Data center colocation market is anticipated to grow continuously

With its several advantages to enterprises, the global data center colocation market size is expected to reach $51.8 billion by 2020.

The colocation hosting service allows small and large enterprises to install their servers or hire a server on rent at a data center service provider’s location. In other words, customers rent space within the data center or colocation site but maintain ownership and control of all hardware and software settings for that server. Because of the increasing need for cost-effective solutions for the development and maintenance of data centers shortly, the global colocation market is expected to grow.

Better management and security advantages

Thanks to colocation hosting, enterprises can more focus on the core business and increase business potential by reducing operational expenditure. Security advantage is one of the big reasons for a company to choose colocation hosting. In addition to this, colocation hosting provides high bandwidth and low latency, Unlimited power, on-premises monitoring, advanced climate control systems, and better management.

Awareness of reducing carbon footprint augments market size

There are several global colocation market industry analyses. In brief, they show that the market size of the colocation market is continuing to grow for the next years. According to Allied Market Research’s Data Center Colocation Market Global Opportunity Analysis and Industry Forecast, 2014 – 2020, the data center colocation market for the energy sector would exhibit the highest CAGR (Compound Annual Growth Rate) of 14.3% during the forecast period 2015-2020.

Awareness towards the reduction of carbon footprints is growing and this affects the data center colocation market and has a major impact on the colocation market size. Also, saving the room space requirement and cost of cooling and heating along with the need for IT expertise are the other reasons the growth of the data center colocation market.

North America is at the top

According to Acquire Market Research, North America, Europe, and Asia Pacific are the top 3 regions for the colocation hosting market. USA, United Kingdom, Brazil, Germany, China, and India are the major countries that push colocation hosting in the world.

While North America has dominated the global colocation market, with the rapid industrialization in countries such as China, India, and Japan, the Asia-Pacific region will represent the highest growth in the colocation market.

Additionally, the e-trading sector in Asia Pacific tends to grow in the global market. This region holds potential prospects for trading associations looking to upgrade their network and access colocation services.

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