Chile Data Center Networking Market Size
| Study Period | 2018-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.27 Billion |
| Market Size (2029) | USD 0.48 Billion |
| CAGR (2024 - 2029) | 11.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Chile Data Center Networking Market Analysis
The Chile Data Center Networking Market size is estimated at USD 0.27 billion in 2024, and is expected to reach USD 0.48 billion by 2029, growing at a CAGR of 11.30% during the forecast period (2024-2029).
- The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
- Under Construction IT Load Capacity: The upcoming IT load capacity of the Chile data center rack market is expected to reach 480 MW by 2029. Energy costs have fallen by a third compared to five years ago. This is mainly due to renewable energy, which currently accounts for 46% of total production.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 2.4 million sq. ft by 2029.
- Planned Racks: The country's total number of racks to be installed is expected to reach 1,20,000 units by 2029. Santiago is expected to house the maximum number of racks by 2029.
- Planned Submarine Cables: There are more than 80 submarine cable systems connecting Chile, and many are under construction.
Chile Data Center Networking Market Trends
Ethernet Switches is Anticipated to be the Largest Segment
- Ethernet switches join wired devices such as computers, Wi-Fi access points, PoE lighting, IoT devices, and servers onto an Ethernet LAN, enabling communication between them and the Internet."
- Ethernet switches have a wide range of applications in industrial infrastructure, including smart grids, security and surveillance, intelligent rail and transportation, and other utilities, which contribute to the growth of the industrial Ethernet switch market.
- In smart grids, Ethernet switches play a pivotal role in substation automation by reducing the effort and complexity of cabling between multiple power transmission and distribution substation devices through integration into Ethernet-based networks.
- The variety of available industrial Ethernet switch products reflects vendors' continuous product expansion beyond traditional 8-port DIN rail switches and application-specific services.
- Smart Ethernet switches with Power-over-Ethernet (PoE) technology are utilized for security and monitoring purposes. These networks transfer power to local network cables and subsequently to connected devices, facilitating Internet protocol-based monitoring systems and providing accessible browser-based communication and user interface.
- The expansion of data centers in Chile is gaining momentum due to the increasing presence of fiber optic cables. For example, in March 2022, the Chilean fiber optic internet provider Mundo announced a USD 200 million investment plan to expand its fiber optic network in the country. This capital will add 6,000 kilometers to its existing 7,000-kilometer fiber network, with plans for an additional 4,000 kilometers in 2023. The amplified investment by providers in expanding telecommunication services is expected to drive the market launch of fiber-based telecommunications data services
IT & Telecommunication is Anticipated to be Fastest Growing Segment
- The ICT sector includes both the IT market and the telecommunications market. IT investments are increasing, and ICT market demand is expected to increase significantly over the next five years. Due to the increasing need for research and implementation of digital technologies and initiatives, the overall increase in demand for digitalization and the increase in the development of IT infrastructure, the widespread deployment of 5G networks, and the increasing penetration of technology investments. , the growth of Chile's ICT market has been significantly boosted.
- The rising demand for computation and storage to support high-end applications has led to hyperscale data centers becoming extremely powerful in recent years. Data centers are becoming more complicated due to the growing number of business-critical apps. The increasing use of the web, e-commerce, social media, cloud computing, and online gaming is making it important to increase application speed, energy efficiency, and server density of data centers. The increasing data traffic volume is boosting the demand for hyperscale colocation services.
- Chile is one of the markets in Latin America to experience the highest levels of cloud activity. The government's growing investments support the development of various technologies, including 5G, AI, IoT, machine learning, and Big Data. The expansion of the Chilean ICT market is also anticipated to be fueled by the rise of digital transformation. For instance, the cloud service provider, Google Cloud Platform (GCP), revealed incremental information about its cloud regions in Santiago (Chile).
- According to ITU, internet penetration in Chile is expected to increase steadily from last year until 2026. According to the study, the country's internet penetration rate increased from 86.7% last year. Furthermore, Chile's internet penetration rate is expected to increase by 88.8% by 2026. Increased internet penetration will open up new growth opportunities for Chile's ICT market.
- The deployment of 5G networks will contribute to economic growth, improve national competitiveness, attract investment, support innovation, and drive productivity gains in various sectors. Therefore, in order to promote economic development and remain competitive at the global level, emphasis is placed in Chile on expanding its 5G infrastructure. For example, the Chilean government launched in May 2022 a new strategy, "Chile Digital 2035," to reduce inequality and accelerate the country's digital transformation.
Chile Data Center Networking Industry Overview
The Chile data center networking market demonstrates moderate competitiveness and has notably strengthened its competitive position in recent years. Dominated by key players like Cisco Systems Inc., Schneider Electric, Huawei Technologies Co. Ltd., VMware, Inc., and Juniper Networks Inc., the market witnesses a trend of strategic partnerships and acquisitions aimed at enriching product offerings and securing sustainable competitive advantages.
In September 2023, Juniper Networks, recognized as a secure, AI-driven networking entity, unveiled new features for Juniper Apstra, focusing on enhancing the operator experience and streamlining the deployment and management of private data center infrastructure. These novel features include simplified data collection and visualization through graph databases, seamless integration of flow data from diverse switch vendors, and automated provisioning leveraging Terraform, thereby emphasizing a user-centric approach to data center functionalities.
Chile Data Center Networking Market Leaders
Cisco Systems Inc.
Schneider Electric
Huawei Technologies Co. Ltd.
VMware, Inc.
Juniper Networks Inc.
*Disclaimer: Major Players sorted in no particular order
Chile Data Center Networking Market News
- July 2023: Juniper Networks, a leading provider of secure AI-driven networks, announced the launch of an enterprise-class wired access switch, the new EX4100 series. This switch leverages a modern microservices cloud and Mist AI to deliver superior performance, ease of use, flexibility, and security, granting access to all enterprise layer switching environments, including campus fabric architectures.
- May 2023: NVIDIA has announced SpectrumXtreme, an accelerated networking platform manufactured to enhance the performance and efficiency of the cloud-based on Ethernet AI. NVIDIA Spectrum-X is developed on networking developments powered by the firm coupling of the NVIDIA Spectrum-4 Ethernet switch with the NVIDIA BlueField-3 DPU, attaining 1.7x better overall AI performance and power efficiency, along with consistent, predictable performance in multi-tenant en
Chile Data Center Networking Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increasing Trend of High-Performance Computing across Europe
4.2.2 Growing Investments in IT& Telecom Sector
4.3 Market Restraints
4.3.1 Regulatory constraints
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Threat of New Entrants
4.5.2 Bargaining Power of Buyers/Consumers
4.5.3 Bargaining Power of Suppliers
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 By Component
5.1.1 By Product
5.1.1.1 Ethernet Switches
5.1.1.2 Router
5.1.1.3 Storage Area Network (SAN)
5.1.1.4 Application Delivery Controller (ADC)
5.1.1.5 Other Networking Equipment
5.1.2 By Services
5.1.2.1 Installation & Integration
5.1.2.2 Training & Consulting
5.1.2.3 Support & Maintenance
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-User
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Cisco Systems Inc.
6.1.2 Juniper Networks Inc.
6.1.3 VMware Inc
6.1.4 Huawei Technologies Co. Ltd.
6.1.5 NVIDIA (Cumulus Networks Inc.)
6.1.6 Dell Inc.
6.1.7 IBM Corporation
6.1.8 HP Development Company, L.P.
6.1.9 Intel Corporation
6.1.10 Schneider Electric
6.1.11 Eaton Corporation
6.1.12 Emerson Electric Co.
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Chile Data Center Networking Industry Segmentation
Data center networking refers to the set of technologies, protocols, and hardware used to connect physical and network-based devices and manage the network infrastructure, storage, and processing of applications and data. Data center networking is very critical for 100% uptime of data centers. In the current web-connected world, business workloads are executed on single computers, hence leading to the need for data center networking. Networks provide servers, clients, applications, and middleware with a standard plan to stage the execution of workloads and also to manage access to the data produced.
The Chile data center networking market is segmented by product (Ethernet switches, routers, storage area network (SAN), application delivery controllers (ADC), and other networking equipment), by services (installation & integration, training & consulting, and support & maintenance), and by end-user (IT & telecommunication, BFSI, government, media & entertainment, and other end users).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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| End-User | |
| IT & Telecommunication | |
| BFSI | |
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| Media & Entertainment | |
| Other End-User |
Chile Data Center Networking Market Research FAQs
How big is the Chile Data Center Networking Market?
The Chile Data Center Networking Market size is expected to reach USD 0.27 billion in 2024 and grow at a CAGR of 11.30% to reach USD 0.48 billion by 2029.
What is the current Chile Data Center Networking Market size?
In 2024, the Chile Data Center Networking Market size is expected to reach USD 0.27 billion.
Who are the key players in Chile Data Center Networking Market?
Cisco Systems Inc., Schneider Electric, Huawei Technologies Co. Ltd., VMware, Inc. and Juniper Networks Inc. are the major companies operating in the Chile Data Center Networking Market.
What years does this Chile Data Center Networking Market cover, and what was the market size in 2023?
In 2023, the Chile Data Center Networking Market size was estimated at USD 0.24 billion. The report covers the Chile Data Center Networking Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Chile Data Center Networking Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Chile Data Center Networking Industry Report
Statistics for the 2024 Chile Data Center Networking market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Chile Data Center Networking analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
