Market Trends of brazil data center Industry
Increasing consumption of data by multiple end users. Such as e-commerce, and rising mibile connections drives the market growth
- The total data traffic per smartphone in the country was 5.3 GB in 2022, which is expected to register a CAGR of 16.3% during the forecast period to reach 17.1 GB by 2029.
- In Brazil, the average mobile-connected laptop was anticipated to generate 11.2 GB of mobile data traffic per month by 2022, up from 4.3 gigabytes per month in 2017.
- The consumption of data by multiple end users motivates this trend. For instance, e-commerce in Brazil grew by 12% in 2018 compared to 2017, closing the year with a revenue of USD 15 billion. This was the first time the industry registered double-digit growth since 2015. Brazil shows signs of overcoming its 2014-2016 economic downturn with positive projected growth for e-commerce at 15%. E-commerce is expected to generate USD 16.8 billion (BRL 61.2 billion) in 2019. In Brazil, 58 million consumers made at least one virtual purchase in 2018, representing 27% of the country’s population and an increase of 6% compared to 2017, making e-commerce a viable sales channel worth exploring. The needs of the end users are changing, and the demand for more data storage is resulting in the addition of more servers in data centers, contributing to the growth of the data center market in Brazil.
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The high internet and smartphone technology adoption by various businesses and growing digital usage across the nation drives the market demand
- The total number of smartphone users in the country was 143.43 million in 2022, which is expected to register a CAGR of 3.5% during the forecast period to reach 185.2 million by 2029.
- Digital usage is expanding rapidly in Brazil. The quick internet and smartphone technology adoption in various businesses has impacted consumer behavior. For instance, the per capita purchasing power per person in Brazil increased from 2.94 trillion in 2016 to 3.44 trillion in 2021. As a result, more people can purchase smartphones, leading to a growing number of smartphone users.
- The internet penetration of the country increased from 73% in 2017 to 88% in 2022, while the number of internet users increased from 154 million in 2017 to 191 million in 2022. Owing to such extensive use, digital payment services were promoted, and their application increased due to the COVID-19 pandemic. Consequently, there are more smartphone users in Brazil. Smartphones accounted for 13% of IP traffic in 2017 and reached 39% of IP traffic in 2022. Thus, the rising use of smartphones in the Brazilian market results in a constant increase in data, necessitating a growing amount of storage space to accommodate this uncontrollable flow of data with the need for real-time processing and analysis. Data centers must manage the sheer amount of data. Thus, the requirement for extra racks in data centers in Brazil may increase as the number of smartphone users rises.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Quick adoption of 5G network, availability of commercial 5G in the 3.5GHz band, and growing internet population drives the market growth
- Rising fixed broadband subscriptions, Investment strategies and the growth of fiber networks across the country drives the market growth
- People across the nation increasingly reliant on the internet for banking, business, & telecommunication services and increasing FTTH subscribers across the region drives the market growth
