Market Trends of Brazil Data Center Networking Industry
Ethernet Switches is Anticipated to be the Largest Segment
- An Ethernet switch is a fundamental type of networking hardware that serves as the backbone of networks and the Internet. Ethernet switches connect wired devices—such as computers, Wi-Fi access points, PoE lighting, and IoT devices—as well as servers onto an Ethernet LAN, enabling communication between them and the Internet.
- Ethernet switches find extensive applications in various industrial infrastructures, including smart grids, security and surveillance, intelligent rail and transportation, and other utilities, thereby driving the industrial Ethernet switch market. Particularly in smart grids, Ethernet switches play a pivotal role in substation automation by simplifying the cabling between numerous power transmission and distribution substation devices through integration into Ethernet-based networks.
- As of the beginning of 2022, the number of social media users in Brazil accounted for 79.9% of the total population, totaling 171.5 million—an increase of 21 million (+14.3%) from 2021 to 2022. The demand for OTT services in the market is also on the rise. Since Netflix's launch in 2011, the Brazilian SVoD market has seen exponential growth, accumulating over two million subscriptions in 2016 and reaching 15.3 million subscriptions by 2022. To manage the escalating data traffic, newer models such as Gigabit Ethernet switches offer exceptionally high data transfer rates (1 Gbps), surpassing wireless bandwidth significantly.
- Moreover, smart Ethernet switches integrated with Power-over-Ethernet (PoE) technology are extensively employed in security and monitoring systems. PoE networks facilitate the transfer of power to local network cables and subsequently to connected devices, proving beneficial for Internet protocol-based monitoring systems, enhancing accessible browser-based communication, and optimizing user interfaces.
Understand The Key Trends Shaping This Market
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IT & Telecommunication is Anticipated to be the Fastest Growing Segment
- Key cloud service providers such as AWS, Microsoft, Oracle, IBM, Tencent, and Huawei have established their presence in Brazil through cloud regions and availability zones. These providers offer both private and public cloud services, primarily catering to financial companies.
- Several factors contribute to the growing demand for data centers in the country, notably the expansion of cloud computing, the penetration of various cloud providers, and increased investment from domestic players.
- The COVID-19 pandemic significantly influenced the economic landscape by amplifying the impact of early adopters' digital transformation efforts. Businesses offering digital products and services or employing digital processes have gained a competitive edge over their counterparts less engaged in digital transformation.
- With the burgeoning digital economy and the expanding user base of the internet in Brazil, there's a heightened demand for data storage and processing capabilities. The proliferation of hybrid cloud service providers has consequently increased the need for colocation services and advanced networking equipment.
