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Data Center Colocation Market by Type (Retail and Wholesale), End-user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research & Academic, Retail, Energy and Manufacturing), and Region - Global Forecast to 2022

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Date: 11-Jul-2017
No. of pages: 137
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The growing need for reducing the IT expenditure is one of the factors driving the growth of the data center colocation

The global data center collocation size is expected to grow from USD 31.52 billion in 2017 to USD 62.30 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60%. There is an increasing need for reducing the IT expenditure spent on commissioning mission-critical data center facilities. Data center colocation services provide the required scalability and cost-effectiveness for managing the daily data requirement. This acts as one of the major drivers of the data center colocation market. However, high initial costsmay hold back the end-users from adopting these solutions.

Retail collocation is expected to account for the largest market share during the forecast period

The retail colocation type in the data center collocation market is expected to have the largest market share during the forecast period. Retail colocation provides power, space, cooling, cabling, and support services. It also provides flexibility in terms of IT infrastructure, and therefore proves advantageous for Small and Medium-Sized Enterprises (SMEs). This utility of retail colocation is expected to drive its market share in the global data center colocation.

Large enterprises are estimated to have the largest market share during the forecast period

The data center collocation end-users include SMEs and large enterprises, wherein large enterprises are expected to have the largest market share during the forecast period. Large enterprises are inclined toward adopting colocation services, as they are able to lease large spaces on lease and meet their power and computational requirements. Moreover, colocation services help large enterprises to have complete control over the data center infrastructure. These services also aid in business continuity due to their disaster recovery benefits. This is expected to fuel the data center colocation market during the forecast period.

North America is expected to have the largest market in 2017, whereas Asia Pacific (APAC) is projected to grow at the highest rate during the forecast period

North America is expected to capture the largest market share in 2017 and the trend is likely to continue until the near future. This region is growing due to the presence of a large number of data centers and it has witnessed a rapid adoption due to the availability of comprehensive solutions. On the other hand, the data center colocation market in APAC is expected to witness an exponential growth and projected to be one of the fastest-growing regions in the global data center colocation market. This is mainly due to the increasing volumes of data center traffic in countries, such as India, Australia, and China.

In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews were conducted with key people. The break-up of the profiles of the primary participants is given below:


  • By Company Type: Tier 1:29%, Tier 2: 57%, and Tier 3:14%

  • By Designation: C-Level:50%, Director Level:33%, and Others:17%

  • By Region: North America:57%, Europe:14%, and APAC:29%


The key vendors profiled in the report are as follows:


  • NTT Communication Corporation(Japan)

  • DuPont Fabros Technology, Inc. (US)

  • Digital Realty Trust, Inc.(US)

  • Cyxtera Technologies, Inc. (US)

  • CyrusOne Inc. (US)

  • Level 3 Communications, Inc. (US)

  • Equinix, Inc. (US)

  • Global Switch (UK)

  • AT&T, Inc.(US)

  • CoreSite Realty Corporation (US)

  • China Telecom Corporation Limited (China)

  • Verizon Enterprise Solutions, Inc.(US)


Research Coverage

The market is segmented on the basis of colocation types, which includes wholesale colocation and retail colocation. The end-user segment includes SMEs and large enterprises. The market is also segmented on the basis of industries, including the Banking, Financial Services, and Insurance (BFSI); IT and telecom; government and defense; healthcare; research and academic; retail; energy; manufacturing; and others (media and entertainment, and transportation and logistics). The market has been segmented on the basis of regions into North America, Europe, APAC, MEA, and Latin America.

The report will help the market leaders/new entrants in this market in the following ways:


  • The report segments the data center colocation comprehensively and provides the closest approximations of the revenue numbers for the overall market and subsegments across different verticals and regions.

  • The report will help stakeholders understand the pulse of the market and provides them with information on key market drivers, restraints, challenges, and opportunities.

  • The report will help stakeholders better understand their competitors and gain more insights to enhance their position in the market. The competitive landscape section includes new product launches, partnerships, agreements and collaborations, mergers and acquisitions, and expansions.

Data Center Colocation Market by Type (Retail and Wholesale), End-user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research & Academic, Retail, Energy and Manufacturing), and Region - Global Forecast to 2022

Table of Contents

1 Introduction
1.1 Objectives of the Study
1.2 Market Definition
1.3 Market Scope
1.3.1 Years Considered for the Study
1.4 Currency
1.4.1 Stakeholders

2 Research Methodology
2.1 Research Data
2.1.1 Secondary Data
2.1.2 Primary Data
2.1.2.1 Breakdown of Primaries
2.1.2.2 Key Industry Insights
2.2 Market Size Estimation
2.2.1 Top-Down Approach
2.3 Competitive Leadership Mapping Research Methodology
2.3.1 Vendor Inclusion Criteria
2.4 Research Assumptions
2.5 Limitations

3 Executive Summary

4 Premium Insights
4.1 Attractive Market Opportunities in the Data Center Colocation Market
4.2 Data Center Colocation Market, 2017–2022
4.3 Data Center Colocation Market, By Industry and Region
4.4 Data Center Colocation Market, 2017–2022, By Region
4.5 Lifecycle Analysis, By Region

5 Market Overview and Industry Trends
5.1 Introduction
5.2 Market Dynamics
5.2.1 Drivers
5.2.1.1 Reduction in the Overall IT Cost
5.2.1.2 Requirement for Reliability, Security, and Scalability of Infrastructure
5.2.1.3 Growing Data Center Complexities
5.2.2 Restraints
5.2.2.1 High Startup and Maintenance Cost
5.2.2.2 Location Restraints for Colocation Facilities
5.2.3 Opportunities
5.2.3.1 Increasing Disaster Recovery and Business Continuity Requirements
5.2.3.2 Growing Adoption of Hybrid Cloud and Virtualization
5.2.4 Challenges
5.2.4.1 Government Regulations and Security Requirements
5.3 Technology Trends and Standards
5.3.1 Introduction
5.3.2 Standards and Guidelines for the Data Center Colocation Market
5.3.2.1 Statement on Standards for Attestation Engagements 16 (SSAE 16)
5.3.2.2 Service Organization Controls (SOC)
5.3.2.3 Health Insurance Portability and Accountability Act (HIPAA)
5.3.2.4 Payment Card Industry Data Security Standard (PCI-DSS)
5.3.2.5 Storage Networking Industry Association
5.3.2.6 Telecommunications Infrastructure Standard for Data Centers
5.3.2.7 Underwriters Laboratory (UL)
5.3.2.8 Distributed Management Task Force Standards(DMTF)
5.3.2.9 Electronic Industry Association (EIA)
5.3.2.10 Telecommunication Industry Association (TIA)
5.3.2.11 Data Center Site Infrastructure Tier Standard (Uptime Institute)
5.3.2.12 Storage Networking Industry Association (SNIA) and Cloud Data Management Interface (CDMI)
5.3.3 Innovation Spotlight

6 Data Center Colocation Market Analysis, By Type
6.1 Introduction
6.2 Retail Colocation
6.3 Wholesale Colocation

7 Data Center Colocation Market Analysis, By End-User
7.1 Introduction
7.2 Small and Medium-Sized Enterprises
7.3 Large Enterprises

8 Data Center Colocation Market Analysis, By Industry
8.1 Introduction
8.2 Banking, Financial Services, and Insurance
8.3 IT and Telecom
8.4 Government and Defense
8.5 Healthcare
8.6 Research and Academic
8.7 Retail
8.8 Energy
8.9 Manufacturing
8.10 Others

9 Geographic Analysis
9.1 Introduction
9.2 North America
9.3 Europe
9.4 Asia Pacific
9.5 Middle East and Africa
9.6 Latin America

10 Competitive Landscape
10.1 Microquadrant Overview
10.1.1 Innovators
10.1.2 Visionary Leaders
10.1.3 Emerging Companies
10.1.4 Dynamic Differentiators
10.2 Competitive Benchmarking
10.2.1 Analysis of Product Portfolio of Major Players in the Data Center Colocation Market
10.2.2 Business Strategies Adopted By Major Players in the Market

11 Company Profiles
(Business Overview, Strength of Product Portfolio, Business Strategy Excellence, Recent Developments)*
11.1 Introduction
11.2 NTT Communications Corporation
11.3 Dupont Fabros Technology, Inc.
11.4 Digital Realty Trust, Inc.
11.5 Cyxtera Technologies, Inc.
11.6 Cyrusone Inc.
11.7 Level 3 Communications Inc.
11.8 Equinix, Inc.
11.9 Global Switch
11.10 AT&T, Inc.
11.11 Coresite Realty Corporation
11.12 China Telecom Corporation Limited
11.13 Verizon Enterprise Solutions, Inc.
11.14 Interxion Holding NV
11.15 Internap Corporation
11.16 KDDI Corporation

*Details on Overview, Strength of Product Portfolio, Business Strategy Excellence, Recent Developments Might Not Be Captured in Case of Unlisted Companies.

12 Appendix
12.1 Insights of Industry Experts
12.2 Discussion Guide
12.3 Knowledge Store: Marketsandmarkets’ Subscription Portal
12.4 Introducing RT: Real-Time Market Intelligence
12.5 Available Customizations
12.6 Related Reports
12.7 Author Details

List of Tables

Table 1 United States Dollar Exchange Rate, 2014–2016
Table 2 Global Data Center Colocation Market: Assumptions
Table 3 Data Center Colocation Market Size, By Type, 2015–2022 (USD Billion)
Table 4 Retail Colocation: Market Size, By Region, 2015–2022 (USD Billion)
Table 5 Retail Colocation: Market Size, By End-User, 2015–2022 (USD Billion)
Table 6 Wholesale Colocation: Market Size, By Region, 2015–2022 (USD Billion)
Table 7 Wholesale Colocation: Market Size, By End-User, 2015–2022 (USD Billion)
Table 8 Data Center Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 9 Small and Medium-Sized Enterprises: Market Size, By Region, 2015–2022 (USD Billion)
Table 10 Large Enterprises: Market Size, By Region, 2015–2022 (USD Billion)
Table 11 Data Center Colocation Market Size, By Industry, 2015–2022 (USD Million)
Table 12 Banking, Financial Services, and Insurance: Market Size, By Region, 2015–2022 (USD Million)
Table 13 IT and Telecom: Market Size, By Region, 2015–2022 (USD Million)
Table 14 Government and Defense: Market Size, By Region, 2015–2022 (USD Million)
Table 15 Healthcare: Market Size, By Region, 2015–2022 (USD Million)
Table 16 Research and Academic: Market Size, By Region, 2015–2022 (USD Million)
Table 17 Retail: Market Size, By Region, 2015–2022 (USD Million)
Table 18 Energy: Market Size, By Region, 2015–2022 (USD Million)
Table 19 Manufacturing: Market Size, By Region, 2015–2022 (USD Million)
Table 20 Others: Market Size, By Region, 2015–2022 (USD Million)
Table 21 Data Center Colocation Market Size, By Region, 2015–2022 (USD Billion)
Table 22 North America: Data Center Colocation Market Size, By Type, 2015–2022 (USD Billion)
Table 23 North America: Retail Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 24 North America: Wholesale Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 25 North America: Market Size, By End-User, 2015–2022 (USD Billion)
Table 26 North America: Market Size, By Industry, 2015–2022 (USD Million)
Table 27 North America: Market Size, By Country, 2015–2022 (USD Billion)
Table 28 Europe: Data Center Colocation Market Size, By Type, 2015–2022 (USD Billion)
Table 29 Europe: Retail Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 30 Europe: Wholesale Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 31 Europe: Market Size, By End-User, 2015–2022 (USD Billion)
Table 32 Europe: Market Size, By Industry, 2015–2022 (USD Million)
Table 33 Europe: Market Size, By Country, 2015–2022 (USD Billion)
Table 34 Asia Pacific: Data Center Colocation Market Size, By Type, 2015–2022 (USD Billion)
Table 35 Asia Pacific: Retail Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 36 Asia Pacific: Wholesale Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 37 Asia Pacific: Market Size, By End-User, 2015–2022 (USD Billion)
Table 38 Asia Pacific: Market Size, By Industry, 2015–2022 (USD Million)
Table 39 Asia Pacific: Market Size, By Country, 2015–2022 (USD Billion)
Table 40 Middle East and Africa: Data Center Colocation Market Size, By Type, 2015–2022 (USD Billion)
Table 41 Middle East and Africa: Retail Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 42 Middle East and Africa: Wholesale Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 43 Middle East and Africa: Market Size, By End-User, 2015–2022 (USD Billion)
Table 44 Middle East and Africa: Market Size, By Industry, 2015–2022 (USD Million)
Table 45 Middle East and Africa: Market Size, By Country, 2015–2022 (USD Billion)
Table 46 Latin America: Data Center Colocation Market Size, By Type, 2015–2022 (USD Billion)
Table 47 Latin America: Retail Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 48 Latin America: Wholesale Colocation Market Size, By End-User, 2015–2022 (USD Billion)
Table 49 Latin America: Market Size, By End-User, 2015–2022 (USD Billion)
Table 50 Latin America: Market Size, By Industry, 2015–2022 (USD Million)
Table 51 Latin America: Market Size, By Country, 2015–2022 (USD Billion)

List of Figures

Figure 1 Global Data Center Colocation Market: Market Segmentation
Figure 2 Data Center Colocation Market: Research Design
Figure 3 Breakdown of Primary Interviews: By Company, Designation, and Region
Figure 4 Data Triangulation
Figure 5 Market Size Estimation Methodology: Bottom-Up Approach
Figure 6 Market Size Estimation Methodology: Top-Down Approach
Figure 7 Evaluation Criteria
Figure 8 North America is Estimated to Hold the Largest Market Share in 2017
Figure 9 Increasing Requirement for Reducing the Total IT Expenditure is Expected to Boost the Growth of the Data Center Colocation Market
Figure 10 Wholesale Colocation Segment is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 11 IT and Telecom Industry and North America are Estimated to Hold the Largest Market Shares in 2017
Figure 12 Asia Pacific is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 13 The Data Center Colocation Market has Immense Opportunities for Growth in Asia Pacific
Figure 14 Market: Drivers, Restraints, Opportunities, and Challenges
Figure 15 In-House vs Outsourced Data Center Deployments By Enterprises
Figure 16 Wholesale Colocation Type is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 17 The Small and Medium-Sized Enterprises Segment is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 18 Government and Defense Industry is Expected to Grow at the Highest CAGR During the Forecast Period
Figure 19 Regional Snapshot (2017–2022): North America is Expected to Hold the Largest Market Share in 2017
Figure 20 North America: Market Snapshot
Figure 21 Wholesale Colocation Segment in North America is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 22 Wholesale Colocation Segment in Europe is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 23 Asia Pacific: Market Snapshot
Figure 24 Wholesale Colocation Segment in Asia Pacific is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 25 Wholesale Colocation Segment in Middle East and Africa is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 26 Wholesale Colocation Segment in Latin America is Expected to Grow at A Higher CAGR During the Forecast Period
Figure 27 Data Center Colocation Market Competitive Leadership Mapping, 2017 Overview
Figure 28 NTT Communications Corporation: Strength of Product Portfolio Scorecard
Figure 29 NTT Communications Corporation: Business Strategy Excellence Scorecard
Figure 30 Dupont Fabros Technology, Inc.: Company Snapshot
Figure 31 Dupont Fabros Technology, Inc.: Strength of Product Portfolio Scorecard
Figure 32 Dupont Fabros Technology, Inc.: Business Strategy Excellence Scorecard
Figure 33 Digital Realty Trust, Inc.: Company Snapshot
Figure 34 Digital Realty Trust, Inc.: Strength of Product Portfolio Scorecard
Figure 35 Digital Realty Trust, Inc.: Business Strategy Excellence Scorecard
Figure 36 Cyxtera Technologies, Inc.: Strength of Product Portfolio Scorecard
Figure 37 Cyxtera Technologies, Inc.: Business Strategy Excellence Scorecard
Figure 38 Cyrusone Inc.: Company Snapshot
Figure 39 Cyrusone Inc.: Strength of Product Portfolio Scorecard
Figure 40 Cyrusone Inc.: Business Strategy Excellence Scorecard
Figure 41 Level 3 Communications Inc.: Company Snapshot
Figure 42 Level 3 Communicationss Inc.: Strength of Product Portfolio Scorecard
Figure 43 Level 3 Communications Inc.: Business Strategy Excellence Scorecard
Figure 44 Equinix, Inc.: Company Snapshot
Figure 45 Equinix, Inc.: Strength of Product Portfolio Scorecard
Figure 46 Equinix, Inc.: Business Strategy Excellence Scorecard
Figure 47 Global Switch: Company Snapshot
Figure 48 Global Switch: Strength of Product Portfolio Scorecard
Figure 49 Global Switch: Business Strategy Excellence Scorecard
Figure 50 AT&T, Inc.: Company Snapshot
Figure 51 AT&T, Inc.: Strength of Product Portfolio Scorecard
Figure 52 AT&T, Inc.: Business Strategy Excellence Scorecard
Figure 53 Coresite Realty Corporation: Company Snapshot
Figure 54 Coresite Realty Corporation: Strength of Product Portfolio Scorecard
Figure 55 Coresite Realty Corporation: Business Strategy Excellence Scorecard
Figure 56 China Telecom Corporation Limited: Company Snapshot
Figure 57 China Telecom Corporation Limited: Strength of Product Portfolio Scorecard
Figure 58 China Telecom Corporation Limited: Business Strategy Excellence Scorecard
Figure 59 Verizon Enterprise Solutions, Inc.: Company Snapshot
Figure 60 Verizon Enterprise Solutions, Inc.: Strength of Product Portfolio Scorecard
Figure 61 Verizon Enterprise Solutions, Inc.: Business Strategy Excellence Scorecard
Figure 62 Interxion Holdings NV: Company Snapshot
Figure 63 Interxion Holdings NV: Strength of Product Portfolio Scorecard
Figure 64 Interxion Holdings NV: Business Strategy Excellence Scorecard
Figure 65 Internap Corporation: Company Snapshot
Figure 66 Internap Corporation: Strength of Product Portfolio Scorecard
Figure 67 Internap Corporation: Business Strategy Excellence Scorecard
Figure 68 KDDI Corporation: Company Snapshot
Figure 69 KDDI Corporation: Strength of Product Portfolio Scorecard
Figure 70 KDDI Corporation: Business Strategy Excellence Scorecard

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