The United States colocation market recorded a value of US$14.280 billion in 2022 and the market is set to grow at a CAGR of 9.47% thereby reaching US$26.908 billion in 2029.
Consumer propensity towards cloud-based solutions, coupled with booming technological applications has led to an upward trajectory for colocation services in the United States. Moreover, the corporate culture's investment in digitizing their operations followed by strategic efforts to bolster the establishment of hyperscale data centers is estimated to further the overall market expansion in the United States.
Market Drivers
Major developed economies like the United States are witnessing a significant increase in their internet users owing to which it is actively involved in the establishment of laws & regulations relating to data protection. For instance, in June 2022, US Congress representatives introduced the American Data Privacy and Protection Act which aims to provide extra protection to sensitive data linked to any device or person. Such law establishment will surge the demand for colocation services owing to their high data security feature thereby boosting the market growth during the forecast period.
The adoption and Deployment of 5G have created a boom in the volume of data traffic thereby creating a shift by companies from the traditional on-premises data center to flexible and efficient colocation data center for enjoying a high level of security and operability during data processing. According to the CTIA’s “State of 5G” report issued in July 2023, the United States leads in 5G deployment with networks already covering up to 325 million people in the country.
The United States government realizing the growing trend of 5G adoption is actively participating in the establishment of such technology in the country. For instance, in April 2023, the Biden Administration launched the “Public Wireless Supply Chain Innovation Fund” which will invest US$1.5 billion for the development of interoperable networks thereby securing 5G & next-generation wireless technology usage in the US.
By enterprise size, the United States colocation market is segmented into small, medium, and large, where the small enterprise is expected to grow at a significant rate during the forecast. Small-scale businesses account for a major portion of employers in the US and over the years new business applications in various sectors inclusive of construction, manufacturing, healthcare, and retail among others have increased the overall strength of small-scale firms in the United States. For instance, according to the U.S Small Business Administration’s “2023 Small Business Profile”, small enterprises account for 99% of US businesses.
Key Development
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market Size Value in 2022 | US$14.280 billion |
| Market Size Value in 2029 | US$26.908 billion |
| Growth Rate | CAGR of 9.47% from 2022 to 2029 |
| Study Period | 2019 to 2029 |
| Historical Data | 2019 to 2022 |
| Base Year | 2023 |
| Forecast Period | 2024 – 2029 |
| Forecast Unit (Value) | USD Billion |
| Segments Covered |
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| Companies Covered |
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| Customization Scope | Free report customization with purchase |
Segmentation: