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(Hosting-NewsWire.com, October 24, 2019 ) The Data Center Colocation Market size is expected to grow from USD 31.52 billion in 2017 to USD 62.30 billion by 2022, at a Compound Annual Growth Rate (CAGR) of 14.60%, as per a report by MarketsandMarkets.
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Browse 52 Market Data Tables and 69 Figures spread through 137 Pages and in-depth TOC on "Data Center Colocation Market by Type (Retail and Wholesale), End-user (SMES and Large Enterprise, Industry (BFSI, IT & Telecom, Government & Defense, Healthcare, Research & Academic, Retail, Energy and Manufacturing), and Region - Global Forecast to 2022"
Why increasing disaster recovery and business continuity requirements present an opportunity?
Disaster recovery is a major concern for data center users across the world. IT infrastructure facilities are prone to disasters such as earthquakes, security attacks, fire outages, and other unplanned events. For businesses to not suffer from drastic losses owing to such disasters, proper disaster recovery measures must be in place. Data center colocation facilities are located away from the users’ premises and be less prone to disasters. These facilities can be controlled remotely, adding to their reliability in disaster recovery measures. Therefore, colocation facilities are anticipated to become an ideal backup and recovery option because they enable businesses to house key data in a remote location. Thus, business continuity can be achieved due to the presence of resilient and safe colocation facility, which is why these facilities are expected to witness growing demand.
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Why government regulations and security requirements remain a challenge?
Data centers continuously face the need to comply with stringent government regulations from federal and state authorities. Government bodies are imposing various regulations that deal with energy efficiency, water use, and environmental impact of data centers. Moreover, the Data Center Optimization Initiative (DCOI), established to fulfill the Federal Information Technology Acquisition Reform Act (FITARA), requires agencies to develop and report their data center strategies and increases the need for stricter compliances. Data centers also need to comply with certain security requirements and operators need to be proactive about security. Data centers are required to provide the monitoring of environmental systems, coupled with physical access to security systems such as card or biometric access, motion sensors, and CCTV systems. Installation and operation of these systems require additional cost and expertise. These challenges, with compliance to additional regulatory and security requirements, may restrict market growth.
Major technology vendors in the data center colocation market include AT&T Inc. (US), CoreSite Realty Corporation (US), CyrusOne (US), Cyxtera Technologies, Inc. (US), Digital Realty Trust, Inc. (US), DuPont Fabros Technology, Inc. (US), Equinix, Inc. (US), Global Switch (UK), Level 3 Communications Inc. (US), and NTT Communication Corporation (Japan).
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