Data Center Colocation Market to Reach Valuation of USD 105.4 Billion by 2028 – Rising Demand for Higher Bandwidth Connections Drives the Market

In terms of revenue, the Global Data Center Colocation Market is expected to reach USD 105.4 Billion by 2028, growing at a CAGR (Compound Annual Growth Rate) of 12.90% from 2022 to 2028.

The size of the worldwide Data Center Colocation market is anticipated to expand at the fastest rate. Data centers, which manage vital corporate applications, have become an integral aspect of contemporary business processes. Over time, IT infrastructure has become increasingly important for firms that want to operate successfully. Cloud and colocation services have become essential resources for many companies that need to expand their IT capabilities. As a result, the need for data centers has risen over the past several years. Colocation data centers were an advantage for businesses that needed speedy IT upscaling but needed more knowledge or financial resources. As a result, high costs associated with owning and operating a data center, especially for businesses that produce variable volumes of data, are anticipated to be a major factor in promoting market expansion. Customers can save money on capital expenses and other advantages provided by the colocation of data centers.

Key Highlights from the Report

• Among Types, the Retail Colocation market segment is anticipated to dominate the Data Center Colocation market with the largest market share during the forecast period. This is due to the flexibility it offers for managing vast data.
• By End User, the Large Enterprises market segment accounted for the highest growth rate during the forecast period as the demand from diversified industries is growing.
• In terms of region, North America held the most significant market share and is expected to be the most gainful market during the forecast period. This is due to the substantial presence of many big cloud service providers and SMEs setting up colocation data centers throughout the region.

Market Dynamics

The growth of edge computing applications significantly increases the demand for high-capacity networks. Furthermore, the requirement for quick real-time insights and the difficulties associated with network latency prompted the creation of multi-locational hybrid data structures. These architectural layouts were developed to solve these issues, and now they are essential for data transmission between the various data centers or private exchange points. Additionally, as more companies move their activities to the cloud, there is a growing need for more bandwidth to support uninterrupted data movement and faster data processing. Higher bandwidths for data sharing between enterprises have also been made available thanks to the development of cutting-edge technologies like 5G and immersive technologies like augmented reality, virtual reality, and artificial intelligence.

The need for Data Center Colocation is also rising as more cutting-edge technologies, such as cloud computing, the internet of things (IoT), autonomous vehicles, and advanced robotics, continue to be used. In addition, lower latency is required because of the continual development of these technologies and the widespread use of intelligent devices. Colocation enables cloud service providers to move their data center facilities closer to their clients to provide high bandwidth and low latency in data transfer. Additionally, as more people use smart devices, there will likely be greater demand for better connectivity and lower latency in data transfers, which would increase the need for colocation data centers. This is what is anticipated to happen.

Due to the significant presence of multiple considerable cloud service providers and SMEs' widespread deployment of colocation data centers, the North American region is anticipated to grow at a high CAGR during the projected period. Furthermore, the regional marketplace's expansion is aided by rising e-trade sales in the United States. Additionally, merchants spend a lot of money on their IT infrastructure to store customer data that can be used to identify consumer buying habits and product requests based on various criteria, including location, gender, and age group.

The Global Data Center Colocation Market is Segmented as follows

• Types
  • Retail Colocation
  • Wholesale Colocation
• End Users
  • Small & Medium-Sized Enterprises (SMEs)
  • Large Enterprises
• Industry
  • Banking Financial Services, & Insurance (BFSI)
  • IT & Telecom
  • Government & Defense
  • Healthcare
  • Research & Academics
  • Retail
  • Energy
  • Manufacturing
  • Other Industries (Media, Entertainment, Transportation & Logistics)
• Region
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa

List of the Key Players of the Global Data Center Colocation Market is

China Telecom Corporation Limited (China), Coresite Realty Corporation (US), Cyrusone Inc. (US), Cyxtera Technologies Inc. (US), Digital Realty Trust Inc. (US), Equinix Inc. (US), Global Switch (UK), KDDI Corporation (Japan), NTT Communications Corporation (Japan), Verizon Enterprise Solutions Inc. (US)

The Global Data Center Colocation Market Scope can be Tabulated as below