Market Size of South America Data Center Networking Industry
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2030) | 10.90 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South America Data Center Networking Market Analysis
The South America Data Center Networking Market is expected to register a CAGR of 10.90% during the forecast period.
The South America data center networking market reached a value of USD 800.08 million in the previous year, and it is further projected to register a CAGR of 10.9% during the forecast period.
- Countries such as Brazil have seen recent improvements in fixed broadband latency as demand for digital activity rises during the Covid-19 outbreak. In Argentina, the development of content delivery network (CDN) data centers is reflecting a positive trend. Overall, the market for data center networking reflects an upward trend in the region.
- The upcoming IT load capacity of the South American data center construction market is expected to reach 1800 MW by 2029. The region's construction of raised floor area is expected to increase 7.8 million sq. ft by 2029.
- The region's total number of racks to be installed is expected to reach 392K units by 2029. Brazil is expected to house the maximum number of racks by 2029.
- There are close to 60 submarine cable systems connecting South America, and many are under construction. One such submarine cable that is estimated to start service in 2025 is Carnival Submarine Network-1 (CSN-1), which stretches over 4500 Kilometers with a landing point in Barranquilla, Colombia.
South America Data Center Networking Industry Segmentation
Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of application and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.
The South American data center networking market is segmented by component type (product (ethernet switches, router, storage area network (SAN), application delivery controller (ADC), and other networking equipment) and services (installation & integration, training & consulting, and support & maintenance)), end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end-users), and country (Chile, Brazil, and the Rest of South America).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Component | |||||||
| |||||||
|
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
| Country | |
| Brazil | |
| Chile | |
| Rest of South America |
South America Data Center Networking Market Size Summary
The South American data center networking market is experiencing significant growth, driven by advancements in digital infrastructure and increasing demand for high-speed connectivity. Countries like Brazil and Argentina are at the forefront of this expansion, with Brazil improving fixed broadband latency and Argentina developing content delivery network data centers. The region is witnessing a surge in data center construction, with substantial increases in IT load capacity, raised floor area, and the number of racks. The presence of numerous submarine cable systems, including the upcoming Carnival Submarine Network-1, further enhances connectivity. Efforts to deploy fiber optic networks are notable, particularly in Chile, where government investments have enabled widespread high-speed internet access. The introduction of 5G networks in Brazil is expected to significantly impact the economy and productivity, further fueling the demand for data center networking solutions.
The market is characterized by a competitive landscape with key players like NEC Corporation, Juniper Networks Inc., and VMware Inc. actively expanding their presence. These companies are leveraging strategic collaborations to enhance market share and profitability. Innovations in networking technology, such as TP-Link's launch of the Archer AXE75 router and Moxa Inc.'s Ethernet switches, highlight the ongoing advancements in the sector. The Brazilian government's initiatives, including the General Data Protection Act, are prompting enterprises to upgrade their networking infrastructure, driving demand for ethernet switches and routers. Cloud service providers like Microsoft, Amazon Web Services, and Google are also expanding their operations in Brazil, further contributing to market growth. The development of edge data centers and fiber backbone networks by companies like Megatelecom underscores the region's commitment to enhancing its digital ecosystem.
South America Data Center Networking Market Size - Table of Contents
-
1. Market Dynamics
-
1.1 Market Overview
-
1.2 Market Drivers
-
1.2.1 Increasing Need of Cloud Storage and Rsing Demand for Reliable Application Performance
-
1.2.2 Increasing Cyberattacks Among Enterprises
-
-
1.3 Market Restraints
-
1.3.1 Increasing Network Complexity
-
-
1.4 Value Chain / Supply Chain Analysis
-
1.5 Industry Attractiveness - Porter's Five Forces Analysis
-
1.5.1 Threat of New Entrants
-
1.5.2 Bargaining Power of Buyers/Consumers
-
1.5.3 Bargaining Power of Suppliers
-
1.5.4 Threat of Substitute Products
-
1.5.5 Intensity of Competitive Rivalry
-
-
1.6 Assessment of COVID-19 Impact
-
-
2. MARKET SEGMENTATION
-
2.1 By Component
-
2.1.1 By Product
-
2.1.1.1 Ethernet Switches
-
2.1.1.2 Router
-
2.1.1.3 Storage Area Network (SAN)
-
2.1.1.4 Application Delivery Controller (ADC)
-
2.1.1.5 Other Networking Equipment
-
-
2.1.2 By Services
-
2.1.2.1 Installation & Integration
-
2.1.2.2 Training & Consulting
-
2.1.2.3 Support & Maintenance
-
-
-
2.2 End-User
-
2.2.1 IT & Telecommunication
-
2.2.2 BFSI
-
2.2.3 Government
-
2.2.4 Media & Entertainment
-
2.2.5 Other End-Users
-
-
2.3 Country
-
2.3.1 Brazil
-
2.3.2 Chile
-
2.3.3 Rest of South America
-
-
South America Data Center Networking Market Size FAQs
What is the current South America Data Center Networking Market size?
The South America Data Center Networking Market is projected to register a CAGR of 10.90% during the forecast period (2024-2030)
Who are the key players in South America Data Center Networking Market?
NEC Corporation, Juniper Networks Inc., VMware Inc., A10 Networks Inc. and Extreme Networks Inc. are the major companies operating in the South America Data Center Networking Market.
