: 2023

Historical Period: 2019-2023

Forecast Period: 2024-2033

Report’s Unit: US$

Global data center colocation Market

Global Data Center Colocation Market Segmentation

Market by Type

Retail Colocation
Wholesale Colocation

Market by Organization Size

Large Enterprises
Small and Medium Enterprises

Market by End Use Industry

IT and Telecom
Media and Entertainment
BFSI
Government
Retail
Energy
Manufacturing
Healthcare
Education
Others

Market by Region

Europe

Germany
United Kingdom
France
Italy
Spain
Russia
Netherlands
Sweden
Poland
Rest of Europe

North America

United States
Canada

Asia Pacific

China
Japan
India
South Korea
Australia
ASEAN
Rest of Asia Pacific

Latin America

Mexico
Brazil
Argentina
Chile
Rest of Latin America

Middle East & Africa

Saudi Arabia
Turkey
Iran
United Arab Emirates
Rest of Middle East & Africa

List of Mentioned Companies

Report Coverage

Report Feature	Details
Base Year	2023
Historical Period	2019-2022
Forecast Period	2024-2033
Units	US$ Million
Segments Covered	Robot Components, Type, Function, Operation Environment, End-User, Region
Region Covered	Europe, North America, Asia Pacific, Latin America, Middle East and Africa
Companies Covered	21Vianet Group, Inc., China Mobile Limited, China Telecom Corporation Limited, China Unicom (Hong Kong) Limited, CoreSite Realty Corporation, CyrusOne, Inc., Cyxtera Technologies, Inc., Digital Realty Trust, Inc., Equinix, Inc., Flexential Corporation, GDS Services Ltd., Global Switch Limited, Telehouse (KDDI Croporation), Lumen Technologies, Inc., NTT DATA Corporation
Purchase Options	Single User License: US$ 2,999 Five User License: US$ 3,499 Corporate License: US$ 4,499

Research Methodology

During the course of the research study, we conducted extensive primary and secondary research. The research commenced with extensive exploration through secondary sources followed by primary research. With these research methods, we were able to estimate the market size, to identify the factors that promote the growth in this market as well as the factors that hamper the growth in the market.

Comprehensive primary and secondary methods helped us to identify the trends in the market and to project the opportunities that the key players may get during the forecast period. Apart from these approaches, various analytical and statistical approaches were also used during data extraction cleaning, and analysis.

Breakdown of Primary Research Participant's Profiles Post-secondary & primary research, we conducted expert interviews to validate all the information we collected during the course of the study. So, a blend of these three-way approaches helped us in data triangulation and to provide an accurate market scenario in our report.

Key Questions Answered in the Report

What will be the global data center colocation market size and the growth rate in the coming year?
What are the main key factors driving the market?
What are the key market trends impacting the growth of the market?
What are the market opportunities and threats in the market?
What industrial trends, drivers, and challenges are manipulating its growth?
Which are trending factors influencing the market shares of the top regions across the globe?
Who are the key market players in the industry?
What is the impact of Covid19 on the current industry?

1. Preface
1.1 Objective
1.2 Target Audience & Key Offerings
1.3 Report’s Scope
1.4 Research Methodology
1.4.1 Phase I
1.4.2 Phase II
1.4.3 Phase III
1.5 Assumptions
2. Key Insights
2.1. Global Market in 2023
2.2. Impact of COVID-19
2.3. Growth Opportunities and Challenges
2.4. Key Industry Trends
3. Global Data Center Colocation Market Dynamics
3.1. Introduction
3.2. Market DROs
3.2.1. Drivers
3.2.2. Restraints
3.2.3. Opportunities
3.3. Industry Trends
3.4. SWOT Analysis
3.5. Market Value Chain Analysis
3.6. Porter’s Five Forces Analysis
3.7. PESTLE Analysis
3.8. Key Price Indicators
3.9. Ansoff Matrix
3.10. Government Laws and Industry Regulations
4. Global Data Center Colocation Market Analysis
4.1. Market Portraiture
4.2. Market Size (US$ Million, 2019-2023)
4.3. Market Forecast (US$ Million, 2024-2033)
4.4. Impact of COVID-19
4.5. Impact of Russia-Ukraine War
5. Global Data Center Colocation Market by Type (US$ Million, 2019-2033)
5.1. Introduction
5.2. Retail Colocation
5.3. Wholesale Colocation
5.4. Key Segment Investment Opportunity
6. Global Data Center Colocation Market by Organization Size (US$ Million, 2019-2033)
6.1. Introduction
6.2. Large Enterprises
6.3. Small and Medium Enterprises
6.4. Key Segment Investment Opportunity
7. Global Data Center Colocation Market by End Use (US$ Million, 2019-2033)
7.1. Introduction
7.2. IT and Telecom
7.3. Media and Entertainment
7.4. BFSI
7.5. Government
7.6. Retail
7.7. Energy
7.8. Manufacturing
7.9. Healthcare
7.10. Education
7.11. Others
7.12. Key Segment Investment Opportunity
8. Global Data Center Colocation Market by Region (US$ Million, 2019-2033)
8.1. Introduction
8.2. Europe
8.3. North America
8.4. Asia Pacific
8.5. Latin America
8.6. Middle East & Africa
8.7. Key Segment Investment Opportunity
9. Europe Data Center Colocation Market (US$ Million, 2019-2033)
9.1. Introduction
9.2. Key Drivers and Takeaways
9.3. Europe Market Breakup by Type
9.4. Europe Market Breakup by Organization Size
9.5. Europe Market Breakup by End Use
9.6. Europe Market Breakup by Country
9.6.1. Germany
9.6.2. United Kingdom
9.6.3. France
9.6.4. Italy
9.6.5. Spain
9.6.6. Russia
9.6.7. Netherlands
9.6.8. Sweden
9.6.9. Poland
9.6.10. Rest of Europe
10. North America Data Center Colocation Market (US$ Million, 2019-2033)
10.1. Introduction
10.2. Key Drivers and Takeaways
10.3. North America Market Breakup by Type
10.4. North America Market Breakup by Organization Size
10.5. North America Market Breakup by End Use
10.6. North America Market Breakup by Country
10.6.1. United States
10.6.2. Canada
11. Asia Pacific Data Center Colocation Market (US$ Million, 2019-2033)
11.1. Introduction
11.2. Key Drivers and Takeaways
11.3. Asia Pacific Market Breakup by Type
11.4. Asia Pacific Market Breakup by Organization Size
11.5. Asia Pacific Market Breakup by End Use
11.6. Asia Pacific Market Breakup by Country
11.6.1. China
11.6.2. Japan
11.6.3. India
11.6.4. South Korea
11.6.5. Australia
11.6.6. ASEAN
11.6.7. Rest of Asia Pacific
12. Latin America Data Center Colocation Market (US$ Million, 2019-2033)
12.1. Introduction
12.2. Key Drivers and Takeaways
12.3. Latin America Market Breakup by Type
12.4. Latin America Market Breakup by Organization Size
12.5. Latin America Market Breakup by End Use
12.6. Latin America Market Breakup by Country
12.6.1. Mexico
12.6.2. Brazil
12.6.3. Argentina
12.6.4. Chile
12.6.5. Rest of Latin America
13. Middle East and Africa Data Center Colocation Market (US$ Million, 2019-2033)
13.1. Introduction
13.2. Key Drivers and Takeaways
13.3. Middle East and Africa Market Breakup by Type
13.4. Middle East and Africa Market Breakup by Organization Size
13.5. Middle East and Africa Market Breakup by End Use
13.6. Middle East and Africa Market Breakup by Country
13.6.1. Saudi Arabia
13.6.2. Turkey
13.6.3. Iran
13.6.4. United Arab Emirates
13.6.5. Rest of Middle East & Africa
14. Competitive Landscape
14.1. Competitive Dashboard
14.2. Key Industry Strategies Analysis
14.3. Recent Developments
14.4. Market Scenario
15. Company Profiles
15.1. 21Vianet Group, Inc.
15.2. China Mobile Limited
15.3. China Telecom Corporation Limited
15.4. China Unicom (Hong Kong) Limited
15.5. CoreSite Realty Corporation
15.6. CyrusOne, Inc.
15.7. Cyxtera Technologies, Inc.
15.8. Digital Realty Trust, Inc.
15.9. Equinix, Inc.
15.10. Flexential Corporation
15.11. GDS Services Ltd.
15.12. Global Switch Limited
15.13. Telehouse (KDDI Croporation)
15.14. Lumen Technologies, Inc.
15.15. NTT DATA Corporation .

Description