Worldwide Colocation Revenues to hit $30B by 2017

RENO, NV, October 1, 2013

New data from Synergy Research Group shows that total colocation revenues grew 9% year on year to reach $5.2 billion in Q2 and are on track to hit $30 billion by 2017. Retail colocation accounted for 78% of Q2 revenues, though the smaller wholesale segment continues to grow more strongly. North America accounts for 44% of worldwide revenues, thanks in part to its well-developed wholesale sector. Revenue will continue to grow strongly in all regions, demonstrating the underlying strength in the market. Equinix is the clear market leader in the retail colocation segment while Digital Realty Trust is the clear leader in the wholesale segment. While there is an extremely long tail of small local operators in the market, the top 50 operators account for 64% of all colocation revenues. 17 of the top 20 colocation operators have a multi-country colocation facility footprint, demonstrating the increasingly global nature of the market. The top five countries by colocation revenue are the US, UK, Japan, Germany and China. 

To launch its expanded coverage of the colocation market, Synergy Research Group has just released a market primer on colocation services. The primer is free to service providers, IT vendors, and telecom vendors at www.srgresearch.com. The primer features high-level data taken from Synergy’s Colocation Market Tracker service which provides revenue and subscriber data for the retail and wholesale collocation markets. For all other questions, please contact Synergy at primer@srgresearch.comor at (775) 852-3330 extension 101.