Global Data Center Colocation Market to Experience a CAGR of 12.5% during 2023-2031 – ResearchAndMarkets.com
DUBLIN–(BUSINESS WIRE)–The “Data Center Colocation Market Size, Market Share, Application Analysis, Regional Outlook, Growth Trends, Key Players, Competitive Strategies and Forecasts – 2023 to 2031” report has been added to ResearchAndMarkets.com’s offering.
The global data center colocation market is projected to witness substantial growth, with a compound annual growth rate (CAGR) of 12.5% during the forecast period from 2023 to 2031, according to the latest report by ResearchAndMarkets.com. The market growth is driven by the increasing demand for cost-effective and efficient data storage and management solutions.
Colocation refers to the practice of housing multiple businesses’ servers and networking equipment in a shared facility, enabling organizations to outsource their data center infrastructure and leverage the expertise and resources of colocation providers. The market is witnessing significant adoption of cloud-based services, data-intensive applications, and the need for disaster recovery and business continuity solutions, contributing to its growth.
Key Drivers for Market Growth
- Increasing Demand for Scalable and Flexible Infrastructure: Organizations are experiencing exponential data growth due to digital transformation, cloud computing, and the Internet of Things (IoT). Colocation providers offer flexible capacity, allowing businesses to scale their IT infrastructure according to their needs without substantial upfront investments.
- Focus on Data Security and Compliance: Data security and compliance have become critical concerns for organizations. Colocation providers invest heavily in robust security measures to protect their clients’ data and infrastructure, making them an attractive option for industries with stringent data handling regulations.
- Cost Efficiency and Operational Advantages: Building and maintaining an in-house data center can be capital-intensive and time-consuming. Colocation eliminates the need for upfront investments in infrastructure, reducing costs associated with purchasing, managing, and maintaining data center equipment.
Market Segmentation
The data center colocation market is segmented based on data center size, tier type, absorption, colocation type, and end-users. Large data centers are expected to exhibit significant growth during the forecast period, driven by the increasing adoption of cloud services, big data analytics, and AI applications. Additionally, Tier 3 data centers are projected to experience the highest CAGR, offering a balance between cost-effectiveness and high availability.
Regional Analysis
North America has emerged as the market leader in the data center colocation market due to its advanced IT infrastructure and high adoption of cloud services. Europe and Asia Pacific are also prominent regions witnessing significant growth, driven by increasing investments in data center infrastructure and the growing demand for digital transformation solutions.
Key Players
The data center colocation market is highly competitive, with major players like Equinix, Digital Realty Trust, NTT Communications, CyrusOne, and China Telecom vying for market share. These companies offer extensive data center facilities, robust infrastructure, and a wide range of value-added services, positioning themselves as market leaders.
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