Data Center Colocation Market worth $49.57 Billion by 2019, Says the New Study on ASDReports

Wednesday 19 November 2014, Amsterdam

The report now availanle on ASDReports, says that Colocation refers to the leasing of rack space, and possibly equipment, from a colocation provider. There has been a rising inclination towards colocation services recently, both retail as well as wholesale services, across every industry vertical. The usage of colocation or operating an internal data center depends on variables like budget, mission, values and preferences. The expenses of setting up and maintaining the data center space along with the perfect environmental, security and performance conditions is high for many small to medium-sized companies and organizations with limited financial resources. Most wholesale vendors also provide skilled managed services and interconnection facilities along with colocation space

In retail colocation situations, a customer leases space within a rack within a data center, while wholesale colocation means taking a fully-built data center space on lease. Some organizations adopt hybrid approach, which involves hosting own servers and utilizing colocation services. The colocation market is driven by advancements in the fields of internet, e-commerce and networking technologies. The market is mainly dominated by large REITs and tier 1 companies having huge data center spaces spread across the globe. Data center colocation market is also witnessing a leap towards greener data center efforts as colocation solution providers realize the need to reduce their carbon footprint.Enterprises globally are implementing and adopting to the various industry trends in colocation that would enable them gain competitive advantage over others. Colocation vendors are increasingly expanding their data center reach and enhancing their product offering to increase their lucrativeness to customers.

The Data Center Colocation market is broadly segmented by type of Colocation: Retail Colocation and Wholesale Colocation; By type End-users: Small and Medium Enterprises (SMEs) and Large Enterprises; By type of verticals: Telecom and IT, Banking, Financial Services and Insurance (BFSI), Government and Public sector, Healthcare, Energy and Others; By regions: North America (NA), Asia pacific (APAC), Europe (EU), Latin America (LA), Middle East and Africa (MEA).

The Data Center Colocation market is estimated to grow from $16.65 billion in 2014 to $49.57 billion in 2019, at an estimated CAGR of 17.6% from 2014 to 2019. The telecom and IT vertical will be the largest adopter of colocation services. In terms of regions, North America is expected to be the largest market in terms of revenue contribution, while Asia Pacific (APAC)is expected to show higher growth rates in the coming years.