Colocation Market

The data center colocation reduces the overall IT cost of enterprises, which is expected to drive the growth of the data center colocation market.

PORTLAND, PORTLAND, OR, UNITED STATE, October 2, 2022 /EINPresswire.com/ -- Depending on the type, retail colocation dominated the data center colocation market share in 2020, and is expected to continue this trend during the forecast period. The growth of the segment is attributed to numerous benefits provided by this type such as managed service which results in lower costs of maintenance of data center, high security of data, and others.

However, the wholesale colocation segment is expected to witness the highest growth in the upcoming years, as the wholesale colocation allows organizations to deploy thousands of servers at one location and provide high-density computing, which notably contributes to the growth of the global market.

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On the basis of enterprise size, a large-scale organization dominated the data center colocation market share and is expected to continue this growth during the forecast period. This growth is attributed to the heavy investment of large-scale organizations in data centers. Also, the growing requirement for heavy data storage in large-scale organizations drives the data center colocation market globally.

However, the small and medium scale organization recorded the highest growing segment due to the major shift of small and medium scale businesses toward digitization and adoption of the internet of things in regular operation which creates a high amount of data, which drives the market globally.

The COVID-19 outbreak has had a positive impact on the growth of the data center colocation industry as data center colocation technologies are helping enterprises to address the extensive capacity demand of data storage and data transfer. The rapid spread of COVID-19 has considerably increased data traffic.

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In addition, an upsurge has been observed in the storage volume requirement due to the pandemic driven by the proliferation of emerging technologies such as artificial intelligence (AI), big data, and the Internet of things (IoT). This will continue to drive the data center colocation investments across the global market.

The industry players such as Amazon, Google, Facebook, and NTT communication continue to spend on data center colocation. For instance, in January 2020, NTT communication set up its data center colocation facility in the Honolulu, Hawaii islands in the Pacific ocean. There is a growing need to ensure the data center colocation service providers are having enough ability and capacity to deliver data center colocation with high performance during the increased traffic demand.

Moreover, the COVID-19 pandemic is opportunistic for the data center colocation market growth as data center colocation help organization enable their business objective. The data center colocation industry is observing growing popularity and attention of researchers in both industry and academia as a means to data searching costs and produce revenue streams for service providers due to the features of networking.

During the COVID-19 pandemic, organizations that deployed data center colocation earlier have been able to quickly adjust to the new partners and business requirements that were resulting due to work-from-home mandates. Data center colocation help organizations cope with the ongoing pandemic and maintain economically positive operations.

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This report gives an in-depth profile of some key market players in the data center colocation market, which include CHINA TELECOM CORPORATION LIMITED, CoreSite Realty Corporation, CYRUS ONE INC, CYXTERA TECHNOLOGIES, INC., DIGITAL REALTY TRUST, INC., EQUINIX, INC., Global Switch, KDDI CORPORATION, and NTT Communications Corporation. This study includes data center colocation market trends, data center colocation market analysis, and future estimations to determine the imminent investment pockets.

Key Findings Of The Study:

• By type, the retail colocation segment dominated the data center colocation market in 2020. However, the wholesale colocation segment is expected to exhibit significant growth during the forecast period.

• On the basis of enterprise size, the large-scale segment accounted for the highest revenue of the data center colocation market size in 2020; however, the small and medium-scale segment is expected to witness the highest growth rate during the forecast period.

• Depending on the industry vertical, the IT and telecommunication segment generated the highest revenue in 2020. However, the media and entertainment segment is expected to witness the highest growth rate in the near future.

• Region-wise, the data center colocation market was dominated by North America. However, Asia-Pacific is expected to witness significant growth in the coming years.

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Related Report:

1. Data Center Market

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