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Australia Colocation Market - Forecasts from 2022 to 2027

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    Report

  • 76 Pages
  • December 2022
  • Region: Australia
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716691

The Australian colocation market is projected to witness a compounded annual growth rate of 12.78% to grow to US$4,321.433 million by 2027, from US$1,861.546 million in 2020.

This growth is attributed to the increasing data centers, favorable regulation coupled with good infrastructural facilities, and the high internet penetration rate in the country. The market is being exacerbated by the expanding effects of big data, the Internet of Things (IoT), and the increasing adoption of online modes of shopping, virtual entertainment, learning, and others, especially during the COVID-19 pandemic.

High urbanization in the country is a prime factor contributing to the increasing use of data centers. According to the World Bank, in 2021, 86% of the population lives in urban development, which is about 22.23 million individuals. Further, over 90% of the total population had access to the internet in 2020. Data centers are a growingly desirable asset class with promising signs of future expansion in Australia. Moreover, increasing penetration of 5G internet network coupled with rising adoption of industry 4.0 is expected to rise in the coming years.

Australia, being a developed nation, has a significantly high internet penetration rate. According to the World Bank, in 2020 about 90% of the population in the country had access to the internet, including rural and urban. Propelling the use of the internet has increased the rate of online transactions, be it for online shopping, e-learning, or any other day-to-day activity. Further, a notable penetration rate of 5G the in the country will be boosting the colocation services throughout the forecast period.

Moreover, stringent cyber security and data privacy laws ensure the safety of the data. According to the World Bank, there are 39,794.43 secured internet servers per 1 million in Australia in 2020. This was only 1,402.79 servers in 2010. This can be seen in the graph shown below. A high number of secured internet servers ensures the high infrastructural facilities to ensure consistent and secure internet penetration in the region.

Government initiatives in this sector are expected to propel market development. The Australian Government, in December 2020, declared the rollout and the initial build phase of NBN (National Broadband Network) as completed. With its completion, NBN Co will be enabled to focus on efficiently operating the network, including efficient investments as required. This coupled with the development and emergence of 5G is further expected to drive the number of internet and mobile phone users in the country. This is expected to drive data volumes to larger extents, thus augmenting the growth of the market in the country.

Moreover, the significant share of this segment can be attributed to the increased number of mobile phone and internet users and the continuous development of high-tech applications and software in the industry. This is expected to lead to the rise of unstructured data and consequently result in the growth of data center colocation in the country which is projected to propel growth for the market. The graph below shows the percentage of individuals using internet services in Australia from 2011 to 2020.

The Capex (capital expenditure) investments in the country are also expected to boost the telecommunications industry which has been projected to propel growth for the colocation market. The capital expenditure from telecommunications operators came at an all-time high between 2017 to 2019 owing to the investments of NBN in upgrading the fixed broadband infrastructure of Australia.

Key Developments

  • 2021: NBN has expected a robust capex spend from 2021 and will be required to regularly invest in the HFC and fixed wireless to increase the capacity and accommodate more consumers and higher data usage, which is expected to propel growth for the colocation market owing to the increased amount of data.

Market 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
Frequently Asked Questions about the Australian Colocation Market

What is the estimated value of the Australian Colocation Market?

The Australian Colocation Market was estimated to be valued at $1861.55 million in 2020.

What is the growth rate of the Australian Colocation Market?

The growth rate of the Australian Colocation Market is 12.7%, with an estimated value of $4321.43 million by 2027.

What is the forecasted size of the Australian Colocation Market?

The Australian Colocation Market is estimated to be worth $4321.43 million by 2027.

Who are the key companies in the Australian Colocation Market?

Key companies in the Australian Colocation Market include Telstra Corporation Limited, Nextdc Ltd., Fluccs, The Australian Cloud Pty Ltd, Equinix Australia Pty Ltd., Over The Wire Pty. Ltd. and Interactive Pty Ltd.

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. 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. Porter's Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. AUSTRALIA COLOCATION MARKET BY COLOCATION MODEL
5.1. Introduction
5.2. Retail Colocation
5.3. Wholesale Colocation

6. AUSTRALIA COLOCATION MARKET BY END-USER INDUSTRY
6.1. Introduction
6.2. Banking and Financial Services
6.3. Manufacturing
6.4. Communication and Technology
6.5. Healthcare
6.6. Energy
6.7. Education
6.8. Government
6.9. Media and Entertainment
6.10. Others

7. COMPETITIVE ENVIRONMENT AND ANALYSIS
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix

8. COMPANY PROFILES
8.1. Telstra Corporation Limited
8.2. Nextdc Ltd.
8.3. Fluccs - The Australian Cloud Pty Ltd
8.4. Equinix Australia Pty Ltd.
8.5. Over The Wire Pty. Ltd.
8.6. Exetel Pty Ltd
8.7. Interactive Pty Ltd
*List is not exhaustive

Companies Mentioned

  • Telstra Corporation Limited
  • Nextdc Ltd.
  • Fluccs - The Australian Cloud Pty Ltd
  • Equinix Australia Pty Ltd.
  • Over The Wire Pty. Ltd.
  • Exetel Pty Ltd
  • Interactive Pty Ltd