Data Center - Mexico

Mexico

Revenue in the Data Center market is projected to reach US$3.87bn in 2024.
Network Infrastructure dominates the market with a projected market volume of US$2.71bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.51%, resulting in a market volume of US$5.06bn by 2029.
In global comparison, most revenue will be generated in the United States (US$123.20bn in 2024).

Key regions: United States, Germany, India, Japan, China

Definition:

The Data Center market is a critical segment of the technology industry focusing on supplying and managing physical infrastructure necessary for hosting and operating IT systems, primarily servers, storage, and network equipment. This market spans from traditional in-house data centers to sophisticated facilities offered by specialized providers, covering services like hosting, shared data center facilities, and managed data center solutions. It targets a diverse client base, ranging from small businesses to large enterprises, offering flexible, scalable solutions for their IT infrastructure needs. This sector is integral to the efficient functioning and security of IT operations in various organizations.

Structure:

The Data Center market is structured in three markets based on the services model provided by the companies.

The Server market covers the resources and services related to servers, integral for hosting websites, managing databases, and supporting cloud computing.
The Storage market covers the resources and services related to data storage systems, crucial for archiving, data backup, and ensuring data recovery.
The Network Infrastructure market covers the resources and services related to network hardware essential for ensuring connectivity, data transmission, and network security.

Additional Information:

The Data Center market includes revenue, revenue change, average spend per employee, and key player market shares as key performance indicators. Market values represent revenues paid to primary vendors at the manufacturer price level either directly or through distribution channels (excluding VAT). Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in the Data Center market include companies such as Dell, HPE, Huawei, and Ericsson.

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Market

Region

Region comparison

Currency

Analyst Opinion

The Data Center market in Mexico has been experiencing minimal growth, influenced by factors such as slow adoption of digital technologies, limited health awareness among consumers, and challenges in online service convenience. The sub-markets of Servers, Storage, and Network Infrastructure play a significant role in shaping the overall market's growth rate. However, with increasing efforts towards digital transformation and rising demand for efficient data management, the market is expected to see a gradual increase in growth in the coming years.

Customer preferences: As digitalization continues to revolutionize industries in Mexico, the data center market is experiencing a significant shift towards cloud-based solutions. This trend is driven by the growing demand for remote work and e-commerce, as well as the need for reliable and secure data storage. With the country's increasing technological adoption and evolving business landscape, data centers are becoming crucial for organizations to stay competitive and meet consumer demands.

Trends in the market: In Mexico, the Data Center Market is experiencing a surge in demand for cloud services, with businesses shifting towards a more digital and remote workforce. This trend is expected to continue, with the Mexican government investing in initiatives to improve internet infrastructure and promote digital transformation. This has significant implications for industry stakeholders, as it highlights the need for data centers to adapt and expand their offerings to meet the evolving needs of businesses in Mexico. Additionally, the increasing use of data analytics and AI in the country's industries is driving the demand for data centers, making it a promising market for investors.

Local special circumstances: In Mexico, the Data Center Market is experiencing rapid growth due to the country's strategic location for international connectivity and its favorable business environment. Additionally, the increasing demand for cloud services and big data analytics is driving the market. Furthermore, the government's support for digital transformation and the implementation of data privacy regulations have created a favorable environment for data center development. In contrast, the market in Mexico is also influenced by the country's unique cultural diversity and its close relationship with the United States, which drives demand for cross-border data flow and disaster recovery services.

Underlying macroeconomic factors: The Data Center Market in Mexico is heavily influenced by macroeconomic factors such as the country's overall economic growth and stability, government policies and regulations, and investment in digital infrastructure. As the global demand for data storage and management continues to rise, Mexico's strong economic growth and favorable regulatory environment make it an attractive market for data center providers. Furthermore, the country's increasing adoption of cloud computing, as well as its strategic location and proximity to the United States, are driving the growth of the data center market in Mexico. Additionally, the government's efforts to modernize its digital infrastructure and promote digital transformation across industries are further boosting the demand for data center services in the country.

Methodology

Data coverage:

The data encompasses B2B enterprises. Figures are based on hardware-related expenses of businesses for setting up and maintaining an IT infrastructure.

Modeling approach / Market size:

Market sizes are determined through a top-down approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports and national statistical offices. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and level of digitization. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques, such as exponential trend smoothing and the S-curve function, is based on the behavior of the relevant market.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.