Data Center - South America

South America

Revenue in the Data Center market is projected to reach US$10.17bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$6.11bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 6.57%, resulting in a market volume of US$13.12bn by 2028.
In global comparison, most revenue will be generated in the United States (US$99.16bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in South America has been experiencing significant growth in recent years. Customer preferences in the region have been shifting towards cloud-based services and digital transformation initiatives. Companies are increasingly relying on data centers to store and process their data, as well as to support their growing IT infrastructure needs. This shift is driven by factors such as the need for scalability, cost efficiency, and improved data security. Trends in the market show that South American countries are investing in the development of their data center infrastructure. This includes the construction of new data centers, as well as the expansion and modernization of existing facilities. The demand for data centers is being driven by various industries, including telecommunications, banking and finance, e-commerce, and healthcare. Local special circumstances also contribute to the growth of the Data Center market in South America. The region is characterized by a large and growing population, which creates a significant demand for digital services. Additionally, South America is home to several emerging economies, which are experiencing rapid economic growth and increasing technology adoption. These factors create a favorable environment for the development of the Data Center market. Underlying macroeconomic factors further support the growth of the Data Center market in South America. The region has seen steady economic growth in recent years, which has led to increased investment in infrastructure and technology. Additionally, governments in South American countries are implementing policies to attract foreign investment and promote digital innovation. These factors contribute to the overall development of the Data Center market in the region. In conclusion, the Data Center market in South America is experiencing significant growth due to customer preferences for cloud-based services, the need for scalability and improved data security, and the development of the region's infrastructure. Local special circumstances, such as a large and growing population and emerging economies, further contribute to this growth. Additionally, underlying macroeconomic factors, including steady economic growth and government policies, support the development of the Data Center market in South America.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.