Data Center Colocation Market Analysis

Europe data center colocation market to observe noteworthy proceeds by 2025

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A business space of high repute, thriving immensely on the increasing complexity of managing massive data centers, the global data center colocation market of late, stands as one of the most outpacing industry verticals of all times. Additionally, the advent of IoT coupled with rapid penetration of big data and cloud technologies have prompted various end-use sectors to focus on structuring the physical infrastructure of IT services. Apparently, the overall IT spending in 2018 grew by 3.8 per cent due to increased spending by the cloud providers.

Colocation is gaining massive traction across the globe, amidst the organizations, and is being adopted with an intent of reducing the expenses pertaining to the management and building of the data centers.

A paradigm shift towards the colocation hosting by large enterprises and SMEs calls for huge preliminary investments which will foster the revenue scale of data center colocation market during 2019-2025. As per the market speculations put forth by Global Market Insights, Inc., the worldwide data center colocation industry size is forecast to be pegged at USD 100 billion by the end of 2025.

Not to mention, data center colocation market would transform to become one of the most revolutionizing business spaces of the 21st century.

Considering the type spectrum, the retail colocation segment accounted for a significant business share in the data center colocation market perhaps owing to their provision of high security in a multi-tenant environment.

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The construction and maintenance of data centers remains out of the question for the enterprises that have budgetary constraints. In this regard, the small and medium sized enterprises have planned to shift to data center colocation services to store ample amounts of data.

Having said that, the small enterprises end-user segment is likely to witness a commendable growth in the data center colocation industry in the upcoming years. Scalability being an alarming concern for these enterprises, the data colocation services provide them an ease in structuring and maintaining the fundamental resources. The data center colocation industry trends from the SMEs would also foresee a significant growth over the forecast period probably due to the high security provision, all-round customer support, robust reliability, and compliance management.

Data center colocation industry is driven by a vast application spectrum predominated by the IT and telecom sector which is claimed to register robust adoption of the data center services and develop at a prodigious pace over 2019-2025. The wide scale adoption across the sector is attributed to the burgeoning demands for the storage of humongous volumes of data. The escalating demands for enhancing the efficiency across the business operation has established new avenues for the industry players.

It is prudent to know that various industry players are involved in upgrading their services to cater to the industry sectors. In fact, China Telecom Americas Corporation declared offering disaster recovery and website hosting services on the grounds of managing massive amount of data generated.

Additionally, rising dependency on these services across the IT and telecom sectors will positively influence the data center colocation growth map over the years to come.

Strong foothold of major data colocation centers across Europe, led by Germany, UK, France, and Netherlands, is likely to surge the adoption of these facilities and impel the market trends over a span of seven years. For the record, Europe houses over 1,160 colocation centers which are widespread across 20 countries in the region.

In addition to this, various European countries like Italy, Spain, and Russia are recuperating from the economic crisis thereby paving way for the business to flourish across the countries. Concurrently, the robust presence of prominent data centers like Telehouse North, PA2, Paris Voltaire, and Telehouse East, have added an impetus to the regional growth.

Author NameVinisha Joshi