Latin America Data Center Market Size in Revenue

Arizton Advisory and Intelligence

Latin America Data Center Market Segments

The Latin America data center market will reach revenues over $1 billion by 2023, growing at a CAGR of more than 11% during 2017-2023.

CHICAGO, IL, UNITED STATES, April 2, 2018 /EINPresswire.com/ -- Arizton's latest market research report on Latin America data center market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by electrical infrastructure (UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure), by mechanical infrastructure (cooling systems, rack, and other infrastructure), by general construction (building development, installation and commissioning services, building design, physical security, and DCIM), and by geography (Brazil, Colombia, Chile, and rest of Latin America).

The Latin America data center market is driven by the improving broadband and network connectivity in the region. The increasing investments by leading cloud hosting service providers such as AWS, Microsoft, Google, Oracle, and IBM will propel the development of the Latin America data center market during the forecast period.

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Latin America Data Center Market - Dynamics

The increasing tax incentives and low-cost land for new facilities construction offered by the government bodies will attribute to the growth of the Latin America data center market. The increasing investment in data center deployment will improve the local, state, and country economy in the Latin American market. The government in Brazil offers incentives on the purchase of infrastructure that aids in improving broadband connectivity in the country through the Regime Especial de Tributação do Programa Nacional de Banda Larga (REPNBL) program. Colombian government offers free trade zones for construction of new facilities in the region. Bogota Free Trade Zone (Bogota Zona Franca) and West Free Trade Zone (Occidente Zona Franca) are two of zones in Colombia. Other major countries such as Chile, Mexico, and rest of Latin America is expected to continue to offer tax incentives to operators to boost the deployment of new facilities in the Latin America data center market.

Adoption of VRLA UPS systems, Diesel Generators, and Intelligent PDUs, will continue to grow in the Latin America data center market during the forecast period

The data center market in Latin America by electrical infrastructure is segmented into UPS systems, generators, transfer switches & switchgear, rack PDU, and other electrical infrastructure. UPS systems segment occupied the largest market size in 2017 and is expected to grow at a CAGR of approximately 13% during the forecast period. The development of facilities of Tier 3 standard designs and operational capacity with a minimum of N+1 redundant UPS systems will boost the growth of this segment in the Latin American market. The emergence of lithium-ion battery systems and procurement of integrated battery monitoring solution will revolutionize the market in Latin America. These innovative systems will help in maintaining the high availability requirement of these facilities and offer greater energy efficiency, resilience, and reliability in the Latin America data center market. The leading players are designing UPS systems for modern centers to provide a dual line of power with an innovative load balancing mechanism.

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The adoption of free cooling chiller or evaporative coolers will grow in the Latin America data center market during the forecast period

The mechanical infrastructure in the Latin America data center market is classified by cooling systems, rack, and other infrastructure. Rack systems dominated a significant market size in 2017 and are estimated to grow at a CAGR of more than 13% during the forecast period. The adoption of 45U and 47U racks with integrated rack PDUs and rack-level UPS systems will increase in the Latin America data center market. The market will witness incorporation of innovative design techniques across cooling and rack systems propelling the growth of the Latin America data center market. The containment systems offered by operators in the market consist of two formations - hot aisle and cold aisle systems. The adoption of free cooling will grow across facilities in Latin America especially in Chile and Colombian markets.

Deployment of integrated monitoring components to gain traction in the Latin America data center market during the forecast period

The Latin America data center market by general construction is divided into building development, installation and commissioning services, building design, physical security, and DCIM. The installation and commissioning services segment occupied a considerable market size in 2017 and are anticipated to grow at a CAGR of close to 13% during the forecast period. The deployment of modular facilities will involve installation and commissioning process such as power connectivity with the grid, network cabling, and heat transfer mechanisms in the Latin American market. The growth of the greenfield data center facilities will generate more revenue for installation and commission service providers during the forecast period. The deployment of integrated monitoring components will revolutionize the Latin America data center market.

Colombia is the most popular destination in the Latin America data center market

The geographical segment in the Latin America data center market is categorized into Brazil, Colombia, Chile, and rest of Latin America. Colombia is the fastest growing country in the market and is expected to grow at a CAGR of over 12% during the forecast period. The increasing number of smartphone users and initiatives by telecommunications providers to improve broadband connectivity is contributing to the development of this region in the Latin American market. The development activities by the local and international modular facilities operators are revolutionizing the Colombian market and creating new opportunities for vendors in Latin America. The growing demand for a minimum of N+1 redundancy in the power infrastructure and need for automation solutions will help boost the revenues in the Colombian market. The availability of Bogota Free Trade Zone (Bogota Zona Franca) and West Free Trade Zone (Occidente Zona Franca) will increase the investment in the Colombian region in the Latin American market during the forecast period.

Key Vendor Analysis

The Latin America data center market witnesses the presence of both global and local providers. The leading operators are offering innovative power infrastructure solutions to sustain the intense competition in the market. The emergence of lithium-ion batteries, fuel cells, and DRUPS will add to the revenues in the Latin American market and help the key vendors gain a larger market share. The infrastructure providers are focusing on offering integrated DCIM solutions at affordable rates to gain a large consumer base in the Latin American market. The top players are partnering with modular data center developers to boost their revenues and expand their businesses across the Latin American region.

The major vendors in the market are:

Infrastructure Provider
ABB
Eaton
GE
Rittal
Schneider Electric
STULZ
Vertiv
General Construction Contractors
AECOM
KKR Investment Group (Aceco TI S.A.)
Flex Enclosure
ZFB Group
Data Center Investors
Equinix
Ascenty
Odata (Patria Investments)
TigoUne (UNE EPM)
Axtel

Other prominent vendors include Active Power (Piller Power Systems), AIRSYS, Alfa Laval, Caterpillar, Cummins, Cyber Power Systems, Daikin Applied (Daikin Industries), Delta Group, Generac Power Systems, Geist Global, Legrand, Mitsubishi Electric Corporation, Munters, Nortek Humidity (Condair Group), Toshiba, Pentair, Afonso Franco Engineering, Fluor Corp., Jacobs Engineering Group, Holder Construction, Mortenson Construction, HostDime, Telefonica, Entel, and Antel.

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Jessica Shirley
Arizton Advisory and Inteligence
+1-312-465-7864
email us here

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