In this report, Technavio covers the present scenario and growth prospects of the Global Data Center Colocation Market for 2016-2020. To calculate the market size, Technavio researchers have considered revenues garnered from sales of new units in leading geographies, including the Americas, EMEA, and APAC.
“Accessing information stored in a data center involves the use of many devices. A robust networking solution is required to offer high-availability services. During the forecast period, a growing need for digitalization will enable processing of application workloads on servers with cross-platform support,” said Rakesh Panda, one of Technavio’s lead industry analysts for data center research.
“The use of cloud-based services and big data analytics is growing rapidly. Also, increasing digitalization has resulted in a significant rise in the amount of enterprise data generated and processed. To leverage the market demand, processor manufacturers such as Intel will look to increase the efficiency of servers in a distributed computing environment. Growing business demands will also likely result in the increased use of retail and wholesale colocation space by enterprises to host additional infrastructure for business continuity,” added Rakesh.
Leading regions for the global data center colocation market
Source: Technavio research
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Americas: largest data center colocation market
In 2015, the Americas contributed a revenue share of 46.7% to the global data center colocation market. The US has the largest number of data centers. Also, most of the relevant enterprises have their businesses in the country.
Due to increased business development and the rising demand for advanced data center services, adoption of colocation services has risen in the US. During the forecast period, adoption is likely to increase across Canada and Latin America as well. Also, these regions are expected to witness many mergers and acquisitions by colocation vendors.
EMEA: second largest data center colocation market
In 2015, EMEA accounted for a revenue share of 35.5% in the global data center colocation market. The adoption of colocation services is highest in countries such as the UK, France, and Germany.
Many large-scale data center facilities are being established in the Middle East, leading to the increase in demand for colocation services in EMEA. Africa and Eastern Europe are expected to witness moderate growth during the forecast period due to slow technological adoption and unstable economic conditions.
Data center colocation market in APAC
In 2015, APAC accounted for a revenue share of 17.8% in the global data center colocation market. The major countries of the region that have a high adoption of colocation services are Singapore, Japan, China, and India. The market in APAC is likely to grow at a constant rate over the forecast period.
Although APAC has a weaker presence in the market, advances in technology and increased business operational demands will lead to a considerable rise in the adoption of colocation services over the next few years.
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