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Global Data Centre Outsourcing Market to Grow at a CAGR of 5.1% During 2021-2026, Aided by the Rising Co-Location Market

According to a new report by EMR titled, ‘Global Data Centre Outsourcing Market Report and Forecast 2021-2026’, the global market for data centre outsourcing stood at a value of around USD 149.2 billion in 2020. The market is further projected to grow at a CAGR of 5.1% between 2021 and 2026 to attain USD 201.1 billion by 2026.

The global data centre outsourcing industry is supported by the growing global co-location market. The growth of the co-location industry can be attributed to the growing demand to reduce IT infrastructure expenditure, enhance security services, and the rising need for more space to support data centres. North America and Europe are the mature markets for data centre outsourcing industry, while the Asia Pacific and Latin America are the emerging markets for the product. The industry in North America is being driven by the availability of advanced technological resources in the region. In the Asia Pacific, the growing adoption of cloud-based technology, with the rising consumer awareness and the growing urbanisation, are supporting the industry in the region.

With the rising cases of data theft, and the increasing rate of cybercrimes, the demand to secure data has increased, leading manufacturers to adopt enhanced services. In November 2020, Equinix, Inc. (NASDAQ: EQIX), a key player in the market, announced that Zoom Video Communications, Inc. will adopt Platform Equinix® to achieve consistency, scalability, and security, and expand its globally distributed footprint, supporting its worldwide growth objectives. Earlier in November, the company announced that it had achieved Binding Corporate Rules (BCRs) compliance for safeguarding personal data transfers from Europe, becoming the first company to have its BCRs approved by the European Data Protection Board (EDPB) under the new GDPR regime, thus, expanding its market. Such developments are expected to aid the growth of the global data centre outsourcing industry over the forecast period.

Market Breakup by Service, Segment, End Use, and Region:

  • By services, the market is divided into co-location and managed hosting services, among others.
  • Based on segments, the market is bifurcated into retail and wholesale. 
  • The major end-use sectors of data centre outsourcing are small and medium businesses (SMBs) and large businesses. 
  • Region-wise, the market can be divided into North America, the Asia Pacific, Europe, Latin America, and the Middle East and Africa.

Key Findings of the Report:

  • The growing global co-location market, along with the rising demand to reduce IT infrastructure expenditure, is driving the growth of the global data centre outsourcing industry. 
  • The increased adoption of cloud-based technology is providing further impetus to the market growth. 
  • The increased demand for data security and enhanced data sovereignty is propelling the global data centre outsourcing industry forward. 
  • The rapidly advancing technology, growing urbanisation, and rising consumer knowledge of computer applications are further aiding the industry.

Key Offerings of the Report:

  • The EMR report gives a detailed overview of the global market for data centre outsourcing, providing an insight into the services, segments, end uses, and major regions of the product for the periods (2016-2020) and (2021-2026). 
  • The report analyses the market dynamics, covering the key demand and price indicators in the market, along with providing an assessment of the SWOT and Porter’s Five Forces models.

The major players in the global data centre outsourcing market are Equinix, Inc., RACKSPACE US, INC., IBM Corporation, Fidelity National Information Services, Inc, CenturyLink, and NTT Communications Corporation, among others. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.

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Expert Market Research (EMR) is a leading market research and business intelligence company, ensuring its clients remain at the vanguard of their industries by providing them with exhaustive and actionable market data through its syndicated and custom market reports, covering over 15 major industry domains. The company's expansive and ever-growing database of reports, which are constantly updated, includes reports from industry verticals like chemicals and materials, food and beverages, energy and mining, technology and media, consumer goods, pharmaceuticals, agriculture, and packaging.

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