GCC Colocation Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (Retail Colocation, Wholesale Colocation), By Industry Vertical (Telecom & IT, BFSI, Government, Healthcare, Energy, Others), And By Geography - Forecasts From 2021 To 2026

Published:  Aug 2021 Report Code: KSI061610421 Pages: 101

The GCC colocation market is estimated to be valued at US$235.752 million in 2019. Colocation services refer to renting out office space to storing servers, computers, and other hardware systems, to keep them safe. Colocation services also include redundant power supply and cooling components, coupled with physical security and housing space. Robust growth in the GCC region owing to widening economic and business operations is projected to support the growth of the colocation market during the forecasted period. The region is emerging as a hub for several economic operations that contributes to the market. Furthermore, development in the IT sector is expected to increase the market prospects.

IT and Telecom sectors are expected to hold a large share of the market.

Based on Industry Vertical, the GCC Colocation market is segmented into Telecom and IT, BFSI, Government, Healthcare, Energy, and others. The IT, Telecom, and BFSI sectors are projected to hold a significant share of the market owing to robust growth during the forecasted period. However, demand for colocation services by the Energy sector is anticipated to grow at an exponential rate with a surge in energy projects, particularly renewable energy projects. In April 2021, for instance, ACWA Power, Saudi Arabia's private energy company, announced the construction of a utility-scale solar renewable energy project which is worth US$319 million in Sakaka. The project is calculated to generate 300MW of energy to fulfill the country’s growing energy demand. In UAE, to meet its target to generate 75% of its energy from renewable sources, Dubai laid out plans to add 600 MW of clean energy capacity in 2021. Kuwait National Petroleum Company (KNPC) invested US$1.2 billion in the development of the 1500 MW al-Dibdibah PV plant at Shagaya, which is scheduled to complete by the end of 2021. Rising projects in the region are anticipated to increase the market demand for colocation centers for storage and protection services. 

Saudi Arabia and UAE are projected to dominate the GCC colocation market during the forecasted period.

Based on geography, the GCC colocation market is segmented into Saudi Arabia, UAE, Kuwait, Qatar, and others. It is projected that robust infrastructure and technology development in Saudi Arabia and UAE will increase their market share, making them a leader in the GCC colocation market. In Saudi Arabia, the development of King Abdullah Economic City, a US$100 billion project, is expected to open new opportunities for the market. Furthermore, robust growth in the IT, telecom and BFSI sectors is expected to drive market growth. Moreover, robust growth in the energy sector and the development of new projects are projected to support the market growth.

Covid Insights.

The coronavirus pandemic negatively impacted the market. With the outbreak of the virus, nationwide lockdowns were implemented that resulted in disruption in operations. Furthermore, halt in construction projects also impacted the market growth.

Key Developments.

  • June 2020, Construction. Colocation company, Meeza, announced its plan to construct its 4th data colocation center in Doha, Qatar. To be constructed in Qatar Science and Technology Park (QSTP), the colocation center is projected to be completed by mid-2021 and fulfills the country’s “smart economy” plans under Qatar National Vision 2030. 

GCC Colocation Market Scope:

Report Metric Details
 Market size value in 2019  US$235.752 million
 Growth Rate  CAGR of during the forecast period
 Base year  2019
 Forecast period  2021–2026
 Forecast Unit (Value)  USD Million
 Segments covered  Type, Industry Vertical, And Geography
 Regions covered  North America, South America, Europe, Middle East and Africa, Asia Pacific
 Companies covered  Equinix Inc., AT&T, NavLink, Meeza
 Customization scope  Free report customization with purchase

 

Key Market Segments

  • By Type
    • Retail Colocation
    • Wholesale Colocation
  • By Industry Vertical
    • Telecom and IT
    • BFSI
    • Government
    • Healthcare
    • Energy
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Italy
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • UAE
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Thailand
      • Taiwan
      • Indonesia
      • Others
1. INTRODUCTION
1.1. Market Definition
1.2. 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. Porters Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Powers of Buyers
4.3.3. Threat of Substitutes
4.3.4. The threat of New Entrants
4.3.5. Competitive Rivalry in Industry
4.4. Industry Value Chain Analysis

5. GCC COLOCATION MARKET, BY TYPE 
5.1. Introduction
5.2. Retail Colocation
5.3. Wholesale Colocation

6. GCC COLOCATION MARKET, BY INDUSTRY VERTICAL
6.1. Introduction
6.2. Telecom and IT
6.3. BFSI
6.4. Government
6.5. Healthcare
6.6. Energy
6.7. Others 

7. GCC COLOCATION MARKET, BY GEOGRAPHY
7.1. Introduction
7.2. UAE
7.3. Saudi Arabia
7.4. Qatar
7.5. Kuwait 
7.6. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrative
8.3. Mergers, Acquisition, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES
9.1. Equinix Inc.
9.2. AT&T
9.3. NavLink 
9.4. Meeza

Equinix Inc.

AT&T

NavLink

Meeza

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