Colocation center is a popular type of data center that offers storage and bandwidth for rent. Various organizations, especially those in the internet related businesses are increasingly adopting colocation as a form of data center for storing their information. The space in colocation centers is rented out to various customers in order for them to attain power, cooling, physical security and storage space; along with server and networking equipment. Although relatively new industry, global colocation market is making steady growth across different developed and developing markets of the world. Increasing demand for additional storage space and security across IT companies is driving the industry.
Drivers and Trends in Colocation Market
Reduced maintenance costs for in-house information technology maintenance and increased redundancy to data maintenance is drawing more and more IT enterprises towards colocation centers. Colocation ensures security, high-bandwidth, space and reliability. Rising demand for scalability features and cost-effective management of businesses calls for strong computing resources and power capacity, increasing demand from small and midsize organizations is also a vital boost for the global colocation market. Budding businesses opting for these datacenters will avail advantages of early investments with upgradability. Innovative applications in the market are also working as a strong driver for the industry. Rising adoption trends are easy to observe across developed and developing regions of the market.
Segments in Colocation Center Market
According to latest market research reports, colocation market is largely segmented based on the types of colocation, applications in terms of end users, business verticals and demand across various geographic regions. Retail and wholesale are the two basic types of colocation centers, which are suitable for small and medium businesses or SMBs, large enterprises and small offices home offices. Business verticals with maximum applications of colocation include government, healthcare, telecom and IT, public sector, life sciences and BFSI. Geographically, the industry is segmented into five regions, which include North and Latin America, Asia Pacific, Middle East and Africa and Europe.
Future Growth Prospects Until 2018
Detailed analysis of both trends and segments in the industry, experts are expecting steady growth in the industry. This growth will be steady in the fields of trends, opportunities, threats, competition and expansions across different geographic regions. Latest business research reports for colocation market estimate the industry to grow at a CAGR of over 11% from 2013 t0 2011. During the forecasting period, the market is anticipated to reach $43.34 billion by 2018, which was worth $25.72 billion in 2013. Rising adoption trend for colocation centers and innovative applications of these services are expected to maintain steady growth across North America, Europe and Asia Pacific regions.
