Data center colocation is a great option for small businesses that don't have the budget to build a data center on their own. It also allows for greater flexibility compared to building a data center from scratch. Many colocation facilities also provide disaster recovery and business continuity services to help businesses manage their data center needs in the event of disaster. Without these services, a business can lose critical information or mission-critical systems. A data center failure can disrupt operations and hurt a company's reputation.
Market Statistics:
The global data center colocation market is estimated to account for US$ 63.65 Mn in terms of value by the end of 2022.
Global Data Center Colocation Market: Drivers
The demand for environment-friendly data center colocation services is increasing across the globe, which is expected to fuel growth of the global data center colocation market over the forecast period. Data centers have gained significant popularity in modern computing infrastructure all over the world. The number of data centers is likely to grow as many organizations are adopting colocation services, compliance assurances and cloud solutions. The amount of power consumed by SMEs continue to rise even after developing solutions of sustainable energy. For instance, as per the data of Natural Resources Defense Council, consumption of electricity in data centers is likely to grow to 240 billion kilowatt-hours per year by 2020.
Global Data Center Colocation Market: Opportunities
Growing demand for disaster recovery as well as business continuity is expected to create a lucrative environment for growth opportunities in the global data center colocation market during the forecast period. Data centers all over the world, face the major challenge of disaster recovery. IT infrastructures can be impacted by disasters such as fire outages, security attacks, and earthquakes among others. Which is why, proper disaster recovery measures are important. As data center colocation structures are usually located away from business facilities, they become a reliable disaster recovery measures. Thus, availability of sage and resilient colocation facility offers business continuity, and this is likely to create various growth opportunities in the market.
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https://www.coherentmarketinsights.com/market-insight/data-center-colocation-market-5312
Global Data Center Colocation Market: Restraints
Security requirements and regulations implemented by government is the major factor restraining growth of the global data center colocation market over the forecast period. The need for complying with strict regulations implemented by government authorities are creating challenges for data centers. These regulations deal with environmental impact of data centers, water usage and energy efficiency. Data Center Optimization Initiative (DCOI) was established for fullfiling the Federal Information Technology Acquisition Reform Act, which needs the providers to create and report data center strategies as well as growth the requirement for more stringent compliances too.
Global Data Center Colocation Market - Impact of Coronavirus (Covid-19) Pandemic
The coronavirus outbreak in Wuhan, China spread across more than 200 countries all over the world. It significantly impacted several industries around the globe. However, the COVID-19 pandemic positively impacted the global data center colocation market. During the pandemic, the data colocation technologies helped companies address the demand for extensive data storage capacity. Thus, the demand for data center colocation services increased during the pandemic. This led to increased investments in data center colocations by services providers such as cloud service and local data center operators. Moreover, in order for enabling the business objectives during the work from home period, the adoption of data center colocation increased around the world. Thus, the epidemic of COVID-19 pandemic positively impacted the market.
Key Takeaways:
The global data center colocation market was valued at US$ 54.65 Mn in 2021 and is forecast to reach a value of US$ 202.71 Mn by 2030 at a CAGR of 15.6% between 2022 and 2030.
Retail Colocation segment held dominant position in the global data center colocation market in 2021, accounting for 69.88% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
Global Data Center Colocation Market Trends:
Growing advent of innovative technologies such as augmented reality, 5G, AI and virtual reality is leading to stronger demand for higher bandwidth for data sharing between companies, and this is a growing trend which is likely to boost growth of the global data center colocation market over the forecast period. The increasing adoption of cloud computing, autonomous vehicles, Internet of things, and advanced robotics technologies is leading to growing demand for data center colocation. Due to increasing expansion of such technologies, the demand for lower latency is also growing. Due to colocation, cloud service providers are presented with various opportunities for moving their data center facilities to user proximities, and low latency and higher bandwidth in data transfer.
Moreover, IT and Telecommunication segment is gaining traction in the global data center colocation market, which is likely to propel the market growth. This is owing to increasing trend of adoption of data center colocation solutions among telecommunication companies to extend their business objectives for ensuring effective and efficient user of public relation resources. Telecommunication companies are increasingly investing in building networks to increase revenues. However, the tradition voice revenues are declining, which is leading to focus of these companies on stronger data base, and this is projected to boost growth of this segment.
Global Data Center Colocation Market: Competitive Landscape
CHINA TELECOM CORPORATION LIMITED, CoreSite Realty Corporation, CYRUSONE INC, CYXTERA TECHNOLOGIES, INC., DIGITAL REALTY TRUST, INC., EQUINIX, INC., Global Switch, KDDI CORPORATION, NTT Communications Corporation, and Verizon Enterprise Solutions, Inc. (US)
Global Data Center Colocation Market: Recent Developments
In March 2021, CyrusOne Inc. entered into partnership with Virtual-Q for improving the remote desktop cloud capabilities. Under this partnership, Virtual-Q benefited as the customers around the world are streamlining flexible working environments in homes and offices for expanding and increasing their Remote Work Capabilities.
In March 2021, Cyxtera Technologies lunched the Global Federal Partners Program, through which, it integrated Cyxtera retail colocation, Enterprise Bare Metall solutions and interconnections to provide partners with competitive reseller rates to generate profitable revenue streams.
