Datacentre colocations will be worth $33.2 bn by 2018

Colocation market still growing, but not as quickly as predicted

The datacentre colocation market will be worth $33.2 billion (£23 billion) by 2018, analyst group 451 Research has forecast.

The sector was valued at $27 billion (£18.7 billion) in the fourth quarter of 2015, advisory group said, with 54.6 per cent of this revenue derived from local providers.

However, this latest report represents a moderate revision to the long-term forecast made last spring, when it was predicted that the datacentre colocation market would be worth $36 billion (£24 billion) by 2017.

Kelly Morgan, research director at 451, believes recent consolidation in the datacentre market is in line with the maturity of the cloud.

“2015 was a record year for the datacentre, hosting, and managed services sector, with the highest number of deals since we began tracking it. But there are still hundreds of datacentre providers around the world that will continue to consolidate, either to gain scale or add services or both,” Morgan said.

“This is not because the industry is in trouble; the move to cloud continues to drive strong demand for leased datacentre space. It is because the industry is maturing and providers are becoming more strategic in their approach to customers,” she added.

451 Research has also estimated what the world’s largest regions are in terms of total operational space for colocation.

The Asia Pacific region is estimated to be largest with approximately 40.1 per cent of datacentres. This is thanks to the size of the region’s economy, a less entrenched installed base of enterprise facilities and some Asian countries supporting their colocation industries with special tax treatment.

North America is second largest with 33.7 per cent of total global operational square feet, while EMEA accounts for another 22.1 per cent. The remaining 4.1 is found in South America.

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