Global Colocation Market Analysis Report 2018 by Size, Share, Growth and Assessment to 2020

Data Center Colocation Market is expected to garner $51.8 billion by 2020, registering a CAGR of 12.4% during the forecast period 2015-2020. Data center colocation market for energy sector would exhibit highest CAGR of 14.3% during the forecast period. Colocation hosting is a service that allows small and large enterprises to install their servers (or hire a server on rent) at a data center service provider’s location.

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It helps in increasing business potential by reducing operational expenditure and maximizes the ability to focus on the core business. Growing awareness towards reduction of carbon footprints is a key factor driving the data center colocation market and has a major impact on the colocation market size. Additionally, cost effective solution for enterprises as compared to storing their server at their own premises that saves the room space requirement and cost of cooling and heating along with the need for IT expertise is fueling the growth of data center colocation market. Majority of colocation service providers in the industry are adopting expansion strategies to address the increasing demand for colocation data centers from each of the industry verticals. For instance, in May 2015 Interxion has entered into a partnership with Microsoft to provide Azure ExpressRoute solutions at its colocation data center for deployment of Microsoft cloud.

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Presently, the segment of retail colocation acquires a larger share in the market for colocation. In 2014, the retail data center colocation market accounted for approximately 2/3rd of the total market share. In order to secure the market position, whole sale colocation providers are now focusing on small-and medium enterprises in need of 500KW-1000KW. The whole sale market is expected to register a CAGR of 13.7% during the period 2015 - 2020.

Based on increasing density of data servers, the market earns a major share of its revenue from the telecom and IT industry. The segment of Telecom and IT sector would continue to consolidate its position in the market for data center colocation, over the forecast period. Recent digitalization approaches adopted by the energy sector would drive the market registering the highest CAGR of 14.2% during the forecast period 2015 - 2020.

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