Europe Data Center Colocation Market is Expected to Witness Prolific Demand: Projected to Grow at a CAGR of 12.9% in the Forecast Period

Published | 20 August 2021

The Europe data center colocation market is growing because of factors such as the increasing adoption of cloud-based services and growing trend of remote working style, increasing internet penetration and AI along with the expanding construction of data centers for colocation purposes...

A recent study conducted by the strategic consulting and market research firm, BlueWeave Consulting, revealed that the Europe data center colocation market was worth USD 12.9 billion in the year 2020. The market is estimated to grow at a CAGR of 12.9%, earning revenue of around USD 29.8 billion by the end of 2027. The Europe data center colocation market is flourishing because of factors like high capital and resource investment towards the development of private data centers. Moreover, data center colocation proves to be a cost-effective option, especially for small and medium-sized businesses as they only have to pay for their rack. However, the high initial capital investment may act as a hindrance to the growth of the Europe data center colocation market.

Environmental Benefits of Colocation Is Expected to Boost the Europe Data Center Colocation Market

There are many advantages to collocating data centers from an environmental perspective.Due to the volumes of carbon emissions released by each private data center, every organization would lose out on either energy savings or environmental sustainability. The amount of carbon emissions emitted by data centers is estimated at 0.3%. Thus, organizations choosing to outsource their data storage requirement will save a lot of costs, as well as energy. Therefore, organizations choosing to outsource their data storage requirement will save a lot of costs. As several countries are working towards energy saving, the European data center colocation market is estimated to flourish.

Colocation Offers Flexible Scalability Which Is Estimated to Drive the Market in The Forecast Period

There's a tremendous amount of growth and expansion taking place in small and medium-sized firms from several emerging economies. Thus, with such expansion, their need for big data storage facilities is also growing. However,as their business grows, their investment should be focused primarily on serving their customers rather than maintaining data centers.Therefore, the organizations often opt for data center colocation which allows them to expand their services as per their requirements.

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Europe Data Center Colocation Market - By End-User

Based on end-users, the Europe data center colocation market is segmented into IT& telecom, retail, healthcare, BFSI, media & entertainment, and others. The IT and telecom sector accounts for the largest market share because of the tremendous surge in internet users and the adventof wireless technologies such as 5G and IoT. The IT & telecom sector is flourishing at a high rate because of the emerging software and application companies and startups, which are expected to fuel the Europe data center colocation market. The healthcare segment, on the other hand, is also estimated to witness a high CAGR during the forecast period.

Europe Data Center Colocation Market - Regional Insights

Geographically, the Europe data center colocation market is segmented into Germany, Russia, the UK, France, Italy, Spain, and the rest of Europe. Among all the countries, the UK captures the largest market share and is also expected to witness the highest CAGR during the forecast period as well. This is because of the high concentration of data center colocation service providers in this region, especially in London. Additionally, Nordic countries like Denmark, Finland, Sweden, Norway are also expected to gain significant traction in the upcoming years.

Impact of COVID-19 on Europe Data Center Colocation Market

The Europe datacenter colocation market witnessed tremendous growth as a result of the COVID-19 pandemic. This is because of the remote working scenario which became a norm due to the lockdown imposed by the countries to curb the spread of the virus. The dependence on the internet and the need for high data transfer and storage significantly propagated the market demand during the initial phase of the pandemic. Also, at the time of the pandemic, there was a major economic slump that affected both small and large enterprises.As a result, businesses of all sizes resorted to colocation for cost-benefit reasons as well. This factor gave a significant boost to the Europe data center colocation market.

Competitive Landscape

The leading players in the Europe data center colocation market are Cyxtera Technologies, Inc., Digiplex, CyrusOne, Inc., Global Switch, Verne Global, Telehouse, NTT Limited, Interxion, Hetzner Online GmbH, Herman IT, Green Mountain, Ficolo Ltd., Etix Everywhere, Equinix, Inc., DATA4 Group, Echelon Data Centers, Aruba, Bahnhof, QTS Realty Trust, and other prominent players.

The leading industry players often engage in mergers and acquisitions to expand their market presence in local spaces. The European data centers are also attracting foreign investment as global companies are focusing on establishing and expanding their market. The adoption of other competitive strategies like partnerships, collaborations, and joint ventures are also very prominent in this market.

Don’t miss the business opportunity of the Europe data center colocation market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the Europe data center colocation market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the Europe data center colocation market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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