Asia Pacific Data Center Colocation Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Colocation Model (Wholesale, Retail), By Enterprise Size (Small, Medium, Large), By Industry Vertical (BFSI, Manufacturing, Communication And Technology, Healthcare, Energy, Government, Media And Entertainment, Others) And By Countries - Forecasts From 2022 To 2027

  • Published : Nov 2022
  • Report Code : KSI061610479
  • Pages : 78

The Asia Pacific data center colocation market was valued at US$11.402 billion in 2020 and is projected to expand at a CAGR of 18.62% over the forecast period to reach US$37.671 billion by 2027.

The Asia Pacific region is home to some of the biggest and fastest-growing economies in the world. The economic importance of the region, coupled with booming infrastructure and high adoption of IT solutions, has augmented the demand for colocation space and is continuously driving the colocation market. Though an increasing number of players in the region will lead to cost pressure and more competition, the high demand for colocation space will drive the market over the next five years. In addition, as the data requirement keeps growing so is the rising demand for efficient information technology (IT) infrastructure in the region. For Enterprises (small, medium, and large) in the region which are facing challenges related to burgeoning data and are moving their services onto the cloud, colocation has become one of the preferred options. This has led to a movement towards leasing colocation facilities, which were traditionally dominated by those who owned data centers and had a dedicated team of IT professionals for maintaining and troubleshooting the issues.

Retail holds a significant share of the market

By location model, the Asia Pacific data center colocation market is segmented as wholesale and retail. As soon as an enterprise decides to opt for colocation spaces, it has two options: retail colocation or wholesale colocation. In retail colocation, the enterprise leases the required space within a data center, while in wholesale colocation, the enterprise leases the complete data center while it may or may not be managing the IT operations. Retail colocation is witnessing increased adoption across different regions on account of the benefits it offers and the changing market dynamics. The wholesale colocation providers have also started to lease out retail spaces within their existing facilities, leading to a blurring of the lines between these two types of solutions. Enterprises are now considering those solutions for implementation which offer the best of both types, and thus a new form of the hybrid solution is gaining momentum.

China is driving growth in the region

China has witnessed tremendous economic growth over the last decade and has also become a major economic superpower in the world. There have been consistently high investments in infrastructure across the country, and the country has become a major manufacturing hub. These factors have led major enterprises operating across different industry verticals to open offices and expand their operations in the country. Enterprises are also adopting the latest IT solutions to improve their business process efficiency by investing in or outsourcing their IT infrastructure requirements. Cloud computing and virtualization have created a massive need for storage solutions and have amplified the need for Data Center infrastructure and colocation space. Beijing, Shanghai, and Shenzhen, among others, have emerged as major colocation centers in the country, although major colocation services are offered by state-owned communication carriers.

Japan and India are expected to witness high CAGR during the projected period

Japan has the third-largest economy in the world, Japan enjoys an internet literacy rate of 93% with a highly urbanized population. Many large and small enterprises have cemented their foothold in the market. With the rising investments in research and the development towards innovation and development of new technologies, the demand for data centers among various industries is already high and is expected to increase in the coming years. India is also considered one of the most favourable outsourcing destinations, and the pressure on organizations to invest in IT infrastructure. Government programs such as “Jan Dhan Yojana”, Make in India”, and “Digital India”, among others, have augmented government spending on IT infrastructure solutions. The major hurdle for Data Centers and the colocation market in India is the power supply constraints, but this is not expected to affect the market growth in the short term due to high demand from the government, BFSI, Telecommunication, and IT enterprises.

Market Key Developments

  • In October 2021, STACK Infrastructure intended to expand into the Asia Pacific area. STACK is a worldwide data center developer and operator that delivers business digital infrastructure and hyper-scale.
  • In August 2021, PAG Real Estate, a major Asia-focused private investment manager, and Kris Kumar, an internationally known pioneer in digital infrastructure investment, announced the establishment of a regional platform to capitalize on Asia's rapidly expanding need for digital infrastructure.

Asia Pacific Data Center Colocation Market Scope:

 

Report Metric Details
 Market Size Value in 2020  US$11.402 billion
 Market Size Value in 2027  US$37.671 billion
 Growth Rate  CAGR of 18.62% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Colocation Model, End Users, Industry Vertical, And Country
 Regions Covered  China, Japan, India, Australia, South Korea, Others
 Companies Covered Equinix, Rackspace, Telehouse, Verizon, Colt Technology Services, Zayo Group, CenturyLink, Coresite, Internap
 Customization Scope  Free report customization with purchase

 

Segmentation:

  • By Colocation Model
    • Retail Colocation
    • Wholesale Colocation
  • By End Users
    • Small Enterprises
    • Medium Enterprises
    • Large Enterprises
  • By Industry Vertical
    • Banking and Financial Services
    • Manufacturing
    • Communication and Technology
    • Healthcare
    • Energy
    • Government
    • Media and Entertainment
    • Others
  • By Country
    • China
    • Japan
    • India
    • Australia
    • South Korea
    • Others

1. INTRODUCTION

1.1. Market Overview

1.2. COVID-19 Scenario

1.3. Market Definition

1.4. Market Segmentation

 

2. RESEARCH METHODOLOGY  

2.1. Research Data

2.2. Assumptions

 

3. EXECUTIVE SUMMARY

3.1. Research Highlights

 

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Force Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

 

5. ASIA PACIFIC DATA CENTER COLOCATION MARKET, BY COLOCATION MODEL

5.1. Introduction

5.2. Retail Colocation

5.3. Wholesale Colocation

 

6. ASIA PACIFIC DATA CENTER COLOCATION MARKET, BY END-USER

6.1. Introduction

6.2. Small Enterprises

6.3. Medium Enterprises

6.4. Large Enterprises

 

7. ASIA PACIFIC DATA CENTER COLOCATION MARKET, BY INDUSTRY VERTICAL

7.1. Introduction

7.2. Banking and Financial Services

7.3. Manufacturing

7.4. Communication and Technology

7.5. Healthcare

7.6. Energy

7.7. Government

7.8. Media and Entertainment

7.9. Others

 

8. ASIA PACIFIC DATA CENTER COLOCATION MARKET, BY COUNTRY

8.1. Introduction

8.2. China

8.3. Japan

8.4. India

8.5. Australia

8.6. South Korea

8.7. Others

 

9. COMPETITIVE ENVIRONMENT AND ANALYSIS

9.1. Major Players and Strategy Analysis

9.2. Emerging Players and Market Lucrativeness

9.3. Mergers, Acquisitions, Agreements, and Collaborations

9.4. Vendor Competitiveness Matrix

 

10. COMPANY PROFILES

10.1. Equinix

10.2. Rackspace

10.3. Telehouse

10.4. Verizon

10.5. Colt Technology Services

10.6. Zayo Group

10.7. CenturyLink

10.8. Coresite 

10.9. Internap


Equinix

Rackspace

Telehouse

Verizon

Colt Technology Services

Zayo Group

CenturyLink

Coresite

Internap