USD 13.80 billion
Europe Data Center Colocation Market Size, Share, Growth Analysis, By Type(Retail, Wholesale ), By Tier(Tier 1, Tier 2, Tier 3, Tier 4), By Enterprise Size(Large Enterprises, Small and Medium-sized Enterprises), By End Use(Retail, BFSI, IT & Telecom, Media & Entertainment), By Country(United Kingdom, Germany, France, Italy), By Region - Industry Forecast 2024-2031
Report ID:
SQMIR50A2020 |
Region:
Regional |
Published Date: February, 2024
Pages:
157
|Tables:
63
|Figures:
70
Europe Data Center Colocation Market Insights
Europe Data Center Colocation Market size was valued at USD 15.92 billion in 2022 and is poised to grow from USD 18.41 billion in 2023 to USD 56.99 billion by 2031, growing at a CAGR of 15.20% in the forecast period (2024-2031).
The Europe data center colocation market is experiencing substantial growth due to the increasing demand for data storage, processing, and connectivity. Colocation services involve renting space within a third-party data center facility to host IT infrastructure. This approach allows businesses to save on costs associated with building and maintaining their own data centers.
Europe's thriving digital economy, widespread adoption of cloud computing, and increasing data traffic have propelled the demand for colocation services. The region's strategic location, connectivity, and stringent data protection regulations also attract multinational companies seeking secure and reliable data storage solutions.
Countries like the UK, Germany, and the Netherlands are key players in the market, hosting major data centers and serving as important connectivity hubs. Additionally, the growing popularity of hybrid and multicloud strategies is further driving the adoption of colocation services. With the ongoing digital transformation across industries and the increasing need for scalable and efficient data solutions, the Europe data center colocation market is expected to continue its upward trajectory.
Europe Data Center Colocation Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Retail Colocation
Fastest Growth
Retail Colocation
Growth Rate
15.2% CAGR
Global Europe data center colocation market ($ Bn)
Country Share for Europe Region (%)
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Europe Data Center Colocation Market Segmental Analysis
Europe Data Center Colocation Market is segmented by Type, Tier, Enterprise Size, End Use, and Country. Based on Type, the market can be segmented into Retail, Wholesale. Based on Tier, the market can be segmented into Tier 1, Tier 2, Tier 3, Tier 4. Based on Enterprise Size, the market can be segmented into Large Enterprises, Small and Medium-sized Enterprises. Based on End Use, the market is segmented into Retail, BFSI, IT & Telecom, Media & Entertainment, Healthcare, Others. Based on Country, the market is segmented into United Kingdom, Germany, France, Italy, Spain, and Rest of Europe.
Europe Data Center Colocation Market Analysis By Service Type
In the Europe data center colocation market, both retail colocation and wholesale colocation services play significant roles in meeting the diverse needs of businesses. Retail colocation, which involves leasing smaller portions of data center space, power, and resources, is a dominating segment due to its popularity among various industries. Small and medium-sized enterprises (SMEs), as well as larger corporations, often opt for retail colocation to access reliable infrastructure without the upfront costs and complexities of building and maintaining their own data centers.
On the other hand, wholesale colocation is emerging as the fastest-growing segment in the Europe data center colocation market. Wholesale colocation targets larger enterprises and cloud service providers that require substantial amounts of space, power, and cooling resources. This segment is witnessing rapid growth as organizations seek more control over their infrastructure, scalability for future expansion, and the ability to customize data center environments to align with their specific needs.
Europe Data Center Colocation Market Analysis By End-User
Among the end-user segments in the Europe data center colocation market, the IT & Telecom sector has been dominating the market. The IT & Telecom industry relies heavily on data center colocation services to house their servers, store large amounts of data, and ensure uninterrupted connectivity. The sector's continuous expansion, coupled with the need for robust infrastructure to support digital services, has contributed to its dominance in the colocation market.
On the other hand, the BFSI (Banking, Financial Services, and Insurance) sector is emerging as the fastest-growing segment in the Europe data center colocation market. The BFSI industry requires high-security environments to manage sensitive customer data, conduct financial transactions, and comply with stringent regulations. As financial services become increasingly digitized, the demand for reliable and secure data center colocation services has surged, driving significant growth in this segment.
Global Europe data center colocation market By Service Type
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Europe Data Center Colocation Market Regional Insights
In the Europe data center colocation market, the largest country is typically Germany. Germany has a robust economy, advanced technology infrastructure, and is strategically positioned within Europe, making it a prime location for data center colocation services. The presence of major cities like Frankfurt, known for its significant connectivity and data exchange, further enhances Germany's prominence in the data center industry.
The second largest country in the Europe data center colocation market is often the United Kingdom (UK). The UK boasts a highly developed technology ecosystem, strong financial services sector, and access to undersea cables that provide excellent connectivity to North America and other parts of Europe. Major cities like London are key hubs for data centers and colocation services in the region. The UK's status as an international business and financial center also contributes to its significance in the data center colocation landscape within Europe.
Global Europe data center colocation market By Geography
- Largest
- Fastest
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Europe Data Center Colocation Market Dynamics
Europe Data Center Colocation Market Drivers
Digital Transformation:
- The rapid pace of digital transformation across industries is driving the demand for data center colocation services. Enterprises are shifting towards cloud-based solutions, IoT, big data, and AI, requiring robust and scalable data infrastructure.
Increased Data Usage:
- The exponential growth of data usage, driven by online activities, e-commerce, streaming services, and social media, is necessitating data centers with high processing and storage capabilities.
Europe Data Center Colocation Market Restraints
Energy Consumption and Environmental Concerns:
- Data centers consume significant amounts of energy, raising concerns about their environmental impact. Stricter regulations and sustainability goals may impose challenges on data center operators.
Costs and Scalability:
- Building and maintaining data centers involve substantial capital and operational costs. Scalability to meet fluctuating demand while optimizing costs can be complex.
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Europe Data Center Colocation Market Competitive Landscape
The competitive landscape of the Europe Data Center Colocation Market is characterized by the presence of both global and regional players vying for market share. Key players in the market include industry giants such as Equinix, Digital Realty Trust, NTT Communications, and Interxion (a subsidiary of Digital Realty). These players have established a strong presence with extensive data center networks across major European cities. They offer a range of services, including connectivity options, hybrid cloud solutions, and managed services, catering to the diverse needs of enterprises.
Europe Data Center Colocation Market Top Player’s Company Profile
- Equinix
- Digital Realty Trust
- NTT Communications
- Interxion (a subsidiary of Digital Realty)
- CyrusOne
- Kao Data
- e-shelter (a subsidiary of NTT Communications)
- Colt Data Centre Services
- Global Switch
- Telehouse (a subsidiary of KDDI Corporation)
- Data4
- Zenium Data Centers
- IXcellerate
- Altice Data Center
- Green Datacenter AG
Europe Data Center Colocation Market Recent Developments
- In July 2023, Equinix announced the opening of its new data center in Frankfurt, Germany. The data center is the company's 12th in Germany and is designed to meet the growing demand for colocation services in the region.
- In June 2023, Digital Realty Trust announced the acquisition of Interxion for $8.4 billion. The acquisition will create one of the largest data center providers in Europe.
- In May 2023, Vantage Data Centers announced the opening of its new data center in Dublin, Ireland. The data center is the company's third in Ireland and is designed to meet the growing demand for cloud computing services in the region.
- In April 2023, Google announced plans to invest $1 billion in a new data center in Denmark. The data center is expected to be completed in 2025.
Europe Data Center Colocation Key Market Trends
- Rise of Hyperscale Cloud Providers: The region is experiencing an influx of hyperscale cloud providers like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). These providers are driving significant demand for data center colocation services to support their expanding infrastructure needs.
Europe Data Center Colocation Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Component types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our Europe data center colocation market analysis; The Europe data center colocation market is a rapidly expanding sector driven by several factors. Geographically, the market spans across various countries in Europe, with the United Kingdom and Germany being the largest and second-largest contributors, respectively. This growth is attributed to increasing demand for outsourced data storage, disaster recovery services, and scalable infrastructure. The market is segmented into various segments such as retail colocation, wholesale colocation, and managed hosting services, catering to different customer requirements. The key drivers of the market include the rising adoption of cloud services, the need for efficient data management, regulatory compliance like GDPR, and the growing demand for low-latency applications due to IoT and 5G technologies. Additionally, the influx of hyperscale cloud providers, sustainability concerns, edge computing requirements, and the continuous investment in network infrastructure are propelling the market's growth. As the digital economy continues to expand, the Europe data center colocation market is poised for further development to meet the evolving demands of enterprises and consumers alike.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 15.92 billion |
| Market size value in 2031 | USD 56.99 billion |
| Growth Rate | 15.20% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Europe Data Center Colocation Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Europe Data Center Colocation Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Europe Data Center Colocation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Europe Data Center Colocation Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Europe Data Center Colocation Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Europe Data Center Colocation Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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