Dublin, Jan. 03, 2024 (GLOBE NEWSWIRE) -- The "European Data Center Colocation Market (by Type, Enterprise Size, End-Use, & Region): Insights and Forecast with Potential Impact of COVID-19 (2022-2027)" report has been added to ResearchAndMarkets.com's offering.
The European data center market is expected to reach US$17.95 billion in 2023, growing at a CAGR of 13.10% during the forecast period.
The adoption of cloud-based services by corporations and social media by consumers is propelling firms such as Facebook, Google, Amazon Web Services (AWS), and Microsoft to build hyperscale data centres throughout Europe. As a result, the increasing usage of cloud services in Europe is expected to aid in the rise of the data centre colocation market in the coming years.
Germany held the maximum share in the market owing to digital transformation strategies, the adoption of cloud computing by enterprises, IoT, AI, implementation of GDPR, and COVID-19. The German market is further divided based on type namely, Retail Colocation and Wholesale Colocation. In the UK data center industry, London is a major location for investment, with regions like Manchester, Slough, and Birmingham expecting to see significant investment in the years to come.
Segment Covered
By Type: In terms of type, the report identifies two segments of the European data center colocation market: Retail Colocation and Wholesale Colocation. The retail colocation held the highest share in the market. The segment is expected to grow at the highest CAGR in the forthcoming years as it offers flexibility in terms of IT infrastructure, which benefits small and medium-sized enterprises (SMEs), which increase its market share in the colocation of data centers across the region.
By Enterprise Size: The report also offers he bifurcation of the market in the basis of the enterprise size: Large Enterprises and Small and Medium Enterprises (SMEs). The large enterprises held the largest share in the market. The market's expansion is aided by the growing adoption of colocation services among major cloud service providers and hyperscalers in the region.
By End-Use: The report further provides the segmentation of the market based on the end-use: IT & Telecom, BSFI, Healthcare, Retail and Others. The IT & Telecom held the majority share in the market on account of rising demand for additional data storage capacity as a result of increased adoption of smartphones, laptops, tablets, gaming consoles, and other gadgets and benefits provided by data center colocation providers to the IT industry such as speed of deployment, waste and energy efficiency, and scalability.
The COVID-19 Analysis
Data center colocation market has benefited from the pandemic as data center colocation technologies help enterprises manage the rising needs of internet traffic. The demand for data centers grew significantly due to the pandemic and subsequent lockdowns across Europe, with a majority of the region's workforce shifting to remote working.
In addition, companies from various industries came with more data space requirements to deploy their operations digitally on virtual space during the pandemic. The demand for colocation services led to strong utilization of existing data center space and drove revenues of service providers by over 10% in the initial two quarters.
Market Dynamics
Growth Driver
- Soaring Demand for Data Center Colocation Among Small Businesses
- Surging Number of IOT Connected Devices
- Rising Cost of Operating a Data Center
- Mounting Penetration of Internet
- Growth In Sustainable Initiatives
- Rising Investments in Colocation Data Center
Challenges
- Dearth of Qualified Labor
- High Initial and Maintenance Costs
- Stringent Government Regulations And Security Requirements
Market Trends
- Growing Execution of Artificial Intelligence
- Increasing Adoption of Cloud Services
- Rapid Digitalization
- Expansion in IT & Telecom Industry
- Emergence of 5G Technology and Its Services
Analysis of Key Players
The European data center colocation market is highly fragmented, with significant players in end-user industries maintaining their data centers due to the ease of managing an IT staff and many other customizations.
Company Profiles
- AT&T Inc(AT&T Intellectual Property)
- AtNorth
- Cisco Systems, Inc.
- CyrusOne, Inc.
- Cyxtera Technologies Inc.
- Digital Realty Trust, Inc.
- Equinix, Inc.
- Global Switch Limited
- Iron Mountain Incorporated
- NTT Communications Corporation
- Telehouse International Corporation of Europe Ltd.
- Verizon Partner Solutions
- Verne Global
For more information about this report visit https://www.researchandmarkets.com/r/r0h6ok
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