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.
Report Scope:
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.
Report Includes:
- 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
Summary
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
Chapter 12 References
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