Latest News - Retail Colocation Market in US: SMEs are expected to lead the End-user segment during 2024-2028

The Retail Colocation Market in US is being driven by Rising demand for retail colocation facilities

The Retail Colocation Market in US is expected to grow at a CAGR of 17.03% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 5.44 billion. In the US retail colocation market, traditional data centers are being superseded by software-defined solutions. These advanced systems virtualize hardware, including servers and storage devices, for increased efficiency and cost savings. By managing infrastructure through intelligent software, colocation providers support both legacy applications and cloud services. This transition enables faster deployment of services, higher availability, and enhanced security for businesses. As data center complexity grows, the ability to manage all servers from a single control plane becomes essential. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • SMEs
  • Large enterprises
• Industry Application
  • IT and telecom
  • Healthcare
  • Retail and e-commerce
  • Energy and utility
  • Others
• Deployment
  • Cloud
  • On-premises
• Geography
  • US

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 retail colocation facilities
• Increase in business operational needs
• Growing investments in hyper-scale data centers by colocation providers

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

• Adoption of mini data centers
• Emergence of containerized data centers
• Growing focus on data center consolidation

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Market Scope in Retail Colocation Market in US Research Report

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Research Analysis Overview

In the dynamic business landscape of the US, the Retail Colocation Market plays a pivotal role in enabling businesses, particularly retailers and start-ups, to optimize their resource utilization and ensure high-security measures. Retail Colocation services offer on-demand access to cloud-based resources and hybrid cloud infrastructure, allowing companies to leverage virtualization technologies and migrate their systems seamlessly. Key players in this market include system integrators, software vendors, and colocation providers such as Global Switch, CoreSite Realty, and Cogent Communications. These providers offer wholesale and retail colocation services, providing businesses with options to choose based on their specific needs. Retail Colocation facilities come equipped with advanced security measures, ensuring data protection and disaster recovery capabilities. Additionally, the integration of edge computing and interconnection solutions further enhances the value proposition of these services, enabling businesses to improve their response times and deliver superior customer experiences. In summary, the Retail Colocation Market in the US is a critical enabler for businesses seeking to optimize their IT infrastructure while ensuring high-security measures and disaster recovery capabilities. With the increasing adoption of cloud-based solutions and virtualization technologies, the market is poised for significant growth in the coming years.

Market Research Overview

The Retail Colocation Market in the US is a segment of the broader Global Communications Equipment Market, encompassing manufacturers of enterprise networking solutions such as LANs, WANs, routers, telephones, switchboards, and exchanges. This market also includes the Communications Infrastructure or Telecom Equipment Market. Technavio determines the market size by evaluating sales revenue for communication equipment, broadcasting equipment, telecommunication equipment, and telecom service providers' infrastructure investments. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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Website: www.technavio.com/