Europe colocation market is projected to witness a compound annual growth rate of 11.21% during the forecast period, reaching a total market size of US$28.908 billion in 2025 from US$15.278 billion in 2019. As the data requirement keeps growing so is there increasing demand of efficient Information Technology (IT) infrastructure. Data Center Colocation plays a major role in providing much needed benefit to companies willing to reduce their operating costs and remain competitive. Enterprises (small, medium and large) which are facing challenges related to burgeoning data and moving their services onto the cloud, colocation has become one of the preferred option. This has led to movement towards leasing of colocation facilities which was traditionally dominated by owning of Data Centers and having a dedicated team of IT professionals for maintaining and troubleshooting the issues.
Europe boasts state-of-the-art ICT infrastructure that is attracting and enabling small and medium sized businesses along with the large sized firms to harness digitalization, which is allowing the 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, is further boosting the growth of colocation market in this region.
Europe houses the tech hubs in a number of 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 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.
Banking and financial services industry is estimated hold a significant share in the market.
Data security, compliance and 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 high adoption of cloud computing solutions, while keeping the infrastructure costs low, colocation has become imperative for financial enterprises considering 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.
U.K. continues to be the dominant market in the region, but the trend has now reversed with Germany, France, and others colocation market 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 the 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 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 the Frankfurt city and 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 as 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. 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 focusses on digital infrastructure, digital economy and digital workplaces fueling the growth of the global center colocation market in this region.
Segmentation
By Colocation Model
By End-User Industry
By Country
Europe boasts state-of-the-art ICT infrastructure that is attracting and enabling small and medium sized businesses along with the large sized firms to harness digitalization, which is allowing the 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, is further boosting the growth of colocation market in this region.
Europe houses the tech hubs in a number of 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 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.
Banking and financial services industry is estimated hold a significant share in the market.
Data security, compliance and 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 high adoption of cloud computing solutions, while keeping the infrastructure costs low, colocation has become imperative for financial enterprises considering 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.
U.K. continues to be the dominant market in the region, but the trend has now reversed with Germany, France, and others colocation market 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 the 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 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 the Frankfurt city and 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 as 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. 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 focusses on digital infrastructure, digital economy and digital workplaces fueling the growth of the global center colocation market in this region.
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
Table of Contents
1. Introduction
2. Research Methodology
3. Executive Summary
4. Market Dynamics
5. Europe Colocation Market Analysis, by Colocation Model
6. Europe Colocation Market Analysis, by End-User Industry
7. Europe Colocation Market Analysis, by Country
8. Competitive Environment and Analysis
9. Company Profiles
Companies Mentioned
- DATA4 SERVICES
- Equinix
- Digital Reality
- HostDime
- NForce
- Altushost
- Serverius
- Verizon
- Telehouse
- Colt Technology Services
Methodology
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