Australia Colocation Market Size, Share, Opportunities, And Trends By Colocation Model (Retail Colocation, Wholesale Colocation), And By End User Industry (Banking And Financial Services, Manufacturing, Communication Technology, Healthcare, Energy, Education, Government, Media And Entertainment, Others) - Forecasts From 2024 To 2029

The colocation market in Australia is anticipated to show steady growth at a CAGR of 13.82%, thereby reaching a market size of US$5.209 billion in 2029 from 2022’s value of US$2.105 billion.

The increasing number of data centers, favourable regulation coupled with good infrastructural facilities, and the high internet penetration rate in the country are majorly driving colocation market expansion in Australia.

Moreover, the favourable investments in the Internet of Things (IoT), growing internet traffic coupled with booing virtual entertainment, and online surfing have further bolstered the demand for colocation data centers for exercising efficient data storage and security.

Market Drivers 

• Rapid urbanization and digital innovation have propelled the market growth.

Data centers constitute one of the major parts of digital infrastructure and with signs of future investment in digitization in Australia especially in the corporate environment the demand for colocation is expected to grow. Moreover, with the rapid urbanization and investments in digital innovations, the demand for appropriate digital infrastructure to stack necessary data, especially for corporate is anticipated to increase in Australia. According to the World Bank’s data, Australia’s urban population reached 22,491,671 which represented a 1.7% growth over 2020’s population figure. 

Additionally, investment to bolster industry 4.0, cloud computing and virtual environment has provided a wider scope for the expansion of colocation services in the coming years.  

• Growing internet penetration is anticipated to drive market expansion. 

Australia’s internet penetration is witnessing an upward trajectory fueled by booming online transactions, be it for online shopping, and day-to-day surfing.  According to the Australian Communication and Media Authority, in the first six months of 2023, 98% of Australian adults had home internet access inclusive of 4G and 5G. Government initiatives in IT sectors coupled with the development and emergence of 5G are further expected to drive the colocation services throughout the forecast period.

Moreover, there is a surge in smartphone penetration and usage of smart devices especially for going online. For instance, as per the Australian Communication and Media Authority, till June 2023, smartphones were the most used devices for adults to connect to the internet. The Capex (capital expenditure) investments in the country are also expected to boost the telecommunications industry which has been projected to propel growth for the colocation market. 

Key Developments

• In August 2023: Colocation service provider STACK Infrastructure established its first Asia Pacific data center in Melbourne, Australia, and forms a part of STACK’s ongoing effort to expand its scaling digital infrastructure. 
• In April 2023: Engineering firm HDR Inc. developed “M3 Melbourne” and “M2 Melbourne” data centers that are designed to provide desired power to enterprises, government and critical IT infrastructure in Melbourne.
• In September 2022: Amber Infrastructure Group acquired Australia-based data center operator YourDC which operates South Australia’s largest cloud and managed service ecosystem and provides colocation service to defense, education, government, and enterprises. 

Segmentation:

• 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

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base, and Forecast Years Timeline

1.8. Key Benefits to the stakeholder

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Processes

3. EXECUTIVE SUMMARY

3.1. Key Findings

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

4.5. Analyst View

5. AUSTRALIA COLOCATION MARKET BY COLOCATION MODEL

5.1. Introduction

5.2. Retail Colocation

5.2.1. Market Trends and Opportunities

5.2.2. Growth Prospects

5.3. Wholesale Colocation

5.3.1. Market Trends and Opportunities

5.3.2. Growth Prospects

6. AUSTRALIA COLOCATION MARKET BY END-USE INDUSTRY

6.1. Introduction

6.2. Banking And Financial Service

6.2.1. Market Trends and Opportunities

6.2.2. Growth Prospects

6.3. Manufacturing

6.3.1. Market Trends and Opportunities

6.3.2. Growth Prospects

6.4. Communication Technology

6.4.1. Market Trends and Opportunities

6.4.2. Growth Prospects

6.5. Healthcare

6.5.1. Market Trends and Opportunities

6.5.2. Growth Prospects

6.6. Energy

6.6.1. Market Trends and Opportunities

6.6.2. Growth Prospects

6.7. Education

6.7.1. Market Trends and Opportunities

6.7.2. Growth Prospects

6.8. Government

6.8.1. Market Trends and Opportunities

6.8.2. Growth Prospects

6.9. Media And Entertainment

6.9.1. Market Trends and Opportunities

6.9.2. Growth Prospects

6.10. Others

6.10.1. Market Trends and Opportunities

6.10.2. Growth Prospects

7. COMPETITIVE ENVIRONMENT AND ANALYSIS

7.1. Major Players and Strategy Analysis

7.2. Market Share Analysis

7.3. Mergers, Acquisitions, Agreements, and Collaborations

7.4. Competitive Dashboard

8. COMPANY PROFILES

8.1. Telstra Corporation Limited

8.2. Nextdc Ltd.

8.3. Fluccs - The Australian Cloud Pty Ltd

8.4. Equinix Australia Pty Ltd.

8.5. Over The Wire Pty. Ltd.

8.6. Exetel Pty Ltd

8.7. Interactive Pty Ltd

Telstra Corporation Limited

Nextdc Ltd.

Fluccs - The Australian Cloud Pty Ltd

Equinix Australia Pty Ltd.

Over The Wire Pty. Ltd.

Exetel Pty Ltd

Interactive Pty Ltd