Servers - LATAM

LATAM

Revenue in the Servers market is projected to reach US$4.08bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.22%, resulting in a market volume of US$6.34bn by 2029.
The average Spend per Employee in the Servers market is projected to reach US$13.19 in 2024.
In global comparison, most revenue will be generated in the United States (US$47,260m in 2024).

Key regions: Japan, India, China, United Kingdom, Europe

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Analyst Opinion

The Servers Market in the Data Center Market in LATAM is facing sluggish growth due to factors such as competition, economic slowdown, and limited technological advancements. This stagnant growth rate is significantly impacting the overall market growth.

Customer preferences: With the growing adoption of cloud computing, there has been a rise in demand for scalable and flexible server solutions in the data center market in LATAM. As more businesses embrace digital transformation, there is a growing trend towards hybrid cloud deployments, combining the benefits of on-premise and off-premise infrastructure. Additionally, the increasing use of AI and machine learning technologies is driving the need for high-performance servers to support complex workloads. This has led to a shift towards more powerful and efficient server architectures to meet the evolving demands of the market.

Trends in the market: In LATAM, the Servers Market within the Data Center Market is experiencing an increase in demand for cloud-based services and solutions. This trend is being attributed to the rise in digital transformation initiatives and the need for scalable, agile and cost-effective IT infrastructure. Additionally, there is a growing focus on green data centers and energy-efficient servers, as sustainability becomes a key priority for industry stakeholders. These trends have significant implications for the data center market, with players looking to invest in innovative technologies and solutions to stay competitive and meet the evolving needs of their customers. This also presents opportunities for partnerships and collaborations to leverage the expertise and resources of different stakeholders in the market.

Local special circumstances: In LATAM, the Servers Market within the Data Center Market is influenced by unique factors such as government regulations and infrastructure limitations. For example, in Brazil, high import taxes on technology equipment can impact pricing and availability. Additionally, the region's geography and climate can pose challenges for data center construction and maintenance. In Argentina, economic instability has led to fluctuations in demand for data center services. These local circumstances contribute to the dynamics of the Servers Market within the Data Center Market in LATAM.

Underlying macroeconomic factors: The LATAM and Servers Market within the Data Center Market is heavily influenced by macroeconomic factors such as technological advancements, government policies, and investment in infrastructure. Countries with strong economic growth and supportive policies for digitalization are seeing stronger growth in the Servers Market. However, countries facing economic challenges and limited financial resources may experience slower growth in this market. Furthermore, the increasing need for efficient data storage and management in industries such as e-commerce, healthcare, and finance is driving the demand for servers in the region. This trend is further fueled by the growing digitalization and adoption of cloud computing in the LATAM 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.