Global data centre colocation market to grow by over US$3bn
According to a report by Technavio, the global data centre colocation market is expected to grow by US$33.09bn by 2024. The report analyses the impact of the COVID-19 pandemic on the data centre colocation market.
Key considerations for the market forecasts include the impacts of lockdowns, supply chain disruptions, demand destruction, and change in customer behaviour. Other factors to be considered are optimistic, probable, and pessimistic scenarios for all markets, Pre- as well as post-COVID-19 market estimates and quarterly impact analysis and updates on market estimates.
The global data centre colocation market is driven by the growing number of mergers and acquisitions (M&As), and it is expected to be influenced by investments in the construction of colocation data centres.
The data centre colocation market size
The size of the data centre colocation market aims to help vendors identify challenges hindering the growth of the market and how this will affect the revenue of the market’s players.
Currently, the market is dominated by three players: AT&T Inc., BT Group Plc, and China Telecom Global Ltd, who are offering innovative and superior-quality products as key growth strategies to stay relevant in a “hypercompetitive environment”, Technavio says.
Southeast Asia among the fastest-growing data centre markets
The region of Soth East Asia has one of the fastest-growing data centre markets globally. with multiple investments in Singapore, Indonesia, Malaysia, Vietnam, Cambodia, and Thailand.
Internet usage and social media trends have increased the demand for faster internet networks and data centres to store data generated by them. In addition, social media usage among consumers and digital transformation by enterprises are other major factors promoting data centre growth.
Factors likely to contribute to the growth of the Southeast Asia data centre market include an increasing Adoption of Renewable Energy, implementation of advanced technology in data centres, replacement of VRLA with Lithium-Ion Batteries, and increased adoption of All-Flash & Hybrid Array.
While the top spot in the market is still held by North America, the APAC region is slowing gaining momentum as it looks to at least be nearer to taking the lead in the next five years.