Colocation Data Center Industry market Covering Competitive Scenario & Market Dynamics throughout 2025

The global market for colocation data center industry is expected to grow from $30.9 billion in 2016 to $54.8 billion by 2020, at a compound annual growth rate (CAGR) of 15.4% for the period of 2016-2020.

Report Scope:

This research report focuses on market sizing and forecast for global, USA and other regions. It categorizes the colocation data center market by service type. Service types include retail and wholesale. It also includes the market analysis by customer industries and competitor analysis.

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Report Includes:

– An overview of the global markets for colocation data center industry
– Analyses of global market trends, with data from 2012-2016, estimates for 2017, and projections of compound annual growth rates (CAGRs) through 2020
– A look at key market trends, customer landscape, supply chain and key participants, and major certifications in the industry
– Analysis of the market’s dynamics, specifically growth drivers which include increasing demand from cloud operators, growth in big data analytics and impact of virtual reality on storage, and restraints
– Information on leading players in the industry including Equinix, Digital Realty, NTT Communications, Level 3 Communications, Verizon Communications and Cyrusone

Summary

This report analyzes the market for colocation data centers globally and in the USA. Colocation data centers are being preferred by many industry verticals due to their increasing data needs. Data centers serve mainly to the cloud, technology, banking and financial services and healthcare industries.

Colocation data centers are classified in to two main segments, retail and wholesale. The retail segment is larger than the wholesale due to the increased use of IoT in small and medium enterprises which prefer convenience and space saving of external data centers.

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Going forward, this market is expected to grow further due to the increase in out sourcing data centers, growing presence of artificial intelligence (AI) and big data across all the industries.

The global colocation data centers market in 2016 was estimated to be around $ 30.9 billion. During 2016-2020 global colocation data centers market is expected to grow at a CAGR of 15.4%, to reach $54.8 billion by the year 2020. This growth can be attributed to the expansion of major cloud and colocation companies to new geographies. And the market is expected to increase in Asian countries such as China and Singapore due to the increasing use of big data and ERP (enterprise resource planning) across all the industries and government regulations to restrict the amount data storage in the local region.

Cloud, technology and banking, financial services, and insurance was the largest customer group for colocation data centers accounting for more than 50% of the market followed by telecom and healthcare. The total revenues from cloud, technology and banking, financial services, and insurance were $17.8 billion. This large share of revenues can be attributed to increasing demand from cloud operators, growth in outsourcing data centers and increasing demand from financial services industry.

In 2016, the USA colocation data centers market accounted for 45.4% market, followed by Europe and Asia Pacific with 28.1% and 17.5% market respectively.

The global colocation data centers market is relatively fragmented, with only two global players having more than a 5% market share. The top five competitors in the market accounted for 21.1% of the total market in 2016. Equinix was the largest company with 8.5% of the market, followed by other companies such as Digital Reality, NTT Data with and CenturyLink (Cyxtera).

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To be successful any colocation datacenter provider should partner with cloud companies and offer its services to target wider customer base. They should provide additional facilities such as interconnection and firewall management to differentiate their service from others. These facilities will reduce upfront costs for colocation customers and make colocation data centers more attractive in an increasingly competitive market.

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