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The Latin America cloud computing market size is estimated to grow by USD 26.4 billion at a CAGR of 19.1% between 2023 and 2028. The market size is forecast to increase. The growth of the market depends on several factors including increased inclination toward cloud computing for cost-cutting, government initiatives promoting cloud adoption, and increasing adoption of digital transformation in Latin America. Cloud computing is a framework in which hardware, application software, servers, storage, and other computing resources are provided as a service over the Internet. Companies that offer cloud services also provide components and features of the software, hardware, and storage components on a subscription or pay-as-you-go model. The use of the cloud eliminates the need for enterprises to install and run hardware and applications software on their own.
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Cloud computing has revolutionized the way businesses manage their IT resources by providing on-demand access to computing resources over the Internet. The market for cloud computing services has seen significant growth in recent years, with major players like Microsoft Azure and Amazon Web Services (AWS) leading the charge. The market offers three main types of cloud services: Public cloud, Private cloud, and Hybrid cloud. Public cloud provides computing resources over the internet, while Private cloud is used by organizations for their exclusive use. Hybrid cloud combines both public and private cloud services. Serverless computing is another emerging trend, where the cloud provider manages the infrastructure and the developer focuses on writing code. Cloud providers offer various infrastructure services such as storage, processing, and networking. The benefits of cloud computing include cost savings, scalability, reliability, accessibility, and efficiency. The internet explosion has made cloud computing an essential part of modern business infrastructure, enabling companies to reduce capital expenditures and focus on their core competencies. Microsoft Azure and AWS are the leading cloud providers, offering a range of services from infrastructure to software as a service.
The increased inclination toward cloud computing for cost-cutting is the key factor driving the growth. Setting up a data center requires high CAPEX and operating costs (OPEX). Organizations incur high CAPEX to purchase and maintain the hardware, software, operating systems, and servers needed to set up their data centers. Using dedicated hardware is more cost-effective for an organization, especially to meet its sustainable computing or storage needs. As a result, some organizations are choosing a private or hybrid cloud service, which can be customized to business needs.
Furthermore, hybrid cloud deployments allow organizations to configure infrastructure on-premises or in a private cloud and use public cloud resources only when needed. Hybrid cloud solutions enable application portability between different clouds and help leverage the flexibility and economic benefits of the cloud. Cloud services provide the security, optimal resource utilization, and reliability of conventional dedicated servers and cloud resources. Hence, these factors will drive the growth of the Latin America cloud computing market during the forecast period.
An increased inclination for private cloud for enhanced data security is the primary trend in the market growth analysis. Security and compliance issues are among the top reasons why organizations are reluctant to adopt a public cloud solution. Although public cloud services have security features, they can be accessed by anyone through the Internet. While these service providers implement features like secure multitasking, the nature of the public cloud service makes them vulnerable to hackers. For industries like the financial services industry or the healthcare industry, data security is extremely important
Furthermore, many businesses and organizations ranging from government and BFSI and other verticals have started to use private cloud services due to the key benefits of private cloud services such as security and control. The growing use of private clouds is encouraging various market players to start offering private cloud solutions to government agencies. In addition, various organizations are forging partnerships to launch new products or expand their presence. Due to these factors, the cloud computing market size in Latin America will grow during the forecast period.
System integration issues are the challenge that affects the growth of the market. Many companies in Latin America are adopting cloud computing services, such as IaaS, PaaS, and SaaS solutions, as they are cost-effective and provide an alternative to traditional IT deployments. However, there are challenges when implementing enterprise-wide cloud services to ensure the smooth integration of new systems with existing enterprise infrastructure. Some of the important issues related to system integration include connecting to monolithic systems, different business units viewing data differently, and choosing the right integration tool.
Furthermore, many market players promise to deliver the best integration experience to enterprises. In modern connectivity and IT infrastructure, an integration tool must support hybrid integration, allowing on-premises applications to seamlessly integrate with cloud-based applications. Therefore, companies have difficulty in choosing the right tool. As a result, issues related to system integration will impede the growth of the Latin American cloud computing market during the forecast period.
The market share growth by the SaaS segment will be significant during the forecast period. In the SaaS model, users have access to various software and application components and features for a subscription fee. Using SaaS eliminates the cost and complexity associated with purchasing, configuring, and managing the hardware and software products needed to run applications. This model provides enterprise software applications such as enterprise resource planning (ERP), customer relationship management (CRM), human resource management (HRM), and others.
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The SaaS segment showed a gradual increase in the market share of USD 5.60 billion in 2018. The use of private SaaS services is on the rise as Latin America cloud computing market players provide easy access to specialized hardware and software platforms. SaaS-based CRM has become essential for companies in the retail, healthcare, BFSI, telecom, and IT industries to improve their marketing and sales, and to streamline the process. SaaS-based software solutions provide better resource planning and management, reduce operating costs, help to streamline data on a single platform, and increase sales. Thus, such factors will drive the growth of the segment during the forecast period.
The public cloud segment dominated the Latin America cloud computing market, mainly owing to rising globalization and the growth of the IT and BFSI sectors in the region. Rising SMEs in developing economies such as Brazil and Argentina which demand solutions for business-related insights, the demand for public cloud services in the financial services industry is growing. Players in the public cloud segment provide cloud infrastructure to organizations in various end-user industries, which helps them conduct data collection and data analysis to generate meaningful insights into the business. Moreover, prominent Latin America cloud computing market players are investing in the development of advanced IT security features to make cloud computing services highly secure. Therefore, such factors are expected to boost the adoption of public cloud solutions during the forecast period.
The Cloud Computing Market industry report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Latin America Cloud Computing Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
Cloud computing has revolutionized the way businesses manage their IT resources by providing on-demand access to computing resources, storage, and processing power over the Internet. Three main types of cloud services are Public, Private, and Hybrid cloud. Public cloud, offered by cloud providers like Microsoft Azure and Amazon Web Services (AWS), provides access to shared resources over the internet. In contrast, a Private cloud is a dedicated cloud infrastructure for a single organization, while Hybrid cloud combines both public and private cloud. Serverless computing is another emerging trend in cloud computing, allowing developers to build and run applications without worrying about infrastructure management. Cloud providers offer various infrastructure services such as data centers, networking features, and hardware to ensure elasticity and cost savings. The Internet of Things (IoT) and Machine Learning are driving the adoption of cloud computing, with data lakes and data processing capabilities becoming essential. Cloud providers offer cost savings by allowing businesses to pay only for the resources they use and scale up or down as needed. Capacity planning, resource procurement, software maintenance, and patching are simplified with cloud computing. Geographic regions and end-users benefit from the availability of multiple data centers and the ability to access IT resources from anywhere. Overall, cloud computing offers significant advantages in terms of cost savings, scalability, and flexibility for businesses.
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MarketScope |
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Report Coverage |
Details |
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Page number |
168 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 19.1% |
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Market growth 2024-2028 |
USD 26.4 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
15.87 |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alphabet Inc., Amazon.com Inc., Capgemini Service SAS, Cisco Systems Inc., Citrix Systems Inc., Deloitte Touche Tohmatsu Ltd., HCL Technologies Ltd., Hewlett Packard Enterprise Co., Huawei Technologies Co. Ltd., Infosys Ltd., International Business Machines Corp., Microsoft Corp., Nippon Telegraph and Telephone Corp., Oracle Corp., Rackspace Technology Inc., Salesforce Inc., SAP SE, Telefonica SA, VMware Inc., and Wipro Ltd. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for Market forecasting period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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