Retail Colocation Market Outlook (2022 to 2032)

The global retail colocation market is projected to amass a revenue of around US$ 27,554.0 million by 2032, up from US$ 8,645.0 million in 2022, moving forward with a CAGR of 12.3% during the forecast period.

  • Retail colocation arrangement occurs when the customer leases capital space within a data center and rents their retail requirements, expanding the market boundaries.
  • In contrast, wholesale colocation is at a big stage. In laymen’s words, wholesale colocation leases out the whole data center, while retail colocation solutions are consumed by companies that require a small amount of space or hold a limited colocation budget. The rising IT startups have fueled the sales of retail colocation solutions.
  • Before opting for retail colocation, one needs to understand what factors need to be present while adopting these services. The end user should not be expecting certain services from the service provided, such as a lot of space, longer lease time, and big amounts of data in different geographic locations.
  • Companies that have a small number of IT, staff in place and want the IT services to be outsourced for a certain period of time are the most suitable for retail colocation.

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) US$ 8,645.0 Million
Retail Colocation Market Anticipated Forecast Value (2032) US$ 27,554.0 Million
Retail Colocation Market Projected Growth Rate (2022 to 2032) 12.3%

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How Rising IT businesses fuel the Demand for Retail Colocation Services in North America

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.

Professional Facilities with Integrated IDC Services become the game-changing factor for competitors

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.

Sudip Saha
Sudip Saha

Principal Consultant

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What are the Key Retail Colocation Market Dynamics?

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.

Why is North America Expected to Dominate the Retail Colocation Market?

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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What is the Growth Outlook for the Europe Retail Colocation Market?

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.

How is the Start-up Ecosystem in the Retail Colocation Market?

According to research firm IDC, the global edge computing market is expected to reach $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.

What is the Competition Landscape in the Retail Colocation Market?

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 Scope

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

Key Segments Profiled in the Retail Colocation Market Survey

By Industry:

  • IT & Telecom
  • Government and Defense
  • Healthcare
  • Energy
  • Manufacturing
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East and Africa

Frequently Asked Questions

What is the Growth Outlook for the Retail Colocation Market?

The global retail colocation market is set to advance at a CAGR of 12.3% from 2022 to 2032.

What is the Projected North America Retail Colocation Market Share?

North America is likely to hold a retail colocation market share of 28.2% in 2022.

What is the Future of Retail Colocation Market?

The retail colocation market is predicted to account for US$ 27,554.0 Million by 2032.

Table of Content

1. Executive Summary | Retail Colocation Market

    1.1. Global Market Outlook

    1.2. Demand-side Trends

    1.3. Supply-side Trends

    1.4. Technology Roadmap Analysis

    1.5. Analysis and Recommendations

2. Market Overview

    2.1. Market Coverage / Taxonomy

    2.2. Market Definition / Scope / Limitations

3. Market Background

    3.1. Market Dynamics

        3.1.1. Drivers

        3.1.2. Restraints

        3.1.3. Opportunity

        3.1.4. Trends

    3.2. Scenario Forecast

        3.2.1. Demand in Optimistic Scenario

        3.2.2. Demand in Likely Scenario

        3.2.3. Demand in Conservative Scenario

    3.3. Opportunity Map Analysis

    3.4. Product Life Cycle Analysis

    3.5. Supply Chain Analysis

        3.5.1. Supply Side Participants and Their Roles

            3.5.1.1. Producers

            3.5.1.2. Mid-Level Participants (Traders/ Agents/ Brokers)

            3.5.1.3. Wholesalers and Distributors

        3.5.2. Value Added and Value Created at Node in the Supply Chain

        3.5.3. List of Raw Material Suppliers

        3.5.4. List of Existing and Potential Buyers

    3.6. Investment Feasibility Matrix

    3.7. Value Chain Analysis

        3.7.1. Profit Margin Analysis

        3.7.2. Wholesalers and Distributors

        3.7.3. Retailers

    3.8. PESTLE and Porter’s Analysis

    3.9. Regulatory Landscape

        3.9.1. By Key Regions

        3.9.2. By Key Countries

    3.10. Regional Parent Market Outlook

    3.11. Production and Consumption Statistics

    3.12. Import and Export Statistics

4. Global Market Analysis 2017 to 2021 and Forecast, 2022 to 2032

    4.1. Historical Market Size Value (US$ Billion)Analysis, 2017 to 2021

    4.2. Current and Future Market Size Value (US$ Billion)Projections, 2022 to 2032

        4.2.1. Y-o-Y Growth Trend Analysis

        4.2.2. Absolute $ Opportunity Analysis

5. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Product Type

    5.1. Introduction / Key Findings

    5.2. Historical Market Size Value (US$ Billion)Analysis By Product Type, 2017 to 2021

    5.3. Current and Future Market Size Value (US$ Billion)Analysis and Forecast By Industry Type, 2022 to 2032

        5.3.1. IT & Telecom

        5.3.2. Government and defense

        5.3.3. Healthcare

        5.3.4. Energy

        5.3.5. Manufacturing

        5.3.6. others

    5.4. Y-o-Y Growth Trend Analysis By Product Type, 2017 to 2021

    5.5. Absolute $ Opportunity Analysis By Product Type, 2022 to 2032

6. Global Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Region

    6.1. Introduction

    6.2. Historical Market Size Value (US$ Billion)Analysis By Region, 2017 to 2021

    6.3. Current Market Size Value (US$ Billion)Analysis and Forecast By Region, 2022 to 2032

        6.3.1. North America

        6.3.2. Latin America

        6.3.3. Europe

        6.3.4. Asia Pacific

        6.3.5. Middle East and Africa

    6.4. Market Attractiveness Analysis By Region

7. North America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country

    7.1. Historical Market Size Value (US$ Billion)Trend Analysis By Market Taxonomy, 2017 to 2021

    7.2. Market Size Value (US$ Billion)Forecast By Market Taxonomy, 2022 to 2032

        7.2.1. By Country

            7.2.1.1. United Kingdom

            7.2.1.2. Canada

        7.2.2. By Product Type

    7.3. Market Attractiveness Analysis

        7.3.1. By Country

        7.3.2. By Product Type

    7.4. Key Takeaways

8. Latin America Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country

    8.1. Historical Market Size Value (US$ Billion)Trend Analysis By Market Taxonomy, 2017 to 2021

    8.2. Market Size Value (US$ Billion)Forecast By Market Taxonomy, 2022 to 2032

        8.2.1. By Country

            8.2.1.1. Brazil

            8.2.1.2. Mexico

            8.2.1.3. Rest of Latin America

        8.2.2. By Product Type

    8.3. Market Attractiveness Analysis

        8.3.1. By Country

        8.3.2. By Product Type

    8.4. Key Takeaways

9. Europe Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country

    9.1. Historical Market Size Value (US$ Billion)Trend Analysis By Market Taxonomy, 2017 to 2021

    9.2. Market Size Value (US$ Billion)Forecast By Market Taxonomy, 2022 to 2032

        9.2.1. By Country

            9.2.1.1. Germany

            9.2.1.2. United Kingdom

            9.2.1.3. France

            9.2.1.4. Spain

            9.2.1.5. Italy

            9.2.1.6. Russia

            9.2.1.7. Rest of Europe

        9.2.2. By Product Type

    9.3. Market Attractiveness Analysis

        9.3.1. By Country

        9.3.2. By Product Type

    9.4. Key Takeaways

10. Asia Pacific Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country

    10.1. Historical Market Size Value (US$ Billion)Trend Analysis By Market Taxonomy, 2017 to 2021

    10.2. Market Size Value (US$ Billion)Forecast By Market Taxonomy, 2022 to 2032

        10.2.1. By Country

            10.2.1.1. China

            10.2.1.2. Japan

            10.2.1.3. India

            10.2.1.4. South Korea

            10.2.1.5. Australia

            10.2.1.6. Rest of Asia-Pacific

        10.2.2. By Product Type

    10.3. Market Attractiveness Analysis

        10.3.1. By Country

        10.3.2. By Product Type

    10.4. Key Takeaways

11. Middle East and Africa Market Analysis 2017 to 2021 and Forecast 2022 to 2032, By Country

    11.1. Historical Market Size Value (US$ Billion)Trend Analysis By Market Taxonomy, 2017 to 2021

    11.2. Market Size Value (US$ Billion)Forecast By Market Taxonomy, 2022 to 2032

        11.2.1. By Country

            11.2.1.1. South Africa

            11.2.1.2. Saudi Arabia

            11.2.1.3. UAE

            11.2.1.4. Israel

            11.2.1.5. Rest of Middle East and Africa

        11.2.2. By Product Type

    11.3. Market Attractiveness Analysis

        11.3.1. By Country

        11.3.2. By Product Type

    11.4. Key Takeaways

12. Key Countries Market Analysis

    12.1. Value (US$ Billion) ed States

        12.1.1. Pricing Analysis

        12.1.2. Market Share Analysis, 2021

            12.1.2.1. By Product Type

    12.2. Canada

        12.2.1. Pricing Analysis

        12.2.2. Market Share Analysis, 2021

            12.2.2.1. By Product Type

    12.3. Brazil

        12.3.1. Pricing Analysis

        12.3.2. Market Share Analysis, 2021

            12.3.2.1. By Product Type

    12.4. Mexico

        12.4.1. Pricing Analysis

        12.4.2. Market Share Analysis, 2021

            12.4.2.1. By Product Type

    12.5. Germany

        12.5.1. Pricing Analysis

        12.5.2. Market Share Analysis, 2021

            12.5.2.1. By Product Type

    12.6. United Kingdom

        12.6.1. Pricing Analysis

        12.6.2. Market Share Analysis, 2021

            12.6.2.1. By Product Type

    12.7. France

        12.7.1. Pricing Analysis

        12.7.2. Market Share Analysis, 2021

            12.7.2.1. By Product Type

    12.8. Spain

        12.8.1. Pricing Analysis

        12.8.2. Market Share Analysis, 2021

            12.8.2.1. By Product Type

    12.9. Italy

        12.9.1. Pricing Analysis

        12.9.2. Market Share Analysis, 2021

            12.9.2.1. By Product Type

    12.10. Russia

        12.10.1. Pricing Analysis

        12.10.2. Market Share Analysis, 2021

            12.10.2.1. By Product Type

    12.11. China

        12.11.1. Pricing Analysis

        12.11.2. Market Share Analysis, 2021

            12.11.2.1. By Product Type

    12.12. Japan

        12.12.1. Pricing Analysis

        12.12.2. Market Share Analysis, 2021

            12.12.2.1. By Product Type

    12.13. India

        12.13.1. Pricing Analysis

        12.13.2. Market Share Analysis, 2021

            12.13.2.1. By Product Type

    12.14. South Korea

        12.14.1. Pricing Analysis

        12.14.2. Market Share Analysis, 2021

            12.14.2.1. By Product Type

    12.15. Australia

        12.15.1. Pricing Analysis

        12.15.2. Market Share Analysis, 2021

            12.15.2.1. By Product Type

    12.16. South Africa

        12.16.1. Pricing Analysis

        12.16.2. Market Share Analysis, 2021

            12.16.2.1. By Product Type

    12.17. Saudi Arabia

        12.17.1. Pricing Analysis

        12.17.2. Market Share Analysis, 2021

            12.17.2.1. By Product Type

    12.18. UAE

        12.18.1. Pricing Analysis

        12.18.2. Market Share Analysis, 2021

            12.18.2.1. By Product Type

    12.19. Israel

        12.19.1. Pricing Analysis

        12.19.2. Market Share Analysis, 2021

            12.19.2.1. By Product Type

13. Market Structure Analysis

    13.1. Competition Dashboard

    13.2. Competition Benchmarking

    13.3. Market Share Analysis of Top Players

        13.3.1. By Regional

        13.3.2. By Product Type

14. Competition Analysis

    14.1. Competition Deep Dive

        14.1.1. China Telecom

            14.1.1.1. Overview

            14.1.1.2. Product Portfolio

            14.1.1.3. Profitability by Market Segments

            14.1.1.4. Sales Footprint

            14.1.1.5. Strategy Overview

                14.1.1.5.1. Marketing Strategy

                14.1.1.5.2. Product Strategy

                14.1.1.5.3. Channel Strategy

        14.1.2. Cogent Communications

            14.1.2.1. Overview

            14.1.2.2. Product Portfolio

            14.1.2.3. Profitability by Market Segments

            14.1.2.4. Sales Footprint

            14.1.2.5. Strategy Overview

                14.1.2.5.1. Marketing Strategy

                14.1.2.5.2. Product Strategy

                14.1.2.5.3. Channel Strategy

        14.1.3. Contegix

            14.1.3.1. Overview

            14.1.3.2. Product Portfolio

            14.1.3.3. Profitability by Market Segments

            14.1.3.4. Sales Footprint

            14.1.3.5. Strategy Overview

                14.1.3.5.1. Marketing Strategy

                14.1.3.5.2. Product Strategy

                14.1.3.5.3. Channel Strategy

        14.1.4. CoreSite Realty Corporation

            14.1.4.1. Overview

            14.1.4.2. Product Portfolio

            14.1.4.3. Profitability by Market Segments

            14.1.4.4. Sales Footprint

            14.1.4.5. Strategy Overview

                14.1.4.5.1. Marketing Strategy

                14.1.4.5.2. Product Strategy

                14.1.4.5.3. Channel Strategy

        14.1.5. Cyxtera Technologies

            14.1.5.1. Overview

            14.1.5.2. Product Portfolio

            14.1.5.3. Profitability by Market Segments

            14.1.5.4. Sales Footprint

            14.1.5.5. Strategy Overview

                14.1.5.5.1. Marketing Strategy

                14.1.5.5.2. Product Strategy

                14.1.5.5.3. Channel Strategy

        14.1.6. Global Switch

            14.1.6.1. Overview

            14.1.6.2. Product Portfolio

            14.1.6.3. Profitability by Market Segments

            14.1.6.4. Sales Footprint

            14.1.6.5. Strategy Overview

                14.1.6.5.1. Marketing Strategy

                14.1.6.5.2. Product Strategy

                14.1.6.5.3. Channel Strategy

        14.1.7. Internap

            14.1.7.1. Overview

            14.1.7.2. Product Portfolio

            14.1.7.3. Profitability by Market Segments

            14.1.7.4. Sales Footprint

            14.1.7.5. Strategy Overview

                14.1.7.5.1. Marketing Strategy

                14.1.7.5.2. Product Strategy

                14.1.7.5.3. Channel Strategy

        14.1.8. Interxion

            14.1.8.1. Overview

            14.1.8.2. Product Portfolio

            14.1.8.3. Profitability by Market Segments

            14.1.8.4. Sales Footprint

            14.1.8.5. Strategy Overview

                14.1.8.5.1. Marketing Strategy

                14.1.8.5.2. Product Strategy

                14.1.8.5.3. Channel Strategy

        14.1.9. NTT Communications Corporation

            14.1.9.1. Overview

            14.1.9.2. Product Portfolio

            14.1.9.3. Profitability by Market Segments

            14.1.9.4. Sales Footprint

            14.1.9.5. Strategy Overview

                14.1.9.5.1. Marketing Strategy

                14.1.9.5.2. Product Strategy

                14.1.9.5.3. Channel Strategy

        14.1.10. PhoenixNAP

            14.1.10.1. Overview

            14.1.10.2. Product Portfolio

            14.1.10.3. Profitability by Market Segments

            14.1.10.4. Sales Footprint

            14.1.10.5. Strategy Overview

                14.1.10.5.1. Marketing Strategy

                14.1.10.5.2. Product Strategy

                14.1.10.5.3. Channel Strategy

15. Assumptions & Acronyms Used

16. Research Methodology

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