Overview

Full power: Rising business numbers and electricity costs will drive industry growth

IBISWorld’s industry research report on Colocation Facilities provides up-to-date sales and market data, allowing you to identify the product and customer segments driving revenue growth. The report identifies the leading companies in the industry, and offers strategic analysis of the key factors influencing the market. Our data forecasts are accompanied by full analysis to illustrate how the market is responding to dominant and emerging trends.

REPORT SNAPSHOT

Market Share of Companies
Industry Statistics & Market Size
Revenue
$14bn
Annual Growth
11-16
14.4%
Annual Growth
16-21
Profit
Employment
18,450
Business
1,596

Industry Threats & Opportunities

  • Facility supply shortages have allowed operators to raise prices, boosting profit
  • Colocation facilities experienced strong growth as storage and server power demand rose substantially
  • A continual focus on sustainable energy will push customers to colocation facilities

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    Industry Analysis & Industry Trends

    The Colocation Facilities industry fared extremely well in the past five years, as the continual move to overall online operations caused an increase in demand for server space. In the coming years, industry demand will strengthen as demand from data processing and hosting services, the number of businesses and the percentage of services conducted online all increase. Additionally, sustainability trends and the rising cost of electric power will push customers to the industry as a means to cut costs...

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    Industry Report - Industry SWOT Analysis Chapter

    The Colocation Facilities industry is in the growth stage of its life cycle. In the 10 years to 2021, the industry's contribution to the overall economy, measured as industry value added (IVA), is expected to grow at an average annual rate of 14.9%. Comparatively, GDP is forecast to rise at an annualized rate of 2.2% over the same period. Furthermore, the industry has consistently outperformed the economy during the past decade. Overall, the industry is reaching new geographic markets as companies have expanded to encompass more areas. Businesses have opened more locations. For example, major company Equinix Inc. has expansion underway in areas like Dallas, New York City and Seattle. Additionally, new buyers and markets have found their way to the industry in the past five years.

    ..

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    Additional Insights for the Colocation Facilities Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Colocation Facilities Industry are

  • Ability to offer customized server solutions
  • Access to skilled server engineers
  • Access to high bandwidth
  • IBISWorld analysts also discuss how external factors such as Demand from data processing and hosting services and Number of businesses in the Colocation Facilities industry impact industry performance..

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    Industry Products

    What is the Colocation Facilities Industry?

    Industry operators own and operate data centers that primarily lease equipment space to customers. Companies in the industry also offer auxiliary services including power management, security and network neutrality. Customers generally use industry services as off-site data storage to back up their data or to allow them to focus on other parts of their business without paying for these operations.

    Industry Products
    Single server space
    Server rack
    Server cage or suite
    Auxiliary services
    Industry Activities
    Providing single server space
    Providing a server rack
    Providing a server cage or suite
    Providing auxiliary services

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Demand from data processing and hosting services
  • Number of businesses
  • Percentage of services conducted online
  • Price of electric power
  • Private investment in computers and software
  • Price of computers and peripheral equipment

  • Current Performance
  • Powerful growth
  • Supply and demand
  • Competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Greater growth
  • Profit and space
  • Table: Colocation Facilities Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Colocation Facilities Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Construction
  • Manufacturing
  • Information
  • Data Processing & Hosting Services
  • Healthcare and Social Assistance

  • Key Selling Industries
  • Commercial Leasing
  • Internet Service Providers
  • Power Conversion Equipment Manufacturing
  • Satellite Telecommunications Providers
  • Security Software Publishing

  • Products & Services
  • Single server space
  • Server rack
  • Auxiliary services
  • Server cage or suite
  • Chart: Colocation Facilities Industry Products and Services Segmentation

  • Demand Determinants
  • Number of businesses
  • Electricity prices
  • Data processing and hosting services providers

  • Major Markets
  • Services
  • Retail and entertainment
  • Manufacturing
  • Healthcare
  • Finance
  • Transportation
  • Education
  • Utilities
  • Chart: Major Market Segmentation for the Colocation Facilities Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitDepreciation and purchasesWagesRent and utilitiesMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Colocation Facilities

  • Basis of Competition
    Service quality
  • Service costs and breadth

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Colocation Facilities Industry

  • Industry Globalization
    Major Companies
    Equinix Inc.
  • Table: Equinix Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Colocation Facilities Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Colocation Facilities Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Number of businesses (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    Cloud Computing
  • The delivery of computing as a service rather than a product, whereby shared resources, software and information are provided to computers and other devices as a utility over the internet.
  • Kilowatt-Hour
  • A unit of energy equivalent to one kilowatt of power expended for one hour of time.
  • Redundancy
  • A backup or redundant power supply, typically in the form of generators, that ensures uninterrupted server access even when normal power supply is down.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Colocation Facilities:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Colocation Facilities market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Colocation Facilities, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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