December 26, 2019
According to the new research report available at MarketStudyReport.com under the title ‘ Data Center Colocation Market Size By Type (Retail Colocation, Wholesale Colocation), By End-Use (SMEs, Large Enterprises), By Application (BFSI, Energy, Government & Defense, Healthcare, Manufacturing, IT & Telecom, Retail), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2019 – 2025’, the global data center colocation market is anticipated to surpass USD 100 billion by the year 2025.
The global expansion of industries worldwide has led to a surge in the demand for massive organizational data generation. This in turn has upscaled the requirement of large-scale facilities and modern technologies in order to effectively manage and secure vital information – that has emerged as a key factor driving the growth of data center colocation market. Further, increase in the IT budget set by enterprises for managing and storing organizational data is also augmenting the industry growth.
Colocation is basically a data center facility that is gaining traction among organizations that aim to reduce the expenses associated with maintaining and building data centers. Most colocation service providers are known to offer services such as monitoring, OS updating, replacement of disk drives, and hosting, which have served to propel data center colocation market size in recent years.
Based on type, the data center colocation market is segmented into retail colocation and wholesale colocation. As per the report, the retail colocation segment dominated the market share in 2018, due to high security offered by these services in a multi-tenant environment.
Speaking of end-use spectrum, the data center colocation market is divided into small and medium enterprises (SMEs), and large enterprises. The SMEs segment is presumed to experience a decent growth owing to the fact that data center colocation provides all-round customer support, security, reliability uptime, and compliance management – all of which are highly pivotal for SMEs.
However, scalability is one of major concerns for SMEs as far as colocation hosting is considered, since it would require these enterprises to scale down their resources.
Based on application, the industry is bifurcated into BFSI, energy, government & defense, healthcare, manufacturing, retail, and IT & Telecom. The data center colocation market size from the IT & Telecom segment is projected to accrue substantial gains by 2025. As per the report, this growth can be attributed to the fact that IT and telecom companies generate a massive amount of data and require colocation services on a large scale.
As the demand for storing these huge data volumes increases and the overall operational efficiency of businesses continues to rise, data center colocation market players will be able to leverage lucrative growth opportunities from the IT and telecom application segment.
According to the report, the expenditure in the IT sector rose by 3.9% and registered USD 3.65 trillion in 2018, mainly due to the capital expended by hyperscale cloud providers.
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Considering the geographical landscape, the Europe data center colocation market is likely to witness an accelerated growth rate through the upcoming years. This can be attributed to the rise in number of colocation data centers in the UK, Germany, Netherlands, and France.
Some of the important contenders of data center colocation market are Telehouse North, FR5, Paris Voltaire, Telehouse East, and PA2. Some vendors are introducing advanced and differentiated solutions to remain competitive in the market, while many others aim to launch services specifically targeted toward the IT sector, given its prominence in the global landscape. For instance, China Telecom Americas Corporation offers services such as disaster recovery and website hosting services that helps in managing the massive amount of data generation.
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