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South America Modular Data Center Market Expected to Reach $2,397.09 Million by 2030

 

Report Code : A13054

quote Brazil dominates the modular data center market. The increased internet penetration among consumers along with the growing cloud-based services by businesses in the country has led to the significant demand for data centers, which can be recognized through continued investment in data center operation. For instance, Acronis, a global technology company has launched new Acronis Cloud Data Center in São Paulo, Brazil. quote

Rachita Rake
Research Analyst, ICT at Allied Market Research

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According to a recent report published by Allied Market Research, titled, “South America Modular data center Market By Component, Enterprise Size, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020-2030,” the South America modular data center market was valued at $515.63 million in 2020, and is projected to reach $2,397.09 million by 2030, registering a CAGR of 16.5%.

The growth of the South America Modular Data Center Industry is driven by increase in demand for rapidly deployable & scalable data centers. In addition, various factors such as upsurge in adoption of cloud services by small & medium size enterprises (SMEs), rise in demand for green data centers, and surge in demand for energy-efficient data centers notably contribute toward the growth of the market.

Moreover, rise in investments to develop advanced data centers during the COVID-19 pandemic considerably propel the growth of the market. However, challenges associated with transportation of the modular data center and vendor lock-in hamper growth of the market. On the contrary, South America modular data center market trends such as upsurge in demand for modular data centers by colocation providers and emergence of fourth generation of data centers is expected to offer potential growth opportunities for the market in the near future.

In 2020, the solution segment exhibited the highest growth in the South America modular data center market, and is expected to maintain its dominance in the upcoming years, due to increase in adoption of modular data center solutions and advantages associated with modular data center such as enhanced energy efficiency, mobility, speed & agility, and scalability, in comparison with traditional data center solutions. However, the services segment is expected to witness highest growth, as there has been an extensive adoption of deployment and integration services among end users for ensuring effective functioning of modular data center solution throughout the process.

By enterprise size, the modular data center market in South America was dominated by the large enterprises segment in 2020, and is expected to maintain its dominance in the upcoming years. This is attributed to the fact that various issues are associated with higher carbon footprint and higher power consumption in large enterprises, which propel the demand for modular data center solutions.

Post COVID-19, the size of the South America modular data center industry is estimated to grow from $515.63 million in 2020 and projected to reach $2,397.09 million by 2030, at a CAGR of 16.5%. The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. The COVID-19 outbreak has low impact on the South America modular data center market growth. In the South America, the pandemic has significantly led to the increased adoption of prefabricated modular data centers for large hyperscale and colocation use.

In addition, the data traffic has been augmented during the spread of COVID-19. Hence, upsurge has been witnessed in the storage volume requirement due to the proliferation of emerging technologies such as artificial intelligence (AI), big data, and Internet of things (IoT). This will continue to drive the modular data center investments across South America.

Key Findings Of The Study

  • By component, in 2020, the solution dominated the South America modular data center market size. However, the services segment is expected to exhibit significant growth rate during the forecast period.
  • Depending on enterprise size, the South America modular data center market share was dominated by the large enterprises in 2020. However, the small & medium size enterprises segment is expected to witness highest growth rate in the near future.
  • On the basis of industry vertical, the IT & telecom segment accounted for the highest revenue in 2020, in South America modular data center market analysis. However, the Media& Entertainment segment is expected to witness highest growth rate in the forecasted period.
  • Country wise, the South America modular data center market was dominated by Brazil. However, Chile is expected to witness significant growth in the upcoming years.

Some of the key players profiled in the report include CenturyLink, Dell Inc., Equinix, Inc., Flexenclosure AB, Gemelo, IBM Corporation, Huawei Technologies Co., Ltd., Cisco Systems, Inc., Hewlett Packard Enterprise Company, and Vertive Group Corporation.

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quote South America Modular Data Center Market by Component (Solution and Services), Enterprise Size (Small & Medium Enterprises and Large Enterprises), and Industry Vertical (BFSI, IT & Telecom, Retail, Manufacturing, Healthcare, Energy, Media & Entertainment, Government, and Others): Opportunity Analysis and Industry Forecast, 2021-2030 quote

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