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Colocation Market - Driving Factors and Trends of the Industry??
Colocation
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Based on space and power requirements for maintaining the data servers, the market for Colocation services are broadly segmented into two types-retail colocation and wholesale colocation. High demand of capacity requirement ranging from 100KW to 500KW power are driving the market for retail colocation.
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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