Dublin, July 29, 2024 (GLOBE NEWSWIRE) -- The "Europe Colocation Market - Forecasts from 2024 to 2029" report has been added to ResearchAndMarkets.com's offering.
Europe colocation market will reach US$40.546 billion in 2029 at a CAGR of 10.20% from US$24.951 billion in 2024. Data Center Colocation plays a major role in providing much-needed benefits to companies willing to reduce their operating costs and remain competitive. SMEs in Europe are facing challenges related to burgeoning data and moving their services onto the cloud, owing to which colocation has become one of the preferred options.
Additionally, strategic collaboration among major telecom operators and, the establishment of hyperscale data centers followed by favorable investments to bolster the same have also majorly impacted the regional market growth.
Market Drivers
Growing ICT infrastructure propels the regional market growth.
Europe boasts a state-of-the-art ICT infrastructure that is attracting and enabling small and medium-sized businesses, along with large-sized firms, to harness digitalization, which is allowing enterprises to improve productivity. Simultaneously, companies are adopting cost-effective approach and are investing in providers of data center services at affordable prices which are further boosting the growth of the colocation market in this region.
European cities such as Dublin are considered as the center of tech excellence. Major nations namely the Netherlands, France, UK and Germany holds high internet bandwidth capacity, and are emphasizing on bolstering their ICT & digital infrastructure that assist enterprises in managing their data complexities.
The banking and financial services industry is estimated to hold a significant market share.
Data security, compliance, and the requirement for huge data stacking spaces are the key aspects of technology deployment in the banking and financial services industry, where huge data volumes generated through different sources should be efficiently stored and managed for providing customer-centric information. Traditionally, banks and financial institutions have been running and operating their data centers.
However, with the advancement in technologies, and the high adoption of cloud computing solutions, while keeping the infrastructure costs low, colocation has become imperative for financial enterprises considering for handling and analyzing complex data sets while maintaining the customer's data privacy.
The United Kingdom and Germany are poised to account for a considerable share of the European market.
The U.K. and other major nations namely Germany is witnessing a higher growth rate in the coming years. London has one of the largest and the most comprehensive financial centers globally and is regarded by investors due to its solid regulatory, legal, and tax environments, which harbor supportive market infrastructure and a highly skilled and dynamic workforce. Market colocation service providers namely Equinix Inc and Iron Mountain have established their data center business in the UK which has further impacted the overall market expansion.
Germany is one of the major EU nations that hold high potential for data centers establishment and related investments. It is among the four leading colocation markets along with the United Kingdom, France, and the Netherlands. The largest population of the data centers lies around Frankfurt, which is considered one of Europe's nerve centers in terms of bandwidth.
Furthermore, Germany has an extensive system of automatic telephone exchanges, and its ICT sector is considered one of the most innovative on a global level and has one of the largest ICT markets in the world. The German government prioritizes the country's economic and innovation policy that focuses on digital infrastructure, digital economy, and digital workplaces, which is anticipated to bolster the colocation infrastructure development in the country.
Recent development and expansion
- In October 2023:Telehouse announced the construction of its second data center at the company's TH3 Paris Magny campus, France, The new establishment will strengthen the colocation providers hosting and connectivity capabilities in major European sites.
- In March 2022:Network Edge was introduced by Equinix in five new European nations. Network Edge's expansion into these new markets enables companies to establish themselves in more metro areas without having to physically deploy hardware in a data center.
- In January 2022:Penta Infra raised €75 million ($83.5 million) which it stated would be used to increase the scope of its European data center portfolio, which already includes buildings in Germany, Denmark, and the Netherlands.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 82 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $24.95 Billion |
| Forecasted Market Value (USD) by 2029 | $40.55 Billion |
| Compound Annual Growth Rate | 10.2% |
| Regions Covered | Europe |
Company Profiles
- DATA4 Group
- Equinix, Inc.
- Digital Realty Trust, Inc.
- HostDime Global Corp
- NFOrce Entertainment B.V.
- Altushost B.V.
- Serverius Holding B.V
- Verizon Communications Inc
- Telehouse
- Colt Technology Services Group Limited
- Iron Mountain
By Colocation Model
- Retail Colocation
- Wholesale Colocation
By End-User Industry
- Banking and Financial Services
- Manufacturing
- Communication and Technology
- Healthcare
- Energy
- Education
- Government
- Media and Entertainment
- Others
By Country
- United Kingdom
- Germany
- France
- The Netherlands
- Mexico
For more information about this report visit https://www.researchandmarkets.com/r/vewmp
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