Data Center Colocation Market by Type, End-user, and Region - Global Forecast to 2022

LONDON, July 20, 2017 /PRNewswire/ -- The growing need for reducing the IT expenditure is one of the factors driving the growth of the data center colocation
The global data center colocation size 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%. There is an increasing need for reducing the IT expenditure spent on commissioning mission-critical data center facilities. Data center colocation services provide the required scalability and cost-effectiveness for managing the daily data requirement. This acts as one of the major drivers of the data center colocation market. However, high initial costs may hold back the end-users from adopting these solutions.

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Retail colocation is expected to account for the largest market share during the forecast period
The retail colocation type in the data center colocation market is expected to have the largest market share during the forecast period. Retail colocation provides power, space, cooling, cabling, and support services. It also provides flexibility in terms of IT infrastructure, and therefore proves advantageous for Small and Medium-Sized Enterprises (SMEs). This utility of retail colocation is expected to drive its market share in the global data center colocation.

Large enterprises are estimated to have the largest market share during the forecast period
The data center colocation end-users include SMEs and large enterprises, wherein large enterprises are expected to have the largest market share during the forecast period. Large enterprises are inclined toward adopting colocation services, as they are able to lease large spaces on lease and meet their power and computational requirements. Moreover, colocation services help large enterprises to have complete control over the data center infrastructure. These services also aid in business continuity due to their disaster recovery benefits. This is expected to fuel the data center colocation market during the forecast period.

North America is expected to have the largest market in 2017, whereas Asia Pacific (APAC) is projected to grow at the highest rate during the forecast period
North America is expected to capture the largest market share in 2017 and the trend is likely to continue until the near future. This region is growing due to the presence of a large number of data centers and it has witnessed a rapid adoption due to the availability of comprehensive solutions. On the other hand, the data center colocation market in APAC is expected to witness an exponential growth and projected to be one of the fastest-growing regions in the global data center colocation market. This is mainly due to the increasing volumes of data center traffic in countries, such as India, Australia, and China.

In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with key people. The break-up of the profiles of the primary participants is given below:

• By Company Type: Tier 1: 29%, Tier 2: 57%, and Tier 3: 14%
• By Designation: C-Level: 50%, Director Level: 33%, and Others: 17%
• By Region: North America: 57%, Europe: 14%, and APAC: 29%


The key vendors profiled in the report are as follows:
1. NTT Communication Corporation (Japan)
2. DuPont Fabros Technology, Inc. (US)
3. Digital Realty Trust, Inc. (US)
4. Cyxtera Technologies, Inc. (US)
5. CyrusOne Inc. (US)
6. Level 3 Communications, Inc. (US)
7. Equinix, Inc. (US)
8. Global Switch (UK)
9. AT&T, Inc. (US)
10. CoreSite Realty Corporation (US)
11. China Telecom Corporation Limited (China)
12. Verizon Enterprise Solutions, Inc. (US)

Research Coverage
The market is segmented on the basis of colocation types, which includes wholesale colocation and retail colocation. The end-user segment includes SMEs and large enterprises. The market is also segmented on the basis of industries, including the Banking, Financial Services, and Insurance (BFSI); IT and telecom; government and defense; healthcare; research and academic; retail; energy; manufacturing; and others (media and entertainment, and transportation and logistics). The market has been segmented on the basis of regions into North America, Europe, APAC, MEA, and Latin America.

The report will help the market leaders/new entrants in this market in the following ways:
1. The report segments the data center colocation comprehensively and provides the closest approximations of the revenue numbers for the overall market and subsegments across different verticals and regions.
2. The report will help stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
3. The report will help stakeholders better understand their competitors and gain more insights to enhance their position in the market. The competitive landscape section includes new product launches, partnerships, agreements and collaborations, mergers and acquisitions, and expansions.
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