PUBLISHER: The Insight Partners | PRODUCT CODE: 1463739
PUBLISHER: The Insight Partners | PRODUCT CODE: 1463739
The South & Central America micro data center market was valued at US$ 78.27 million in 2022 and is expected to reach US$ 187.06 million by 2030; it is estimated to grow at a CAGR of 11.5% from 2022 to 2030.
Edge Micro Data Centers Fuels the South & Central America Micro Data Center Market
With the increased demand for instant data transfer in offices, data is taking longer to reach its destination. Most organizations depend on large, outsourced data centers, usually located far from their place of business. As data centers are placed further from the source, many users are experiencing latency and bandwidth issues. These factors can cause significant delays in data transfer, affecting businesses' productivity. To resolve this issue, edge micro data centers aim to bring data computing back to the source, thereby bridging the gap between the user and the cloud.
Edge micro data centers offer reduced latency and bandwidth use, which leads to increased productivity. They process important data at the client's end rather than the cloud end, offering fast results. By utilizing an edge micro data center, businesses can still benefit from the convenience of cloud computing without the latency issues. Modern edge micro data center solutions are much smaller and cheaper than full-size data centers, requiring less upkeep. There is no need to construct a specialized building to house the micro data center as it takes up approximately a square meter of office space, and soundproofing options ensure no distractions to the workforce.
Various companies are providing micro data center solutions for edge computing. In October 2022, Vertiv, a provider of critical digital infrastructure, launched the Vertiv SmartCabinet 2M-a self-contained micro data center designed for edge computing applications. Moreover, micro data center providers are constantly making efforts to introduce their solutions in the market through various inorganic strategies. In September 2020, HPE, Schneider Electric, and StorMagic collaborated to develop "Edge in a Box," a micro data center that can be mounted on the wall to provide IT systems for edge environments. Therefore, the deployment of edge micro data centers is expected to fuel the South & Central America micro data center market growth during the forecast period.
South & Central America Micro Data Center Market Overview
The micro data center market in SAM includes Brazil, Argentina, and the Rest of SAM. Countries in the region are experiencing rapid economic growth and urbanization, driving data storage and processing demand. The increasing adoption of cloud computing, edge computing, and IoT technologies drives the demand for micro data centers in the region. Further, several companies, such as Vertiv, Rittal, Huawei, Inspur, IBM, and Dell, are offering micro data centers in the region. These companies are forming strategic alliances with the companies in the region. For instance, in 2022 Vertiv announced its alliance with Modular Data Centers -a Latin American leader in the development and manufacture of modular data centers headquartered in Brazil. The micro data center (MDC) is a smaller or containerized (modular) data center.
Several players in SAM are providing several micro data centers to offices. For instance, Zella DC solution, a micro data center provider, implemented data room on a small footprint which is supported out remotely from Nissan Brazil. The aesthetics of the Zella DC units that company leave in open office where people can see them.
South & Central America Micro Data Center Market Revenue and Forecast to 2030 (US$ Million)
South & Central America Micro Data Center Market Segmentation
Based on rack type, the South & Central America micro data center market is bifurcated into single rack and multi rack. The single rack segment held a larger share in 2022.
Based on organization size, the South & Central America micro data center market is bifurcated into large enterprises, and SMEs. The large enterprises segment held a larger share in 2022.
Based on end user, the South & Central America micro data center market is segmented into BFSI, retail, IT and telecom, manufacturing, healthcare, and others. The IT and telecom segment held the largest share in 2022.
Based on country, the South & Central America micro data center market is segmented into Brazil, Argentina, the Rest of South & Central America. Brazil dominated the South & Central America micro data center market in 2022.
Hitachi Ltd, Rittal GmbH & Co KG, Legrand SA, Schneider Electric SE, Vertiv Group Corp, Eaton Corp Plc, Hewlett Packard Enterprise Development LP, Delta Electronics Inc, and Huawei Technologies Co Ltd are some of the leading companies operating in the South & Central America micro data center market.
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