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Colocation Edge Data Center Market Size, By Type (Retail Colocation, Wholesale Colocation), By End-use (SMEs, Large Enterprises), By Application (BFSI, Energy, Government & Defense, Healthcare, IT & Telecom, Manufacturing, Retail), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028

  • Report ID: GMI5200
  • Published Date: Feb 2022
  • Report Format: PDF

Industry Trends

Colocation Edge Data Center Market Size exceeded USD 5 billion in 2021 and is projected to grow at over 20% CAGR from 2022 to 2028. Advancements, such as cloud computing, IoT, Big Data, Machine Learning (ML), and Artificial Intelligence (AI), will foster the market growth during the forecast timeline.
 

Colocation Edge Data Center Market Overview

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Companies, such as Microsoft Corporation, IBM Corporation, and The Hewlett Packard Enterprise Company, are investing in R&D to develop their existing product range sets. For instance, in April 2021, IBM Corporation introduced updates to its Elastic Storage System (ESS). The new version of ESS3200 provides double-read performance capabilities, and the ESS 5000 offers an additional 10% storage capacity as compared to its predecessor. It supports end users in easy deployment & scalability options, enabling them to shift their data onto colocation sites. Owing to the availability of solutions with seamless data migration processes, more customers will be encouraged to use cloud-based technology.
 

The COVID-19 pandemic has positively impacted the colocation edge data center market expansion as it assisting organizations in meeting the high-capacity requirement of ever-increasing internet traffic. Several government organizations imposed stringent lockdown protocols and travel restriction norms during the pandemic to reduce the overall virus spread. This factor has driven data generation & traffic from several sectors due to Work from Home (WFH) policies.
 

Companies are integrating digital solutions with their systems for improving operational efficiency, tackling labor shortage issues, and reducing the overall cost. The pandemic has increased an individual’s reliance on online services for shopping, entertainment, and payment purposes, driving total users and encouraging companies to enhance their back-end networks. The demand for advanced IT infrastructure will support the global need for colocation edge data center facilities during the forecast timeframe.
 

The establishment of new data centers in Germany will stimulate the retail colocation demand

Germany colocation edge data center market is expected to witness 20% growth rate through 2028 led by the rising number of data centers. To strengthen their market positionings, colocation providers are increasing their presence in different locations in the country. For instance, in October 2021, Equinix Inc. opened its FR8 International Business Exchange data center in the country. The company invested around USD 103 million for approximately 4,800 m² in colocation space. It will deliver network edge solutions and operate on 100% renewable energy. This factor will support them in catering to a large set of customers in the market, increasing service availability for various end users, increasing market competition in the sector, and improving the affordability & quality of services in the region.
 

The expansion plans of large enterprises in the U.S to spur the market progression

Colocation Edge Data Center Market Size

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In U.S., colocation edge data center market is estimated to attain a CAGR of 20% till 2028 impelled by the expanding healthcare sector. Market players through investments in infrastructural expansion are catering to the changes in the pharmaceutical sector. In May 2021, AMPAC Fine Chemicals invested around USD 25 million in its current location in Virginia, U.S. This investment will enable AMPAC Fine Chemicals to build an analytical division and improve its R&D department abilities with regard to pharma ingredients. For this project, the company will collaborate with Civica, Phlow and Virginia’s Commonwealth University’s Medicines to manufacture necessary medicines for the U.S. healthcare providers. The initiatives from the companies for extensive testing services & developments for the validation, analysis, and release of APIs & intermediates will boost the requirement of high-speed servers and computing software, thereby fueling the industry growth.
 

The modernization of the BFSI sector will accelerate the demand for colocation edge data center market

The adoption of advanced technologies, such as cloud computing and data analytics, has propelled the demand for data center colocation services over the past few years. Market players are using edge solutions to improve data handling and customer services. For instance, in October 2021, ABN AMRO signed an agreement with IBM Corporation & Kyndryl for managing its hybrid cloud infrastructure. Through this pact, they are focusing on supporting their international & domestic operations. The deal will include the deployment of single services delivery models, SaaS, and Azure & on-premises private cloud services. The rising integration of cloud-based solutions in the BFSI sector will augment the demand for colocation edge data centers that ensure fast & real-time data transfers.
 

Rise of Industry 4.0 in APAC will support the growth of the industry

APAC Colocation Edge Data Center Market

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Asia Pacific colocation edge data center market captured 30% of revenue share in 2021. The governing authorities in the region are promoting & focusing on implementing advanced technologies in existing systems to influence efficiency and sustainability. In June 2021, the Singapore National Research Agency established a new lab with a local manufacturing software firm to support manufacturers to develop Industry 4.0 capabilities. It will help market participants in merging industrial IoT and AI to optimize their production processes and build a robust supply chain.
 

Increasing market presence is one of the key strategies of major players

Key companies operating in the colocation edge data center market include China Telecom Global Limited, Digital Realty Trust, Inc., Eaton Corporation PLC, Emtel, Equinix, Inc., Fujitsu Limited, Hewlett-Packard, IBM Corporation, KDDI Corporation, NTT Communications Corporation, Ltd., Rackspace Inc., Schneider Electric SE, Singapore Telecommunications Limited, Teraco Data Environments, Verizon Communications Inc., and Vertiv Group Corp. Market leaders are focusing on establishing new data centers to increase their penetration across multiple regions.
 

The colocation edge data center market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2028 for the following segments:

Market, By Type

  • Retail colocation
  • Wholesale colocation

Market, By End-use

  • SMEs
  • Large enterprises

Market, By Application

  • BFSI
  • Energy
  • Government & defense
  • Healthcare
  • IT & telecom
  • Manufacturing
  • Retail
  • Others

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Poland
  • Asia Pacific
    • China
    • India
    • Japan
    • Singapore
    • Australia
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • GCC
    • South Africa

 

Authors: Preeti Wadhwani, Saloni Gankar

Frequently Asked Questions (FAQ) :

Global market size of colocation edge data center crossed USD 5 billion in 2021 and may register 20% CAGR through 2028, driven by advancements such as artificial intelligence and cloud computing.

Germany market share may depict 20% CAGR through 2028 driven by increasing number of data centers and adoption of expansion strategies by colocation providers.

U.S. market size may witness 20% CAGR through 2028 on account of the expansion of the regional healthcare sector and increasing investments in infrastructural development.

The BFSI sector will emerge as a prominent hotspot for industry, given that this vertical has lately been adopting advanced technologies, like data analytics and cloud computing for enhanced consumer services.

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Premium Report Details

  • Base Year: 2021
  • Companies covered: 20
  • Tables & Figures: 249
  • Countries covered: 18
  • Pages: 300

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