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Brazil Colocation Market - Forecasts from 2022 to 2027

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    Report

  • 74 Pages
  • December 2022
  • Region: Brazil
  • Knowledge Sourcing Intelligence LLP
  • ID: 5716723

The Brazil colocation market is estimated to be valued at US$846.180 million in 2020.

Colocation refers to a data center where business companies can rent space for servers as well as other computing hardware. The facility enables businesses to remove in-house servers or data centers by providing them access to advanced data center technology that security, continuity, and scalability for various applications and data systems. In major Latin American countries such as Brazil, technological adoption and digital transformation are driving the demand for data centers in the country which has positively impacted the Brazil colocation market. The country is witnessing favorable investments in data centers. For instance, according to the Data Centre Magazine 2021, Brazil’s São Paulo received investments of up to US$295 million in the data centers development. Furthermore, in September 2022, Inter-American Development Bank approved investments of US$15 million to the government of Alagoas, Brazil for the digital transformation of the state, including the development of data strategies. Such investments will boost the establishment of major data centers such as colocation data centers for the betterment of broadband and internet coverage in Brazil.

Based on enterprise size, the Brazil colocation market is segmented as small, medium, and large. The large enterprise is expected to grow at a significant rate during the forecast period of the Brazil colocation market, owing to the growing investment by major sectors of Brazil such as healthcare, defense, retail & eCommerce, and media & entertainment in data centers. For instance, according to the February 2020 press release by the government of São Paulo, Amazon Web Services announced investments of US$236 million for over two years in São Paulo to increase its data center presence in the Brazilian state.

Growing investments in IoT applications are boosting the market demand for colocation in Brazil. Colocation provides speed & security benefits to IoT applications, and it enables the rapid expansion of IoT data networks through the allocation of bandwidth, space, and power. The growing demand for better data transmission modules is boosting companies to invest in IT applications and startups related to such services. For instance, in May 2021, Brazilian Development Fund collaborated with Qualcomm Ventures to launch a capital fund of US$45 million which would be invested in IoT startups in Brazil for the expansion of IoT & connectivity spaces. Such investments will augment Brazil's colocation market growth.

Recent Developments

  • In October 2022, Ascenty established its new 21,000 sqm data center facility in São Paulo, Brazil which offers space for 3,300 racks and 31MW of capacity. 20% of the facility will be leased to customers to lease 60% by 2023.

Covid 19

The lockdown restrictions imposed by the Government of Brazil to prevent the widespread COVID pandemic positively impacted the colocation services in the country, as with the increase in video streaming, gaming, cloud, and education access to the cloud the overall internet traffic also increased. Moreover, the remote work module further raised the need for colocation data solutions by companies for automation & remote monitoring.

Market Segmentation:

By Type

  • Retail
  • Wholesale
  • Hybrid

By Enterprise

  • Small
  • Medium
  • Large

By Industry Vertical

  • BFSI
  • Communication & Technology
  • Education
  • Healthcare
  • Media & Entertainment
  • Retail & E-commerce
  • Others

Table of Contents

1. INTRODUCTION
1.1. Market Overview
1.2. Covid-19 Scenario
1.3. Market Definition
1.4. Market Segmentation

2. RESEARCH METHODOLOGY
2.1. Research Data
2.2. Assumptions

3. EXECUTIVE SUMMARY
3.1. Research Highlights

4. MARKET DYNAMICS
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter's Five Forces Analysis
4.3.1. Bargaining Power of End-Users
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis

5. BRAZIL COLOCATION MARKET BY TYPE
5.1. Introduction
5.2. Retail
5.3. Wholesale
5.4. Hybrid

6. BRAZIL COLOCATION MARKET BY ENTERPRISE SIZE
6.1. Introduction
6.2. Small
6.3. Medium
6.4. Large

7. BRAZIL COLOCATION MARKET BY INDUSTRY VERTICAL
7.1. Introduction
7.2. BFSI
7.3. Communication & Technology
7.4. Education
7.5. Healthcare
7.6. Media & Entertainment
7.7. Defense
7.8. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix

9. COMPANY PROFILES
9.1. Ascenty
9.2. HostDime Global Corp
9.3. B3
9.4. Deft
9.5. Equinix Inc.
9.6. Angola Cables
9.7. Lumen Technologies
9.8. ODATA
9.9. Latitude.sh
9.10. Engetronics

Companies Mentioned

  • Ascenty
  • HostDime Global Corp
  • B3
  • Deft
  • Equinix Inc.
  • Angola Cables
  • Lumer Technologies
  • Scala Data Centre
  • ODATA
  • Latitude.sh
  • Engetronics