New York, NY, Dec. 24, 2018 (GLOBE NEWSWIRE) -- Zion Market Research has published a new report titled “Data Center Colocation Market by Lease Type (Retail and Wholesale) and by End-User (Small & Medium Enterprises and Large Enterprises): Global Industry Perspective, Comprehensive Analysis, and Forecast, 2018—2026”. According to the report, the global data center colocation market was valued at approximately USD 31 billion in 2017 and is expected to generate revenue of around USD 105 billion by 2026, growing at a CAGR of around 14.2% between 2018 and 2026.

Cloud computing is one of the sectors that are likely to drive the data center colocation market in the future, due to its low operational cost. The cloud market comprises large global companies, such as Microsoft Cloud and Amazon Web Services along with the companies operating in the provider segment. In terms of infrastructure, third-party vendors and renowned corporations support their services with large-scale data centers and rent spaces to colocation service providers. Besides, combining colocation with the cloud can increase security, create cloud interconnection opportunities, and reduce latency. Moreover, digitization of consumer health records has also been contributing to the data increment in the last few years.

Browse through 49 Tables & 20 Figures spread over 110 Pages and in-depth TOC on “Global Data Center Colocation Market Size & Share 2018: By Type, Industry Trends, Growth, Segments, Analysis and Forecast, 2026”.

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The market for data center colocation is segmented on the basis of lease type and end-user. By lease type, the market is bifurcated into retail and wholesale. The retail sector held a major share of the global market in 2017, as retail colocations offer great flexibility in terms of IT infrastructure scalability and are mostly preferred by enterprises with small to medium IT requirements. Besides, retail colocation also provides management software to integrate it with cooling, power, and IT rooms to facilitate easy management of data centers. Retail colocation facilities are provided by leading vendors, such as NTT Communications, Equinix, China Telecom, and AT&T.

By end-user, the market is segmented into small and medium enterprises and large enterprises. Large enterprises held a major market share in 2017. However, the small and medium enterprises (SME’s) are expected to grow at a higher rate of growth in the future, as SME’s have less requirement for infrastructure autonomy. Data center colocation also provides SMEs with flexibility and security that is likely to further boost their demand in the future.

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North America is anticipated to lead the data center colocation market globally over the forecast timeframe. The European data center colocation market accounted for nearly 24.8% revenue share in 2017. The market in these regions is mainly driven by the increase in modular datacenter deployments by government agencies, educational institutes, enterprises, and various vendors, such as NTT Communications, Equinix, Digital Realty, Interxion, Global Switch, and T-Systems. Moreover, the rise in the demand for interconnection services with various facilities and cloud connectivity service with several cloud platforms is attracting more customers. Besides, retail colocation centers provide more control to enterprises over IT infrastructural operations other than managed hosting services, which, in turn, is likely to act as an advantage for the customers.

Asia Pacific is projected to showcase a high growth rate in the data center colocation market in the future. The region is a major hub for IT outsourcing across various industry verticals. IP transit, power, and space cost more in China, which, in turn, is increasing the difficulties in maintaining the country’s data centers. China has more internet users, which indicate the scope for immense development. China’s connectivity ecosystem is made of 53 cloud service providers and 75 colocation data centers. Japan has a high internet literacy rate in comparison to China apart from having a high density of colocation. Thus, these are some factors that are likely to drive this region’s data center colocation market in the future.

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The Middle Eastern and African and Latin American regions are likely to emerge as a potential market for data center colocation in the estimated time period. This can be attributed to the growing demand for data colocation services from organizations, especially in the Middle East and Africa and the rising demand for high computing capacity from big data, global enterprises, cloud providers, and IoT organizations in both the regions.

Some leading players in the data center colocation market include ANEXIO, Inc., Atlantech Online, Inc., CE Colo, Coreix Limited, CYRUSONE, Digital Realty Trust, Inc., Equinix, Inc., First Colo GmbH, H5 DATA CENTERS, IBSCY Ltd., Interoute Communications Limited, Linxdatacenter, Netmagic Solutions, NextraOne, North Shore, RACKSPACE US, Inc., Red Level Networks, Sabey Data Center Properties, Sentinel Data Centers, and Viettel IDC.

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This report segments the global data center colocation market into:

Global Data Center Colocation Market: Lease Type Analysis

  • Wholesale
  • Retail

Global Data Center Colocation Market: End-User Analysis

  • Small and Medium Enterprises
  • Large Enterprises

Global Data Center Colocation Market: Regional Analysis

  • North America
    • The U.S.
  • Europe
    • UK
    • France
    • Germany
  • Asia Pacific
    • China
    • Japan
    • India
  • Latin America
    • Brazil
  • The Middle East and Africa

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