German data center colocation market will witness a CAGR of 15.02% during the forecast period, reaching a total market size of US$4.036 billion in 2027, from US$1.516 billion in 2020. Germany is one of the major markets for data center colocation. The increasing number of cloud service providers and the information technology industry is boosting the data center colocation market in Germany. An increase in data generation every year is forcing many companies to double their on-premise storage from time to time. More companies are opting for the data center as it addresses their storage issues without substantial upfront costs. The data center colocation market is highly driven by the advanced information technology (IT) infrastructure available in Germany. Growing data security concerns combined with the emergence of advanced technology and better telecommunication infrastructure within the country are also fueling the market growth of data center colocation in Germany.
The German Data Center Colocation market is segmented as a colocation model, enterprise size, and industry vertical. According to the colocation model, the market is segmented into wholesale and retail. By enterprise size, the Germany Data Center Colocation market is segmented into small, medium, and large. By industry vertical, the market is classified as communication and technology, BFSI, government, healthcare, manufacturing, media and entertainment, and others.
Companies that have big budgets and those that need more space for storing data are going for wholesale data center colocation. Small and medium are focusing on retail colocation models for hiring space for storing data. It helps small and medium enterprises reduce operating costs and focus on their business as they do not need to invest in IT infrastructure. The rising number of smart hospitals in Germany is owing to rising investments in digital healthcare infrastructure in the country. Increasing investments in communication and technology are boosting the market growth of data center colocation in Germany.
Key Developments
Impact of COVID-19
Data centers colocation is needed as a result of the rising demand for data processing in Germany, which calls for better and more sophisticated data infrastructure. Since the COVID-19 epidemic broke out, associated programs have concentrated on digitizing public safety, agribusiness, education, healthcare, cybersecurity, and manufacturing in collaboration with business, academic, and government partners to support economic growth and skill development. The demand for data centers has increased positively since the start of the COVID-19 epidemic and is expected to continue until 2021, helped by an increase in technological demand brought on by shutdowns. Workloads may be moved to the public and private cloud by businesses modernizing their IT systems to facilitate remote working during shutdowns. The epidemic had the least impact on datacenter operations and investments, highlighting their crucial role in sustaining continuous commercial activity. This is anticipated to increase demand in the upcoming years as businesses transition to cloud-based and remote working methods. ?
Market Segmentation