PUBLISHER: The Insight Partners | PRODUCT CODE: 1764862
PUBLISHER: The Insight Partners | PRODUCT CODE: 1764862
The South & Central America distributed cloud market was valued at US$ 329.82 million in 2023 and is expected to reach US$ 688.35 million by 2031; it is estimated to register a CAGR of 9.6% from 2023 to 2031.
Increase Use of Advanced Technologies and Networks Fuels South & Central America Distributed Cloud Market
The increasing use of Internet of Things (IoT) networks and Artificial Intelligence (AI) is expected to present significant opportunities for distributed cloud market growth during the forecast period. IoT devices generate huge amounts of data that often need to be processed in real-time. Distributed cloud infrastructures can provide the necessary edge computing capabilities, allowing data to be processed near to the source. This reduces latency, enhances performance, and ensures more efficient data handling. In addition, the rising traction of the Internet of Things (IoT) and edge computing have been a major driver for distributed cloud deployments. AI applications that move substantial amounts of data from edge locations to the cloud require cloud services to be as close as possible to edge locations and moving cloud resources to the edge location itself can greatly increase performance for these applications. Moreover, with new uses for video inference and facial recognition being under development, IoT is using AI and machine learning (ML) to improve automobile manufacturing, analyze medical imaging, find the shortest route to parking, and turn off the heating in smart buildings and smart cities. AI and ML applications often require substantial computational resources that can scale dynamically based on demand. Distributed cloud networks can offer scalable solutions that cater to varying workloads, enabling more efficient utilization of resources and cost management for AI-driven tasks.
South & Central America Distributed Cloud Market Overview
South America's distributed cloud market landscape is driven by various factors. Despite an increase in cloud usage during the pandemic, the region continues to encounter barriers, preventing it from becoming a significant player in the global cloud market. Nevertheless, South America is rapidly developing economically and has caught the interest of cloud service providers. For example, Amazon Web Services (AWS) has extended its global reach by opening a new AWS Region in Sao Paulo, Brazil, offering fast access to AWS services for clients in South America. Furthermore, there has been a significant increase in cloud usage in the area, with 51% of businesses utilizing multiple public cloud providers for IaaS and PaaS. It is anticipated that the market will maintain its upward trajectory, with Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS) and forecasted to achieve a growth rate exceeding 25% in the next four years. Although South America is experiencing difficulties, it is also witnessing notable development and financial commitment in the distributed cloud sector, establishing its importance in the distributed cloud market.
South & Central America Distributed Cloud Market Revenue and Forecast to 2031 (US$ Million)
South & Central America Distributed Cloud Market Segmentation
The South & Central America distributed cloud market is categorized into application, service, enterprise size, industry vertical, and country.
Based on application, the South & Central America distributed cloud market is segmented into edge computing, content delivery, Internet of Things, and others. The edge computing segment held the largest market share in 2023.
In terms of service, the South & Central America distributed cloud market is categorized into data security, data storage, networking, and others. The data storage segment held the largest market share in 2023.
By enterprise size, the South & Central America distributed cloud market is bifurcated into large enterprise and SMEs. The large enterprise segment held a larger market share in 2023.
Based on industry vertical, the South & Central America distributed cloud market is segmented into BFSI, healthcare, retail & e-commerce, manufacturing, IT & telecom, energy & utilities, media & entertainment, government & defense, and others. The BFSI segment held the largest market share in 2023.
By country, the South & Central America distributed cloud market is segmented into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America distributed cloud market share in 2023.
Amazon Web Services Inc, Google LLC, International Business Machines Corp, Oracle Corp, Microsoft Corp, Rackspace Technology Inc, Broadcom Inc, Databricks Inc, and Salesforce Inc., are some of the leading companies operating in the South & Central America distributed cloud market.