The Latest Colocation Industry Statistics Explained
The global colocation market size was valued at $39.96 billion in 2020.
The statistic suggests that in 2020, the global colocation market generated revenues of approximately $39.96 billion. Colocation services involve renting physical space in data centers to businesses to house their computing hardware and networking equipment. This market size indicates the scale and value of the industry in providing data center services to businesses looking to outsource their IT infrastructure. The growth and demand for colocation services may be driven by factors such as increasing data storage needs, cloud computing adoption, and the rise of digital transformation initiatives across various industries.
The market is expected to grow at a CAGR of 13.3% from 2021 to 2028.
The statistic indicates that the market is projected to experience a Compound Annual Growth Rate (CAGR) of 13.3% from the year 2021 to 2028. This means that, on average, the market is expected to increase by 13.3% every year over this time period. CAGR is a useful measure for analyzing the steady annual growth rate of a market, as it smooths out fluctuations and provides a consistent rate of growth. The forecasted growth rate suggests that the market is anticipated to see significant expansion and development during this period, making it an attractive prospect for investors and stakeholders seeking promising opportunities in the market.
The Asia Pacific is the fastest-growing region in the colocation market.
The statement “The Asia Pacific is the fastest-growing region in the colocation market” indicates that the colocation market in the Asia Pacific region is experiencing rapid growth compared to other regions globally. This growth can be attributed to factors such as increasing demand for data center services, expanding digital economies, and the adoption of cloud computing technologies across industries in the region. The statistic suggests that businesses and organizations in the Asia Pacific are increasingly turning to colocation services to meet their data storage and processing needs, driving the growth of the market in this region at a faster rate than in other parts of the world.
By 2023, APAC colocation market may witness over 16% CAGR.
The statistic “By 2023, APAC colocation market may witness over 16% CAGR” indicates that the colocation market in the Asia-Pacific region is projected to experience a Compound Annual Growth Rate (CAGR) of more than 16% by the year 2023. This implies a significant and sustained annual growth rate in the market for data center colocation services across the Asia-Pacific region. The forecast suggests a strong demand for colocation services in the region, likely driven by factors such as increasing data storage needs, digital transformation initiatives by businesses, and the growing adoption of cloud computing services. This trend highlights the growing importance of colocation services in meeting the infrastructure requirements of businesses in the APAC region and signifies the potential for substantial expansion and investment opportunities in the colocation market.
The European colocation market is forecasted to reach over €10 billion in 2023.
The statistic “The European colocation market is forecasted to reach over €10 billion in 2023” indicates that the market for colocation services in Europe is expected to experience significant growth and reach a total value of more than €10 billion by the year 2023. Colocation involves businesses renting space to house their servers and IT infrastructure in third-party data centers, offering benefits such as cost savings, scalability, and improved security. The forecasted expansion of the European colocation market suggests a growing demand for these services among businesses looking to outsource their data center needs, driven by factors such as increasing digitization, cloud adoption, and the need for reliable and secure data storage solutions.
Retail colocation contributed to over 70% of the total market in 2020.
The statistic that retail colocation contributed to over 70% of the total market in 2020 suggests that the retail colocation segment played a dominant role in the data center industry that year. Retail colocation refers to the practice of renting physical data center space for individual or corporate use, and based on this statistic, it was the primary driver of market activity in the industry in 2020. This indicates that a significant proportion of organizations opted to outsource their data center needs to third-party providers rather than investing in their own infrastructure. The high market share of retail colocation highlights its importance in meeting the growing demand for data storage and processing capabilities, and suggests a reliance on external service providers for meeting data center requirements.
By 2023, wholesale colocation is expected to grow at a CAGR of over 13%.
This statistic represents the projected compound annual growth rate (CAGR) for the wholesale colocation industry up to the year 2023. A CAGR of over 13% indicates that the wholesale colocation market is anticipated to experience significant growth over the specified period. This growth rate suggests a strong upward trend in demand for wholesale colocation services, which typically involve large-scale leasing of data center space to organizations. Factors contributing to this growth may include increasing data storage and processing needs driven by rapidly expanding digital technologies across various industries. The forecasted CAGR serves as a quantitative measure to forecast the industry’s expansion, providing insights for businesses and investors looking to capitalize on the potential opportunities within the wholesale colocation sector.
As of 2014, colocation facilities accounted for about 40% of global data center square footage.
The statistic indicates that as of 2014, colocation facilities comprised approximately 40% of the total global data center square footage. Colocation facilities are data centers where multiple organizations rent space to house their servers and IT infrastructure. This suggests that a significant portion of data storage and processing needs were being outsourced to colocation facilities by businesses around the world in 2014. The high prevalence of colocation facilities highlights the trend of organizations relying on third-party data centers for their computing requirements rather than building and managing their own facilities. This statistic underscores the growing importance of colocation services in catering to the increasing demand for secure and reliable data storage and management solutions globally.
Equinix was the global leader in colocation revenue in 2018 accounting for over 9% of the total market.
The statistic “Equinix was the global leader in colocation revenue in 2018 accounting for over 9% of the total market” indicates that Equinix was the top player in the colocation industry in terms of revenue generated in 2018. Colocation refers to the practice of renting space in a data center to deploy servers and other computing equipment. By accounting for over 9% of the total market revenue, Equinix significantly outperformed its competitors, solidifying its position as a dominant force in the industry. This statistic highlights Equinix’s strong market presence and competitive advantage in providing colocation services to businesses worldwide.
Digital Realty was the second-largest colocation provider in 2018 accounting for over 7% of the total market.
The statistic indicates that Digital Realty, a company that offers colocation services (the practice of renting space for servers and other computing hardware), held the position of the second-largest colocation provider in 2018 based on market share. By accounting for over 7% of the total market, Digital Realty held a significant portion of the industry, competing closely with other key players. This implies that Digital Realty was a major player in the colocation industry in 2018, demonstrating its strong presence and influence within the market landscape.
The small and medium business segment is expected to grow at a CAGR of over 14% through 2024.
This statistic indicates that the small and medium business segment is projected to experience a Compound Annual Growth Rate (CAGR) exceeding 14% until the year 2024. This forecast suggests a strong growth trajectory for small and medium businesses, emphasizing sustained expansion and potential opportunities in the market. The CAGR metric serves as a metric to measure the average annual growth rate over a specified period of time, highlighting the consistent pace at which this particular business segment is expected to advance. Overall, this statistic conveys a positive outlook for small and medium enterprises, indicating a favorable environment for growth and development in the coming years.
The IT & telecom segment dominated the colocation market with the share of over 23% in 2020.
The statistic indicates that in 2020, the IT & telecom sector had the largest presence in the colocation market, accounting for more than 23% of the market share. This suggests that a significant portion of colocation services – which involve renting space in a data center to store servers and other computing hardware – was utilized by companies within the IT & telecom industry. This dominance could be attributed to the increasing demand for data storage, processing power, and network connectivity within these sectors, highlighting the importance of colocation services in supporting the infrastructure needs of technology-driven industries.
The global market for colocation services is forecast to reach $90.7 billion by 2024.
This statistic indicates that the total revenue generated from colocation services in the global market is projected to increase significantly to $90.7 billion by the year 2024. Colocation services involve renting physical space for servers and other networking equipment in a data center operated by a third party. The forecasted growth in the market suggests a rising demand for these services as businesses increasingly rely on data storage, processing, and connectivity. Factors such as the proliferation of cloud computing, digital transformation initiatives, and the need for secure and reliable IT infrastructure contribute to the expected expansion of the colocation services market.
Carrier-neutral colocation facilities comprised 62% of all multi-tenant data center spaces as of 2017.
This statistic means that as of 2017, more than half (62%) of all multi-tenant data center spaces were characterized as carrier-neutral colocation facilities. Carrier-neutral colocation facilities refer to data centers that allow interconnection with multiple telecommunication carriers, providing clients with flexibility in choosing their network providers. This statistic suggests that a significant majority of organizations hosting their infrastructure in multi-tenant data centers preferred carrier-neutral facilities, possibly due to the benefits of having access to a diverse range of network services and carriers without being locked into a single provider.
The average data center colocation contract length is 36–60 months.
This statistic indicates that the typical length of a data center colocation contract falls within the range of 36 to 60 months, with an average duration of approximately 4 to 5 years. Data center colocation refers to the practice of renting physical space and infrastructure within a data center facility to house servers, networking equipment, and other hardware. Organizations opt for these contracts to outsource their data storage and management needs. A contract length of 36 to 60 months suggests that businesses are generally committed to longer-term agreements to secure stable and reliable hosting services for their critical IT operations.
Around 80% of users found that the use of colocation consistently met or exceeded their expectations for network availability.
The statistic stating that around 80% of users found that the use of colocation consistently met or exceeded their expectations for network availability suggests a high level of satisfaction among users with the reliability and performance of colocation services. This statistic indicates that a majority of users have experienced reliable and effective network availability through colocation, implying that the service has been meeting or surpassing the users’ expectations. The high percentage of positive feedback suggests that colocation services have been successful in providing a stable and high-performance network infrastructure, meeting the needs and demands of the users with a level of service that is considered satisfactory or exceptional by the majority.
References
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