Data center colocation and managed hosting services market to grow at a CAGR of 13.87% from 2022 to 2027 | BT Group Plc, Chunghwa Telecom Co. Ltd., Cogent Communications Holdings Inc., and more to emerge as key players- Technavio
NEW YORK, July 20, 2023 /PRNewswire/ -- The data center colocation and managed hosting services market size is expected to rise to USD 163.36 billion from 2021 to 2026, and the market's growth momentum will accelerate at a CAGR of 13.87%.The growing competition in the market is compelling vendors to adopt various growth strategies such as promotional activities and spending on advertisements to improve the visibility of their services. Technavio report analyzes the market's competitive landscape and offers information on several market vendors including -BT Group Plc, Chunghwa Telecom Co. Ltd., Cogent Communications Holdings Inc., CoreSite Realty Corp., Cyfuture, CyrusOne LLC, Cyxtera Technologies Inc., Digital Realty Trust Inc., Equinix Inc., Fidelity National Information Services Inc., Flexential Corp., Internap Holding LLC, KDDI Corp., Lumen Technologies Inc., Navisite LLC, NTT DATA Corp., phoenix NAP LLC, Rackspace Technology Inc., Sabey Corp., and Verizon Communications Inc. request a sample report
Data center colocation and managed hosting services market Insights -
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Key Driver - One of the key factors driving the data center colocation and managed hosting services market growth is the rising demand for data center colocation facilities. Collocation notably reduces infrastructure capital expenditures (CAPEX) and increases the connectivity required for operational services. A colocation facility consists of private racks that a company can rent to run its IT infrastructure. Many companies build and operate their own cloud platforms. The growing online presence of companies in various industries will drive the adoption of managed hosting services. Managed hosting service vendors, such as Rackspace, are expanding their presence across the world. Local colocation and managed hosting service providers significantly propel investments in the market, which will boost the growth of the concerned market during the forecast period.
Leading Trend - Growing investments in hyper-scale data centers by colocation providers is one of the key data center colocations and managed hosting services market trends that are expected to positively impact the market growth. The construction of hyper-scale data centers will help to meet the rising information processing demands of the smart revolution and the connected world. Many colocation service providers and infrastructure service providers have announced that they will offer hyper-scale data centers. For instance, in May 2022, Equinix, Inc. announced its plan to invest USD 9 million in a hyper-scale data center in Chennai, India. Similarly, NTT DATA Corp. opened its new hyper-scale data center in Mumbai, India, in May 2020. The construction of hyper-scale data centers will help to manage the rising information processing needs of a smart revolution and a connected world, which will boost the growth of the market during the forecast period.
Significant Challenge - One of the key challenges to the data center colocation and managed hosting services market growth is the increasing demand for cloud-based services. Small and medium-sized enterprises (SMEs) and startups are adopting cloud solutions to take advantage of the hardware and resource scalability offered by cloud providers. Large enterprises are starting to use cloud-based services because they can manage their workloads as needed, eliminating the need to build their own data centers that require large capital CAPEX and operating expenses (OPEX). For instance, in December 2021, JFrog Ltd. expanded cloud DevOps adoption in Canada with AWS and Microsoft Azure support. Similarly, Microsoft Corp. announced that it is building a new arm-based cloud service in April 2022. Hence, the launch of new cloud-based services may impede market growth during the forecast period.
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The data center colocation and managed hosting services market report provides critical information and factual data, with a qualitative and quantitative study of the market based on market drivers and limitations as well as future prospects.
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The Europe data center market size is estimated to grow at a CAGR of 21.05% between 2022 and 2027. The market size is forecast to increase by USD 171.29 billion. Furthermore, this data center market in Europe report extensively covers market segmentation by end-user (medium and small enterprises and large enterprises) and components (IT infrastructure, power management, cooling solutions, general construction, and others). Rising data center construction is notably driving market growth during the forecast period.
The data center colocation market size is estimated to grow at a CAGR of 14.27% between 2022 and 2027. The market size is forecast to increase by USD 55,943.92 million. This data center colocation market report extensively covers market segmentation by type (retail colocation and wholesale colocation), end-user (small enterprises, medium-sized enterprises, and large enterprises), and geography (North America, APAC, Europe, Middle East and Africa, and South America). The rising demand for data center colocation facilities is notably driving the market growth during the forecast period.
Data Center Colocation And Managed Hosting Services Market Scope
Table of Contents
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by End-user
6 Customer Landscape
7 Geographic Landscape
8 Drivers, Challenges, and Trends
9 Vendor Landscape
10 Vendor Analysis
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