Latin America Containerized Data Center Market - Industry Outlook and Forecast 2022-2027

MARKET INSIGHTS

Latin America containerized data center market is expected to grow at a CAGR of over 23% from 2022 to 2027 and is likely to cross $430 million by 2027 from $120 billion in 2021. A containerized data center is a type of modular data center which is prefabricated in a factory and is transported to the deployment location in the form of a container. The containerized data center is equipped with all electrical, mechanical, and general construction components, such as UPS systems, generators, cooling systems, DCIM, rack & rack accessories, Fire detection & suppression, and other electrical infrastructures.  

Advantages of the containerized data center:

• Less money and time consumption
• Quick, flexible, and rapid deployment of infrastructure
• Promotes flexibility to the data center operators
• Cost-effective solutions that match the requirements
• Adjustable assembly of cooling, power, and racks
• Promotes energy efficiency

KEY HIGHLIGHTS

• Latin America containerized data center market is projected to witness an absolute growth of 248% and a cumulative investment of around USD 1,660 million during the forecast period 2022-2027.
• Brazil and Mexico will be the significant areas of opportunity for vendors offering containerized data centers. Over a period, Analysts at Arizton expect the small and economically developing countries to adopt the containerized data centers.
• Latin America, one of the disaster-prone regions, is likely to boost the deployment of containerized data centers. In addition, the deployment of 5G services and increased investment in cloud, big data, and IoT will be among the significant factors driving the market.
• UPS systems account for the highest market share in terms of components, followed by generators, cooling systems, rack & rack accessories, DCIM, and fire detection & suppression. The trend is expected to remain the same during the forecast period.

SEGMENTAL ANALYSIS

Increase in the adoption of cloud at Edge, Big Data, and IoT

• The edge cloud is a modern method for deploying cloud data centers at several locations nearer to customers, which are boosted by the growth in the deployment of containerized data centers.
• The major cloud service providers such as Google, Amazon Web Services (AWS), and Microsoft Azure aim at cloud edge computing capabilities.
• Several data center operators such as Equinix, Ascenty (Digital Realty), EdgeConneX, and others host cloud on-ramps to access hyperscale cloud service providers directly and privately.
• Big data and IoT fuel the containerized data center market growth as the solutions offer flexibility to support HPC solutions such as IoT and big data.
• The growing adoption of intelligent devices, the increasing demand for analytics, cloud adoption, and the growth of wireless networking technologies have led several organizations in Latin America to invest in big data and IoT technology.

5G deployment and development of Edge Data Centers

• Some of the regional telecom operators are yet to commercially deploy 5G services, which are expected to be deployed during the forecast period. In addition, some of the operators are conducting a 5G trial basis.
• Amazon Web Services is among the top companies investing in setting up an edge and local zones across the region, along with Microsoft launching Azure-edge zones.
• The deployment of commercial 5G services in the country during the forecast period will boost the containerized data center market size as it is easy to deploy at local levels and is flexible enough.

Latin America is prone to natural disasters that will boost the market

• Some of the countries in the region are prone to natural disasters such as earthquakes, tornados, floods, and others. Some of the significant risky countries include Uruguay, Chile, Ecuador, Peru, and Colombia
• Such countries are likely to deploy and invest more into container-based data centers as it requires less investment, can be deployed in a harsh environment, and is less affected by the effects of natural disasters
• The containerized data centers are equipped and installed with several infrastructures and monitoring solutions that will protect the IT infrastructure during the outbreak of natural disasters. Such data centers are built with suspension and shock-absorbing infrastructure

Greenfield Deployment to lead the market despite brownfield deployment in economically developing countries

• In 2021, the greenfield deployment method was likely to lead the Latin America containerized data center market. However, we expect the greenfield deployment to decline over a period due to the budget constraints and the poor economic condition
• The brownfield deployment is likely to pace by 3-4% during the forecast period, mostly in economically developing countries such as Ecuador, Paraguay, and the Caribbean.

GEOGRAPHY AND VENDOR ANALYSIS

• Brazil will lead the market in terms of deploying containerized data center market, followed by the Rest of the Latin American countries such as Peru, Argentina, Paraguay, the Caribbean region, and others.
• The Rest of Latin America will witness the highest absolute growth in terms of investment during the forecast period, followed by Chile, Colombia, Mexico, and Brazil.
• The key vendors in the market include Atos, Dell Technologies, Delta Electronics, Hewlett Packard Enterprise, Huawei Technologies, STULZ, Vertiv, Schneider Electric, Cisco System, Rittal, IBM, and Eaton.
• Among all the vendors mentioned above, Huawei Technologies holds a significant market share in the Latin America Containerized data center market.
• The increase in investment across the countries will allow the vendors to increase their revenue and market share during the forecast period.