Latin America Cloud Computing Market Size

Latin America Cloud Computing Market Analysis

The Latin America Cloud Computing Market size is estimated at USD 47.82 billion in 2024, and is expected to reach USD 98.09 billion by 2029, growing at a CAGR of 15.45% during the forecast period (2024-2029).

• Cloud computing is transforming business operations across Latin American countries, offering solutions that are flexible, scalable, and cost-effective. In the region, organizations are increasingly adopting cloud services, acknowledging their potential to boost operations and foster innovation. Furthermore, the presence of prominent cloud computing vendors in Latin America, combined with the growing adoption of cloud computing by businesses, is fueling the market's expansion.
• The Latin American cloud computing market is expanding due to several key drivers. These include a surge in digital transformation efforts, heightened demand for remote collaboration tools, and the adoption of cutting-edge technologies such as artificial intelligence and the Internet of Things. The region is set to harness the full potential of cloud services owing to the growing tech-savvy populace, rising internet access, and proactive government measures supporting digitalization and cloud adoption, thus positively supporting the growth of the market.
• Countries in the Latin America region have crafted tailored strategies, harnessing the advantages of digitalization in their planning. National digital strategies have emerged, including Argentina's Digital Agenda, Brazil's Digital Government Strategy, Chile's Digital Transformation of the State, Colombia's ICT Plan, and Mexico's National Digital Strategy. For instance, Chile's "Digital 2035" initiative aims for a 95% digitalization target for both government and businesses by 2025, escalating to 100% by 2035.
• This has spurred a migration toward cloud technologies, integrating advanced tools like AI, big data, and the Internet of things, driving the demand for cloud computing resources. Notably, Brazil's digital transformation blueprint emphasizes heightened investments and the adoption of cloud and AI technologies, aiming for a comprehensive digital overhaul in the coming decade. Such developments further shape the future of the cloud computing market in Latin American countries.
• In the coming years, Latin American countries are poised to witness a rapid surge in cloud computing growth. This momentum is largely fueled by a rising demand for cloud-based services among enterprises, the burgeoning digital economy, the integration of AI, and the rollout of 5G. Latin American countries' strategic position as economic hubs, coupled with advanced telecommunications infrastructure and robust fiber optic connectivity, was further analyzed to bolster this trend.