Forecast of Data Center Colocation Market - (2016 to 2020) Trends, Services and Overview

The colocation services market has been recently witnessing an increasing interest in hybrid cloud-based colocation facilities as organizations are adopting cloud computing to run a mix of in-house and outsourced data center services. The data center colocation market is broadly classified by type into retail colocation market and wholesale collocation market. Compared to retail colocation, the wholesale colocation market is experiencing high adoption among business enterprises, as wholesale vendors are not only offering their services at a cheaper rate than retail vendors, but are also dealing, increasingly, in lower power and space requirements.

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Small and medium enterprises are expected to witness the highest growth as the colocation service offers them the benefit of big data center at a very reasonable operating cost. Large enterprises dominate the end user segment in the data center colocation market during the forecast period. This growth is driven due to technological advancement across North America and Europe.

Data Center Colocation Market Research is helpful for following audience

  • Data Center Colocation Services Vendors
  • Market Operators (Manufacturing Equipment Suppliers)
  • System Integrators
  • Consultants/Consultancies/Advisory Firms
  • Training and Education Service Providers
  • Cloud Providers
  • National Regulatory Authorities
  • IT Companies
  • Financial Institutions
  • Government

“The analysis shows that the spending on data center colocation is increasing globally due to increasing Information and Communications Technology (ICT) integration across different verticals, especially in developing regions. The global market is segmented across five broad classifications, namely, North America, Asia-Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America.”

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North America is projected to dominate the data center colocation market during the forecast period due to technological advancements and early adoption of cloud computing in the region. The APAC market is expected to grow at the highest CAGR between 2015 and 2020. The primary driving forces for this growth are increasing technological adoption and huge opportunities in countries such as China, India, and Japan.

Some of the key players that offer data center colocation services are Equinix Inc., Coresite Realty Corporation, Centurylink, Inc., Digital Realty Trust, Verizon Terremark, Internap Corporation, AT&T, NTT Communications, Telecity Group, and Interxion.

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In the process of determining and verifying the market size for several segments and sub-segments gathered through secondary research, extensive primary interviews were conducted with key industry personnel. The break-up of profile of primary discussion participants is given below.

·         By Company Type: Tier-1 (35%), Tier-2 (45%), and Tier-3 (20%) companies

·         By Designation: C-level (35%), Director Level (25%), and other executive level (40%)

·         By Region: North America (45%), Europe (20%), Asia-Pacific (APAC) (30%) and ROW (5%)

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The latest trends in data center colocation include the emergence of cloud-based technologies, growth in IT spending, and organizations’ need for reduction of capital expenditure (Capex). Massive acceleration in the production of data has further provided huge opportunities.

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