Latin America Data Center Storage Market Valued at $1.1 Billion in 2021

According to Arizton Advisory and Intelligency‘s research report ($3,750, 153 pages), the Latin America data center storage market is expected to grow at a CAGR of 7.94% from 2022 to 2027.

Modern data center operators mostly adopt storage infrastructure that best matches their workload requirements. The selection of storage infrastructure also depends on factors such as form factors and energy consumption. The market is witnessing significant growth in all-flash storage systems, whereas traditional HDD storage systems are still in demand among several enterprises in the market.

Edge data centers, which are being used by cloud and content providers to enable low-latency service consumption are fueling the demand for robust storage systems in countries such as Brazil, Chile, and Mexico. The demand for high-capacity HDDs will increase in the market, where hybrid storage systems will play a vital role in supporting both critical and non-critical workloads as a cost-efficient alternative to all-flash systems.

Latin America Data Center Storage Market Report Scope

Adoption of SDS
In Latin America, the use of SDS is expected to grow as the number and complexity of applications being deployed will grow over time. Currently, the use cases of SDS are minimal in the market, which is expected to grow along with the adoption of hyperconverged platforms/rack-level architecture. It is expected that on-premises deployment in Latin America will include systems with hyperconverged capabilities.

An increase in data gen through the implementation of technologies such as IoT, big data analytics, AI, and ML by enterprises will be a strong driving factor for the market. The trend of SDS platforms will also increase in the market. Most service providers, including hyperscale and cloud service providers, will be involved in procuring customized systems that are flexible and scalable in nature.

Key Insights
• Over $9 billion will be the cumulative spending on Latin America data center storage during 2022-2027
• The spending on AFAs and hybrid arrays accounts for over $6 billion during 2022-2027, growing at a CAGR of around 9% during 2021-2027.
• Enterprise spending on all-flash storage has already started to spur in the market to support critical application workloads
• Cloud/IT contributes around $5 billion towards storage spending across Latin America during 2022-2027. This segment will be followed by the government and BFSI sectors as digitalization activities intensify in the market
• Brazil continues to dominate spending on data center storage systems with around 40% market share. Mexico and Chile’s contributions to increase in 2022/2023, whereas other countries’ contributions to grow more during 2024-2027.

Vendors Insights
The data center storage market is very competitive, especially after the advent of ODM infrastructure, which is being procured by hyperscalers for their storage needs. In addition, chip shortage is continuing to impact the international supply chain, which has affected the sales of several storage systems providers as well as drives and manufacturers.

Vendor partnerships with local service providers, namely, telecom service providers and multinational organizations operating across Latin America, will be key to attaining a major market share. Any existing partnership with global service providers with a strong customer base in Latin America will be beneficial for vendors operating in the market.

Vendors must grow their reseller and distribution base in the market, as many enterprises work with local consultants and IT service providers for their digital transformation initiatives.

Prominent vendors
• Dell Technologies
• Fujitsu
• Hewlett Packard Enterprise
• Hitachi Vantara
• Huawei
• IBM
• Intel
• Kingston Technology
• Lenovo
• NEC
• NetApp
• Oracle
• Pure Storage
• Samsung Electronics
• Seagate Technology
• Solidigm
• Toshiba
• Western Digital
• Wistron