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Germany Colocation Market - Forecasts from 2022 to 2027

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  • 76 Pages
  • December 2022
  • Region: Germany
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716721

The Germany colocation market is expected to grow at a CAGR of 9.15% over the forecast period to reach US$5.485 billion by 2027 from US$2.972 billion in 2020.

The colocation data center provides renting space to business companies for servers as well as other computing hardware, thereby enabling them to remove in-house servers or data centers. It provides them access to advanced data center technology which offers security, continuity, and scalability for various applications and data systems. Germany is witnessing a significant increase in its internet users as well also it is actively involved in the establishment of data protection laws. For instance, according to World Bank data, in 2020, the percentage share of internet users stood at 90% of the overall population which showed an increase of 6% from 2017. Furthermore, in November 2019, the Second Data Protection Adaptation Act came into force which aims to prevent public and private companies from misusage of personal data. Colocation data centers provide reliable connectivity networks and high-security advantages and with such law establishment and an increase in internet users, the demand for colocation data centers will also increase in Germany, thereby stimulating market growth.

Based on enterprise size, the Germany colocation market is segmented as small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the Germany colocation market, owing to the strategic collaboration for digitizing the infrastructure in major sectors of Germany. For instance, in December 2020, Siemens Healthineers and IBM collaborated on the development of a digital platform for digitizing the German healthcare system. Such collaborations of large enterprises will boost the demand for major colocation services and infrastructures for efficient data processing, thereby propelling the overall market growth during the forecast period.

Favorable government schemes toward 5G technology establishment are positively impacting the colocation market growth in Germany. The introduction of 5G has created a boom in the volume of data transmission over the years which has made companies shift from traditional on-premises data center to flexible and efficient colocation data center which provides a high level of security and operability to companies during data processing. The German government realizing the growing trend of 5G adoption is actively investing in the establishment of such technology in the country. For instance, in July 2022, the German Federal cabinet approved the “Gigabit Strategy 2030” of the Federal Ministry for Digital Affairs and Transport which aims to achieve full 5G population coverage by 2030. Such a favorable scheme will boost colocation service demand in Germany for effective data handling and storage during the forecast period thereby augmenting the market growth.

Recent Developments

  • In October 2021, Equinix, Inc launched its FR8 International Business Exchange™ (IBX®) data center in Frankfurt, Germany. The green-focused colocation data center provides 4,800 sqm of colocation space and runs on 100% renewable energy. Its establishment has enabled Equinix to expand its presence in Frankfurt for providing interconnection options to customers.
  • In June 2020, Datacenter One GmbH established its 4th data center namely “DUS1” in Western Germany near Dusseldorf. The establishment provided Datacenter One with the opportunity to expand its colocation & Colo connect services to companies in Western Germany.

Covid 19

The lockdown restrictions to prevent the widespread COVID pandemic positively impacted the colocation services in Germany, as the widespread adoption of remote working, and increased reliance on the internet raised the need for colocation data centers for automation & remote monitoring.

Market Segmentation:

By Type

  • Retail
  • Wholesale
  • Hybrid

By Enterprise Size

  • Small
  • Medium
  • Large

By Industry Vertical

  • BFSI
  • Communication & Technology
  • Education
  • Healthcare
  • Media & Entertainment
  • Retail & E-commerce
  • Others
Frequently Asked Questions about the German Colocation Market

What is the estimated value of the German Colocation Market?

The German Colocation Market was estimated to be valued at $2.97 billion in 2020.

What is the growth rate of the German Colocation Market?

The growth rate of the German Colocation Market is 9.1%, with an estimated value of $5.49 billion by 2027.

What is the forecasted size of the German Colocation Market?

The German Colocation Market is estimated to be worth $5.49 billion by 2027.

Who are the key companies in the German Colocation Market?

Key companies in the German Colocation Market include Scaleup Technologies GmbH & Co. KG, Telehouse, Datacenter one GmbH, Digital Realty, Schwarz Group, Hetzner Online GmbH, Anexia, WIIT S.p.A and Exa Infrastructure.

Table of Contents

1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2.1. Research Data
2.2. Assumptions

3.1. Research Highlights

4.1. Market Drivers
4.2. Market Restraints
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of End-Users
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

5.1. Introduction
5.2. Retail
5.3. Wholesale
5.4. Hybrid

6.1. Introduction
6.2. Small
6.3. Medium
6.4. Large

7.1. Introduction
7.2. BFSI
7.3. Communication & Technology
7.4. Education
7.5. Healthcare
7.6. Media & Entertainment
7.7. Defense
7.8. Others

8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9.1. Scaleup Technologies GmbH & Co. KG
9.2. Telehouse
9.3. Datacenter one GmbH
9.4. Digital Realty
9.5. Schwarz Group
9.6. Hetzner Online GmbH
9.7. Anexia
9.8. WIIT S.p.A
9.9. euNetworks
9.10. Exa Infrastructure

Companies Mentioned

  • Scaleup Technologies GmbH & Co. KG
  • Telehouse
  • Datacenter one GmbH
  • Digital Realty
  • Schwarz Group
  • Hetzner Online GmbH
  • Anexia
  • WIIT S.p.A
  • euNetworks
  • Exa Infrastructure