NEW
YORK, July 18, 2024 /PRNewswire/ -- The global
data center colocation and managed hosting services
market size is estimated to grow by USD
163.36 billion from 2023-2027, according to Technavio. The
market is estimated to grow at a CAGR of 13.87% during
the forecast period. Rising demand for data center colocation
facilities is driving market growth, with a trend
towards growing investments in hyper-scale data centers by
colocation providers. However, increasing demand for
cloud-based services poses a challenge. Key market players
include 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..
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Data Center
Colocation And Managed Hosting Services Market Scope
|
Report
Coverage
|
Details
|
Base year
|
2022
|
Historic
period
|
2017 - 2021
|
Forecast
period
|
2023-2027
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
13.87%
|
Market growth
2023-2027
|
USD 163.36
billion
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
12.84
|
Regional
analysis
|
North America, Europe,
APAC, Middle East and Africa, and South America
|
Performing market
contribution
|
North America at
45%
|
Key
countries
|
US, Japan, China,
Germany, and UK
|
Key companies
profiled
|
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.
|
Market Driver
The data center colocation and managed hosting services market
is experiencing significant growth due to increasing investments in
hyper-scale data centers. With the advent of the smart revolution,
the creation of vast amounts of data necessitates efficient
processing. Hyper-scale data centers are becoming a priority to
manage this data deluge. Notable providers like Equinix Inc. And
NTT DATA Corp. Have recently announced their plans to construct
such data centers in India,
investing USD9 million and opening a
new facility in Mumbai,
respectively. These developments will cater to the escalating
information processing needs of the smart revolution and the
connected world, generating new opportunities for market
participants. Overall, the construction of hyper-scale data centers
is expected to drive the growth of the data center colocation and
managed hosting services market throughout the forecast
period.
In today's digital age, IT executives are increasingly turning
to Data Center Colocation and Managed Hosting Services to support
their businesses. With the rise of DCaaS (Data Center as a Service)
providers like Rackspace Technology and Google Cloud, on-premises
infrastructure is no longer the only option. The retail industry,
in particular, is embracing this trend, leveraging cloud computing
for digital services and enhancing online customer experiences
through e-commerce, mobile shopping apps, and transaction history
analysis. Social media and IoT devices generate vast amounts of
data, requiring robust data management solutions. Cybersecurity is
a top concern, with IT security professionals focusing on data
security, endpoint security, network monitoring, and pricing
pressures. As businesses adopt hybrid work models, automation and
artificial intelligence become essential tools for managing
distributed teams and ensuring network reliability. EBay, Amazon,
and other online retailers are leading the way, integrating
cashier-less systems, sensors, and cloud services to streamline
operations and enhance customer experiences.
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Market Challenges
- The adoption of cloud computing is driving the market for Data
Center Colocation and Managed Hosting Services, as organizations
seek to reduce their capital expenditures (CAPEX) and operating
expenditures (OPEX) by leveraging cloud solutions. Small and
medium-sized enterprises (SMEs) and start-ups particularly benefit
from the scalability of hardware and resources offered by cloud
providers. Cloud-based software offers several advantages,
including quicker implementation through web browsers, improved
customer experience with reduced processing times and error rates,
enhanced data accessibility, and cost savings from eliminating the
need for infrastructure procurement and installation. Vendors in
the hosting infrastructure services market are responding to this
trend by launching new cloud-based services, such as JFrog Ltd.'s
expansion of cloud DevOps adoption in Canada and Microsoft Corp.'s new arm-based
cloud service. These developments are expected to pose a challenge
to the growth of the Data Center Colocation and Managed Hosting
Services market during the forecast period.
- In today's digital age, businesses face numerous challenges in
managing their IT infrastructure. Cloud computing has disrupted
traditional data center models, leading to the rise of colocation
and managed hosting services. However, cybersecurity remains a top
concern, with threats such as data leakage, malware, and cyber
attacks increasing. Data management, remote work solutions, and the
integration of IoT devices also pose new challenges. IT security
professionals must adapt to hybrid work models, endpoint security,
network monitoring, and HIPAA compliance in healthcare and
pharmaceuticals. Pricing pressures and the need for differentiation
require service providers to offer superior customer experiences
and strong client relationships. Verticals like IT & telecom,
manufacturing, retail & consumer goods, healthcare & life
science, energy & utilities, media & entertainment, and
others demand operational efficiency and regulatory compliance.
Deployment models, including the metaverse concept, industry
expansion, and the integration of artificial intelligence and
automation, further complicate the landscape. Service-level
agreements and business continuity plans are essential to ensure
availability and mitigate cyber threats. Ultimately, physical
infrastructure cost savings and a competitive edge are key drivers
for enterprises in selecting the right colocation and managed
hosting partner.
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challenges - Request a sample report!
Segment Overview
This data center colocation and managed hosting services market
report extensively covers market segmentation by
- End-user
- 1.1 BFSI
- 1.2 Healthcare
- 1.3 E-commerce
- 1.4 Telecommunication
- 1.5 Others
- Type
- Geography
- 3.1 North America
- 3.2 Europe
- 3.3 APAC
- 3.4 Middle East and
Africa
- 3.5 South America
1.1 BFSI- The banking and financial services sector
(BFSI) is experiencing significant growth in m-commerce and
e-commerce markets in North
America, Europe, and
developing economies like India
and China in APAC. Financial data,
including customer financials, account information, cardholder
data, and personal information, is highly regulated by the EU and
other regulatory bodies, such as the GDPR. BFSI companies,
including Goldman Sachs, JPMorgan Chase and Co., and Morgan
Stanley, share sensitive information across networks and require
optimal uptime, security, connectivity, and data integrity.
Traditional data center ownership presents high operating costs for
global BFSI companies, leading them to outsource colocation space
from vendors or lease servers from managed hosting service
providers. This shift towards outsourcing is expected to drive the
growth of the BFSI segment in the data center colocation and
managed hosting services market during the forecast period.
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analysis including forecast (2023-2027) and historic data
(2017-2021) - Download a Sample Report
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The global containerized and modular data center market is
experiencing significant growth, driven by increasing demand for
scalable and efficient data solutions. Similarly, the global Data
Center Infrastructure Management (DCIM) solutions market is
expanding, fueled by the need for enhanced monitoring and
management of data center operations. The global data center
general construction market is also on the rise, supported by the
surge in data center projects worldwide. These markets are
propelled by advancements in technology, rising data consumption,
and the need for robust data management infrastructure.
Research Analysis
The Data Center Colocation and Managed Hosting Services market
is experiencing significant growth due to the increasing demand for
secure and efficient data management solutions. With the rise of
remote work solutions, hybrid work models, and IoT devices, the
need for reliable and secure data center infrastructure has become
crucial for businesses of all sizes. Cybersecurity is a top
priority, with IT security professionals focusing on data security,
endpoint security, and network monitoring to protect sensitive
information. Artificial intelligence and automation are also
driving innovation in the market, enabling operational efficiency
and improved customer experiences. Deployment models, such as
public, private, and hybrid, are differentiating offerings and
catering to various industry needs. HIPAA compliance is a key
consideration for healthcare and pharmaceuticals, while enterprises
across industries seek a competitive edge through advanced data
center solutions. The market expansion is fueled by the growing
importance of client relationships and the need for a competitive
edge in today's digital landscape. Data center providers must
continuously adapt to evolving technologies and customer demands to
meet the unique needs of their clients and stay ahead of the
competition.
Market Research Overview
In the digital age, businesses increasingly rely on Data Center
Colocation and Managed Hosting Services to manage their IT
infrastructure and deliver superior customer experiences. Cloud
computing enables businesses to store, manage, and process data
remotely, enhancing operational efficiency and reducing overhead
costs. Cybersecurity is a top priority, with IT security
professionals addressing cyber threats, data leakage, malware, and
attack surfaces through cyber hardening and endpoint security. The
market ecosystem includes various verticals such as IT &
telecom, manufacturing, retail & consumer goods, healthcare
& life sciences, energy & utilities, media &
entertainment, and more. Hybrid work models and distributed teams
require robust network monitoring and business continuity
solutions. Pricing pressures and differentiation are key
challenges, with IT executives seeking a competitive edge through
DCaaS offerings. The industry expansion is driven by the Metaverse
concept, IoT devices, artificial intelligence, automation, and the
growing importance of data management in various industries. Key
verticals like healthcare and pharmaceuticals, enterprises, and the
retail industry are adopting these services for digital services,
online customer experiences, e-commerce, and mobile shopping apps.
Physical infrastructure, HIPAA compliance, and availability are
crucial considerations, with service-level agreements ensuring
business continuity and uptime. The market is also influenced by
industry trends like the rise of social media, eBay, Amazon, and
other online retail giants, which require robust and secure hosting
solutions to manage transaction history and customer data. As the
market evolves, businesses must stay informed about the latest
cybersecurity threats and best practices to maintain a competitive
edge.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- End-user
-
- BFSI
- Healthcare
- E-commerce
- Telecommunication
- Others
- Type
-
- Geography
-
- North America
- Europe
- APAC
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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