Market Insights Technology IT Services IT Outsourcing

Web Hosting - South America

South America

Revenue in the Web Hosting market is projected to reach US$3.27bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 17.65%, resulting in a market volume of US$7.37bn by 2029.
The average Spend per Employee in the Web Hosting market is projected to reach US$15.83 in 2024.
In global comparison, most revenue will be generated in the United States (US$58,300.00m in 2024).

Key regions: Germany, China, United States, United Kingdom, Italy

Market

Region

Region comparison

Currency

Analyst Opinion

The Web Hosting market in South America has been rapidly growing in recent years, driven by a number of factors unique to the region.

Customer preferences: South American customers place a high value on reliable and affordable web hosting services. They are also increasingly interested in environmentally-friendly options and are willing to pay a premium for green hosting. Additionally, many businesses in the region are looking for hosting providers that offer local language support and have a strong presence in the region.

Trends in the market: One major trend in the South American web hosting market is the increasing adoption of cloud hosting services. Businesses in the region are looking for scalable solutions that can adapt to changing demand and cloud hosting offers just that. Another trend is the growth of e-commerce in the region, which has led to an increased demand for hosting services that can handle high traffic volumes and provide secure payment processing.

Local special circumstances: One unique aspect of the South American market is the prevalence of small and medium-sized businesses. These companies often have limited budgets and require affordable hosting options that can still provide reliable service. Additionally, the region's geography can present challenges for hosting providers due to its vast size and varying levels of infrastructure development.

Underlying macroeconomic factors: The South American web hosting market is influenced by a number of macroeconomic factors, including political stability, currency exchange rates, and overall economic growth. In recent years, the region has seen a growing middle class and an increase in internet penetration, which has driven demand for web hosting services. However, political instability in some countries and fluctuations in currency exchange rates can make it difficult for hosting providers to operate in the region.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. 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 is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

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.