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Colocation Market by Type (Retail Colocation and Wholesale Colocation), End-User (Large Enterprises and Small and Medium Enterprises) and Industry Vertical (BFSI, Government & Public sector, Telecom & IT, Healthcare & Life sciences, Energy) - Global Opportunity Analysis and Industry Forecast, 2014 - 2020
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IC_15338
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Pages: 128
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Jul
2015 |
10411 Views
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Author(s) :
Swapnil Shende
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Tables: 35
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Charts: 49
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Formats*:
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Data Center Colocation Market Overview:
Data Center Colocation Market is expected to garner $51.8 billion by 2020, registering a CAGR of 12.4% during the forecast period 2015-2020. Data center colocation market for energy sector would exhibit highest CAGR of 14.3% during the forecast period. Colocation hosting is a service that allows small and large enterprises to install their servers (or hire a server on rent) at a data center service provider’s location.
It helps in increasing business potential by reducing operational expenditure and maximizes the ability to focus on the core business. Growing awareness towards reduction of carbon footprints is a key factor driving the data center colocation market and has a major impact on the colocation market size. Additionally, cost effective solution for enterprises as compared to storing their server at their own premises that saves the room space requirement and cost of cooling and heating along with the need for IT expertise is fueling the growth of data center colocation market. Majority of colocation service providers in the industry are adopting expansion strategies to address the increasing demand for colocation data centers from each of the industry verticals. For instance, in May 2015 Interxion has entered into a partnership with Microsoft to provide Azure ExpressRoute solutions at its colocation data center for deployment of Microsoft cloud.
The key players included in the report are Equinix, Inc, Interxion Holding NV, SunGuard Availability Services, CenturyLink Technology Solutions, Verizon Communication Ltd, KDDI Corporation, NTT Data Corporation, American Telephone & Telegraph, Inc, Telecity Group, Global Switch Corporation, DuPont Fabros Technology, Inc, Digital Reality, Rackspace, and Navisite, Inc.
Segment Review
The global data center colocation market is segmented based on type, end-user, industry vertical and geography. By type the market is segmented into Retail colocation and Wholesale colocation. Currently, Retail colocation has relatively high market share compared to wholesale colocation. The technological advancements in colocation facilities, realization of higher in-house IT cost and situation of internal data canter saturation in organizations is driving the demand for retail colocation.
Based on end user, the market is segmented into Large Enterprises and Small and medium enterprises (SME). The large organization are having a higher market share than SME segment. The colocation market share of large organizations is more as they have opted colocation services on a large scale. Further, colocation market is segmented based on industry vertical including Telecom and IT, BFSI, Government and Public sector, Healthcare and Life sciences, Energy and Other verticals. The Other verticals includes retail and education. Telecom and IT is the highest revenue generating industry for colocation followed by BFSI and Healthcare & Life sciences. Geographically, the data center colocation market is segmented into North America, Europe, Asia Pacific and LAMEA.
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Asia-pacific Colocation Market Scenario
Asia-Pacific region has emerged as a dynamic hub for E-trading, globally. The Asia Pacific holds potential prospects for trading associations looking to upgrade their network and access colocation services. In Asia-Pacific region India accounts for highest number of data centers owing to the increasing demand from Telecom, IT, BFSI, and social media sectors in the country. Following diagram shows the data center statistics of 2013.
Asia-pacific- Data Center Statistics, 2013 (Units)
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Value Chain Analysis
The value chain analysis of the global colocation industry includes various stakeholders involved in the distribution of these services to end users. Each of these players share a specific value at their point of operation, which in turn, contributes to the competitive value of the product.
Value Chain Analysis
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Value chain for the colocation market can be split into three phases. Phase I consists of data center equipment manufacturers including rack and cage manufacturers, cooling equipment manufacturers, power equipment manufacturers, networking equipment manufacturers and others. It also consists of power supply companies and high-bandwidth internet service providers. Phase II consists of colocation service providers and phase III encompasses the end users or the organizations that avail colocation services.
Phase I representatives’ act as vendors, offering products and services integral for building the physical infrastructure for colocation services. In case of wholesale colocation, racks and cages for a colocation data center are built as per the requirement for customer’s data servers.
Colocation services are type of data centers that lease hardware space and networking bandwidth to organizations that need a system administration supplier at a reasonable expense. Organizations could spend a little fortune making a private data center infrastructure, but by taking advantage of colocation services, these organizations can lease the administration of data centers they require, without needing to make the communication framework themselves.
While these data centers are offering server space and expansive networking capability, it is important to understand that colocation facilities are not just online. These facilities are the physical structures used to carry and maintain data centers and ideally located near significant power hubs where they can take advantage of the accessible connectivity.
Key Benefits
- Current and future colocation market trends adopted by the key market players are highlighted to determine overall competitiveness of the market.
- Porter’s Five Forces analysis and SWOT analysis of the key market players are provided to illustrate the business strategies adopted by buyers and suppliers.
- Value chain analysis provides key inputs on the role of all key intermediaries in the market which would better help in devising appropriate strategies
- The effective drivers and opportunities are highlighted to describe the top factors responsible for the colocation market growth.
- The quantitative analysis of the market through 2014-2020 is provided to elaborate the market potential in the colocation industry.
Colocation Market Key Segments:
The market is segmented by type, end user, industry vertical, and geography.
By Type
- Retail Colocation
- Wholesale Colocation
By End-user
- Large Enterprises
- Small and Medium Enterprises (SME)
By Industry Vertical
- BFSI
- Government & Public sector
- Telecom & IT
- Healthcare & Life sciences
- Energy
- Others
By Geography
- North America
- Europe
- Asia Pacific
- LAMEA
Key Market Players Profiled
- Equinix, Inc.
- Interxion Holding NV
- SunGuard Availability Services
- CenturyLink Technology Solutions
- Verizon Communication Ltd
- KDDI Corporation
- NTT Data Corporation
- American Telephone & Telegraph, Inc.
- Telecity Group
- Global Switch Corporation
- DuPont Fabros Technology, Inc.
- Digital Reality
- Rackspace
- Navisite, Inc.
CHAPTER 1 INTRODUCTION
1.1 Report Description
1.2 Key Benefits
1.3 Key Market Segments
1.4 Research Methodology
1.4.1 Secondary Research
1.4.2 Primary Research
1.4.3 Analyst Tools and Models
CHAPTER 2 EXECUTIVE SUMMARY
2.1 CXO Perspective
2.2 Market Beyond: What to Expect by 2025
2.2.1 Moderate Case Scenario
2.2.2 Rapid Case Scenario
2.2.3 Diminishing Case Scenario
CHAPTER 3 MARKET OVERVIEW
3.1 Market Definition and Scope
3.2 Key Findings
3.2.1 Top Impacting Factors
3.2.2 Top Investment Pockets
3.2.3 Top Winning Strategies
3.3 Porter’s Five Forces Model
3.3.1 Lower Switching Cost and Bulk Purchase Lead to Lower Bargaining Power of Suppliers
3.3.2 Buyers’ Higher Price Sensitivity Coupled With High Switching Cost Leads to Moderate Bargaining Power of the Buyers
3.3.3 High Initial Investment Coupled With Required Brand Position Maintains Moderate Threat of New Entrants
3.3.4 Continuing Technological Advancements Indicate High Threat from Substitution
3.3.5 Large Number of Competitors Coupled With Requirement of Significant Brand Position, Maintains the Moderate Rivalry among the Competitors
3.4 Value Chain Analysis
3.5 Market Share Analysis, 2014
3.6 Case Studies
3.7 Market Dynamics
3.7.1 Drivers
3.7.1.1 Shrinking IT Budgets Tied with High Cost Associated with Development of Dedicated Data Center
3.7.1.2 Realising Value Proposition of Colocation Facilities
3.7.1.3 Growing Realisation Towards Reduction of Carbon Foot Prints
3.7.2 Restraints
3.7.2.1 Slow Network Connectivity Limiting the Access
3.7.2.2 Costlier for Larger Companies with Huge Data Servers
3.7.2.3 Costly Internet Bandwidth
3.7.3 Opportunities
3.7.3.1 Adoption of Virtualization and Cloud Computing
CHAPTER 4 GLOBAL COLOCATION MARKET BY TYPE
4.1 Retail Colocation
4.1.1 Key Market Trend
4.1.2 Competitive Scenario
4.1.3 Key Growth Factors and Opportunities
4.1.4 Market Estimation and Forecast
4.2 Wholesale Colocation
4.2.1 Key Market Trends
4.2.2 Competitive Scenario
4.2.3 Key Growth Factors and Opportunities
4.2.4 Market Estimation and Forecast
CHAPTER 5 GLOBAL COLOCATION MARKET BY END USER
5.1 Small-Medium Enterprises
5.1.1 Market Estimation and Forecast
5.2 Large Enterprises
5.2.1 Market Estimation and Forecast
CHAPTER 6 GLOBAL COLOCATION MARKET BY INDUSTRY VERTICALS
6.1 Banking, Financial Services and Insurance (BFSI)
6.1.1 Key Market Trends
6.1.2 Key Growth Factors and Opportunities
6.1.3 Market Estimation and Forecast
6.2 Government and Public Sector
6.2.1 Key Market Trends
6.2.2 Key Growth Factors and Opportunities
6.2.3 Market Estimation and Forecast
6.3 Telecom and IT
6.3.1 Key Market Trends
6.3.2 Key Growth Factors and Opportunities
6.3.3 Market Estimation and Forecast
6.4 Energy
6.4.1 Key Market Trends
6.4.2 Key Growth Factors and Opportunities
6.4.3 Market Estimation and Forecast
6.5 Healthcare and Life Sciences
6.5.1 Key Growth Factors
6.5.2 Key Growth Factors and Opportunities
6.5.3 Market Estimation and Forecast
6.6 Others
6.6.1 Key Market Trends
6.6.2 Key Growth Factors and Opportunities
6.6.3 Market Estimation and Forecast
CHAPTER 7 GLOBAL COLOCATION MARKET BY GEOGRAPHY
7.1 North America
7.1.1 Key Market Trends
7.1.2 Competitive Scenario
7.1.3 Key Growth Factors and Opportunities
7.1.4 Market Estimation and Forecast
7.2 Europe
7.2.1 Key Market Trends
7.2.2 Competitive Scenario
7.2.3 Key Market Growth and Opportunities
7.2.4 Market Estimation and Forecast
7.3 Asia-Pacific
7.3.1 Key Market Trends
7.3.2 Competitive Scenario
7.3.3 Key Market Growth and Opportunities
7.3.4 Market Estimation and Forecast
7.4 LAMEA
7.4.1 Key market trends
7.4.2 Competitive Scenario
7.4.3 Key Growth Factors and Opportunities
7.4.4 Market Estimation and Forecast
CHAPTER 8 COMPANY PROFILES
8.1 Equinix, Inc.
8.1.1 Company Overview
8.1.2 Company Snapshot
8.1.3 Business Performance
8.1.4 Strategic Moves and Developments
8.1.5 SWOT Analysis of Equinix, Inc.
8.2 Interxion Holding NV
8.2.1 Company Overview
8.2.2 Company Snapshot
8.2.3 Business Performance
8.2.4 Strategic Moves and Developments
8.2.5 SWOT Analysis of Interxion
8.3 SunGard Availability Services
8.3.1 Company Overview
8.3.2 Company Snapshot
8.3.3 Strategic Moves and Developments
8.3.4 SWOT Analysis of SunGard Availability Services
8.4 CenturyLink Technology Solutions
8.4.1 Company Overview
8.4.2 Company Snapshot
8.4.3 Business Performance
8.4.4 Strategic Moves and Developments
8.4.5 SWOT Analysis of CenturyLink Technology Solutions
8.5 Verizon Communication Ltd.
8.5.1 Company Overview
8.5.2 Company Snapshot
8.5.3 Business Performance
8.5.4 Strategic Moves and Developments
8.5.5 SWOT Analysis of Verizon Communication Ltd.
8.6 KDDI Corporation
8.6.1 Company Overview
8.6.2 Company Snapshot
8.6.3 Business Performance
8.6.4 Strategic Moves and Developments
8.6.5 SWOT Analysis of KDDI Corporation
8.7 NTT DATA Corporation
8.7.1 Company Overview
8.7.2 Company Snapshot
8.7.3 Business Performance
8.7.4 Strategic Moves and Developments
8.7.5 SWOT Analysis of NTT Data Corporation
8.8 American Telephone & Telegraph Systems, Inc (AT&T)
8.8.1 Company Overview
8.8.2 Company Snapshot
8.8.3 Business Performance
8.8.4 Strategic Moves and Developments
8.8.5 SWOT Analysis of American Telephone & Telegraph Systems (AT&T), Inc.
8.9 Telecity Group
8.9.1 Company Overview
8.9.2 Company Snapshot
8.9.3 Business Performance
8.9.4 Strategic Moves and Developments
8.9.5 SWOT Analysis of Telecity Group
8.10 Global Switch Corporation
8.10.1 Company Overview
8.10.2 Company Snapshot
8.10.3 Business Performance
8.10.4 Strategic Moves and Developments
8.10.5 SWOT Analysis of Global Switch Corporation
8.11 DuPont Fabros Technology, Inc.
8.11.1 Company Overview
8.11.2 Company Snapshot
8.11.3 Business Performance
8.11.4 Strategic Moves and Developments
8.11.5 SWOT Analysis of DuPont Fabros Technology, Inc.
8.12 Digital Realty
8.12.1 Company Overview
8.12.2 Company Snapshot
8.12.3 Business Performance
8.12.4 Strategic Moves and Developments
8.12.5 SWOT Analysis of Digital Realty
8.13 Rackspace
8.13.1 Company Overview
8.13.2 Company Snapshot
8.13.3 Business Performance
8.13.4 Strategic Moves and Developments
8.13.5 SWOT Analysis of Rackspace
8.14 NaviSite, Inc.
8.14.1 Company Overview
8.14.2 Company Snapshot
8.14.3 Strategic Moves and Developments
8.14.4 SWOT Analysis of Navisite, Inc.
LIST OF TABLES
TABLE 1 GLOBAL COLOCATION MARKET REVENUE BY GEOGRAPHY, 20142020 ($MILLION)
TABLE 2 GLOBAL COLOCATION MARKET REVENUE MODERATE GROWTH SCENARIO, 20202025 ($MILLION)
TABLE 3 GLOBAL COLOCATION MARKET REVENUE RAPID GROWTH SCENARIO, 20202025 ($MILLION)
TABLE 4 GLOBAL COLOCATION MARKET REVENUE DIMINISHING GROWTH SCENARIO, 20202025 ($MILLION)
TABLE 5 GLOBAL COLOCATION MARKET BY TYPE, 2014 - 2020 ($MILLION)
TABLE 6 RETAIL COLOCATION MARKET BY GEOGRAPHY, 2014 - 2020 ($MILLION)
TABLE 7 WHOLESALE COLOCATION MARKET BY GEOGRAPHY, 2014 - 2020 ($MILLION)
TABLE 8 GLOBAL COLOCATION MARKET BY END USER, 2014 - 2020 ($MILLION)
TABLE 9 GLOBAL SMALL-MEDIUM BUSINESS COLOCATION MARKET BY GEOGRAPHY, 2014 - 2020 ($MILLION)
TABLE 10 GLOBAL LARGE BUSINESS COLOCATION MARKET BY GEOGRAPHY, 2014 - 2020 ($ MILLION)
TABLE 11 GLOBAL COLOCATION MARKET BY INDUSTRY VERTICALS, 2014 - 2020 ($MILLION)
TABLE 12 GLOBAL COLOCATION MARKET FOR BANKING, FINANCIAL AND INSURANCE (BFSI) SECTOR, 2014 - 2020 ($MILLION)
TABLE 13 GLOBAL COLOCATION MARKET FOR GOVERNMENT AND PUBLIC SECTOR, 2014 - 2020 ($MILLION)
TABLE 14 GLOBAL COLOCATION MARKET FOR TELECOM & IT SECTOR, 2014 - 2020 ($MILLION)
TABLE 15 GLOBAL COLOCATION MARKET FOR ENERGY SECTOR, 2014 - 2020 ($MILLION)
TABLE 16 GLOBAL COLOCATION MARKET FOR HEALTHCARE AND LIFE SCIENCE SECTOR, 2014 - 2020 ($MILLION)
TABLE 17 GLOBAL COLOCATION MARKET FOR OTHERS SECTORS, 2014 - 2020 ($MILLION)
TABLE 18 NORTH AMERICA COLOCATION MARKET BY SOLUTION, 2014 - 2020 ($MILLION)
TABLE 19 EUROPE COLOCATION MARKET BY SOLUTION, 2014 - 2020 ($MILLION)
TABLE 20 ASIA-PACIFIC COLOCATION MARKET BY SOLUTION, 2014 - 2020 ($MILLION)
TABLE 21 LAMEA COLOCATION MARKET BY SOLUTION, 2014 - 2020 ($MILLION)
TABLE 22 EQUINIX, INC. SNAPSHOT
TABLE 23 INTERXION SNAPSHOT
TABLE 24 SUNGARD AVAILABILITY SERVICES SNAPSHOT
TABLE 25 CENTURYLINK TECHNOLOGY SOLUTIONS SNAPSHOT
TABLE 26 VERIZON COMMUNICATION LTD. SNAPSHOT
TABLE 27 KDDI-TELEHOUSE CORPORATION SNAPSHOT
TABLE 28 NTT DATA CORPORATION SNAPSHOT
TABLE 29 AMERICAN TELEPHONE & TELEGRAPH SYSTEMS SNAPSHOT
TABLE 30 TELECITY GROUP SNAPSHOT
TABLE 31 GLOBAL SWITCH CORPORATION SNAPSHOT
TABLE 32 DUPONT FABROS TECHNOLOGY, INC. SNAPSHOT
TABLE 33 DIGITAL REALTY SNAPSHOT
TABLE 34 RACKSPACE SNAPSHOT
TABLE 35 NAVISITE, INC. SNAPSHOT
LIST OF FIGURES
FIG. 1 TOP IMPACTING FACTORS, MODERATE GROWTH SCENARIO (20202025)
FIG. 2 TOP IMPACTING FACTORS, RAPID GROWTH SCENARIO (20202025)
FIG. 3 TOP IMPACTING FACTORS, DIMINISHING GROWTH SCENARIO (20202025)
FIG. 4 TOP IMPACTING FACTORS
FIG. 5 TOP INVESTMENT POCKETS
FIG. 6 TOP WINNING STRATEGIES, 2014
FIG. 7 PORTERS FIVE FORCES ANALYSIS
FIG. 8 VALUE CHAIN ANALYSIS
FIG. 9 MARKET SHARE ANALYSIS, 2014
FIG. 10 RETAIL MARKET SHARE BY GEOGRAPHY, 2014
FIG. 11 US RETAIL COLOCATION MARKET, 2014
FIG. 12 NORTH AMERICA- DATA CENTER STATISTICS
FIG. 13 NORTH AMERICA-WHITE SPACE STATISTICS IN THOUSANDS SQUARE METERS
FIG. 14 NORTH AMERICA-COLOCATION-MARKET SHARE ANALYSIS, Q3-2013
FIG. 15 WESTERN EUROPE-DATA CENTER STATISTICS
FIG. 16 ASIA-PACIFIC- DATA CENTER STATISTICS
FIG. 17 LAMEA-DATA CENTER STATISTICS
FIG. 18 REVENUE OF EQUINIX, INC., ($MILLION, 2012 - 2014)
FIG. 19 REVENUE OF EQUINIX, INC. IN PERCENT, BY GEOGRAPHY, 2014
FIG. 20 SWOT ANALYSIS OF EQUINIX, INC.
FIG. 21 REVENUE OF INTERXION, ($MILLION, 2012 - 2014)
FIG. 22 REVENUE OF INTERXION IN PERCENTAGE BY GEOGRAPHY, 2013
FIG. 23 SWOT ANALYSIS OF INTERXION
FIG. 24 SWOT ANALYSIS OF SUNGARD AVAILABILITY SERVICES
FIG. 25 REVENUE OF CENTURYLINK TECHNOLOGY SOLUTIONS, ($MILLION, 2012 - 2014)
FIG. 26 REVENUE OF CENTURYLINK TECHNOLOGY SOLUTIONS IN PERCENT, BY BUSINESS SEGMENT, 2014
FIG. 27 SWOT ANALYSIS OF CENTURYLINK TECHNOLOGY SOLUTIONS
FIG. 28 REVENUE OF VERIZON COMMUNICATION LTD ($MILLION, 2012 - 2014)
FIG. 29 SWOT ANALYSIS OF VERIZON COMMUNICATION LTD.
FIG. 30 REVENUE OF KDDI TELEHOUSE CORPORATION ($MILLION, 2012 - 2014)
FIG. 31 REVENUE OF KDDI IN PERCENT BY BUSINESS SEGMENT, 2014
FIG. 32 SWOT ANALYSIS OF KDDI TELEHOUSE CORPORATION
FIG. 33 REVENUE OF NTT DATA CORPORATION ($MILLION, 2012 - 2014)
FIG. 34 SWOT ANALYSIS OF NTT DATA CORPORATION
FIG. 35 REVENUE OF AMERICAN TELEPHONE & TELEGRAPH SYSTEMS ($MILLION, 2012 - 2014)
FIG. 36 SWOT ANALYSIS OF AMERICAN TELEPHONE & TELEGRAPH SYSTEMS
FIG. 37 REVENUE OF TELECITY GROUP ($MILLION, 2012 - 2014)
FIG. 38 SWOT ANALYSIS OF TELECITY GROUP
FIG. 39 REVENUE OF GLOBAL SWITCH CORPORATION ($MILLION, 2012 - 2014)
FIG. 40 REVENUE OF GLOBAL SWITCH CORPORATION IN PERCENT BY OPERATING SEGMENT, 2013
FIG. 41 SWOT ANALYSIS OF GLOBAL SWITCH CORPORATION
FIG. 42 REVENUE OF DUPONT FABROS TECHNOLOGY, INC ($MILLION, 2012 - 2014)
FIG. 43 SWOT ANALYSIS OF DUPONT FABROS TECHNOLOGY, INC
FIG. 44 REVENUE OF DIGITAL REALTY ($MILLION, 2011-2013)
FIG. 45 SWOT ANALYSIS OF DIGITAL REALTY
FIG. 46 REVENUE OF RACKSPACE ($MILLION, 2012 - 2014)
FIG. 47 REVENUE OF RACKSPACE IN PERCENT BY OPERATING SEGMENT, 2014
FIG. 48 SWOT ANALYSIS OF RACKSPACE
FIG. 49 SWOT ANALYSIS OF NAVISITE, INC.
The global colocation market is expected to grow swiftly due to the increasing need of cost-effective solutions for development and maintenance of data centers in near future. A priori, enterprises maintained their own data centers, incurring huge capital expenditure and massive operating expenses for their operation and maintenance. However, the advent of colocation facilities has encouraged organizations to co-locate their data servers to commercial data centers of colocation service providers.
The retail colocation market was accounted as the highest revenue-generating segment due to growing need of global distribution of data servers of small and medium sized and large enterprises. The market for wholesale colocation forecast a high growth in future with the expanded set of customer base.
North America has dominated the global colocation market across the world. The advent of large number of enterprises and prompt adoption of digitalization are the supporting factors for the colocation market in North America. However, 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.
The advent of colocation services has facilitated enterprises to rely on service providers for the physical security of their data servers; thereby, enabling them to focus on their core business activities. Adoption of colocation facilities has helped in tackling the issue of carbon footprint. Thus, these factors have cumulatively bolstered the growth of the colocation market.
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