Impact of COVID-19 on the Global Data Colocation Market
The outbreak of the COVID-19 pandemic has impacted the global economy severely as it has affected various sectors such as BFSI, energy, and IT & telecom significantly. The pandemic has led to lockdown restrictions being imposed in the majority of the countries around the world, which has resulted in supply chain disruptions in the industrial sector. Additionally, the pandemic has resulted in the shutting down or halting of manufacturing units, delays in the completion of several projects, and among other adverse effects. Thus, the global market has been severely impacted by the COVID-19 pandemic. However, the data colocation market is growing at a significant rate owing to the rising demand for data collection, analysis, and storage. Such factors showcase a strong demand for data centers. Companies such as Microsoft Corporation, Facebook, Google Inc., Verizon, Zoom, and Netflix have seen a huge surge in data traffic due to the lockdown restrictions implemented worldwide. However, the outbreak of COVID-19 and strict lockdown measures have posed several challenges across industries. These abovementioned factors are expected to influence the data colocation market over the next few months.
Regardless of the COVID-19 outbreak, MRFR predicts that the overall demand for data colocation will continue to surge in the upcoming months of 2020 on account of the high consumption of data due to the enterprises’ adoption of remote working policies. These factors are anticipated to fuel the growth of the data colocation market. The data center industry is experiencing a huge demand for data storage and analysis during the pandemic. Furthermore, the growing usage of video streaming platforms, cloud computing services, and online applications has increased data traffic, propelling the growth of the data colocation market during the COVID-19 pandemic. The proliferation of data centers has also fueled the growth of the data colocation market during the pandemic.