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Data Center Colocation Market by Type (Retail and Wholesale), End-user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research & Academic, Retail, Energy and Manufacturing), and Region - Global Forecast to 2022

July 2017 | 138 pages | ID: DB5DD1DD835EN
MarketsandMarkets

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The growing need for reducing the IT expenditure is one of the factors driving the growth of the data center colocation

The global data center colocation size is expected to grow from USD 31.52 billion in 2017 to USD 62.30 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60%. There is an increasing need for reducing the IT expenditure spent on commissioning mission-critical data center facilities. Data center colocation services provide the required scalability and cost-effectiveness for managing the daily data requirement. This acts as one of the major drivers of the data center colocation market. However, high initial costs may hold back the end-users from adopting these solutions.

Retail colocation is expected to account for the largest market share during the forecast period

The retail colocation type in the data center colocation market is expected to have the largest market share during the forecast period. Retail colocation provides power, space, cooling, cabling, and support services. It also provides flexibility in terms of IT infrastructure, and therefore proves advantageous for Small and Medium-Sized Enterprises (SMEs). This utility of retail colocation is expected to drive its market share in the global data center colocation.

Large enterprises are estimated to have the largest market share during the forecast period

The data center colocation end-users include SMEs and large enterprises, wherein large enterprises are expected to have the largest market share during the forecast period. Large enterprises are inclined toward adopting colocation services, as they are able to lease large spaces on lease and meet their power and computational requirements. Moreover, colocation services help large enterprises to have complete control over the data center infrastructure. These services also aid in business continuity due to their disaster recovery benefits. This is expected to fuel the data center colocation market during the forecast period.

North America is expected to have the largest market in 2017, whereas Asia Pacific (APAC) is projected to grow at the highest rate during the forecast period

North America is expected to capture the largest market share in 2017 and the trend is likely to continue until the near future. This region is growing due to the presence of a large number of data centers and it has witnessed a rapid adoption due to the availability of comprehensive solutions. On the other hand, the data center colocation market in APAC is expected to witness an exponential growth and projected to be one of the fastest-growing regions in the global data center colocation market. This is mainly due to the increasing volumes of data center traffic in countries, such as India, Australia, and China.

In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with key people. The break-up of the profiles of the primary participants is given below:
  • By Company Type: Tier 1: 29%, Tier 2: 57%, and Tier 3: 14%
  • By Designation: C-Level: 50%, Director Level: 33%, and Others: 17%
  • By Region: North America: 57%, Europe: 14%, and APAC: 29%
The key vendors profiled in the report are as follows:

1. NTT Communication Corporation (Japan)
2. DuPont Fabros Technology, Inc. (US)
3. Digital Realty Trust, Inc. (US)
4. Cyxtera Technologies, Inc. (US)
5. CyrusOne Inc. (US)
6. Level 3 Communications, Inc. (US)
7. Equinix, Inc. (US)
8. Global Switch (UK)
9. AT&T, Inc. (US)
10. CoreSite Realty Corporation (US)
11. China Telecom Corporation Limited (China)
12. Verizon Enterprise Solutions, Inc. (US)

Research Coverage

The market is segmented on the basis of colocation types, which includes wholesale colocation and retail colocation. The end-user segment includes SMEs and large enterprises. The market is also segmented on the basis of industries, including the Banking, Financial Services, and Insurance (BFSI); IT and telecom; government and defense; healthcare; research and academic; retail; energy; manufacturing; and others (media and entertainment, and transportation and logistics). The market has been segmented on the basis of regions into North America, Europe, APAC, MEA, and Latin America.

The report will help the market leaders/new entrants in this market in the following ways:

1. The report segments the data center colocation comprehensively and provides the closest approximations of the revenue numbers for the overall market and subsegments across different verticals and regions.
2. The report will help stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.
3. The report will help stakeholders better understand their competitors and gain more insights to enhance their position in the market. The competitive landscape section includes new product launches, partnerships, agreements and collaborations, mergers and acquisitions, and expansions.
1 INTRODUCTION

1.1 OBJECTIVES OF THE STUDY
1.2 MARKET DEFINITION
1.3 MARKET SCOPE
1.4 YEARS CONSIDERED FOR THE STUDY
1.5 CURRENCY
1.6 STAKEHOLDERS

2 RESEARCH METHODOLOGY

2.1 RESEARCH DATA
  2.1.1 SECONDARY DATA
  2.1.2 PRIMARY DATA
    2.1.2.1 Breakdown of primaries
    2.1.2.2 Key industry insights
2.2 MARKET SIZE ESTIMATION
  2.2.1 BOTTOM-UP APPROACH
  2.2.2 TOP-DOWN APPROACH
2.3 COMPETITIVE LEADERSHIP MAPPING RESEARCH METHODOLOGY
  2.3.1 VENDOR INCLUSION CRITERIA
2.4 RESEARCH ASSUMPTIONS
2.5 LIMITATIONS

3 EXECUTIVE SUMMARY

4 PREMIUM INSIGHTS

4.1 ATTRACTIVE MARKET OPPORTUNITIES IN THE DATA CENTER COLOCATION MARKET
4.2 DATA CENTER COLOCATION MARKET, 2017–2022
4.3 DATA CENTER COLOCATION MARKET, BY INDUSTRY AND REGION
4.4 DATA CENTER COLOCATION MARKET, 2017–2022, BY REGION
4.5 LIFECYCLE ANALYSIS, BY REGION

5 MARKET OVERVIEW AND INDUSTRY TRENDS

5.1 INTRODUCTION
5.2 MARKET DYNAMICS
  5.2.1 DRIVERS
    5.2.1.1 Reduction in the overall IT cost
    5.2.1.2 Requirement for reliability, security, and scalability of infrastructure
    5.2.1.3 Growing data center complexities
  5.2.2 RESTRAINTS
    5.2.2.1 High startup and maintenance cost
    5.2.2.2 Location restraints for colocation facilities
  5.2.3 OPPORTUNITIES
    5.2.3.1 Increasing disaster recovery and business continuity requirements
    5.2.3.2 Growing adoption of hybrid cloud and virtualization
  5.2.4 CHALLENGES
    5.2.4.1 Government regulations and security requirements
5.3 TECHNOLOGY TRENDS AND STANDARDS
  5.3.1 INTRODUCTION
  5.3.2 STANDARDS AND GUIDELINES FOR THE DATA CENTER COLOCATION MARKET
    5.3.2.1 Statement on Standards for Attestation Engagements 16 (SSAE 16)
    5.3.2.2 Service Organization Controls (SOC)
    5.3.2.3 Health Insurance Portability and Accountability Act (HIPAA)
    5.3.2.4 Payment Card Industry Data Security Standard (PCI-DSS)
    5.3.2.5 Storage Networking Industry Association (SNIA)
    5.3.2.6 Telecommunications Infrastructure Standard for Data Centers
    5.3.2.7 Underwriters Laboratory (UL)
    5.3.2.8 Distributed Management Task Force (DMTF) Standards
    5.3.2.9 Electronic Industry Association (EIA)
    5.3.2.10 Telecommunication Industry Association (TIA)
    5.3.2.11 Data Center Site Infrastructure Tier Standard (Uptime Institute)
    5.3.2.12 SNIA and Cloud Data Management Interface (CDMI)
  5.3.3 INNOVATION SPOTLIGHT

6 DATA CENTER COLOCATION MARKET ANALYSIS, BY TYPE

6.2 INTRODUCTION
6.3 RETAIL COLOCATION
6.4 WHOLESALE COLOCATION

7 DATA CENTER COLOCATION MARKET ANALYSIS, BY END-USER

7.1 INTRODUCTION
7.2 SMES
7.3 LARGE ENTERPRISES

8 DATA CENTER COLOCATION MARKET ANALYSIS, BY INDUSTRY

8.1 INTRODUCTION
8.2 BANKING, FINANCIAL SERVICES, AND INSURANCE
8.3 IT AND TELECOM
8.4 GOVERNMENT AND DEFENSE
8.5 HEALTHCARE
8.6 RESEARCH AND ACADEMIC
8.7 RETAIL
8.8 ENERGY
8.9 MANUFACTURING
8.10 OTHERS

9 GEOGRAPHIC ANALYSIS

9.1 INTRODUCTION
9.2 NORTH AMERICA
9.3 EUROPE
9.4 ASIA PACIFIC
9.5 MIDDLE EAST AND AFRICA
9.6 LATIN AMERICA

10 COMPETITIVE LANDSCAPE

10.1 MICROQUADRANT OVERVIEW
  10.1.1 INNOVATORS
  10.1.2 VISIONARY LEADERS
  10.1.3 EMERGING COMPANIES
  10.1.4 DYNAMIC DIFFERENTIATORS
10.2 COMPETITIVE BENCHMARKING
  10.2.1 ANALYSIS OF PRODUCT PORTFOLIOS OF MAJOR PLAYERS IN THE DATA CENTER COLOCATION MARKET
  10.2.2 BUSINESS STRATEGIES ADOPTED BY MAJOR PLAYERS IN THE DATA CENTER COLOCATION MARKET

11 COMPANY PROFILES

11.1 INTRODUCTION

(Business Overview, Products offered & Services strategies, Key Insights, Recent Developments, MnM View)*

11.2 NTT COMMUNICATIONS CORPORATION
11.3 DUPONT FABROS TECHNOLOGY, INC.
11.4 DIGITAL REALTY TRUST, INC.
11.5 CYXTERA TECHNOLOGIES, INC.
11.6 CYRUSONE INC.
11.7 LEVEL 3 COMMUNICATIONS INC.
11.8 EQUINIX, INC.
11.9 GLOBAL SWITCH
11.10 AT&T, INC.
11.11 CORESITE REALTY CORPORATION
11.12 CHINA TELECOM CORPORATION LIMITED
11.13 VERIZON ENTERPRISE SOLUTIONS, INC.
11.14 INTERXION HOLDING NV
11.15 INTERNAP CORPORATION
11.16 KDDI CORPORATION

*Details on Business Overview, Products offered & Services strategies, Key Insights, Recent Developments, MnM View might not be captured in case of unlisted companies.

12 APPENDIX

12.1 INSIGHTS OF INDUSTRY EXPERTS
12.2 DISCUSSION GUIDE
12.3 KNOWLEDGE STORE: MARKETSANDMARKETS’ SUBSCRIPTION PORTAL
12.4 INTRODUCING RT: REAL-TIME MARKET INTELLIGENCE
12.5 AVAILABLE CUSTOMIZATIONS
12.6 RELATED REPORTS
12.7 AUTHOR DETAILS

LIST OF TABLES

Table 1 USD EXCHANGE RATE, 2014–2016
Table 2 EVALUATION CRITERIA
Table 3 GLOBAL DATA CENTER COLOCATION MARKET: ASSUMPTIONS
Table 4 DATA CENTER COLOCATION MARKET SIZE, BY TYPE, 2015–2022 (USD BILLION)
Table 5 RETAIL COLOCATION: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD BILLION)
Table 6 RETAIL COLOCATION: DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 7 WHOLESALE COLOCATION: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD BILLION)
Table 8 WHOLESALE COLOCATION: DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 9 DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 10 SMES: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD BILLION)
Table 11 LARGE ENTERPRISES: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD BILLION)
Table 12 DATA CENTER COLOCATION MARKET SIZE, BY INDUSTRY, 2015–2022 (USD MILLION)
Table 13 BANKING, FINANCIAL SERVICES, AND INSURANCE: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 14 IT AND TELECOM: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 15 GOVERNMENT AND DEFENSE: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 16 HEALTHCARE: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 17 RESEARCH AND ACADEMIC: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 18 RETAIL: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 19 ENERGY: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 20 MANUFACTURING: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 21 OTHERS: DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD MILLION)
Table 22 DATA CENTER COLOCATION MARKET SIZE, BY REGION, 2015–2022 (USD BILLION)
Table 23 NORTH AMERICA: DATA CENTER COLOCATION MARKET SIZE, BY TYPE, 2015–2022 (USD BILLION)
Table 24 NORTH AMERICA: RETAIL DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 25 NORTH AMERICA: WHOLESALE DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 26 NORTH AMERICA: DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 27 NORTH AMERICA: DATA CENTER COLOCATION MARKET SIZE, BY INDUSTRY, 2015–2022 (USD MILLION)
Table 28 NORTH AMERICA: DATA CENTER COLOCATION MARKET SIZE, BY COUNTRY, 2015–2022 (USD BILLION)
Table 29 EUROPE: DATA CENTER COLOCATION MARKET SIZE, BY TYPE, 2015–2022 (USD BILLION)
Table 30 EUROPE: RETAIL DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 31 EUROPE: WHOLESALE DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 32 EUROPE: DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 33 EUROPE: DATA CENTER COLOCATION MARKET SIZE, BY INDUSTRY, 2015–2022 (USD MILLION)
Table 34 EUROPE: DATA CENTER COLOCATION MARKET SIZE, BY COUNTRY, 2015–2022 (USD BILLION)
Table 35 ASIA PACIFIC: DATA CENTER COLOCATION MARKET SIZE, BY TYPE, 2015–2022 (USD BILLION)
Table 36 ASIA PACIFIC: RETAIL DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 37 ASIA PACIFIC: WHOLESALE DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 38 ASIA PACIFIC: DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 39 ASIA PACIFIC: DATA CENTER COLOCATION MARKET SIZE, BY INDUSTRY, 2015–2022 (USD MILLION)
Table 40 ASIA PACIFIC: DATA CENTER COLOCATION MARKET SIZE, BY COUNTRY, 2015–2022 (USD BILLION)
Table 41 MIDDLE EAST AND AFRICA: DATA CENTER COLOCATION MARKET SIZE, BY TYPE, 2015–2022 (USD BILLION)
Table 42 MIDDLE EAST AND AFRICA: RETAIL DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 43 MIDDLE EAST AND AFRICA: WHOLESALE DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 44 MIDDLE EAST AND AFRICA: DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 45 MIDDLE EAST AND AFRICA: DATA CENTER COLOCATION MARKET SIZE, BY INDUSTRY, 2015–2022 (USD MILLION)
Table 46 MIDDLE EAST AND AFRICA: DATA CENTER COLOCATION MARKET SIZE, BY COUNTRY, 2015–2022 (USD BILLION)
Table 47 LATIN AMERICA: DATA CENTER COLOCATION MARKET SIZE, BY TYPE, 2015–2022 (USD BILLION)
Table 48 LATIN AMERICA: RETAIL DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 49 LATIN AMERICA: WHOLESALE DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 50 LATIN AMERICA: DATA CENTER COLOCATION MARKET SIZE, BY END-USER, 2015–2022 (USD BILLION)
Table 51 LATIN AMERICA: DATA CENTER COLOCATION MARKET SIZE, BY INDUSTRY, 2015–2022 (USD MILLION)
Table 52 LATIN AMERICA: DATA CENTER COLOCATION MARKET SIZE, BY COUNTRY, 2015–2022 (USD BILLION)

Enterprises are progressively choosing colocation services to cut down their in-house IT maintenance costs, ensure security, reliability, and high-bandwidth availability. Colocation facilities also give enterprises the redundancy to maintain their data. There is a huge global demand for colocation space, and current IT capacity fall short of matching up the required ever-growing demands of colocation facilities.

With this continual demand of data center, the organizations are outsourcing IT infrastructure to avoid capital investment to build their own. Budding businesses seeking colocation facilities can future-proof their data center investment by selecting a facility that leverages a high-density scalable structure for future upgradability. Colocation providers are continuously building new capacity to meet the steady demand rate in the market. More colocation centers are expected to rise at a rapid rate in the next two years. The colocation market is broadly classified by type into retail colocation market, and wholesale collocation market.

Compared to retail colocation, the wholesale colocation market is experiencing high adoption among business enterprises, as wholesale vendors are not only offering their services at a cheaper rate than retail vendors but are also dealing increasingly in lower power and space requirements. These lower space and power requirements, which were once the main forte of the retail providers are increasingly been taken over by wholesale colocation providers. Colocation services market is recently witnessing an increasing interest in hybrid cloud-based colocation facilities as organizations are adopting cloud computing to run mix of in-house and outsourced data center services.

The report covers various adoption trends in the colocation market segments and its sub-segments. It also covers an in-depth analysis of the end user, verticals, and region-wise adoption rates. It provides insights into the current and future revenues of the colocation market from 2014 to 2019 and is aimed to provide the reader with an understanding of market drivers, current and upcoming players, competitive landscape, restraints, and future market opportunities.



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