Demand for cost-effective IT operations, the requirement of security, reliability, and scalability of data center infrastructure, and rise in demand for eco-friendly data center colocation service drive the growth of the global data center colocation market.
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However, high initial and long-term leasing costs and network bandwidth issues hinder the market growth. On the other hand, increase in adoption of the hybrid cloud and virtualization and rise in investments to develop advanced data centers present new opportunities in the coming years.
The report offers detailed segmentation of the global data center colocation market based on type, enterprise size, industry vertical, and region.
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Based on type, the retail colocation segment accounted for the largest share in 2020, holding more than two-thirds of the total share, and is estimated to maintain its lead position during the forecast period. However, the wholesale colocation segment is expected to manifest the largest CAGR of 17.4% from 2021 to 2030.
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Based on industry vertical, the IT and telecommunication segment contributed to the highest share in 2020, contributing to nearly one-fifth of the global data center colocation market, and is projected to continue its leadership status during the forecast period. However, the media & entertainment segment is estimated to witness the fastest CAGR of 20.0% from 2021 to 2030.
Based on region, North America accounted for the highest share in terms of revenue in 2020, contributing to nearly half of the total share, and is expected to maintain its dominance in terms of revenue by 2030. However, Asia-Pacific is projected to portray the highest CAGR of 19.3% during the forecast period.
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Leading players of the global data center colocation market analyzed in the research include China Telecom Corporation Limited, CoreSite Realty Corporation, Cyrusone Inc., Cyxtera Technologies, Inc., Digital Realty Trust, Inc., Equinix, Inc., Global Switch, KDDI Corporation, and NTT Communications Corporation.
- Many organizations adopted the “work from home” culture due to the shutdown of offices and manufacturing factories. This led to increase in usage of data center colocation facilities for accessibility and security of data.
- In addition, education institutions began conducting online classes and examinations. This led to surge in utilization of data center colocation.
- Service providers have been carrying out considerable investments in data center colocation facilities due to various factors such as the growth of over the top (OTT) market and increased traffic demand across the world.
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