Brazil Servers - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Brazil Servers Market size is estimated at USD 1.05 billion in 2024, and is expected to reach USD 1.57 billion by 2029, growing at a CAGR of 8.41% during the forecast period (2024-2029).

The growth of the Brazilian server market is driven primarily by digital transformation, cloud adoption, data center expansion, the Internet of Things (IoT), e-commerce growth, telecommunications infrastructure (rollout of 5G technology), artificial intelligence (AI), Big data, and government initiatives toward digitalization. These factors collectively contribute to the increasing demand for servers in the Brazilian market, driving domestic and international players to invest in server infrastructure to support the country's growing digital economy.

Key Highlights

• In Brazil, the blockchain begins with cryptocurrency trading, primarily Bitcoin. Brazil actively explored blockchain technology to become a significant player in the global digital asset market, assisted by regulators such as the Central Bank and the Brazilian Securities and Exchange Commission. As a result, blockchain now extends beyond cryptocurrencies to various sectors, including agriculture, finance, logistics, and public administration.
• Disruptive technologies are pivotal for the success of FinTech startups in Brazil. Statistics reveal that artificial intelligence (AI) takes the lead, with 10% of these companies leveraging its capabilities. Big Data and APIs are each harnessed by 9% of startups. An equal 9% have embraced blockchain, emphasizing its role in securing and decentralizing data transfers.
• Server virtualization involves using software to partition a physical server into distinct, independent virtual servers. These virtual servers may each operate with their independent operating systems. While virtualization offers numerous benefits, its upfront costs may pose a significant challenge. The initial investment in virtualization software and hardware might be prohibitive for smaller enterprises. Yet, collaborating with managed service providers may mitigate these expenses.
• In Brazil, AI is revolutionizing medication discovery and clinical trials. AI algorithms sift through clinical trial data, aiming to unearth breakthrough treatments. This approach hastens drug discovery and enhances its efficacy. Brazil stands out as one of the swiftest expanding markets for healthcare AI.
• As of February 2024, Positivo, a Brazilian technology manufacturer, intended to increase investments in servers, processors, and high-performance machines to capture AI-leveraged business opportunities in Brazil and the Rest of Latin America.

Brazil Servers Market Trends

IT and Telecommunications Industry to Witness Major Growth

• The Brazilian information and communications technology (ICT) sector is at the forefront of innovation, driving remarkable progress and creating a future-proof environment. The ICT sector opens up a world of possibilities while facing the challenges that define its growth. It utilizes state-of-the-art technologies.
• According to Teleco, in 2023, the telecommunications sector in Brazil produced approximately 37.02 USD billion. In terms of Telecommunication expansion, in April 2024, the Brazilian government announced a strategic partnership with a prominent Mexican telecommunications entrepreneur to bolster its optic fiber and 5G infrastructure. The entrepreneur has committed to injecting an estimated BRL 40 billion into Brazil over five years.
• In 2023, the software market was poised for a 15.1% growth, propelled by the rising demand for security, data management, artificial intelligence (AI), and enhanced customer experience (CX) solutions. Software as a Service (SaaS) is set to dominate, with an anticipated 27.6% surge, accounting for half of all software sales. Concurrently, general IT services, encompassing application management, consulting, and systems integration, are forecasted to witness a 6.7% uptick.
• Nokia has teamed up with Solis Tower Telecom do Brasil, a telecom infrastructure organization, to extend connectivity to rural agribusinesses in Brazil. This collaboration aims to bolster productivity, efficiency, and sustainability, primarily boosting food production. Given that agribusinesses contribute a significant portion, around a quarter, to Brazil's GDP, this initiative holds substantial economic implications. Despite this, many of Brazil's rural areas still need to be connected, with a mere 19% of its agricultural land enjoying 4G or 5G coverage.

Windows to be the Fastest Growing OS Segment

• Windows boasts a robust built-in security system that safeguards computers from malware and viruses. It also offers a user-friendly file management system that simplifies file organization and access.
• By 2023, Windows dominated the desktop landscape in Brazil, with a commanding 88% share. According to Stats Counter, the remaining market was split between OS X at 3.7% and Linux at 2.6%. Windows 10, coupled with Microsoft's Office 365, has been pivotal in the growth of companies like Wind River Environmental, a leading liquid waste management firm in the Northeast. Windows 10's integration with cloud-based tools is particularly beneficial for enhancing the productivity of retail workers. The suite of productivity tools in Windows 10 and Office 365 fosters employee collaboration, drives operational efficiencies, and bolsters customer engagement, especially in the cloud. This trend signals a significant shift toward cloud adoption in Brazil's retail sector.
• Highlighting this trend, in January 2024, American startup Qvalon, renowned for its cutting-edge cloud-based (SaaS) solutions, announced its foray into the Brazilian market. This strategic move is a joint effort with Bridge Brazil, Board Ventures, and Woli Ventures, all under the umbrella of FCJ Venture Builder. Qvalon's approach, following the soft-landing builder model, aims to revolutionize the retail landscape in Brazil.
• Windows 10 liberates business professionals from their desks, enabling them to work efficiently in diverse settings, from meetings and trade conferences to casual brainstorming sessions, client offices, and even from the comfort of their homes. This OS ensures a consistent, user-friendly experience across all Windows devices, enhancing productivity, fostering creativity, and, ultimately, driving revenue. The shift to remote work, necessitated by the pandemic, has firmly taken root in Brazil. As economies shuttered and governments imposed quarantines and social distancing, remote work emerged as the go-to solution for many firms.
• For many of these companies, remote work is not just a temporary fix; it is poised to become a permanent fixture, even post-economy reopening. While initially prominent in Brazil's technology, financial, and telecom sectors, this trend is primed to extend its reach to virtually all industries capable of remote operations. Given this landscape, the user-friendly nature of Windows positions the OS for notable growth in Brazil.

Brazil Servers Industry Overview

The Brazilian server market is fragmented, and penetration is still high, but the growing applications are helping the market grow, so the players are competing to get a bigger share of the market. Some of the players include Hewlett Packard Enterprise Co., Dell Technologies Inc., Lenovo Group Limited, Cisco Systems Inc., and Positivo Tecnologia SA.

• In March 2024, Lenovo unveiled the Lenovo 2nd Gen ThinkSystem ST550 2-socket 4U rack-mountable tower server in the Brazilian market.
• In February 2024, Positivo Servers & Solutions broadened its server lineup tailored for generative AI infrastructure. A notable addition was the revamped Supermicro SYS-421GE-TNRT server, part of its X13 family. This server boasts the latest 5th generation Intel Xeon Scalable processors and accommodates up to 10 PCIe-based GPUs. This upgraded machine is open for customer orders and is set to hit the Brazilian market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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