Authored By: Sarah
14 Feb 2025

Latest News- Data Center Colocation And Managed Hosting Services Market: BFSI is expected to lead the End-user segment during 2025-2029

The Data Center Colocation And Managed Hosting Services Market is being driven by Rising demand for data center colocation facilities

The Data Center Colocation And Managed Hosting Services Market is expected to grow at a CAGR of 18.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 306.2 billion. The data center colocation and managed hosting services market are experiencing significant growth due to increasing investments in hyper-scale data centers. With the advent of the smart revolution, which encompasses the development of smart cities, grids, and homes, a substantial volume of data is being generated. Processing this data has become a critical imperative, leading to an escalating need for hyper-scale data centers. Notable colocation and infrastructure service providers, including Amazon Web Services (AWS), have recognized this trend and have announced the launch of new hyperscale data centers. For instance, AWS unveiled a new hyperscale data center in Hyderabad, India, in 2023. These hyper-scale data centers are instrumental in managing the burgeoning information processing requirements of a connected world. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

  • End-user
    • BFSI
    • Healthcare
    • E-commerce
    • Telecommunication
    • Others
  • Type
    • Wholesale
    • Retail
  • Geography
    • North America
      • Canada
      • US
    • Europe
      • Germany
      • UK
      • France
      • Italy
      • Spain
    • APAC
      • China
      • India
      • Japan
    • Middle East and Africa
      • South America

      According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

      • Rising demand for data center colocation facilities
      • Increase in operational business needs
      • Increasing investments on construction of colocation data centers

      However, the market also witnesses some limitations, which are as follows:

      • High power consumption in data centers
      • Increasing demand for cloud-based services
      • Rising adoption of mini data centers

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      Market Scope in Data Center Colocation And Managed Hosting Services Market Research Report

      Market Scope

      Report Coverage

      Details

      Page number

      206

      Base year

      2024

      Historic period

      2019-2023

      Forecast period

      2025-2029

      Growth momentum & CAGR

      Accelerate at a CAGR of 18.5%

      Market growth 2025-2029

      USD 306.2 billion

      Market structure

      market_structure.ucfirst

      YoY growth 2024-2025(%)

      15.2

      Key countries

      US, Canada, China, Germany, UK, India, France, Japan, Italy, and Spain

      Competitive landscape

      Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

      Request Free Sample

      Find out which segment is leading the market by accessing the free PDF report

      Research Analysis Overview

      In the Data Center Colocation and Managed Hosting Services Market, Cybersecurity and Data Management are key focuses. Remote work solutions, Artificial Intelligence, Automation, IoT devices, and Hybrid work models are transforming the industry. IT security professionals ensure Data Security for Distributed Teams and Endpoint Security. Network Monitoring is crucial for differentiating customer experiences and building strong Client Relationships. HIPAA compliance in Healthcare and Pharmaceuticals is a significant deployment model. Enterprises seek a Competitive Edge through operational efficiency in Data Centers, as the industry continues to expand.

      Market Research Overview

      The IT consulting and other services market encompasses businesses delivering IT consulting, system integration, application, electronic data processing, business process outsourcing, infrastructure, and Internet services. According to Technavio, market expansion will be driven by significant government investments in modernizing IT infrastructure to address skills gaps among public sector employees. Additionally, the increasing adoption of cloud computing, cybersecurity, remote work solutions, artificial intelligence, automation, IoT devices, and hybrid work models necessitates expert IT services, further fueling market growth. IT security professionals play a crucial role in addressing the security challenges associated with these advanced technologies.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.


      Contacts

      Technavio Research
      Jesse Maida
      Media & Marketing Executive
      US: +1 844 364 1100
      UK: +44 203 893 3200
      Email: media@technavio.com
      Website: www.technavio.com/

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