The Latest Data Colocation Industry Statistics Explained
Global colocation data center market was valued at approximately USD 31.39 billion in 2017.
The statistic indicates that the global colocation data center market had a total estimated value of around USD 31.39 billion in the year 2017. This value represents the total revenue generated from the colocation services provided by data centers worldwide during that particular year. Colocation data centers are facilities where multiple organizations can rent space to house their servers and other computing equipment, sharing the costs of power, cooling, and bandwidth. The significant market value suggests a growing demand for colocation services as businesses increasingly rely on data-intensive applications and cloud computing. The 2017 valuation serves as a benchmark for tracking the market’s growth and understanding the evolving dynamics of the colocation industry.
The global market of data center colocation is foreseen to noticeably grow during the forecast period of 2020 to 2030 at a CAGR of 14%.
This statistic indicates that the global market for data center colocation services is expected to experience a significant growth rate over the forecast period from 2020 to 2030, with a compound annual growth rate (CAGR) of 14%. This suggests a robust expansion in the demand for data center colocation services, driven by factors such as increasing data storage needs, growing adoption of cloud computing, and the rising complexity of IT infrastructure requirements among businesses worldwide. The forecasted CAGR of 14% reflects a strong and sustained growth trajectory for the data center colocation market, highlighting the continued importance of these services in supporting the digital transformation and data management strategies of organizations across various industries.
In 2020, the global colocation industry accounted for 37.8% of total hyperscale data center space.
The statistic indicates that in 2020, approximately 37.8% of the total hyperscale data center space worldwide was attributed to the global colocation industry. This suggests that a significant portion of the infrastructure supporting hyperscale data centers, which are large-scale facilities used by major technology companies to store and process vast amounts of data, is housed within colocation facilities. Colocation providers offer space, power, and cooling services to businesses looking to outsource their data center needs, enabling them to benefit from shared resources and cost efficiencies. The strong presence of the colocation industry in the hyperscale data center space highlights the reliance of tech companies on external data center solutions to support their operations and growth.
Asia-Pacific is expected to register the highest CAGR of 17.88% in the global colocation market from 2020 to 2027.
This statistic indicates that the Asia-Pacific region is projected to experience the highest Compound Annual Growth Rate (CAGR) of 17.88% in the colocation market from 2020 to 2027. This signifies a strong and rapid growth in the demand for colocation services, such as data center hosting, in the Asia-Pacific region over the specified period. The high CAGR suggests that businesses in this region are increasingly turning to colocation services to meet their computing and data storage needs, potentially driven by factors such as rapid digital transformation, increasing data volumes, and the need for reliable and secure infrastructure. This growth trend highlights the evolving landscape of the IT industry in the Asia-Pacific region and the rising importance of colocation services as a strategic solution for businesses looking to leverage external data center capabilities.
North America accounted for the highest market size of USD 18,176.9 Million in the global data center colocation market in 2017.
The statistic presented indicates that North America had the largest market size in the global data center colocation industry in 2017, reaching a value of USD 18,176.9 million. This means that North America contributed the highest revenue among all regions in the world for data center colocation services during that year. The significant market size in North America suggests a strong demand for data center colocation services in the region, likely driven by factors such as the presence of major tech companies, high internet penetration rates, and a growing need for secure and efficient data storage solutions. This statistic highlights North America’s leading position in the global data center colocation market and its importance as a hub for data infrastructure and services.
Retail colocation accounted for 71.51% of the revenue in the global colocation market in 2020.
The statistic indicating that retail colocation accounted for 71.51% of the revenue in the global colocation market in 2020 suggests that a significant majority of the revenue generated from colocation services came from retail customers accessing third-party data center facilities. This reflects the popularity and widespread utilization of retail colocation services by businesses and organizations worldwide. Retail colocation allows companies to house their servers and IT infrastructure in secure and professionally managed data center facilities, enabling them to benefit from enhanced security, reliability, and connectivity without the significant capital investment required to build and maintain their own data centers. The dominance of retail colocation in the market further underscores the growing importance of outsourcing IT infrastructure management to specialized service providers.
Retail colocation is expected to reach USD 54.8 billion by 2027, growing with a CAGR of 15.4% from 2020 to 2027
The statistic indicates that the retail colocation market is projected to reach a value of USD 54.8 billion by the year 2027. This growth is anticipated to be driven by a compound annual growth rate (CAGR) of 15.4% from the year 2020 to 2027. Retail colocation refers to a data center facility where space and bandwidth are available for rental to retail clients. The increasing demands for data storage, processing power, and connectivity due to the growth of digital technologies and the shift towards cloud computing are expected to fuel the expansion of the retail colocation sector during the forecast period.
Large enterprises accounted for around 70% revenue share in the data center colocation market in 2020.
The statistic indicates that in 2020, large enterprises generated approximately 70% of the total revenue within the data center colocation market. This suggests that a significant portion of the market’s financial activity is concentrated among big businesses with substantial data center needs. These enterprises likely have large-scale operations and rely heavily on colocation services to support their IT infrastructure and data storage requirements. The dominance of large enterprises in revenue share underscores their significant role in driving the growth and development of the data center colocation industry, influencing market trends, and shaping service offerings to cater to their specific needs and demands.
Retail colocation has accounted for the largest share of approximately 73% in 2019 in the global colocation market in terms of service type.
The statistic indicates that retail colocation services held the dominant position in the global colocation market in 2019, comprising approximately 73% of the market share in terms of service type. Retail colocation refers to the practice of leasing smaller increments of data center space and resources to multiple clients, as opposed to wholesale colocation which involves leasing larger, dedicated spaces to a single client. This data suggests that retail colocation services were the most widely utilized option among businesses seeking to outsource their data center needs in 2019, highlighting the popularity and importance of this service type in the global colocation market.
Small and medium-sized enterprises (SMEs) are expected to grow at the highest rate in the colocation data center market.
The statistic suggests that small and medium-sized enterprises (SMEs) are anticipated to experience the most significant growth within the colocation data center market compared to other types of businesses. This growth indicates that SMEs, which typically have fewer resources and capabilities than larger corporations, are recognizing the benefits and value of utilizing colocation data centers to meet their IT infrastructure needs. By leveraging colocation services, SMEs can access secure and scalable data storage and processing facilities without the high costs associated with building and maintaining their data centers. This trend reflects a shift towards outsourcing IT infrastructure management to specialized providers, enabling SMEs to focus on their core business activities while benefiting from the reliability and efficiency of colocation data centers.
Cloud and IT services are projected to dominate the end-user segment with a market value of nearly USD 16 billion by 2024.
The statistic indicates that cloud and IT services are expected to have significant market dominance within the end-user segment, with a projected market value of almost USD 16 billion by 2024. This suggests that there will be a substantial demand for cloud computing and IT services among end users, including businesses, organizations, and individual consumers. The growth in market value highlights the increasing reliance on cloud technology and IT services for various functions such as data storage, software applications, networking, and overall digital transformation. This projection underscores the importance and potential growth opportunities within the cloud and IT services industry, emphasizing the continued momentum and expansion of this sector in the coming years.
The US accounted for the largest market share in the global data center colocation market, contributing to over 45% of total revenues in 2019.
This statistic indicates the significant dominance of the United States in the global data center colocation market in 2019. With over 45% of total revenues attributed to the US, it underscores the country’s strong presence and leading position in this industry. The high market share suggests that the US is a key player in providing data center colocation services, attracting a large portion of businesses and organizations looking to outsource their data storage and management needs. The statistic highlights the importance of the US market in driving revenue generation and shaping the competitive landscape of the global data center colocation sector.
The managed hosting market size is estimated to grow from USD 32.39 billion in 2016 to USD 92.08 Billion by 2021, at a Compound Annual Growth Rate (CAGR) of 23.2%.
This statistic indicates the projected growth of the managed hosting market from 2016 to 2021. The market size is expected to increase from USD 32.39 billion in 2016 to USD 92.08 billion by 2021, representing a Compound Annual Growth Rate (CAGR) of 23.2%. This growth rate reflects a strong upward trend in the demand for managed hosting services, driven by factors such as increasing adoption of cloud-based services, growing complexity of IT infrastructure, and businesses seeking cost-effective and efficient solutions for their hosting needs. The considerable expansion in market size over this period suggests a significant opportunity for providers of managed hosting services to capitalize on the growing market demand and cater to the evolving needs of businesses seeking reliable and scalable hosting solutions.
Nearly 90% of colocation customers are looking to lease capacity in edge markets.
This statistic indicates that the majority of colocation customers are seeking to lease capacity in edge markets, which are typically smaller, more remote locations outside of major metropolitan areas. This trend suggests a growing demand for data center services in these edge markets, likely driven by the increasing volume of data being generated and the need for closer proximity to end users or devices for faster data processing and reduced latency. Colocation customers are likely attracted to these edge markets for reasons such as improved performance, lower costs, and better redundancy. As a result, data center providers may need to expand their offerings and infrastructure in edge markets to meet the needs of this customer segment.
COVID-19 increased cloud adoption rate by 60% driving demand for the data center colocation market.
The statistic states that the COVID-19 pandemic has led to a significant increase of 60% in the adoption rate of cloud services, which in turn has driven demand for data center colocation services. This increase can be attributed to the shift towards remote work and increased online activities during the pandemic, leading businesses to rely more heavily on cloud-based solutions for storage, collaboration, and communication. As a result, organizations have sought out data center colocation services to securely house their servers and IT infrastructure while benefiting from the scalability and flexibility offered by cloud services. The surge in cloud adoption and subsequent demand for data center colocation indicate the growing importance of digital infrastructure in supporting businesses during challenging times like the COVID-19 pandemic.
‘Green’ co-location data center market to grow at a CAGR of over 14% by 2025.
This statistic indicates that the market for ‘green’ co-location data centers is expected to experience significant growth, with a compound annual growth rate (CAGR) of over 14% projected by the year 2025. A ‘green’ co-location data center is one that incorporates environmentally friendly practices and technologies to minimize its environmental impact. This growth rate suggests a strong demand for sustainable data center solutions as organizations increasingly prioritize environmental sustainability and efficiency in their operations. The forecasted growth in the market reflects the continued adoption of green technologies and practices in the data center industry.
As of 2021, Equinix leads the retail colocation market, with a share of 9.5%.
The statistic indicates that as of 2021, Equinix holds the highest market share in the retail colocation sector with a share of 9.5%. This means that out of all the companies providing retail colocation services, Equinix has the largest portion of the market at 9.5%. Retail colocation refers to the practice of renting data center space, power, and connectivity on a shorter-term basis, typically to businesses that require hosting their servers and IT infrastructure in secure and reliable facilities. Equinix’s leading position in this market suggests that it is a significant player in providing these services, likely due to its reputation for high-quality services, reliable infrastructure, and strategic locations.
References
0. – https://www.www.researchandmarkets.com
1. – https://www.www.synergyresearch.com
2. – https://www.www.zionmarketresearch.com
3. – https://www.www.jll.co.in
4. – https://www.www.fortunebusinessinsights.com
5. – https://www.www.marketresearchfuture.com
6. – https://www.www.datacenterfrontier.com
7. – https://www.www.acumenresearchandconsulting.com
8. – https://www.www.globenewswire.com
9. – https://www.www.prnewswire.com
10. – https://www.www.bccresearch.com
11. – https://www.www.gminsights.com
12. – https://www.www.alliedmarketresearch.com
13. – https://www.www.arizton.com
