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Data Center Colocation Market Analysis

  • Report ID: GMI2419
  • Published Date: Sep 2023
  • Report Format: PDF

Data Center Colocation Market Analysis

Data Center Colocation Market Revenue, By Type, 2021 – 2032, (USD Billion)

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Based on type, the data center colocation market is divided into retail colocation, and wholesale colocation. The retail segment was valued at over USD 48 billion in 2022. The retail colocation segment is expected to experience substantial growth attributed to the increasing demand from businesses of all sizes seeking reliable and scalable data center solutions. Retail colocation offers clients a dedicated space, power, and connectivity within multi-tenant data centers, allowing them to align their IT infrastructure with specific requirements. With the growing need for data storage & processing capabilities, retail colocation presents a flexible and cost-effective solution, contributing to its significant growth in the market.
 

Data Center Colocation Market Share, By Application, 2022

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Based on application, the data center colocation market is categorized into BFSI, energy, government & defense, healthcare, manufacturing, IT & telecom, retail, and others. The BFSI segment is expected to grow at a fastest CAGR of around 14% during the forecast period. In the BFSI sector, data is the lifeblood of operations, necessitating secure, scalable & highly available data infrastructure. The BFSI industry faces rigorous data security and compliance regulations. Colocation providers offer data centers with robust security measures and compliance certifications, making them an ideal choice to meet these requirements. As financial institutions grow or introduce new services, they require scalable IT infrastructure. Colocation facilities provide the flexibility to expand or downsize IT resources as needed. The BFSI sector's ongoing digital transformation journey relies on advanced data processing and analytics, making colocation facilities crucial for handling data-intensive tasks. Colocation services enable financial institutions to meet regulatory standards, enhance operational efficiency, and remain competitive in a rapidly evolving industry.
 

North America Data Center Colocation Market Revenue, 2021 -2032, (USD Billion)

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North America held a dominant market share of over 40% in 2022. North America is witnessing significant growth in the data center colocation market, which is driven by the growing demand for hybrid cloud and virtualization technologies. North American businesses are increasingly adopting hybrid cloud strategies, which involve a mix of on-premises, private, and public cloud resources. Colocation providers offer the ideal environment for integrating these various components, allowing companies to optimize their hybrid cloud deployments. Virtualization technologies, such as VMware & Hyper-V, are widely embraced in North America to improve server efficiency and resource utilization. Colocation facilities provide the infrastructure and expertise needed to support virtualized environments, helping organizations reduce hardware costs & enhance scalability.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

Market size for data center colocation was valued at USD 69.3 billion in 2022 and is projected to grow at a CAGR of over 11.5% between 2023 and 2032, favored by the growing demand for hybrid cloud and virtualization technologies.

The market share from BFSI segment is expected to grow at a CAGR of around 14% through 2032 as the sector faces rigorous data security and compliance regulations, and colocation providers offer data centers with robust security measures and compliance certifications.

North America held a dominant market share of over 40% in 2022 and will continue growing in the coming years as the businesses in the region are increasingly adopting hybrid cloud strategies, which involve a mix of on-premises, private, and public cloud resources.

Prominent industry players are Equinix, Inc. Digital Realty, NTT Communications, and China Telecom Corporation.

Data Center Colocation Market Scope

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Premium Report Details

  • Base Year: 2022
  • Companies covered: 19
  • Tables & Figures: 287
  • Countries covered: 21
  • Pages: 262
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