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2021

South America Modular Data Center Market

South America Modular Data Center Market Size, Share, Competitive Landscape and Trend Analysis Report 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

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Author's: Vikas Gaikwad | Vineet Kumar
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South America Modular Data Center Market Statistics- 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%. Increase in demand for rapidly deployable & scalable data centers drives the growth of the South America modular data center market. In addition, 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 hamper the growth of the market.

On the basis of component, the solution segment exhibited the highest growth in 2020, 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.

South-America-Modular-Data-Center-Market

By enterprise size, the South America modular data center market 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. However, the small & medium enterprises segment is expected to witness the highest growth, owing to the elimination of the need for specialized support skillsets along with the benefits such as the manpower & administration savings, real estate savings, and lower power utilization efficiency (PUE). 

Brazil dominates the South America modular data center market share. 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.

The report focuses on the growth prospects, restraints, and modular data center market analysis. The study provides Porter’s five forces analysis of the South America modular data center market forecast to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the South America modular data center market trends.

Segment review

The South America modular data center market is segmented on the basis of component, enterprise size, and industry vertical. By component, the market is categorized into solution and services. By enterprise size, it is classified into small & medium enterprises and large enterprises. By industry vertical, it is segregated into BFSI, IT & telecom, retail, manufacturing, healthcare, energy, media & entertainment, government, and others. Country wise, it is analyzed across Brazil, Argentina, Colombia, Chile, Peru, Uruguay, and Rest of South America.

Impact of COVID-19 on South America Modular Data Center Market

Post COVID-19, the South America modular data center market growth 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 growth of the modular data center market. In 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 is projected to drive the South America modular data center industry investments across South America.

Top impacting factors    

The South America modular data center industry growth 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. 

South America Modular Data Center Market
By Component
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Services segment is projected as one of the most lucrative segments.

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 hamper growth of the market. On the contrary, surge 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.

Upsurge in adoption of cloud services by SMEs 

Cloud computing has become an emerging technology over the last few years that has abolished the burden of purchasing licensed software and heavy hardware, which is more advantageous to SMEs. The adoption of cloud services in SMEs is increasing rapidly, as it enables such enterprises to concentrate on their essential business events, and thus improves efficiency.

South America Modular Data Center Market
By Organization Size
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SME's segment is projected as one of the most lucrative segments.

Moreover, the adoption of cloud services has offered SMEs with the benefits such as unlimited computing power, lower IT expenditure, easy access of data & applications, and competitive advantage. Modular data centers are designed to deal with changes in servers such as cloud computing and virtualization. In addition, rise in demand for cloud computing has led to the emergence of innovative modular data center for SMEs, which fuels growth of the market.

Rise in expansion of global modular data center industry players in the South America 

More number of global modular data center industry players are actively increasing their presence across the South America with the rapid investments along with the building of new data center campuses to meet the needs of customers in this region. For instance, in February 2020, Amazon Web Services, one of the key market players announced the investment of $236 million to expand its data center presence in the Brazilian state of São Paulo to strengthen its cloud infrastructure across South America. On the other hand, in February 2021, Huawei Technologies has activated the AZ2, a second data center in Brazil mainly as a backup center for cloud services offered from its other facility in the country. Thus, expansion trend of global modular data center industry players in South America significantly boosts growth of the modular data center market in this region.

South America Modular Data Center Market
By Country
2030
Brazil 
Argentina
Colombia
Chile
Peru
Uruguay
Rest of South America

Brazil is projected as one of the most significant country.

Key Benefits For Stakeholders

  • This study includes the South America modular data center market analysis, trends, and future estimations to determine the imminent investment pockets.
  • The report presents information related to key drivers, restraints, and South America modular data center market opportunity.
  • The South America modular data center market size is quantitatively analyzed from 2020 to 2030 to highlight the financial competency of the industry.
  • Porter’s five forces analysis illustrates the potency of buyers & suppliers in modular data center market.

Key Market Segments

By Component    

  • Solution
  • Services

By Enterprise Size

  • Small & Medium Enterprises
  • Large Enterprises 

By Industry Vertical

  • BFSI
  • IT & Telecom
  • Retail
  • Manufacturing
  • Healthcare
  • Energy
  • Media & Entertainment 
  • Government
  • Others

By Countries

  • Brazil
  • Argentina
  • Colombia
  • Chile
  • Peru
  • Uruguay
  • Rest of South America 

Key Market Players

  • CenturyLink 
  • Cisco Systems, Inc.
  • Dell Inc. 
  • Equinix, Inc.
  • Flexenclosure AB 
  • Gemelo 
  • Hewlett Packard Enterprise Company 
  • Huawei Technologies Co., Ltd.
  • International Business Machines Corporation 
  • Vertive Group Corporation 

South America Modular Data Center Market Report Highlights

Aspects Details
South America Modular Data Center Market By COMPONENT
By COMPONENT
  • SOLUTION
    • All-in-one
    • Individual
  • SERVICES
    • Deployment & integration
    • Consulting
    • Support & maintenance
South America Modular Data Center Market By ORGANIZATION SIZE
By ORGANIZATION SIZE
  • LARGE ENTERPRISES
  • SMES
South America Modular Data Center Market By INDUSTRY VERTICAL
By INDUSTRY VERTICAL
  • BFSI
  • IT & TELECOM
  • RETAIL
  • MANUFACTURING
  • HEALTHCARE
  • ENERGY
  • MEDIA & ENTERTAINMENT
  • GOVERNMENT
  • OTHERS
South America Modular Data Center Market By COUNTRY
By COUNTRY
  • Brazil
  • Argentina
  • Colombia
  • Chile
  • Peru
  • Uruguay
  • Rest of South America
Key Market Players
Key Market Players

DELL INC., HEWLETT PACKARD ENTERPRISE COMPANY, EQUINIX, INC., HUAWEI TECHNOLOGIES CO. LTD., INTERNATIONAL BUSINESS MACHINES CORPORATION, CENTURYLINK, FLEXENCLOSURE AB, VERTIV GROUP CORPORATION, GEMELO, CISCO SYSTEMS, INC.

Analyst Review

Based on the insights of various CXOs of leading companies, the data center industry is witnessing enormous transformation. The industry is undergoing a paradigm shift in adoption of modular data center as a portable solution for deployment of data processing capacity.

As energy consumption and costs are continuing to rise, businesses are being challenged by rising demand for more efficient data center solutions. Traditional data centers are no longer compatible with industry growth, considering the large capital investments as well as complex logistics required for upscaling. As a result of this, modular power construction has become an emerging construction method for data center upscaling to allow businesses to respond to unprecedented surges in industry growth in an efficient way.

Furthermore, massive volume of data created by the adoption of emerging data-driven technologies such as artificial intelligence (AI) and Internet of Things (IoT) has increased the power, computing, cooling, and networking demands of the data center for storage, data transfer, and big data analysis.

In addition to this, ongoing advancements in the field of modular data center provides lucrative growth opportunities for the market growth. For instance, in October 2020, Huawei Technologies launched its next-generation Smart Modular Data Center 5.0. This solution uses AI to build next-level data center intelligence, enabling the full use of SmartLi, the proprietary smart lithium battery to implement full lithium battery backup.

The South America modular data center market is competitive and comprises a number of regional and global vendors competing based on factors such as cost of solutions & services, reliability, quality of the product, and support services. The market is concentrated with major players consuming 50–60% of the share. The degree of concentration will remain the same during the forecast period.

Owing to the competition, vendors operating in the market are offering advanced modular data center solutions to improve the marketing strategies of enterprises. On the other hand, the growing investment trend of companies across the several industries in modular data centers fuels the market growth. In addition, key players are heavily investing in R&D activities to develop effective modular data center technology and services offerings, which is opportunistic for the market.

Author Name(s) : Vikas Gaikwad | Vineet Kumar

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South America Modular Data Center Market

Opportunity Analysis and Industry Forecast, 2021-2030