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(I-SoftwareNews.Com, July 30, 2019 ) According to market research report "Data Center Colocation Market by Type (Retail and Wholesale), End-user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research & Academic, Retail, Energy and Manufacturing), and Region - Global Forecast to 2022", published by MarketsandMarkets, the global data center colocation market is expected to grow from USD 31.52 Billion in 2017 to USD 62.30 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60%.
The growing requirement for scalable data centers, reduced overall IT expenditure, and the growing data center complexities are the major growth drivers of the market. In this study, 2016 has been considered as the base year and 2017–2022 as the forecast period.
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The major forces driving the data center colocation market are the requirement for reliability, security and scalability of infrastructure, growing data center complexities, and the need for reduction of overall IT costs. The market is expected to be growing rapidly because of the increasing number of users opting for cost-effective and energy-efficient data center solutions.
Wholesale colocation type is expected to grow at the highest CAGR
The market, by type, has been segmented into retail colocation and wholesale colocation. Wholesale colocation is expected to witness the highest CAGR during the forecast period of 2017–2022. The wholesale colocation provides a large IT space, along with cooling and power infrastructure. Additionally, it provides the users with benefits, such as economics of scale by reduced power and cooling cost, high bandwidth, and reduced total cost of ownership. These benefits provided by the wholesale colocation are anticipated to further drive the data center colocation market during the forecast period.
Small and Medium-Sized Enterprises (SMEs) are expected to grow at the highest rate during the forecast period
The market, by end-user, has been segmented into SMEs and large enterprises. SMEs have lesser infrastructure autonomy requirements, thus they are increasingly adopting retail colocation services. Data center colocation provides SMEs with security and flexibility, which is expected to fuel their demand.
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North America is expected to dominate the data center colocation market during the forecast period
The global data center colocation market is segmented on the basis of regions into North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America. North America is expected to hold the largest share of the market in 2017, owing to the presence of a large number of data centers across various industries in this region. The market in APAC is expected to grow at the highest CAGR between 2017 and 2022. The primary driving forces for this growth are the increasing data center traffic and the surge in usage of mobile devices in this region.
The report also encompasses different strategies, such as mergers and acquisitions, partnerships and collaborations, and developments, adopted by the major players to increase their shares in the market. Some of the major technology vendors include AT&T Inc. (US), China Telecom (China), Cogent Communications (US), Contegix (US), CoreSite Realty Corporation (US), CyrusOne (US), Cyxtera Technologies, Inc. (US), Digital Realty Trust, Inc. (US), DuPont Fabros Technology, Inc. (US), Equinix, Inc. (US), Fibernet Inc. (US), Global Switch (UK), Internap (US), Interxion (Netherland), Keppel Data Center Pte Ltd. (Singapore), Level 3 Communications Inc. , NTT Communications Corporation (Japan), PhoenixNAP (US), Rahi Systems Inc (US), Singtel (Singapore), STT GDC Pte Ltd. (Singapore), Telehouse-KDDI (UK), Telstra (Australia), TeraGo Networks Inc. (Canada), and Verizon (US).
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