Market Insights Technology Data Center Network Infrastructure

Service Provider Network Infrastructure - South America

South America

Revenue in the Service Provider Network Infrastructure market is projected to reach US$4.95bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 3.26%, resulting in a market volume of US$5.81bn by 2029.
The average Spend per Employee in the Service Provider Network Infrastructure market is projected to reach US$23.96 in 2024.
In global comparison, most revenue will be generated in China (US$45,360m in 2024).

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

Market

Region

Region comparison

Currency

Analyst Opinion

The Service Provider Network Infrastructure market in South America is experiencing a significant growth trajectory driven by various factors.

Customer preferences: Customers in South America are increasingly demanding high-speed and reliable network infrastructure to support their growing digital needs. With the rise of digital transformation initiatives across industries, service providers are focusing on offering scalable and efficient network solutions to meet these demands.

Trends in the market: In Brazil, one of the largest markets in South America, there is a notable trend towards the adoption of cloud-based services and virtualization technologies. Service providers are investing in software-defined networking (SDN) and network function virtualization (NFV) to enhance network flexibility and agility. This trend is driven by the need to optimize network performance and reduce operational costs.

Local special circumstances: In Argentina, economic challenges have influenced the Service Provider Network Infrastructure market. Despite economic uncertainties, there is a growing need for network modernization and expansion to support the increasing digital connectivity requirements. Service providers in Argentina are focusing on deploying advanced network solutions to improve overall network efficiency and deliver enhanced services to customers.

Underlying macroeconomic factors: Political stability and regulatory frameworks play a crucial role in shaping the Service Provider Network Infrastructure market in South America. Countries with favorable regulatory environments tend to attract more investments in network infrastructure development. Additionally, economic growth and infrastructure investments contribute to the expansion of the market as service providers seek to capitalize on emerging opportunities in the region.

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.