The global data center colocation market is the focus of this market research report, providing an extensive analysis of key market dynamics. This report, courtesy of Report Ocean Research, covers various facets of the data center colocation market, including its segmentation, leading vendors, growth trends, and regional outlook.
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Market Growth
According to the report, the global data center colocation market is projected to experience a robust compound annual growth rate (CAGR) of over 13% from 2019 to 2025. The market is being driven by the increasing demand from organizations to reduce the costs associated with hosting servers and data storage. Colocation vendors offer the necessary infrastructure, including power, cooling, and a suitable environment for clients’ hardware equipment. Furthermore, colocation providers focus on providing sufficient bandwidth for high-speed data transfer to multiple clients.
Large volumes of data are generated through sensors and mobile applications, resulting in organizations facing scalability issues within their data centers. As a cost-effective alternative to moving infrastructure to the cloud, many companies are opting to relocate their hardware equipment to third-party data center colocation facilities. Notably, there is a growing trend of expanding data center colocation services in regions such as the Middle East, Africa, and Latin America.
Regional Trends
The North American region holds the largest market share in the data center colocation market in 2019. This is driven by the presence of numerous Tier I companies in North America. Many enterprises in this region are actively seeking ways to reduce costs associated with hosting servers and data storage. In the Asia Pacific region, substantial growth is expected, particularly in China, India, and Australia. The market potential in these countries, along with increasing investments in IT infrastructure outsourcing, is driving market growth.
Market Segmentation
Tier Classification
The global data center colocation market can be segmented based on tier classification, including:
- Tier I & Tier II Data Center
- Tier III Data Center
- Tier IV Data Center
The Tier IV segment is expected to experience the highest growth rate during the forecast period from 2019 to 2025.
Industry Verticals
The data center colocation market is further segmented based on industry verticals, including:
- Banking, Financial Services, and Insurance (BFSI)
- Information Technology and IT-enabled Services (IT & ITeS)
- Government and Defense
- Healthcare
- Retail and E-commerce
- Manufacturing
- Others
The IT & ITeS segment is estimated to hold the largest market share in 2019, a trend that is anticipated to continue during the forecast period.
Leading Vendors
Competitive Analysis
The report offers a competitive analysis of the data center colocation market, focusing on key players within the industry. These players employ various strategies, such as expanding to new markets, to maintain a competitive edge in the market.
Major Vendors
Some of the major vendors in the data center colocation market include:
- Equinix
- Digital Realty Trust
- China Telecom
- Century Link
- China Unicom
- Verizon
- NTT Communications
- BT
- Interxion
- CtrlS
These vendors are actively competing in the market by leveraging the latest infrastructure, focusing on power and cooling, and energy management, all of which contribute to optimal uptime for servers.
Benefits of Data Center Colocation
Scalability and Expertise
One of the primary benefits of data center colocation is the ability to maintain and repair hardware quickly through the expertise of colocation vendors. While concerns about data control exist, there are also advantages to having rapid responses for maintenance by these vendors. For instance, GDPR regulations are leading European organizations to implement data center equipment within Europe, resulting in substantial growth in the region.
Tier IV Data Centers
The establishment of Tier IV data centers is increasing, driven by enterprises seeking to outsource data center hosting. Coupled with the adoption of hyperconverged infrastructure, Tier IV data centers are becoming more prevalent.
Market Challenges
Despite its numerous advantages, the data center colocation market is not without challenges. The primary challenges include data control concerns, security risks, and the increasing adoption of cloud services as an alternative to colocation.
About Report Ocean
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