Europe Colocation Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Colocation Model (Retail, Wholesale), By End User Industry (Banking And Financial Services, Manufacturing, Communication And Technology, Healthcare, Energy, Education, Government, Media And Entertainment, Others), And By Country - Forecasts From 2022 To 2027

Published:  Nov 2022 Report Code: KSI061610177 Pages: 82

The European colocation market is projected to witness a compound annual growth rate of 11.02% during the forecast period, reaching a total market size of US$36.862 billion in 2027 from US$17.734 billion in 2020. As the data requirements keep growing, so too is the increasing demand for efficient information technology (IT) infrastructure. Data Center Colocation plays a major role in providing much-needed benefits to companies willing to reduce their operating costs and remain competitive. For Enterprises (small, medium, and large) that are facing challenges related to burgeoning data and 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.

Europe boasts a state-of-the-art ICT infrastructure that is attracting and enabling small and medium-sized businesses, along with large-sized firms, to harness digitalization, which is allowing enterprises to improve productivity. Simultaneously, high costs associated with owning a data center and the presence of many service providers in this region, offering data center services at affordable prices, are further boosting the growth of the colocation market in this region.

Europe houses the tech hubs in several major cities, which include Dublin as the center of tech excellence with booming data centers, the Netherlands as the fastest growing data center market, Germany’s having a high internet bandwidth capacity, and London, which is referred to as the tech capital of Europe and one of the world’s largest data center markets.

The banking and financial services industry is estimated to hold a significant share of the market.

Data security, compliance, and the requirement for huge data storage are the key aspects of technology deployment in the banking and financial services industry. The industry requires analyzing huge volumes of customer data gathered from different sources to provide efficient and customer-centric services. Traditionally, banks and financial institutions have been running and operating their own data centers. However, with the advancement in technologies, and the high adoption of cloud computing solutions, while keeping the infrastructure costs low, colocation has become imperative for financial enterprises considering the latest hardware and software solutions, which can handle complex data sets and analyze them while maintaining the privacy of customer data.

The United Kingdom and Germany are the two dominant countries in Europe.

The U.K. continues to be the dominant market in the region, but the trend has now reversed with Germany, France, and other colocation markets witnessing a higher growth rate in the coming years. The City of London has one of the largest and the most comprehensive financial centers globally and is regarded by investors because of its solid regulatory, legal, and tax environments, known for its supportive market infrastructure and highly skilled and dynamic workforce. The United Kingdom has a significant number of data centers, one of the driving forces for the growth of the global data center colocation market.

Germany is one of Europe’s largest countries in terms of size, population, and also in terms of the number of colocation data centers. It is among the four leading colocation markets along with the United Kingdom, France, and the Netherlands. The largest population of the data centers lies around Frankfurt, which is considered as one of Europe’s nerve centers in terms of bandwidth. Furthermore, having one of the world’s most technologically advanced communication systems, Germany has an extensive system of automatic telephone exchanges, boosting the growth of the global center colocation market as the country’s data center industry is thriving. The German ICT sector is considered one of the most innovative on a global level and has one of the largest ICT markets in the world. ICT is a German government priority where the country’s economic and innovation policy focuses on digital infrastructure, digital economy, and digital workplaces, fueling the growth of the global center colocation market in this region.

Recent development and expansion

  • Compass Datacenters is expanding one of the biggest data centers in Italy as a way to break into the European colocation and service provider market. With the goal of constructing a 2.3 million square foot data center campus, it has teamed up with the international real estate company Hines to purchase land in the Milan metropolitan area. Construction on the Noviglio-located site, which aims to support over 48MW of IT load, is scheduled to start in 2023.
  • Network Edge is introduced by Equinix in five new European nations in March 2022. Network Edge's expansion into these new markets enables companies to establish themselves in more metro areas without having to physically deploy hardware in a data center.
  • Penta Infra raised €75 million ($83.5 million) through a new financing arrangement in January 2022. Penta Infra will use the funding to increase the scope of its European data center portfolio, which already includes buildings in Germany, Denmark, and the Netherlands. Specific sustainability goals, such as energy efficiency, heat recovery, and on-site power generation, must be met in order to receive the loan.

Covid 19 impact on Europe Colocation Market

Due to lockdown and restrictions, the pandemic has had a significant impact on the European data center colocation market, causing many people to work from home. As a result of the urgent need to increase IT performance, flexibility, and security, it is anticipated that the market will expand more quickly than anticipated. Additionally, due to the developed healthcare system, Western European nations like France, Germany, Russia, and the UK have seen a relatively modest decline in their growth activities. The European Union has invested a lot in integrating technologies into its healthcare systems to aid in the detection of the virus.

Europe Colocation Market Scope:

 

Report Metric Details
 Market Size Value in 2020  US$17.734 billion
 Market Size Value in 2027  US$36.862 billion
 Growth Rate  CAGR of 11.02% from 2020 to 2027
 Base Year  2020
 Forecast Period  2022–2027
 Forecast Unit (Value)  USD Billion
 Segments Covered  Colocation Model, End-User Industry, And Country
 Regions Covered  United Kingdom, Germany, France, The Netherlands, Others
 Companies Covered DATA4 Group, Equinix, Inc., Digital Realty Trust, Inc., HostDime Global Corp, NFOrce Entertainment B.V. , Altushost B.V., Serverius Holding B.V, Verizon Communications Inc, Telehouse, Colt Technology Services Group Limited
 Customization Scope  Free report customization with purchase

 

Segmentation

  • By Colocation Model
    • Retail Colocation
    • Wholesale Colocation
  • By End-User Industry
    • Banking and Financial Services
    • Manufacturing
    • Communication and Technology
    • Healthcare
    • Energy
    • Education
    • Government
    • Media and Entertainment
    • Others
  • By Country
    • United Kingdom
    • Germany
    • France
    • The Netherlands
    • 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 Driver

4.2. Market Restraints

4.3. Porters Five Forces Analysis

4.3.1. Bargaining Power of End-Users

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. EUROPE COLOCATION MARKET, BY COLOCATION MODEL

5.1. Introduction

5.2. Retail Colocation

5.3. Wholesale Colocation

 

6. EUROPE COLOCATION MARKET, BY END-USER INDUSTRY

6.1. Introduction

6.2. Banking and Financial Services

6.3. Manufacturing

6.4. Communication and Technology

6.5. Healthcare

6.6. Energy

6.7. Education

6.8. Government

6.9. Media and Entertainment

6.10. Others

 

7. EUROPE COLOCATION MARKET, BY COUNTRY

7.1. United Kingdom

7.2. Germany

7.3. France

7.4. The Netherlands

7.5. Others

 

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Emerging Players and Market Lucrativeness

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Vendor Competitiveness Matrix

 

9. COMPANY PROFILES

9.1. DATA4 Group

9.2. Equinix, Inc.

9.3. Digital Realty Trust, Inc.

9.4. HostDime Global Corp

9.5. NFOrce Entertainment B.V. 

9.6. Altushost B.V.

9.7. Serverius Holding B.V

9.8. Verizon Communications Inc

9.9. Telehouse

9.10. Colt Technology Services Group Limited

DATA4 Group

Equinix, Inc.

Digital Realty Trust, Inc.

HostDime Global Corp

NFOrce Entertainment B.V. 

Altushost B.V.

Serverius Holding B.V

Verizon Communications Inc

Telehouse

Colt Technology Services Group Limited

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