Consistent development in telecommunication & IT sector and availability of large data is increasing the storage cost of enterprises. Data center colocation is a place that provides all the facilities such as power back up, IP system, and a cooling unit to the enterprises and business. Enterprisers those cannot have their own data center can rent the required space for their server and other computing hardware in terms of rack or cabinets.
The factors that are expected to drive demand for colocation are entrepreneurs approach towards reducing operational expenditure and increasing awareness towards reducing carbon footprints. In addition, increasing number of IT companies in developing countries is resulting in rising adoption of colocation that aid in operational reliability and security, coupled with other benefits such as availability of common, secure space for enterprise businesses to store hardware related to data storage and other equipment is another factor expected to support the market growth.
Moreover, increasing demand from mid-sized and small enterprises for a cost-effective solution in order to store their server, coupled with an approach towards saving the room space requirement and cost of cooling and heating is another factor expected to positively impact the market growth. In addition, data center colocation provides the required high-performance environment for critical IT infrastructure and offers benefits such as security and compliance, reduce the cost of ownership, interconnection, etc. are some is another factor expected to support the market growth.
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However, factors expected to hinder market growth are slow network connectivity resulting in limiting the access to data colocation centers and high cost of maintenance. In addition, the adoption of service is costlier for larger companies that have huge data servers and the high cost of internet in developing countries are factors expected to challenge market growth.
Adoption of virtualization, availability of high-speed internet at a lower cost, and availability of low-cost data center colocation service are factors expected to create new opportunities in terms of revenue for players operating in the target market over the forecast period.
Colocation is of various types such as retail colocation and wholesale colocation. The wide applicability of these is seen in various industry such as banking, financial and insurance, government & public, telecom & it, healthcare & life sciences, and energy.
North America accounts for largest revenue share in the global colocation market currently, owing to increasing adoption of the data center from various industries such as government, BFSI, and others, and presence of leading data center service providers operating in countries in this region. In addition, increasing expansion activities through partnerships and agreements are expected to support market growth in this region to a certain extent.
The markets in Asia Pacific is expected to contribute significant revenue shares in the global market. This can be attributed to rapid development of telecommunication & IT sector in emerging economies such as China and India in this region. In addition, growing merger and acquisition activities between regional players is expected to further support market growth in this region.
Some of the major players operating in the global collation market are Equinix, Inc., Digital Realty Trust, Inc., NTT Communications Corporation, CenturyLink, Inc., InterXion Holding N.V., Verizon Enterprise Solutions, LLC, Telehouse Holdings Ltd., AT&T Inc., DFT Communications Company, Rackspace US, Inc., NaviSite LLC, and Colt Group S.A.