Colocation Hosting Growth Prospect by 2020
Colocation hosting providers are witnessing a major story across the world including India. In fact, a growth prospect report published by Allied Market Research has found out that by the year 2020, the global colocation market is all set to expand to a massive $51.8 billion. The report has clearly forecast that during the period from 2015 to 2020, the CAGR will be 12.4 per cent. During the forecast period, the highest CAGR will be achieved by global colocation market, which happens to be 14.3 per cent. All these information can be found in the report having the title “World Colocation — Market Opportunities and Forecasts, 2014–2020”. As India is emerging as a preferred destination for many companies, the same or even steeper growth can be witnessed in India. However, till now the most promising region has been North America. Major sectors where there has been a huge demand for colocation hosting providers include IT sector, telecommunications, and banking. The colocation market in North America was $11,779.9 million in the year 2014. In fact, there are every signs of consolidation of market position in the 2015–2020 time period.
Get Moni singh’s stories in your inbox
Join Medium for free to get updates from this writer.
Colocation service market can be divided into two parts — wholesale colocation and retain colocation. Market for retail colocation is witnessing a major expansion due to high capacity requirement ranging between 100KW and 500KW. Currently, retail colocation is more popular than its wholesale counterpart. 2014 data shows that retail colocation holds around 2/3rd market share of the total colocation market. However, wholesale colocation segment is also witnessing a major expansion. During 2015–2020, wholesale colocation market is expected to witness a CAGR of 13.7 per cent. Wholesale colocation hosting providers are currently focusing on small as well as medium sized companies that are looking for anything around 500KW to 1,000 KW power.
