Data Center Colocation Market By Type, Enterprise Type, End-User, Geographical Insight, Industry Analysis and Forecast to 2024
Data center colocation offer facilities to businesses to rent space for servers and other hardware at a particular data center location. The data center colocation service offers server space, along with power, cooling, and bandwidth which address the need of the businesses. A single location can serve multiple organizations without effecting the performance or productivity output and can help save infrastructure cost.
On the basis of type, data center colocation market has been bifurcated into retail and wholesale. Retail colocation offers greater flexibility in terms of IT infrastructure scalability, this category held the larger market share in 2018. Based on enterprise type, the market has been categorized into large enterprise and SME. Of these, large enterprise category held the larger market share in 2018, owing to their large scale of operations. On the basis of end user, data center colocation market has been segmented into banking, financial services, and insurance (BFSI), IT and telecom, government and defense, healthcare & hospitality, retail, energy & power, industrial & manufacturing, and others.
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Geographically, North America is projected to hold the largest market share in the forecast period. However, Asia Pacific (APAC) is anticipated to register fastest growth during the forecast period buoyed by rising expansion of global businesses in several industrial segments. In APAC, Singapore is one of the most attractive data center market in the region, and has over 45 service providers that are operating around 60 infrastructure facilities. In addition, several businesses based across the globe are setting-up regional headquarters in the country which has generated multiple opportunities for the global data center colocation market.
Costs involved in operation and maintenance of a large data center infrastructure facility is driving the growth of data center colocation market across the globe. On-site hosting also involves various expenditures for server management and infrastructure maintenance which would increase the overall expenditure of the business. Furthermore, setting-up a new data center facility also requires a hefty initial investment and as a result, enterprises are increasingly switching to data center colocation services to rent, store, and operate their servers.
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In addition, the rising number of SMEs across the globe is also fueling data center colocation market. Presently, SMEs are rapidly increasing all over the globe, wherein as of 2018, SMEs represent 98.5% of all enterprises in Turkey, nearly 99% of active businesses in Canada, and approximately 85% of all enterprises in India. SMEs are increasingly adopting data center colocation services to reduce the capital investment and ensure operational efficiency of data centers.
The growing adoption of cloud computing has been observed to be one of the key trends in data center colocation market. Combining cloud with the colocation would assist in increasing security, reduction in latency, and creating cloud interconnection opportunities. Furthermore, the global companies are depending on hyperscale facilities and are renting out large spaces to efficiently handle the data management operations. These hyperscale cloud providers generate large volume of data, which require large facility to store, accelerating the growth of data center colocation market across the globe.
Some of the key players operating in the data center colocation market include Equinix Inc., Rackspace Inc., Navisite Inc, Level 3 Communications Inc., Keppel Data Center Pte Ltd., Interxion Holding NV, Internap Corporation, Global Switch Corporation, Cyxtera Technologies Inc., CyrusOne Inc., Keppel Data Center Pte Ltd., NTT Communications Corporation, and Zayo Group LLC.
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