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 experiencing a significant growth trajectory driven by evolving customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Customers in Argentina are increasingly demanding data center solutions that offer high reliability, scalability, and energy efficiency. They prioritize providers that can ensure data security, compliance with regulations, and seamless connectivity. Additionally, there is a growing preference for data centers that offer cloud services, colocation options, and managed hosting services to meet diverse business needs.

Trends in the market: One of the key trends shaping the Data Center market in Argentina is the rising adoption of edge computing solutions. This trend is driven by the need for low-latency data processing, especially in sectors such as finance, healthcare, and e-commerce. Moreover, there is a growing interest in sustainable data center practices, including the use of renewable energy sources and energy-efficient infrastructure to reduce environmental impact.

Local special circumstances: Argentina's Data Center market is influenced by unique local circumstances, such as government regulations, infrastructure limitations, and economic fluctuations. Political stability, regulatory frameworks, and investment incentives play a crucial role in shaping the market landscape. Additionally, the country's geographical location and climate conditions impact data center design and cooling systems.

Underlying macroeconomic factors: The development of the Data Center market in Argentina is also influenced by underlying macroeconomic factors such as inflation rates, currency fluctuations, and overall economic stability. These factors can affect investment decisions, operational costs, and pricing strategies within the market. As the country navigates economic challenges, data center providers must adapt their business models to remain competitive and sustainable in the long run.

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.