The Data Center Colocation Market is segmented by Type – Retail colocation, Wholesale colocation , By Application – Small and Medium-Sized Enterprises (SMEs), Large Enterprises. This report covers Global Opportunity Analysis and Industry Forecast from 2021 to 2026. This report is published on Valuates Reports in the Web Services Category.
The global Data Center Colocation Market size is projected to reach USD 58140 million by 2026, from USD 33110 million in 2019, at a CAGR of 8.3% during the forecast period 2021-2026.
Major factors driving the growth of data center colocation market size are:
- Rising demand for hybrid cloud technology, virtualization, and increasing network complexities in the data center facilities
- Growing requirement for scalable data centers, reduced overall IT expenditure, lower maintenance cost, increasing reliability, disaster recovery and safety requirements.
TRENDS INFLUENCING THE DATA CENTER COLOCATION MARKET SIZE
The growing need for uptime reliability for mission-critical applications is expected to drive the data center colocation market size. The network links in colocation data centers are completely redundant, ensuring that customers’ mission-critical applications always run uninterrupted. Most colocation facilities are designed with a resilient critical system, a redundant battery backup, and a cooling system, and with a scalable infrastructure that you can take advantage of. Leading colocation sites offer 100% uptime with the help of their robust infrastructure.
Bursting capability along with the cost-efficiency the feature is expected to drive the growth of data center colocation market size. Customers may use colocation centers to burst to higher bandwidth levels to meet their traffic demands without needing to make additional capital investments. Since data bursts are spread out over many users over time, bandwidth costs are greatly reduced.
The growth of the telecommunication sector is expected to increase the growth of the data center colocation market size. The capacity of colocation data centers to provide high connectivity by simply plugging into their networks allows telecom operators to rapidly and easily extend their reach. This feature of data center colocation is expected to increase its adoption in the telecommunication sector. Furthermore, the introduction of 5G networks has resulted in a rise in data center demand, as network service providers’ existing data center capacity cannot meet the demand. As a result, the telecom sector’s demand for colocation centers is expected to increase in the coming years.
Data center users all over the world are concerned about disaster recovery. Disasters such as earthquakes, security threats, fire outages, and other unplanned events may all affect IT infrastructure facilities. The colocation facilities for data centers are situated away from the users’ premises, and these facilities can be operated remotely, enhancing their disaster recovery capabilities. As a result, colocation facilities are expected to become a popular backup and recovery solution as they enable companies to store critical data in a secure location. This trend of using a data center colocation facility as a backup is expected to drive the market.