Colocation Edge Data Center Market revenue to cross USD 25 Bn by 2028: Global Market Insights Inc.


The colocation edge data center market size is anticipated to record a valuation of USD 25 billion by 2028, according to the most recent study by Global Market Insights Inc.  The market growth can be attributed to the increasing demand for robust IT infrastructures that enable efficient data management at optimum costs.

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The increasing demand for retail colocation that offers highly a secure space in a multi-tenant data center will help in the colocation edge data center market expansion. These environments are easily deployable and allow businesses to expand their IT infrastructure footprints while maintaining the highest levels of security and operational dependability regarding mission-critical data. Colocation edge data center service providers offer server security, storage, cooling, power, and networking equipment to customers. Retail colocation companies cater to large geographies while offering managed services, on-site employees, and carrier & cloud connections. SMEs with limited budgets are increasingly using retail colocation services to leverage the benefits of cost-efficient & high-quality edge data centers with increased scalability.

To deliver better services to their residents, governments are adopting digital technologies. They gather and store large amounts of sensitive & confidential data, which must be safeguarded and managed to prevent data breaches and losses. As municipal and state government services become increasingly digital, IT specialists are required to manage complex systems, thereby boosting the demand for colocation edge data centers that enable high-speed data processing. The increasing use of digital technologies will stimulate the demand for efficient edge data centers in data management. Upgrading to colocation edge data centers can help government organizations in saving money & energy while improving operational efficiency to offer secured services to citizens.

The increasing digitalization of the banking sector in North America is driving the colocation edge data center market progression. With the surging use of online banking, mobile wallets, and smart card-based payments, there is a rising demand for effective data management systems. Banks and financial institutions are progressively storing & processing sensitive consumer information, thereby fostering the demand for robust IT infrastructure. Increased capacity and throughput are required for mission-critical systems, high-bandwidth applications, and online transaction activities including digital transfers. The colocation edge data center provides effective & dependable assistance for banking applications. It also helps banks and financial institutions to efficiently plan for disaster recovery, thereby enabling business continuity.

The prominent companies operating in the colocation edge data center market include China Telecom Global Limited, Digital Realty Trust, Inc., Eaton Corporation PLC, Emtel, Equinix, Inc., Fujitsu Limited, Hewlett-Packard, IBM Corporation, KDDI Corporation, NTT Communications Corporation, Ltd., Rackspace Inc., Schneider Electric SE, Singapore Telecommunications Limited, Teraco Data Environments, Verizon Communications Inc., and Vertiv Group Corp.

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Some of the major findings of the colocation edge data center market report are:

  • The increasing use of dependable, scalable, and secure IT infrastructure for efficient data management and business continuity is accelerating the colocation edge data center market value. Colocation offers higher cost benefits and data management capabilities as compared to building & maintaining exclusively owned data center facilities.
  • Government organizations focusing on the expansion of the energy sector to support the demand for colocation edge data centers. Data centers offer robust data storage & processing infrastructure for large data volumes generated from seismic interpretation, unconventional systems engineering, and well-path planning.
  • The growing demand for retail colocation that provides a secure space in a multi-tenant data center will augment the colocation edge data center market demand. Customers are increasingly using retail colocation services to leverage the benefits of high-quality edge data center services with increased scalability at optimum prices.
  • The need for colocation edge data centers is growing as they allow large enterprises to lease large floor spaces that are close to customers while scaling up IT infrastructure. Colocation allows major enterprises to focus on their core businesses rather than on edge data center maintenance & upgrades. It also helps to efficiently manage & maintain large volumes of data.
  • The rising number of online shoppers is resulting in increased data traffic. This factor has encouraged investments in IT infrastructure, particularly in data centers. Several retailers are switching to colocation edge data centers to reduce operational IT expenses.

Table of Contents (ToC) of the report:

Chapter 3 Colocation Edge Data Center Market Insights

3.1  Industry segmentation

3.2  Impact of coronavirus (COVID-19) pandemic

3.2.1  Global outlook

3.2.2  Regional outlook

3.2.3  Industry value chain  Component providers  Manufacturer/service providers  System integration  Distribution channel

3.2.4  Competitive landscape  Strategy  Distribution network  Business growth

3.3  Industry ecosystem analysis

3.3.1  Raw material providers

3.3.2  Component suppliers

3.3.3  Colocation providers

3.3.4  Technology providers

3.3.5  System integrator

3.3.6  Service providers

3.3.7  Distributors

3.3.8  Vendor matrix

3.4  Technological & innovation landscape

3.4.1  Network Functions Virtualization (NFV)

3.4.2  Software-Defined Networking (SDN)

3.4.3  Edge computing

3.4.4  Impact of IoT

3.5  Regulatory landscape

3.6  Industry impact forces

3.6.1  Growth drivers

3.6.2  Industry pitfalls & challenges

3.7  Growth potential analysis

3.8  Porter’s analysis

3.9  PESTEL analysis

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