The global retail colocation market is projected to amass a revenue of around USD 27,554.0 million by 2032, up from USD 8,645.0 million in 2022, moving forward with a CAGR of 12.3% during the forecast period.
To enhance the colocation capabilities, security, and connectivity are the major factors that design and ensure that platform that safeguards the data from breaching while being connected to the global team. This makes business operations easy and smooth.
The uptime service-level agreement (SLA) makes sure that the infrastructure remains resilient while promoting flexible and consistent global settings. Local and global interconnection makes it exclusive for the brands, thriving the demand for retail colocation solutions.
The adoption of retail collocation solutions is expected to be fueled by the uninterrupted computing support of computing resources provided by it to enterprises. Moreover, retail colocation provides small and medium enterprises with security and flexibility.
| Report Attribute | Details |
|---|---|
| Retail Colocation Market Value (2022) | USD 8,645.0 Million |
| Retail Colocation Market Anticipated Forecast Value (2032) | USD 27,554.0 Million |
| Retail Colocation Market Projected Growth Rate (2022 to 2032) | 12.3% |
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North America currently holds the largest share of 28.2% in the market due to the presence of IT giants that require the latest set of technological advancements. Concepts like big data and artificial intelligence have made it easier for end users to feed the data into these systems. The United States provides outsourced retail colocation services.
European countries have also increased investment in the IT industry. Brands that integrate with government programs and deliver the optimum level of operability to them. The exponential growth of economies in the Asia-Pacific region has boomed the IT sector in India. Companies are adopting retail colocation on short leases to help in delivering the right set of information. This expands the global retail colocation market size.
The key features of retail colocation integrating with IDC services gain traction in the market. The features involve professional hardware facilities, stable application services, and secure data transmission. Competitors try to form a one-stop solution for all retail colocation services. For example, China Telecom provides professional IDC service that provides high-quality and convenient services around the world. Furthermore, global customization and flexible response are other important features that key players tend to provide, including professional response teams and customized solutions for specific industries. Lastly, high-end safety modules to prevent data theft scenarios make the vendor company end user’s first choice.
The demand for retail colocation is on the surge as retail colocation has gained enormous interest in the past few decades due to the increasing adoption of cloud and IoT technologies. In addition, the rising adoption of retail colocation can be attributed to the growing need for enterprises to operate through technologies such as cloud and big data.
Business operational demands are spiking among enterprises to reduce capital & operational expenditure, manage network dynamics, control traffic flow, and scale up retail infrastructure efficiently, boosting the retail colocation market growth.
Retail colocation is a setup where enterprises lease part of a data center facility to meet their computing requirements, and the demand for retail colocation is soaring as it provides various services, including power, space, cooling, cabling, and support. The data center facility is hosted by a single vendor, and multiple end-users can access the services provided by the vendor.
The adoption of retail colocation is expected to be fuelled by the uninterrupted computing support of computing resources provided by it to enterprises. Moreover, retail colocation provides small and medium enterprises with security and flexibility, and due to this, the retail colocation market size is likely to expand during the forecast period.
Principal Consultant
The rise in the number of users opting for cost-effective and energy-efficient retail colocation solutions is anticipated to augur well for the retail colocation market's future trends.
Also, the spiking demand for retail colocation is also aided by the requirement for reliability, security, and scalability of infrastructure and growing data center complexities. Moreover, many retail colocation providers are being welcomed by the government to establish their facilities, and this is considered one of the major factors supporting the rapid adoption of retail colocation.
The retail colocation market size enlarges due to the fact that these solutions enable service providers to serve a sizable clientele base with staff, managed services, and on-site service. These services are typically obtained from organizations that don't deal with massive amounts of data, have no plans for expanding their data storage, only need a small amount of storage for a short time, and don't require large amounts of storage.
Additionally, this model enables organizations to spread out their data storage across multiple centers located across different states, provinces, and even entire nations, shaping the retail colocation market trends. On the flip side, the adoption trends of retail colocation are negatively affected by the high implementation cost of retail colocation services.
Retailers in the area are updating their websites to comply with the new business trends as a result of the sudden rise in online orders, contributing to the North American retail colocation market share of 28.2% in 2022.
Small retailers are concentrating on converting their physical stores to online stores, driving demand for affordable retail colocation services to meet their sparse IT needs, in turn, influencing the market in the region. The necessary platform for these developments is being provided by a number of software vendors, data center colocation vendors in the market landscape, and system integrators.
Small retailers with limited resources advocate for retail colocation services more and more in order to take advantage of the benefits of high-quality data center facilities at reasonable costs. Additionally, the expansion of the regional marketplace is being aided by rising e-trade sales in the United States, thereby improving the retail colocation market trends and forecasts.
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By 2022, Europe is anticipated to capture a retail colocation market share of 23.8%, owing to digital transformation and business trends, such as contactless payments and online banking in the BFSI sector in Germany. In addition to providing their clients with services like mobile banking, e-passbooks, online transactions, etc., banks are transforming their conventional formats.
The growing need for better IT infrastructure is fuelled in part by the exploding amount of data, which is fostering the retail colocation market expansion.
According to research firm IDC, the global edge computing market is expected to reach USD 250 billion by 2024. This opens the door for a large number of edge computing start-ups to help companies looking to gather, secure, and process the massive amount of data being generated at the edge.
The edge, however, still has a wide range of meanings for numerous businesses and start-ups. Due to the COVID-19 pandemic, some businesses will need to expand computing, storage, and data analytics to new locations like hospital parking lots or curbside locations for retail locations.
Colocation services are provided by a start-up platform, CyrusOne, for large data centers. Connectivity, disaster recovery, and managed services are all provided by the platform, founded in 2000. Colocation cabinets, colocation cages, and network connectivity are among the services it offers.
The start-up provides services to the retail, financial services, energy, healthcare, media and entertainment, and technology sectors. Added to that, it provides options for cloud deployment.
The prominent players in the retail colocations market are AT&T Inc., China Telecom, Cogent Communications, Contegix, CoreSite Realty Corporation, Cyxtera Technologies, Inc., Digital Realty Trust, Inc., Global Switch, and Internap. Interxion, NTT Communications Corporation, PhoenixNAP, Rahi Systems Inc, TeraGo Networks Inc., and Verizon are some other notable players in the market.
One of the recent developments in the retail colocation market is when Equinix, Inc. announced the opening of a data center in Melbourne, Australia, to meet demand from the government's smart city development plans and local customers' interconnection needs.
| Report Attribute | Details |
|---|---|
| Growth Rate | CAGR of 12.3% from 2022 to 2032 |
| Base Year for Estimation | 2021 |
| Historical Data | 2016 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | Revenue in USD Million and CAGR from 2022 to 2032 |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Industry, Region |
| Regions Covered | North America; Latin America; Europe; Eastern Europe; Asia Pacific excluding Japan; Japan; The Middle East and Africa |
| Key Countries Profiled | United States of America, Canada, Brazil, Argentina, Germany, United Kingdom, France, Spain, Italy, Nordics, BENELUX, Australia & New Zealand, China, India, ASIAN, GCC Countries, South Africa |
| Key Companies Profiled | AT&T Inc.; China Telecom; Cogent Communications; Contegix; CoreSite Realty Corporation; Cyxtera Technologies, Inc.; Digital Realty Trust, Inc.; Global Switch; Internap; Interxion; NTT Communications Corporation; PhoenixNAP; Rahi Systems Inc.; TeraGo Networks Inc.; Verizon |
| Customization | Available Upon Request |
The global retail colocation market is set to advance at a CAGR of 12.3% from 2022 to 2032.
North America is likely to hold a retail colocation market share of 28.2% in 2022.
The retail colocation market is predicted to account for USD 27,554.0 Million by 2032.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032 5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Product Type 5.1. IT & Telecom 5.2. Government and Defense 5.3. Healthcare 5.4. Energy 5.5. Manufacturing 5.6. Others 6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region 6.1. North America 6.2. Latin America 6.3. Europe 6.4. Asia Pacific 6.5. Middle East and Africa 7. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 8. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 9. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 10. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 11. Middle East and Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country 12. Key Countries Market Analysis 13. Market Structure Analysis 14. Competition Analysis 14.1. China Telecom 14.2. Cogent Communications 14.3. Contegix 14.4. CoreSite Realty Corporation 14.5. Cyxtera Technologies 14.6. Global Switch 14.7. Internap 14.8. Interxion 14.9. NTT Communications Corporation 14.10. PhoenixNAP 15. Assumptions & Acronyms Used 16. Research Methodology
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Retail Colocation Market
