Developments in Edge Computing to Provide Growth Opportunities for Data Center Colocation Market During 2021–2028
According to our latest market study on “Data Center Colocation Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Type, Enterprise Size, and Industry,” the market was valued at US$ 50,579.1 million in 2021 and is projected to reach US$ 136,647.9 million by 2028; it is expected to grow at a CAGR of 15.3% from 2021 to 2028.
Edge computing has emerged as an ideal solution for companies involved in streamlining their data gathering processes and a large number of customers demanding low-latency streaming content. Companies can deliver faster services and free up valuable bandwidth for several other activities that are performed closer to the network’s core by relocating their considerable processing workloads to devices and edge data centers on the outer edges of the network. Moreover, the growth of edge computing significantly depends on the rapid adoption of devices enabled with the internet of things (IoT). The IoT edge devices have developed incredible applications across diverse industries with their capabilities to collect data beyond the reach of conventional networks and extend services using cellular and Wi-Fi connections. However, these functionalities still require a backbone of infrastructure for operating effectively and efficiently. As a result, companies have begun to re-architect their corporate IT infrastructures with respect to colocation and interconnection points of presence. By combining colocation services with regional edge computing data centers, companies can extend their edge network reach quickly and cost-effectively. E-commerce and retail sectors are also embracing the edge data center.
The data center colocation market has been segmented based on type, enterprise size, industry, and geography. Based on type, the market is segmented into wholesale data centers and retail data centers. In 2020, the retail segment led the data center colocation market and accounted for a larger market share. In terms of enterprise size, the market is segmented into SMEs and large enterprises. In 2020, the large enterprises segment accounted for a larger share in the market. Based on industry, the market is segmented into IT and telecom, BFSI, healthcare, retail, and others. In 2020, the IT & telecom segment held the largest share in the market. Geographically, the data center colocation market is broadly segmented into North America, Europe, APAC (Asia Pacific), MEA (the Middle East & Africa), and SAM (South America). In 2020, North America accounted for the highest market share.
Impact of COVID-19 Pandemic on Data Center Colocation Market
The COVID-19 pandemic has had a beneficial impact on the expansion of the data center colocation market, as data center colocation technologies assist businesses in meeting the high capacity demand of internet traffic. According to most internet and data service providers, worldwide internet traffic is growing at 30–45% each year. There is an increasing need to ensure that data center colocation service providers have the ability and capacity to supply high-performance data center colocation services during periods of elevated traffic demand. As a result, service providers are investing heavily in data center colocation in a variety of scenarios. Furthermore, the COVID-19 pandemic presents an opportunity for the data center colocation market, owing to the growth of the over-the-top (OTT) market, as data center colocation services assist organizations worldwide in achieving their business objectives while working from home by providing high data security. However, due to the shutdowns of manufacturing facilities for data center and maintenance equipment, some setbacks in the data center colocation process occurred during the lockdown.
The key companies operating in the market include Equinix Inc.; IBM Corporation; AT&T Inc.; Cyxtera Technologies, Inc.; Digital Realty Trust LP; CoreSite Realty Corporation; CyrusOne, Inc.; QTS Realty Trust, Inc.; 365 Data Centers; and UnitedLayer. Several other market players have been analyzed to understand the market.
Report : Data Center Colocation Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Type (Retail and Wholesale), Enterprise size (SMEs and Large Enterprises), and Industry (IT & Telecom, BFSI, Healthcare, Retail, and Others)
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