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Latin America Cloud Computing Market Analysis - Size and Forecast 2025-2029

Latin America Cloud Computing Market Analysis - Size and Forecast 2025-2029

Published: Feb 2025 180 Pages SKU: IRTNTR76064

Market Overview at a Glance

$26.4 B
Market Opportunity
17.2%
CAGR
15.6
YoY growth 2024-2025(%)

Latin America Cloud Computing Market Size 2025-2029 

The latin america cloud computing market size is forecast to increase by USD 26.4 billion billion at a CAGR of 17.2% between 2024 and 2029.

  • The Latin American cloud computing market is experiencing significant growth due to the increasing adoption of cloud services for cost savings and enhanced business agility. According to recent studies, the region is witnessing a in demand for cloud solutions, particularly in sectors such as finance, healthcare, and education. A key driver for this trend is the growing recognition of the cost benefits associated with cloud computing, including reduced capital expenditures and operational expenses. However, the market is not without challenges. One of the most significant obstacles to growth is the complexity of integrating cloud solutions with existing IT infrastructure.
  • This issue is particularly prevalent in larger organizations with legacy systems. Furthermore, concerns around data security and privacy have led many companies to opt for private cloud solutions. Despite these challenges, the market presents significant opportunities for companies seeking to capitalize on the region's growing demand for cloud services. To succeed, businesses must focus on addressing integration issues and providing security solutions to meet the evolving needs of Latin American organizations.

What will be the size of the Latin America Cloud Computing Market during the forecast period?

Cloud Computing Market in Latin America Size

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  • The Latin American cloud computing market is experiencing growth, fueled by the region's increasing internet penetration and the demand for on-demand access to computing resources. According to industry reports, the market is expected to reach significant size in the coming years, driven by the adoption of various types of cloud services, including public, private, and hybrid cloud solutions. Businesses in Latin America are turning to cloud providers for infrastructure services such as storage and processing, enabling them to reduce capital expenditures and achieve cost savings. The region's market dynamics are shaped by the growing preference for cloud-based services in sectors like IT and finance, as well as the trend towards serverless computing.
  • Cloud computing offers numerous benefits, including scalability, reliability, and accessibility, making it an attractive alternative to traditional mainframe computing. The internet explosion in Latin America has further accelerated the adoption of cloud services, as businesses seek to take advantage of the flexibility and efficiency offered by cloud providers. Overall, the Latin American cloud computing market is poised for continued growth, as more organizations embrace the benefits of cloud-based solutions.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

  • Service
    • SaaS
    • IaaS
    • PaaS
  • Deployment
    • Public cloud
    • Private cloud
  • Geography
    • Latin America

By Service Insights

The saas segment is estimated to witness significant growth during the forecast period.

Cloud computing has gained significant traction in Latin America, with software-as-a-service (SaaS) leading the market in 2024. In the SaaS model, cloud providers host software programs and associated data centers centrally, enabling users to access these applications and their features via web browsers over the Internet. Subscription fees grant users on-demand access to these services, eliminating the need for businesses to develop applications for various devices. SaaS offers numerous benefits, including cost savings, increased capacity, and reduced capital expenditures. Additionally, cloud infrastructure services, including public, private, hybrid, and serverless computing, are gaining popularity. IoT, machine learning, and infrastructure services are essential components of cloud computing, offering networking features, data storage space, and operating system support.

Resource procurement, capacity planning, software maintenance, and cost savings are crucial considerations for businesses adopting cloud computing. Key players in the Latin American cloud computing market include leading research firms such as , , , s, , , , and .

Cloud Computing Market in Latin America Size

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The SaaS segment was valued at  USD billion in 2019 and showed a gradual increase during the forecast period.

Market Dynamics

Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

What are the key market drivers leading to the rise in adoption of Latin America Cloud Computing Market?

  • Increased inclination toward cloud computing for cost-cutting is the key driver of the market. 
    • Enterprises in Latin America are shifting their focus towards cloud computing to minimize their capital expenditures (CAPEX) on hardware and infrastructure. Small and medium-sized enterprises (SMEs) are particularly drawn to public cloud solutions due to their flexibility in scaling up or down resources as needed. The high CAPEX and operating expenditure (OPEX) associated with setting up and maintaining private data centers make cloud services an attractive alternative.
    • Public cloud solutions enable customers to access additional resources for a limited period without the need for large upfront investments. By adopting cloud computing, organizations can reduce their IT costs and focus on their core business operations.

What are the market trends shaping the Latin America Cloud Computing Market?

  • Increased inclination for private cloud for enhanced data security is the upcoming trend in the market. 
    • Cloud Computing in Latin America: Security Concerns and Private Solutions Cloud computing adoption in Latin America has been influenced by various factors. One significant challenge hindering the widespread use of public cloud services is security and compliance concerns. Although public cloud providers offer security features, their accessibility via the Internet raises vulnerabilities. With multiple customers utilizing the same resources, secure multi-tenancy is implemented to mitigate risks. However, this shared infrastructure increases the potential for cyber-attacks from hackers. For industries dealing with sensitive data, such as financial services or healthcare, data security is paramount.
    • In response to these concerns, private cloud solutions have emerged as an alternative. Private clouds offer cloud storage resources exclusively to a single enterprise or organization, ensuring enhanced security and control over their data. By tailoring cloud services to their specific needs, businesses can address their unique security requirements and compliance regulations.

What challenges does Latin America Cloud Computing Market face during the growth?

  • System integration issues is a key challenge affecting the market growth. 
    • Cloud computing services, including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS) solutions, are increasingly adopted by enterprises in Latin America due to their cost-effective nature and elimination of the need for building and maintaining traditional IT infrastructure. However, integrating cloud services at an enterprise scale can present challenges. One significant issue is connecting to monolithic systems, which combine user interface and data access code into a single application, making seamless integration a complex process.
    • Other challenges include data security, compliance, and ensuring interoperability with existing systems. Despite these hurdles, the benefits of cloud computing, such as scalability, flexibility, and cost savings, continue to drive adoption among enterprises in the region.

Exclusive Latin America Cloud Computing Market Customer Landscape

The market forecasting 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 market growth analysis strategies.

Cloud Computing Market in Latin America Share by Geography

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

  • Amazon.com Inc.
  • Capgemini Services SAS
  • Cisco Systems Inc.
  • Citrix Systems Inc.
  • Deloitte Touche Tohmatsu Ltd.
  • Google LLC
  • 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.
  • Wipro Ltd.

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.

Research Analyst Overview

Cloud computing has experienced significant growth in Latin America, driven by various market dynamics. This dynamic technology has gained traction due to its ability to offer on-demand access to computing resources, including public, private, and hybrid cloud solutions. Public cloud services enable organizations to access computing resources over the internet, offering cost savings as opposed to traditional capital expenditures for physical servers and data centers. These services provide scalability and flexibility, making them an attractive option for businesses of all sizes. On the other hand, private cloud solutions offer a more controlled environment, ensuring security and compliance for sensitive data.

Hybrid cloud solutions, which combine both public and private cloud offerings, provide the benefits of both worlds, allowing organizations to balance their need for cost savings and data security. The advent of serverless computing has further fueled the adoption of cloud computing in Latin America. This technology allows businesses to deploy and run applications without the need to manage the underlying infrastructure, resulting in cost savings and increased efficiency. The Internet of Things (IoT) and machine learning are also driving the growth of cloud computing in the region. IoT devices generate vast amounts of data, which can be processed and analyzed in the cloud, providing valuable insights for businesses.

Machine learning algorithms can be run in the cloud, enabling organizations to develop predictive models and automate processes. Cloud providers offer various infrastructure services, including networking features, data storage space, and operating system support. These services enable businesses to focus on their core competencies while the cloud provider manages the underlying infrastructure. Cost savings is a significant factor driving the adoption of cloud computing in Latin America. By utilizing cloud services, businesses can reduce their capital expenditures on hardware and data centers, as well as their operational expenses related to software maintenance and capacity planning. The growth of cloud computing in Latin America is not limited to infrastructure services.

Cloud providers offer a range of services, including infrastructure, software, and platform-as-a-service. These services cater to various industries and use cases, making cloud computing a versatile solution for businesses in the region. The market for cloud computing in Latin America is expected to continue growing, driven by the increasing demand for on-demand access to computing resources, cost savings, and the adoption of emerging technologies such as IoT and machine learning. The region's businesses are recognizing the benefits of cloud computing and are increasingly turning to cloud providers to meet their technology needs.

Market Scope

Report Coverage

Details

Page number

180

Base year

2024

Historic period

 2019-2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 17.2%

Market growth 2025-2029

USD 26.4 billion

Market structure

Fragmented

YoY growth 2024-2025(%)

15.6

Competitive landscape

Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks

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What are the Key Data Covered in this Market Research Report?

  • CAGR of the market during the forecast period
  • Detailed information on factors that will drive the market growth and forecasting between 2025 and 2029
  • Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
  • Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
  • Growth of the market across Latin America
  • Thorough analysis of the market’s competitive landscape and detailed information about companies
  • Comprehensive analysis of factors that will challenge the growth of market companies

We can help! Our analysts can customize this market research report to meet your requirements Get in touch

 

Table of Contents not available.

Research Methodology

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

  • Manufacturers and suppliers
  • Channel partners
  • Industry experts
  • Strategic decision makers

Secondary sources

  • Industry journals and periodicals
  • Government data
  • Financial reports of key industry players
  • Historical data
  • Press releases

DATA ANALYSIS

Data Synthesis

  • Collation of data
  • Estimation of key figures
  • Analysis of derived insights

Data Validation

  • Triangulation with data models
  • Reference against proprietary databases
  • Corroboration with industry experts

REPORT WRITING

Qualitative

  • Market drivers
  • Market challenges
  • Market trends
  • Five forces analysis

Quantitative

  • Market size and forecast
  • Market segmentation
  • Geographical insights
  • Competitive landscape

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Frequently Asked Questions

Cloud Computing market growth will increase by $ 26.4 bn during 2025-2029.

The Cloud Computing market is expected to grow at a CAGR of 17.2% during 2025-2029.

Cloud Computing market is segmented by Service( SaaS, IaaS, PaaS) Deployment( Public cloud, Private cloud)

Amazon.com Inc., Capgemini Services SAS, Cisco Systems Inc., Citrix Systems Inc., Deloitte Touche Tohmatsu Ltd., Google LLC, 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., Wipro Ltd. are a few of the key vendors in the Cloud Computing market.

Latin America will register the highest growth rate of 100% among the other regions. Therefore, the Cloud Computing market in Latin America is expected to garner significant business opportunities for the vendors during the forecast period.

Brazil, Argentina, Colombia, Mexico, Rest of Latin America

  • Increased inclination toward cloud computing for cost-cuttingEnterprises in Latin America are focusing on reducing their overall capital expenditure (CAPEX); therefore is the driving factor this market.
  • they are increasingly moving toward adopting cloud services for their computing needs. SMEs have started to opt for public solutions as they help enterprises scale up or down the hardware and resources as and when required. Moreover is the driving factor this market.
  • setting up data centers requires high CAPEX and operating expenditure (OPEX). Organizations incur high CAPEX to purchase and maintain the required hardware is the driving factor this market.
  • software is the driving factor this market.
  • operating system (OS) is the driving factor this market.
  • and servers to establish their data center.The public cloud solution is particularly beneficial for customers that may need additional resources for a limited period only. However is the driving factor this market.
  • for daily operational tasks is the driving factor this market.
  • organizations would need dedicated resources to carry out their tasks smoothly. Running dedicated hardware is more cost-effective for an organization is the driving factor this market.
  • especially to meet its sustained computing or storage needs. Therefore is the driving factor this market.
  • a few organizations opt for private or hybrid cloud services is the driving factor this market.
  • which can be customized as per the business needs. In December 2024 is the driving factor this market.
  • Google Cloud inaugurated its 41st global region in Queretaro is the driving factor this market.
  • Mexico is the driving factor this market.
  • marking its third in Latin America. This expansion enhances local data residency is the driving factor this market.
  • low-latency access is the driving factor this market.
  • and reliable cloud services is the driving factor this market.
  • thereby accelerating digital transformation and increasing cloud computing demand across the region.Hybrid cloud deployments allow organizations to set up the infrastructure on-premises or in the private cloud and utilize public cloud resources only when needed. As their needs change is the driving factor this market.
  • organizations can shift their workload between private and public clouds. Hybrid cloud solutions allow for the portability of the applications between the different clouds and help leverage the flexibility and cost benefits of the cloud. Enterprises are adopting cloud platforms as they provide the following benefits:Moving to the cloud reduces CAPEX incurred for servers and related IT equipment. Cloud service providers offer servers is the driving factor this market.
  • storage space is the driving factor this market.
  • and other necessary hardware as a service. The organization does not have to pay for the data center setup cost and will be needed to pay only for the used server resources. Moreover is the driving factor this market.
  • labor cost is handled by the cloud provider as there is no need to hire dedicated staff in the organization.Cloud providers can furnish additional capabilities is the driving factor this market.
  • such as storage is the driving factor this market.
  • central processing unit (CPU) is the driving factor this market.
  • memory is the driving factor this market.
  • and communication lines is the driving factor this market.
  • faster and at a lower cost. This provides flexibility in scaling up or down. Thus is the driving factor this market.
  • organizations can save the need for building an IT infrastructure and the overall cost.Organizations need cross-platform solutions that enable them to build web is the driving factor this market.
  • desktop is the driving factor this market.
  • and mobile applications is the driving factor this market.
  • for any type of device and application architecture. PaaS-providing companies provide cross-platforms for organizations with the option of up or scaling down as per organization requirements.Cloud solutions enable the deployment of applications without the necessity for provisioning hosting capabilities. It helps save the cost incurred in buying is the driving factor this market.
  • upgrading is the driving factor this market.
  • and managing the underlying hardware and software.The cloud service provides security is the driving factor this market.
  • optimum utilization of the resources is the driving factor this market.
  • and reliability of a normal dedicated server and the cloud resources. SMEs and large-scale organizations are increasingly adopting cloud solutions owing to the above-mentioned factors. This will drive the growth of the cloud computing market in Latin America during the forecast period. is the driving factor this market.

The Cloud Computing market vendors should focus on grabbing business opportunities from the SaaS segment as it accounted for the largest market share in the base year.