Global Data Center Colocation Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Data Center Colocation Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

The decision to move, expand, or integrate a data center must be weighed against the background of cost, operational reliability, and security. Considering these factors, more and more companies are finding that hosting provides the solutions they need without having to manage their own data centers.

Data center hosting is also referred to as colo for short. Data center hosting refers to the service provided by the company that provides a shared and secure space for corporate business to store hardware related to data storage and other equipment.

Corporate customers cooperate with colo in a manner similar to a lease relationship with a property manager, where the customer rents space in the facility to store equipment. Customers usually provide equipment: servers and other hardware required for daily operations. And colo stores it securely in a cool, monitored environment suitable for servers, while ensuring that bandwidth requirements are met.

Market Overview:

The latest research study on the global Data Center Colocation market finds that the global Data Center Colocation market reached a value of USD 75206.0 million in 2022. It’s expected that the market will achieve USD 195612.28 million by 2028, exhibiting a CAGR of 17.27% during the forecast period.

The COVID-19 Coronavirus crisis has reinforced the importance of data centers and what they do. The digital transformation that was thought to be a multi-year evolution has been dramatically compressed. The pandemic has been a watershed event for the world, and a defining moment for the cloud.

Entire industries are effectively being reset, and this transition has made digital infrastructure more important than ever. This is a new world for everyone. Our entire global society is prioritizing the things that are critical to their business, and what they need to do to deliver them. There’s a shared challenge of trying to deal with these new realities, to try and think creatively about what the best solutions are.
The data center industry has a long history of experience operating in difficult circumstances and environments. The data center’s history has prepared it to play this key role as the backstop for the rest of the economy. It’s becoming clear that the Coronavirus pandemic will have long-term implications for the industry, and will influence business for some time to come.

Market Driver

One of the main advantages of data center colocation is that it can significantly save costs, especially when measuring internal data center management. This means that for many companies, renting the space they need from the data center provides a practical solution to shrinking IT budgets. With colocation, customers do not need to worry about capital expenditures such as planning for UPS (uninterruptible power supply), multiple backup generators, power grids, and HVAC installations. In addition to these capital expenditures, there are ongoing maintenance costs associated with maintaining and managing internal servers.

Market Restraints

When considering how to develop a vulnerability management program, it is helpful to define vulnerabilities. A security breach is a defect that exposes an organization's assets and environment. Attackers can use these flaws to perform unauthorized and potentially harmful operations.
A good vulnerability management plan aims to reduce the chance of this happening through three steps: identify vulnerabilities in the system; prioritize vulnerabilities according to risk level; and use fast and manageable methods to fix vulnerabilities
The Common Vulnerability Scoring System (CVSS) framework has long been criticized for its inability to effectively prioritize bug fixes.

Region Overview:

North America dominated the Data Center Colocation market in 2022, with a market share of 39.06%.

Company Overview:

Equinix, Inc. is one of the major players operating in the Data Center Colocation market, holding a share of 10.33% in 2023.

Equinix, Inc.

Equinix is a global digital infrastructure company. Equinix connects industry-leading organizations in the fields of finance, manufacturing, mobility, transportation, government, healthcare, and education to a cloud-first world.

China Telecom Corporation Limited

China Telecom has the world's largest broadband internet network and technology-leading mobile communication network, and has the ability to provide global customers with cross-regional, full-service comprehensive information service capabilities and customer service channel systems.

Segmentation Overview:

By type, Retail Colocation segment accounted for the largest share of market in 2022.

Wholesale Colocation

The wholesale type is mainly aimed at large customers, generally with modules as the smallest rental unit. The customized data center for very large customers can be regarded as an extension of the wholesale type, and it has developed rapidly in recent years.

Retail Colocation

The retail type is mainly for small customers. Generally, the cabinet is the smallest rental unit. In the early days, service providers used the cabinet unit (U) as the rental unit to serve micro customers. However, this type of micro customers are mostly in the form of web self-service.

Application Overview:

By application, the IT & Telecom segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Data Center Colocation market covered in Chapter 3:

Tata Communications
AT&T Inc
China Unicom
NTT
Fujitsu Ltd
China Mobile
Equinix, Inc.
SoftBank Group Corporation
KT Corporation
Digital Realty Trust, Inc.
China Telecom Corporation Limited
British Telecommunications PLC
Kddi Corporation
IBM Corporation

In Chapter 4 and Chapter 14.2, on the basis of types, the Data Center Colocation market from 2018 to 2029 is primarily split into:

Wholesale Colocation
Retail Colocation

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Data Center Colocation market from 2018 to 2029 covers:

Retail
BFSI
IT & Telecom
Healthcare
Media & Entertainment

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)