Data Center - Argentina

Argentina

Revenue in the Data Center market is projected to reach US$1.39bn in 2024.
Servers dominates the market with a projected market volume of US$0.72bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 7.00%, resulting in a market volume of US$1.95bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn 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.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Argentina is facing minimal growth, influenced by factors such as slow adoption of digital technologies, lower consumer health awareness, and limited availability of online services. This trend is evident across sub-markets, including Servers, Storage, and Network Infrastructure. The sluggish growth rate is attributed to economic challenges and inadequate infrastructure investment.

Customer preferences: The Argentine data center market is experiencing a significant shift in consumer preferences towards cloud-based solutions and managed services. This is largely driven by the growing adoption of digitalization and the need for remote accessibility and scalability. As a result, there has been a surge in demand for hybrid cloud solutions and colocation services among businesses. Additionally, the increased use of data-intensive technologies such as Internet of Things (IoT) and Artificial Intelligence (AI) has also contributed to the growth of the data center market in Argentina. These trends highlight the country's growing reliance on digital solutions and the need for reliable and secure data storage and management.

Trends in the market: In Argentina, the Data Center Market is experiencing a rise in demand for cloud services, with more companies transitioning to the cloud for data storage and management. This trend is expected to continue as businesses prioritize cost efficiency and scalability. Additionally, there is a growing focus on green data centers, with companies investing in renewable energy sources to power their facilities. This trend reflects a shift towards sustainability and environmental responsibility in the industry. These trends have significant implications for data center providers, who must adapt to meet changing demands and stay competitive in the market. It also presents opportunities for industry stakeholders to invest in innovative solutions and technologies to support this market trajectory.

Local special circumstances: In Argentina, the Data Center Market is experiencing growth due to the country's favorable location for international connectivity, as well as its well-educated workforce and government incentives for technology investment. Additionally, the country's strict data protection laws make it a trusted location for storing sensitive data. This combination of factors has made Argentina a promising market for data center providers looking to expand into Latin America.

Underlying macroeconomic factors: The Data Center Market in Argentina is heavily influenced by macroeconomic factors such as government policies, economic stability, and technological advancements. With a stable economy and favorable government policies, the country has seen a significant increase in demand for data center services. Additionally, the growing adoption of cloud computing and big data analytics is driving the need for more advanced and efficient data center infrastructure. This trend is expected to continue as Argentina's economy continues to grow and technological advancements continue to shape the market.

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.