Story image

Burgeoning data centre colocation market to double its size by 2022

13 Jul 17

New research from MarketsandMarkets has revealed a very positive forecast for the data centre colocation market.

The market is expected to almost double from USD$31.52 billion in 2017 to $62.3 billion by 2022 at a compound annual growth rate (CAGR) of 14.6 percent.

According to the report, the major drivers of the data centre colocation market are the requirements for reliability, security and stability of infrastructure, growing data centre complexities and the need for reduction of overall IT costs.

The increasing number of users opting for cost-effective and energy-efficient data centre solutions are also expected to contribute to the market’s rapid growth.

The report segmented the market into retail colocation and wholesale colocation, which allowed the researches to predict the latter to witness the highest CAGR during the forecast period.

The wholesale colocation provides a large IT space, along with cooling and power infrastructure. It also provides the users with benefits such as economics of scale by reduced power and cooling cost, high bandwidth and reduced total cost of ownership.

Breaking the market down by end-user, small and medium-sized enterprises (SMEs) are expected to grow at the highest rate during the forecast period. This has been put down to their lesser infrastructure autonomy requirements, which means they are increasingly adopting retail colocation services that are providing them with security and flexibility.

And in terms of regions, when broken down into North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and Latin America, North America is expected to hold the larges share of the data centre colocation market in 2017 largely due to the presence of a large number of data centres across various industries in this region

However, the market in APAC is expected to grow at the highest CAGR between 2017 and 2022, with the primary driving forces being the increasing data centre traffic and the surge in usage of mobile devices.

The report also pointed out the main players in the market, with the major technology vendors including AT&T Inc. (US), China Telecom (China), Cogent Communications (US), Contegix (US), CoreSite Realty Corporation (US), CyrusOne (US), Cyxtera Technologies, Inc. (US), Digital Realty Trust, Inc. (US), DuPont Fabros Technology, Inc. (US), Equinix, Inc. (US), Fibernet Inc. (US), Global Switch (UK), Internap (US), Interxion (Netherland), Keppel Data Center Pte Ltd. (Singapore), Level 3 Communications Inc. , NTT Communications Corporation (Japan), PhoenixNAP (US), Rahi Systems Inc (US), Singtel (Singapore), STT GDC Pte Ltd. (Singapore), Telehouse-KDDI (UK), Telstra (Australia), TeraGo Networks Inc. (Canada), and Verizon (US).

Dell dominates enterprise storage market, HPE declines
The enterprise storage system market continues to be a goldmine for most vendors with demand relentlessly rising year-on-year.
The key to financial institutions’ path to digital dominance
By 2020, about 1.7 megabytes a second of new information will be created for every human being on the planet.
Is Supermicro innocent? 3rd party test finds no malicious hardware
One of the larger scandals within IT circles took place this year with Bloomberg firing shots at Supermicro - now Supermicro is firing back.
Record revenues from servers selling like hot cakes
The relentless demand for data has resulted in another robust quarter for the global server market with impressive growth.
Opinion: Critical data centre operations is just like F1
Schneider's David Gentry believes critical data centre operations share many parallels to a formula 1 race car team.
MulteFire announces industrial IoT network specification
The specification aims to deliver robust wireless network capabilities for Industrial IoT and enterprises.
Google Cloud, Palo Alto Networks extend partnership
Google Cloud and Palo Alto Networks have extended their partnership to include more security features and customer support for all major public clouds.
DigiCert conquers Google's distrust of Symantec certs
“This could have been an extremely disruptive event to online commerce," comments DigiCert CEO John Merrill.