The Latin America data center storage market is expected to grow at a CAGR of 7.94% from 2022 to 2027, according to Research and Markets.
The data center storage market comprises several products such as hard disk drives, solid-state drives, storage networking, and other infrastructure. This infrastructure is critical for effective data center storage.
The Latin American data center market has witnessed strong growth over the last five years. Especially after the outbreak of COVID-19, the demand for cloud and colocation services has skyrocketed in the market. In 2021, Brazil continued to dominate the data center storage space, whereas Mexico and Chile were upcoming destinations for storage spending in Latin America.
The market is also dominated by expansion by global and local cloud service providers across the region. In addition, the demand is driven by government digitalization initiatives to support the growing consumption of online content by consumers in the region.
- The Latin American data center storage market is driven by increasing digitalization, accelerated data center investments, especially by cloud service providers, and the adoption of advanced storage technology, like NVMe and software-defined storage.
- Cloud service providers are the main contributors to Latin America’s data center storage market. Expanding cloud presence through establishing multiple cloud regions across countries like Brazil, Mexico, Chile, Colombia, and Argentina will drive high-performance storage adoption in the market.
- In 2021, all-flash and hybrid storage systems contributed to around 65% of the market revenue, whereas traditional HDD-based systems dominated in terms of capacity
- The contribution to the storage spending by enterprises across other countries is mostly restricted to on-premises deployment. The leading countries have witnessed strong growth in data center outsourcing services, especially colocation and managed services.
- Most investments will come from telecommunication service providers across several countries in Latin America, as they continue to invest in improving connectivity and offering IT services to end-users.
- Edge data center deployments and the establishment of cloud regions at the edge by hyperscale operators will significantly boost the market growth.