Retail Colocation Market Forecasted to Achieve US$ 27,554 Million Value by 2032, Sustained by a Resilient 12.3% CAGR

The global retail colocation market is expected to earn around US$ 27,554.0 million by 2032, up from US$ 8,645.0 million in 2022, with a CAGR of 12.3% over the forecast period.

Because of the growing acceptance of cloud and IoT advancements, retail colocation has grown in popularity in the last few years. One of the key factors driving the growth of the Retail colocation market is the growing need for businesses to work through advances such as cloud and big data.

Business functional requests are growing among endeavors to reduce capital and functional consumption and to oversee network elements, control traffic flow, and effectively increase retail foundation are a portion of the variables that are supporting retail colocation’s reception.

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Retail colocation is an arrangement where undertakings and rents some portion of a server farm office to meet their processing necessities. Retail colocation gives power, space, cooling, cabling, and support administrations. The server farm office is facilitated by a solitary seller and various end-clients can get to the administrations given by the merchant.

The colocation specialist organizations give continuous processing support registering assets to endeavors. Likewise, retail colocation furnishes little and medium ventures with security and adaptability, and because of this retail colocation market is expected to observe quick development in so not-so-distant future.

Retail colocation: Drivers and Challenges:
The increasing number of users opting for cost-effective and energy-efficient retail colocation solutions is one of the major factors that is fueling the growth of the retail colocation market. Also, the requirement for reliability, security, and scalability of infrastructure, and growing data center complexities are some of the factors which are fueling the growth of the retail colocation market.

Moreover, many retail colocation providers are being welcomed by the government to establish their facilities is also one of the factors that are supporting the rapid adoption of the retail colocation market.

The high implementation cost of retail colocation services is the major factor that may hinder the growth of the retail colocation market shortly.

What is the Competition Landscape in the Retail Colocation Market?

The prominent players in the retail colocation market are 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., 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.

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Retail Colocation Market: Regional Overview:
On a geographic basis, North America is anticipated to be the largest market for Retail colocations due to the rapid adoption of advanced technologies and the presence of a large number of data centers.

APAC is anticipated to be fastest fastest-growing region for the Retail colocation market due to the presence of countries that offer potential growth opportunities in Retail colocation markets such as India, China, and Japan, and the presence of various key players in the region

Europe and Latin America are also anticipated to offer growth opportunities in the Retail colocations market due to the availability of comprehensive solutions.

Retail Colocation Market Segmentation:

By Industry:

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

By Region:

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

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About the Author

Nikhil Kaitwade

Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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