Latin America hyperscale cloud industry size reached US$ 6,192.0 million in 2019. Demand for hyperscale cloud recorded a y-o-y growth of 14.4% in 2023.
Latin America green data center industry is expected to reach US$ 11,652.1 million in 2024. Over the projection period 2024 to 2034, Latin America’s hyperscale cloud industry is projected to exhibit 18.0% CAGR. It will likely total a valuation of US$ 60,683.9 million by 2034.
The hyperscale cloud model is set to be integral in supporting emerging technologies such as artificial intelligence, big data analytics, and the Internet of Things. It is anticipated to provide the infrastructure necessary for processing and analyzing massive volumes of data.
Hyperscale platforms are expected to play a crucial role in shaping the landscape of modern computing. These are projected to offer a foundation for scalable, flexible, and high-performance cloud services.
| Attributes | Key Insights |
|---|---|
| Latin America Hyperscale Cloud Industry Anticipated Size (2023A) | US$ 10,119.5 million |
| Estimated Latin America Hyperscale Cloud Industry Value (2024E) | US$ 11,652.1 million |
| Projected Latin America Hyperscale Cloud Industry Size (2034F) | US$ 60,683.9 million |
| Value-based CAGR (2024 to 2034) | 18.0% |
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The rising demand for hyperscale data centers due to increasing reliance on data-intensive applications and services is anticipated to bolster growth. Increasing demand for cloud computing from small and medium enterprises (SMEs) is also expected to push growth in the LATAM hyperscale cloud industry.
Surging need to manage specialized workloads, including high-performance computing, machine learning, and artificial intelligence is projected to augment growth. Increasing demand for scalable and flexible IT solutions is also driving SaaS hyperscaler adoption in Latin America.
Growing upgradation of hyperscale edge computing infrastructure among software as a service (SaaS) vendors is set to propel sales. Increased emphasis on data sovereignty and regulatory compliance is likely to compel cloud providers to establish local data centers.
Growing demand for hyperscale cloud solutions in Latin America, where providers customize their offerings to meet specific vertical needs, is projected to accelerate growth. Integrating artificial intelligence and advanced analytics into hyperscale cloud offerings to unlock insights & improve decision-making is estimated to spur demand.
Cost management challenges and complexity of migration might hamper demand. Vendor lock-in & lack of standardization are also anticipated to hinder growth.
High capital expenditure and lack of data control are further projected to restrain the industry. Environmental impact of hyperscale data centers is set to be a problem due to their enormous power usage.
Principal Consultant
Integration with emerging technologies such as edge computing is set to create novel opportunities. Rising investments in digital transformation and government initiatives are projected to push demand. At the same time, increasing emphasis on data privacy will likely open the door to opportunities for hyperscale public cloud providers.
From 2019 to 2023, Latin America hyperscale cloud industry experienced a CAGR of 13.1%. It reached a size of US$ 10,119.5 million in 2023.
| Historical CAGR (2019 to 2023) | 13.1% |
|---|---|
| Historical Value (2023) | US$ 10,119.5 million |
In the period from 2019 to 2023, demand for hyperscale cloud services increased in Latin America. Companies across the region largely accessed cloud computing solutions to enhance efficiency, scalability, and digital transformation. Growing data storage needs, power management, AI, and adoption of the Internet of Things contributed to high demand for hyperscale cloud platforms.
Governments and enterprises in the region started investing in Latin America cloud infrastructure industry to support their digital strategy. Hyperscale cloud providers from other regions expanded their presence in Latin America to meet growing demand.
The COVID-19 pandemic also accelerated remote work and increased the dependence on cloud-based solutions. These created a surging demand for hyperscale cloud infrastructure in Latin America.
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Latin America cloud-RAN (radio access network) industry is expected to rise at a CAGR of 18.0% from 2024 to 2034. During the forecast period, the industry is likely to reach US$ 60,683.9 million.
Latin America is poised for tremendous growth due to increasing demand for digital transformation in several sectors. Adoption of hyperscale cloud solutions is set to increase as companies seek to leverage advanced technologies to gain a competitive advantage.
As governments and enterprises prioritize digitization initiatives, renowned cloud providers are likely to play a key role in supporting the region’s evolving technology landscape. However, challenges such as data privacy concerns, complex regulations, and need for skilled IT staff might affect growth in the hyperscale AI computing industry.
Despite these challenges, hyperscale cloud services in Latin America are expected to witness strong expansion. It is anticipated to provide more opportunities to local and international cloud service providers in the forecast years.
Semi-annual Industry Update
| Particular | Value CAGR |
|---|---|
| H1 | 12.6% (2023 to 2033) |
| H2 | 13.1% (2023 to 2033) |
| H1 | 15.3% (2024 to 2034) |
| H2 | 18.0% (2024 to 2034) |
The table below showcases the CAGRs of two prominent countries in Latin America hyperscale cloud industry. Brazil is likely to exhibit a robust CAGR of 20.2% from 2024 to 2034. It is set to be followed by Mexico at 18.2% CAGR.
| Countries | Value-based CAGR (2024 to 2034) |
|---|---|
| Brazil | 20.2% |
| Mexico | 18.2% |
The hyperscale cloud industry in Brazil is expected to reach a value of US$ 19,636 million by 2034, expanding at a CAGR of 20.2% in the estimated period. Brazil is considered one of the most prominent economies in Latin America.
It has the largest share of Latin America’s population. The country is attracting significant investments from global cloud service providers. These providers are looking to take advantage of the growing demand for cloud services.
Digital transformation initiatives have increased in several sectors in the country. Brazil-based companies are realizing the benefits of moving to the cloud. This heightened awareness of improved speed, scalability, and cost is likely to propel adoption. Also, a growing understanding of the benefits of cloud computing is projected to help push the use of large-scale cloud solutions in Latin America.
The regulatory environment in Brazil has become more conducive to growth of the cloud industry. The government has taken steps to facilitate a business-friendly environment for technology companies and encourage innovation & investment in digital infrastructure.
Easy availability of skilled workers and a thriving start-up ecosystem further contribute to Brazil’s prominence in the scalable cloud solution industry. The country has established itself as a key player in Latin America hyperscale cloud industry.
Mexico’s strategic geographic location makes it ideal for data centers to exhibit tremendous growth in the hyperscale cloud industry. Data centers are likely to help facilitate efficient communication across the country.
Government efforts to encourage better working conditions and attract foreign investments are also playing an important role in establishing Mexico as a key hyperscale cloud industry. Increasing demand for digital transformation in industries, including finance, healthcare, and manufacturing, is driving the adoption of cloud services. Enterprises are projected to realize the benefits of scalability, flexibility, and cost-effectiveness of hyperscale cloud solutions.
Mexico’s strong infrastructure, strategic position, government support, and increasing digitization in several sectors contribute to its prominence in the massive cloud platform industry. The country is expected to reach a value of US$ 23,535.2 million, expanding at a CAGR of 18.2% during the forecast period.
Latin America hyperscale cloud industry is segmented into type, deployment, enterprise size, and industry. In terms of type, the software as a service (SaaS) hyperscalers segment is projected to witness a 17.0% CAGR through 2034. By deployment, the hybrid cloud segment is anticipated to showcase a 22.2% CAGR from 2024 to 2034.
Industry Growth Outlook by Type
| Type | Value CAGR |
|---|---|
| Software as a Service (SaaS) Hyperscalers | 17.0% |
| Platform as a Service (PaaS) Hyperscalers | 15.5% |
| Infrastructure as a Service (IaaS) Hyperscalers | 22.3% |
| Serverless Hyperscale Cloud | 20.3% |
| Database as a Service (DBaaS) | 19.7% |
The dominance of software as a service (SaaS) hyperscaler in Latin America is attributed to the evolving technological environment in the region. Several organizations in the region are looking to streamline their operations.
SaaS applications that easily achieve these goals without significant upfront infrastructure investment are set to be highly demanded. SaaS hyperscalers have established a strong presence and infrastructure in the region, ensuring reliable and simple services.
Local initiatives help address challenges associated with network connectivity and data transfer speeds, which are important factors in the adoption of hyperscale solutions. As firms in Latin America increasingly embrace digital transformation, demand for cloud-based services, especially SaaS services, has expanded dramatically.
SaaS offerings typically provide easy-to-use interfaces and scalable features, which meet a variety of needs in Latin America. This flexibility makes SaaS solutions suitable for a wide range of industries, from small and medium enterprises to large enterprises. Ease of integration with existing systems also contributes to the popularity of SaaS hyperscale cloud computing in the region.
Industry Growth Outlook by Deployment
| Deployment | Value CAGR |
|---|---|
| Public Cloud | 17.9% |
| Private Cloud | 13.6% |
| Hybrid Cloud | 22.2% |
The hybrid cloud segment's dominance in Latin America hyperscale cloud industry can be attributed to strategic alignment with the region's dynamic business environment. Companies are increasingly recognizing the need for flexible and scalable IT infrastructure.
A hybrid cloud allows organizations to take advantage of both private and public cloud environments. This flexibility is important in Latin America as regulatory requirements and workloads evolve. It further requires flexible IT solutions.
Industry Growth Outlook by Enterprise Size
| Enterprise Size | Value CAGR |
|---|---|
| Small Offices (1 to 9 employees) | 15.5% |
| Small Enterprises (10 to 99 employees) | 19.0% |
| Medium-sized Enterprise (100 to 499 employees) | 20.7% |
| Large Enterprises (500 to 999 employees) | 17.2% |
| Very Large Enterprises (1,000+ employees) | 16.6% |
Latin America has seen a significant increase in the adoption of hyperscale cloud solutions in recent years among mid-sized enterprises with 100 to 499 employees. These enterprises are recognizing the benefits that hyperscale cloud service providers offer in terms of scalability, flexibility, and cost savings. Similarly, large enterprises are using robust cloud services to increase their operational efficiency, drive innovation, and compete in a dynamic environment.
Growing awareness of the transformative potential of cloud technology among large enterprises is set to drive demand. As mid-sized enterprises prioritize agility and flexibility, cloud overuse is emerging as a way to meet the challenges of the digital age.
Industry Growth Outlook by Industry
| Industry | Value CAGR |
|---|---|
| Finance | 19.0% |
| Manufacturing & Resources | 16.0% |
| Distribution Services Services | 17.8% 20.8% |
| Public Sector | 15.4% |
| Infrastructure | 14.6% |
The finance industry typically requires complex and efficient computing systems to process large amounts of data for functions such as algorithmic trading, risk management, and customer communications. The industry relies heavily on real-time data processing. Ultra-premium enterprises in the industry deal with advanced technologies, including cloud services, which can provide the speed and reliability needed for such operations.
As the economy in Latin America grows, financial institutions are set to expand their operations, thereby increasing the demand for advanced IT systems like file hosting platforms. This growth is likely to lead the financial sector to invest heavily in cloud solutions to handle evolving data and services securely.
Key players are constantly evolving and adapting to the dynamic energy industry landscape by employing several strategies to remain competitive and meet the evolving needs of their clients.
Research and Development
Several companies are continuously looking for new ways to serve their customers and expand their presence by making significant research & development investments.
They are striving to strengthen their industry coverage in areas such as advertising, cloud, machine learning, and search, as well as in new products and services. They are constantly focusing on the development of hyperscale clouds in Latin America.
Product Innovation
Companies are focused on maintaining a strong position and driving growth through continuous innovation, global expansion, and delivery of high-performance cloud services. They are committed to leveraging their hyperscale cloud offerings to meet the evolving needs of customers.
Strategic Partnerships and Collaborations
Key companies are focused on partnerships with local agencies and technology providers to expand their reach and better understand the local landscape. They are leveraging these partnerships to offer specialized services and gain insights into regional trends.
Expansion into Emerging Industries
Several industry participants are focusing on launching innovative solutions and expanding their hyperscale cloud solution offerings. They aim to deliver enhanced technology and offer new & upgraded solutions in crucial industries. This strategy can increase their productivity and enhance product quality.
Key Developments in the Latin America Hyperscale Cloud Industry
The Latin America hyperscale cloud industry is set to hit US$ 11,652.1 million by 2024.
Latin America hyperscale cloud industry is set to expand at 18.0% through 2034.
Large enterprises are likely to hold a dominant share.
The industry is predicted to reach US$ 60,683.9 million by 2034.
Services are estimated to show the most promising growth over the forecast period.
Infrastructure as a service (IaaS) hyperscalers are expected to dominate.
Google LLC, Amazon Web Services, Inc., and Oracle Corporation.
There were more than 600 hyperscale data centers in the world in 2021.
These are designed to have several data centers across the globe.
The cloud computing market is set to reach US$ 2,062.26 billion in 2033.
One of the crucial features is the scale of infrastructure.
1. Executive Summary
1.1. Latin America Industry Outlook
1.2. Demand Side Trends
1.3. Supply Side Trends
1.4. Analysis and Recommendations
2. Industry Overview
2.1. Industry Coverage / Taxonomy
2.2. Industry Definition / Scope / Limitations
3. Pricing Analysis
3.1. Average Pricing
3.1.1. Pricing by Compute, Storage, Networking and Databases
3.2. Factors Affecting Pricing
4. Industry Background
4.1. Macro-Economic Factors
4.2. Forecast Factors - Relevance & Impact
4.3. Value Chain
4.4. COVID-19 Crisis - Impact Assessment
4.4.1. Current Statistics
4.4.2. Short-Mid-Long Term Outlook
4.4.3. Likely Rebound
4.5. Industry Dynamics
4.5.1. Drivers
4.5.2. Restraints
4.5.3. Opportunity Analysis
5. Industry Demand (in Value or Size in US$ million) Analysis 2019 to 2023 and Forecast, 2024 to 2034
5.1. Historical Industry Value (US$ million) Analysis, 2019 to 2023
5.2. Current and Future Industry Value (US$ million) Projections, 2024 to 2034
5.2.1. Y-o-Y Growth Trend Analysis
5.2.2. Absolute $ Opportunity Analysis
6. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Type
6.1. Introduction / Key Findings
6.2. Historical Industry Size (US$ million) Analysis By Type, 2019 to 2023
6.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Type, 2024 to 2034
6.3.1. Software as a Service (SaaS) Hyperscalers
6.3.2. Platform as a Service (PaaS) Hyperscalers
6.3.3. Infrastructure as a Service (IaaS) Hyperscalers
6.3.4. Serverless Hyperscale Cloud
6.3.5. Database as a Service (DBaaS)
6.4. Industry Attractiveness Analysis By Type
7. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Deployment
7.1. Introduction / Key Findings
7.2. Historical Industry Size (US$ million) Analysis By Deployment, 2019 to 2023
7.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Deployment, 2024 to 2034
7.3.1. Public Cloud
7.3.2. Private Cloud
7.3.3. Hybrid Cloud
7.4. Industry Attractiveness Analysis By Deployment
8. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Enterprise Size
8.1. Introduction / Key Findings
8.2. Historical Industry Size (US$ million) Analysis By Enterprise Size, 2019 to 2023
8.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Enterprise Size, 2024 to 2034
8.3.1. Small Offices (1 to 9 employees)
8.3.2. Small Enterprises (10 to 99 employees)
8.3.3. Medium-sized Enterprise (100 to 499 employees)
8.3.4. Large Enterprises (500 to 999 employees)
8.3.5. Very Large Enterprises (1,000+ employees)
8.4. Industry Attractiveness Analysis By Enterprise Size
9. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, By Industry
9.1. Introduction / Key Findings
9.2. Historical Industry Size (US$ million) Analysis By Industry, 2019 to 2023
9.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Industry, 2024 to 2034
9.3.1. Finance
9.3.1.1. Banking
9.3.1.2. Insurance
9.3.1.3. Investment/Securities
9.3.2. Manufacturing & Resources
9.3.2.1. Discrete Manufacturing
9.3.2.2. Process Manufacturing
9.3.2.3. Resource Industries
9.3.2.4. Agriculture
9.3.3. Distribution Services
9.3.3.1. Retail
9.3.3.2. Wholesale
9.3.3.3. Transportation /Logistics Services
9.3.3.4. Warehousing & Storage
9.3.3.5. Shipping
9.3.4. Services
9.3.4.1. IT/Professional Services
9.3.4.2. Consumer Services
9.3.4.3. Media, Entertainment & Publishing
9.3.4.4. Travel & Hospitality
9.3.4.5. Legal Services
9.3.5. Public Sector
9.3.5.1. Government (State/Central)
9.3.5.2. Education
9.3.5.3. Healthcare
9.3.5.4. Aerospace & Defense
9.3.5.5. Non-profit
9.3.6. Infrastructure
9.3.6.1. Telecommunication
9.3.6.2. Data Centers
9.3.6.3. Energy & Utilities
9.3.6.4. Building & Construction
9.4. Industry Attractiveness Analysis By Industry
10. Industry Analysis 2019 to 2023 and Forecast 2024 to 2034, by Country
10.1. Introduction
10.2. Historical Industry Size (US$ million) Analysis By Country, 2019 to 2023
10.3. Current and Future Industry Size (US$ million) Analysis and Forecast By Country, 2024 to 2034
10.3.1. Mexico
10.3.2. Brazil
10.3.3. Argentina
10.3.4. Chile
10.3.5. Peru
10.3.6. Colombia
10.3.7. Venezuela
10.3.8. Rest of Latin America
10.4. Industry Attractiveness Analysis By Country
11. Mexico Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
11.1. Introduction
11.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
11.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
11.3.1. By Type
11.3.2. By Deployment
11.3.3. By Enterprise Size
11.3.4. By Industry
11.4. Industry Attractiveness Analysis
11.4.1. By Type
11.4.2. By Deployment
11.4.3. By Enterprise Size
11.4.4. By Industry
12. Brazil Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
12.1. Introduction
12.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
12.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
12.3.1. By Type
12.3.2. By Deployment
12.3.3. By Enterprise Size
12.3.4. By Industry
12.4. Industry Attractiveness Analysis
12.4.1. By Type
12.4.2. By Deployment
12.4.3. By Enterprise Size
12.4.4. By Industry
13. Argentina Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
13.1. Introduction
13.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
13.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
13.3.1. By Type
13.3.2. By Deployment
13.3.3. By Enterprise Size
13.3.4. By Industry
13.4. Industry Attractiveness Analysis
13.4.1. By Type
13.4.2. By Deployment
13.4.3. By Enterprise Size
13.4.4. By Industry
14. Chile Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
14.1. Introduction
14.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
14.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
14.3.1. By Type
14.3.2. By Deployment
14.3.3. By Enterprise Size
14.3.4. By Industry
14.4. Industry Attractiveness Analysis
14.4.1. By Type
14.4.2. By Deployment
14.4.3. By Enterprise Size
14.4.4. By Industry
15. Peru Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
15.1. Introduction
15.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
15.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
15.3.1. By Type
15.3.2. By Deployment
15.3.3. By Enterprise Size
15.3.4. By Industry
15.4. Industry Attractiveness Analysis
15.4.1. By Type
15.4.2. By Deployment
15.4.3. By Enterprise Size
15.4.4. By Industry
16. Colombia Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
16.1. Introduction
16.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
16.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
16.3.1. By Type
16.3.2. By Deployment
16.3.3. By Enterprise Size
16.3.4. By Industry
16.4. Industry Attractiveness Analysis
16.4.1. By Type
16.4.2. By Deployment
16.4.3. By Enterprise Size
16.4.4. By Industry
17. Venezuela Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
17.1. Introduction
17.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
17.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
17.3.1. By Type
17.3.2. By Deployment
17.3.3. By Enterprise Size
17.3.4. By Industry
17.4. Industry Attractiveness Analysis
17.4.1. By Type
17.4.2. By Deployment
17.4.3. By Enterprise Size
17.4.4. By Industry
18. Rest of Industry Analysis 2019 to 2023 and Forecast 2024 to 2034
18.1. Introduction
18.2. Historical Industry Size (US$ million) Analysis By Industry Taxonomy, 2019 to 2023
18.3. Current and Future Industry Size (US$ million) Forecast By Industry Taxonomy, 2024 to 2034
18.3.1. By Type
18.3.2. By Deployment
18.3.3. By Enterprise Size
18.3.4. By Industry
18.4. Industry Attractiveness Analysis
18.4.1. By Type
18.4.2. By Deployment
18.4.3. By Enterprise Size
18.4.4. By Industry
19. Industry Structure Analysis
19.1. Industry Analysis by Tier of Companies
19.2. Industry Share Analysis by Players
20. Competition Analysis
20.1. Competition Dashboard
20.2. Competition Deep Dive
20.2.1. Business Overview
20.2.2. Portfolio
20.2.3. Key Financials (Funding, Revenue Growth)
20.2.4. Key Clients Footprint
20.2.5. Go-to-Industry Approach & Strategies
20.2.6. Recent Developments (Partnerships, Alliances, etc.)
20.3. Major Vendors
20.3.1. Google LLC
20.3.2. Amazon Web Services, Inc.
20.3.3. Oracle Corporation
20.3.4. Alibaba Cloud
20.3.5. Microso ft Corporation
20.3.6. IBM Corporation
20.3.7. Fujitsu
20.3.8. Meta
20.3.9. Huawei Technologies Co., Ltd.
20.3.10. Tencent Holdings Limited
20.3.11. OVHcloud
20.3.12. SAP
20.3.13. Salesforce, Inc.
21. Assumptions and Acronyms Used
22. Research Methodology
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Hyperscale Cloud Industry Analysis in Latin America
