According to a new market research report "Data Center Colocation Market byType (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 to2022", The data centercolocation market is expected to grow from USD 31.52 Billion in 2017 to USD62.30 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60%.
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The major forces driving the data center colocation marketare the requirement for reliability, security and scalability ofinfrastructure, growing data center complexities, and the need for reduction ofoverall IT costs. The data center colocation market is expected to be growingrapidly because of the increasing number of users opting for cost-effective andenergy-efficient data center solutions.
Wholesale colocation type is expected to grow at thehighest CAGR
The market, by type, has been segmented into retailcolocation and wholesale colocation. Wholesale colocation is expected towitness the highest CAGR during the forecast period of 2017–2022. The wholesalecolocation provides a large IT space, along with cooling and powerinfrastructure. Additionally, it provides the users with benefits, such aseconomics of scale by reduced power and cooling cost, high bandwidth, andreduced total cost of ownership. These benefits provided by the wholesalecolocation are anticipated to further drive the data center colocation marketduring the forecast period.
Small and Medium-Sized Enterprises (SMEs) are expected togrow at the highest rate during the forecast period
The market, by end-user, has been segmented into SMEs andlarge enterprises. SMEs have lesser infrastructure autonomy requirements, thusthey are increasingly adopting retail colocation services. Data centercolocation provides SMEs with security and flexibility, which is expected tofuel their demand.
North America is expected to dominate the data centercolocation market during the forecast period
The global data center colocation market is segmented onthe basis of regions into North America, Asia Pacific (APAC), Europe, MiddleEast and Africa (MEA), and Latin America. North America is expected to hold thelargest share of the data center colocation market in 2017, owing to thepresence of a large number of data centers across various industries in thisregion. The market in APAC is expected to grow at the highest CAGR between 2017and 2022. The primary driving forces for this growth are the increasing datacenter traffic and the surge in usage of mobile devices in this region.
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 CommunicationsInc. , NTT Communications Corporation (Japan), PhoenixNAP (US), Rahi SystemsInc (US), Singtel (Singapore), STT GDC Pte Ltd. (Singapore), Telehouse-KDDI(UK), Telstra (Australia), TeraGo Networks Inc. (Canada), and Verizon (US).
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