Colocation Data Center Industry: Global Markets to 2020
Publish Date: May 2019 | Category: Engineering Equipment | Publisher: BCC Research | Status: Publish
The global market for colocation data center industry is expected to grow from $30.9 billion in 2016 to $54.8 billion by 2020, at a compound annual growth rate (CAGR) of 15.4% for the period of 2016-2020.
This research report focuses on market sizing and forecast for global, USA and other regions. It categorizes the colocation data center market by service type. Service types include retail and wholesale. It also includes the market analysis by customer industries and competitor analysis.
- An overview of the global markets for colocation data center industry - Analyses of global market trends, with data from 2012-2016, estimates for 2017, and projections of compound annual growth rates (CAGRs) through 2020 - A look at key market trends, customer landscape, supply chain and key participants, and major certifications in the industry - Analysis of the market's dynamics, specifically growth drivers which include increasing demand from cloud operators, growth in big data analytics and impact of virtual reality on storage, and restraints - Information on leading players in the industry including Equinix, Digital Realty, NTT Communications, Level 3 Communications, Verizon Communications and Cyrusone
This report analyzes the market for colocation data centers globally and in the USA. Colocation data centers are being preferred by many industry verticals due to their increasing data needs. Data centers serve mainly to the cloud, technology, banking and financial services and healthcare industries.
Colocation data centers are classified in to two main segments, retail and wholesale. The retail segment is larger than the wholesale due to the increased use of IoT in small and medium enterprises which prefer convenience and space saving of external data centers.
Going forward, this market is expected to grow further due to the increase in out sourcing data centers, growing presence of artificial intelligence (AI) and big data across all the industries.
The global colocation data centers market in 2016 was estimated to be around $ 30.9 billion. During 2016-2020 global colocation data centers market is expected to grow at a CAGR of 15.4%, to reach $54.8 billion by the year 2020. This growth can be attributed to the expansion of major cloud and colocation companies to new geographies. And the market is expected to increase in Asian countries such as China and Singapore due to the increasing use of big data and ERP (enterprise resource planning) across all the industries and government regulations to restrict the amount data storage in the local region.
Cloud, technology and banking, financial services, and insurance was the largest customer group for colocation data centers accounting for more than 50% of the market followed by telecom and healthcare. The total revenues from cloud, technology and banking, financial services, and insurance were $17.8 billion. This large share of revenues can be attributed to increasing demand from cloud operators, growth in outsourcing data centers and increasing demand from financial services industry.
In 2016, the USA colocation data centers market accounted for 45.4% market, followed by Europe and Asia Pacific with 28.1% and 17.5% market respectively.
The global colocation data centers market is relatively fragmented, with only two global players having more than a 5% market share. The top five competitors in the market accounted for 21.1% of the total market in 2016. Equinix was the largest company with 8.5% of the market, followed by other companies such as Digital Reality, NTT Data with and CenturyLink (Cyxtera).
To be successful any colocation datacenter provider should partner with cloud companies and offer its services to target wider customer base. They should provide additional facilities such as interconnection and firewall management to differentiate their service from others. These facilities will reduce upfront costs for colocation customers and make colocation data centers more attractive in an increasingly competitive market.
Table of Contents
Chapter 1 Introduction Study Goals and Objectives Reasons for Doing This Study Scope of Report Information Sources Methodology Geographic Breakdown Analyst's Credentials Related BCC Research Reports
Chapter 2 Summary and Highlights
Chapter 3 Market Characteristics Definitions Data Center Colocation Data Centers Types of Colocation Data Centers Classifications Customer Landscape Banking, Financial Services and Insurance Telecom and IT Government and Defense Education Retail and E-commerce Energy and Utilities Manufacturing Healthcare Others (Media, Entertainment, Transportation and Logistics) Supply Chain and Key Participants Real Estate, Building and Infrastructure Developers Equipment Manufacturers Power and Connectivity Providers Colocation Data Center Providers Managed IT Service Providers End Users Drivers Digitalization Increasing Demand from Cloud Operators Increasing Impact of Virtual Reality on Storage Increasing Presence of Artificial Intelligence (AI) Growth in Big Data Analytics Rise in Media and Entertainment Increasing Demand from Health Care Organizations Outsourcing Data Centers Needs is Driving Demand for Colocation Restraints Technologies are Getting Obsolete Faster Pressure on Colocation Pricing Infrastructural Barriers Impact of Government Policies Market Trends Rise in Mergers and Acquisitions Interconnection Supporting Edge Computing Advances in Technologies/Processes for Utilization of Server Space Modular Data Centers are Preferred Over Customized Data Centers Changing Customer Preferences Increasing Infrastructure Management Adoption of Green Technologies in Data Centers Major Certifications in The Colocation Data Center Industry HIPAA - Health Insurance Portability and Accountability Act PCI Data Security Standard Council SSAE 16 - Statement on Standards for Attestation Engagements No. 16 Service Organization Control (SOC)
Chapter 4 Market Size and Forecasts Global Colocation Data Centers Market Size USA Colocation Data Centers Market Size
Chapter 5 Market Breakdown by Region Asia-Pacific EMEA Americas
Chapter 6 Customer Landscape Global Colocation Data Centers Market Break Down by Industry USA Colocation Data Centers Market Size, Break Down by Industry
Chapter 7 Global Colocation Market, Pricing Analysis Average Price Analysis Colocation Pricing, USA
Chapter 8 Competitor Landscape Leading Players, Global Colocation Market, 2016 Wholesale vs Retail Comparison
Chapter 9 Company Profiles EQUINIX Company Background Location-Global Location-USA Sales News and Developments DIGITAL REALTY Company Background DuPont Fabros Services Offered by Digital Realty Locations-Global Locations-USA Sales News and Developments NTT COMMUNICATIONS Company Background Services Offered Location-Global Location-USA Sales News and Developments LEVEL 3 COMMUNICATIONS Company Background Services Offered Location-Global Location-USA Sales News and Developments VERIZON COMMUNICATIONS Company Background Location-Global Location-USA Sales News and Developments CYRUSONE Company Background Services Offered Locations-Global Locations-USA Sales News and Developments GLOBAL SWITCH Company Background Services Offered Location-Global Location-USA Sales News and Development
Chapter 10 Conclusions and Recommendations Market Attractiveness Recommendations
Chapter 11 Appendix Primary Research - Interview Transcripts Interview-1-Equinix Interview-2-Digital Reality Interview-3-DuPont Fabros Interview-4-Equinix-India Interview-5-Equinix Interview-6-Cyrus One Interview-7-Equinix Interview-8-Cyrus One Interview-9-Digital Reality Interview-10-Cyrus One Interview-11-Cyxtera Email 1 -Global Switch - Spain Email 2 - Cyrus One - USA