PUBLISHER: The Insight Partners | PRODUCT CODE: 1597148
PUBLISHER: The Insight Partners | PRODUCT CODE: 1597148
The South & Central America rugged servers market was valued at US$ 16.30 million in 2022 and is expected to reach US$ 21.10 million by 2030; it is estimated to register a CAGR of 3.3% from 2022 to 2030.
Significant Demand from Defense Forces Drives South & Central America Rugged Servers Market
The military forces are among the leading end users of ruggedized devices such as rugged computers, data centers, and portable electronics. The demand for ruggedized data centers and servers is growing at a noteworthy rate among the military forces due to the rough usage of the devices at various remote locations where the environment is unfavorable for various consumer-grade technologies and systems. In addition, the need to store the vast amount of data collected from various sources is propelling the demand for rugged servers, as they are high-end security solutions.
The continuous rise in spending on the defense forces has spurred the adoption of advanced technologies. Technology providers are witnessing a substantial rise in demand for military forces' products and services. A fair percentage of yearly military budgets is focused on enhancing and modernizing the military forces by utilizing the benefits of advanced technologies, including robust data centers and servers. Several rugged server manufacturers have developed products to accelerate compute-intensive edge workloads and gain insight into critical aerospace and defense missions faster. In January 2023, Mercury Systems, Inc., the technology company that delivers processing power for aerospace and defense missions, announced its next-generation rugged edge servers featuring 4th generation Intel Xeon Scalable processors, formerly Sapphire Rapids. The server will accelerate compute-intensive edge workloads and drive faster insights for critical aerospace and defense missions. Such product launches drive the adoption of rugged server technology in the defense sector. The rise in demand would also enable the market players to expand their geographic reach and enable the ruggedized server industry to witness the emergence of newer players. Further, the adoption of rugged servers is expected to rise in the coming years as military forces emphasize the digital transition to gain an advantage over enemies or competitors. The increased focus on the digitalization of military forces across the country is anticipated to bolster the growth of the South & Central America rugged servers market.
South & Central America Rugged Servers Market Overview
South & Central America has been experiencing significant growth in its industrial and infrastructure sectors. Industries such as energy, mining, oil & gas, agriculture, and construction are prevalent in the region. South & Central America is rich in natural resources such as oil, gas, minerals, and agriculture. According to the International Association of Oil & Gas Producers, the total energy supply in the region was 26,912,417 TJ in 2021. Industries involved in resource extraction often operate in challenging environments, such as offshore oil rigs or remote mining sites, where rugged servers are necessary to ensure continuous data processing and communication. Also, the wind energy industry is growing significantly in South & Central America. According to the Global Wind Energy Council, there was 3.7 GW installed of onshore wind in the region in 2019, with 51% by Brazil, 25% by Mexico, and 13% by Argentina. In total, there is close to 26GW of onshore wind installed in Latin America, with 57% in Brazil and 19% in Mexico. These plants often operate in remote and challenging environments where standard servers may be susceptible to damage due to extreme dust, humidity, temperatures, and vibrations. Mining companies in Chile, Peru, and Brazil substantially demand rugged servers to ensure smooth data management and communication in their remote mining sites.
South & Central America Rugged Servers Market Revenue and Forecast to 2030 (US$ Million)
South & Central America Rugged Servers Market Segmentation
The South & Central America rugged servers market is categorized into type, end user, and country.
Based on type, the South & Central America rugged servers market is bifurcated into universal and dedicated. The dedicated segment held a larger market share in 2022.
In terms of end user, the South & Central America rugged servers market is categorized into aerospace, oil & gas, manufacturing, telecommunication, mining, energy, logistics, construction, and others. The aerospace segment held the largest market share in 2022.
By country, the South & Central America rugged servers market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America rugged servers market share in 2022.
Dell Inc, ZMicro Inc, Cisco Systems Inc, and Lenovo Group Ltd are some of the leading companies operating in the South & Central America rugged servers market.