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Colocation Facts and Statistics for 2019

Posted by QuoteColo on June 19, 2019 - Updated on June 07, 2019
1U Colocation Advantages and Pricing

Colocation hosting has never been more popular than it is right now. However, there have been some changes to this field over the past several years. Let’s look at some of the top facts and statistics that apply to colocation for 2019, so you can get a better idea of just why you and your business will be able to benefit from it.

Colocation Has Grown

The field of colocation has been expected to grow by 15.4% compound annual rate between 2016 and 2020, and we’ve seen this play out over the past several years. More and more companies are interested in getting involved with colocation because of the benefits it can offer them. Today, more managers of companies large and small are starting to use multiple types of data centers in their operations.

Not only have the number of colocation centers had to grow in recent years, but they have also had to make sure they are meeting and exceeding the various requirements for security and disaster recovery in the event something goes wrong. These companies have also been looking for ways that they can lower their overall IT infrastructure costs. You will notice that many of the locations that have data centers are in areas where the cost of electricity is low. This is not always the case, but it is becoming more and more common. It means that the customers will have to pay less for electricity costs, which is a huge expense for even a small data center.

How much has colocation grown, though? By the end of the next year or two, it is estimated that the colocation market will be worth about $54.8 billion. In 2016, this number was only $30.9 billion, so you can see that there has been quite a massive increase as more and more people and businesses have started to explore the benefits that can be offered through colocation.

Where Are the Colocation Centers Located?

These centers are found all around the world, but there are some locations that tend to have a lot more of them than others. You will find that areas that have good infrastructure and reliable power tend to have a larger number of facilities than locations that are in dangerous areas that are prone to disasters, for example. For quite a while, North American had the highest number of colocation hosting centers in the world. However, this is rapidly changing.

Estimates are that things have shifted slightly, or they will within the next year or so. By 2020, experts believe that North American will account for 38.1% of colocation hosting, with Asia and the Pacific accounting for 39.2%. Europe will account for 20.0%, and South America will only account for 1.8%.

There are many companies out there offering these services today, which is good for competition. Very few of the companies on the market offering colocation hosting have more than a 5% market share.

What Reasons Are Given to Choose Colocation Hosting?

Why have these services grown so much in recent years? People see them as being a more efficient and cost-effective way of doing business for the most part. Instead of taking up space on their own property for their servers, they can instead keep them at a location that is offsite, that is safe and secure, and that will have people around just in case something were to go wrong. The convenience that colocation hosting can provide is huge, and the future looks bright for this industry, as it seems like it will continue to grow.

Categories: Colocation

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