Brazil Cloud Computing Market | Analysis 2019-2031

Brazil Cloud Computing Market by Service Model (Infrastructure as a Service, Platform as a Service, Software as a Service), Deployment Model (Public Cloud, Private Cloud, Hybrid Cloud), Enterprise Size (Startups & Small Businesses, Mid-Sized Companies, Large Enterprises), Subscription Model (On-Demand Subscription, Committed Use Subscription, Package Subscription, Hybrid Subscription), End User (IT and Telecom, Media and Entertainment, Energy and Power, Transportation and Logistics, Healthcare, BFSI, Retail, Manufacturing, Government, Education, and Others) – Industry Analysis, Size and Forecast, 2019-2031

Avalibale Format*:   Pivot  |  ReportID: CCT1511  |  Coverage: COUNTRY | Type: Industry Tracker
Category: Information Technology  |  Sub-Category: Cloud Computing Technology
Published Date: February 2024   |  US$290  |

BRAZIL CLOUD COMPUTING INDUSTRY SNAPSHOT

  • Projections indicate that revenue in the Brazil cloud computing market will hit US$ 10.83 billion by 2024, with an expected Compound Annual Growth Rate (CAGR) of 15.68% from 2023 to 2031.
  • The Brazil cloud computing industry value represented US$ 9.39 billion in 2023.
  • The primary segment, under the classification of service models, is the Software as a Service (SaaS), which secure a market value of US$ 18.7 billion by 2031.
  • By 2031, the IT and Telecom end user is predicted to contribute 31.16% in the Brazil cloud computing market.
  • The adoption of public cloud services is rapidly gaining momentum in Brazil, with AWS, Microsoft Azure, and Google Cloud Platform emerging as the primary contenders in the market.

BRAZIL CLOUD COMPUTING INDUSTRY SCENARIO, TRENDS, AND DEVELOPMENTS

Brazil is considered to be the one of the leading countries in the world in terms of IT spending and constitutes near to half of overall Latin America’s IT spending. Also, based on investment on information technology, innovation index, digitization, and online services Brazil ranks 7th within Latin America. Over the last few years, the cloud computing has evolved as mainstream technology that can offer practical solution for complex IT infrastructure applications. This is driving Brazil cloud computing market advancement. Also, enterprises in Brazil need a scalable architecture to enhance on-demand capacity and manage increasing amounts of data in today’s connected world. Cloud computing enable organizations to augment data center capacity, enhance scalability, and take advantages of value-added services.
 

Despite being numerous benefits offered by cloud computing technology still CIOs are facing major challenges while moving to cloud model. Data security and inefficient connectivity infrastructure are major challenges that are limiting the adoption of cloud services, hence, less than 40% of organizations in Brazil have entirely cloud-based business model. This is hampering growth of the cloud computing services market in Brazil to certain extent. Other organizations that avail or deploy cloud services and solutions have partially migrated towards cloud with majority of the infrastructure and application related services are cloud-based. In total around 80% of enterprises across industry verticals use cloud computing services in some or other way. Additionally, introduction of favourable government initiative to support building and operating data centers in the country is anticipated to boost growth of the Brazil cloud computing market in the near future.
 

While analyzing the industry in the country, DataCube Research identified crucial factors spurring progress of Brazil cloud computing market are growing adoption of software as a service model, increasing uptake of cloud services among small and medium enterprises, rising enterprises focus to reduce overall capital and operational expenditure associated with IT infrastructure, and increasing scalability and flexibility. In contrast, concerns related to confidential data security and reliability stored on cloud, growing incidences of data breach and cyber-attacks, legacy IT infrastructure, and high capital and operational expenditure associated with running data centre to support cloud services operations for cloud providers are significant barriers restraining Brazil cloud computing market expansion. Additionally, there have been observations regarding developments and trends in the Brazilian cloud computing industry listed below.
 

  • In a proactive step towards digital transformation, the Brazilian government released comprehensive guidelines for federal agencies regarding cloud service procurement on 30 August 2021. These instructions serve to streamline the adoption of cloud technologies, delineating the types of services available and emphasizing crucial safety measures to ensure data security and compliance.
     
  • Further, to boost Brazil cloud computing market growth, The Brazilian government is active since 2018 and focused on introducing Brazilian Cloud Computing Strategy, aimed at promoting cloud adoption across public sector agencies and organizations.
     
  • In February 2020, Amazon Web Services (AWS) announced a strategic investment of $236 million in Brazil to bolster its cloud infrastructure. As part of its expansion plans in South America, the cloud computing unit of U.S. Amazon.com Inc planed to allocate 1 billion reais over the next two years in the state of Sao Paulo.
     
  • In March 2021, TIM successfully became the first carrier in Brazil to announce plan to migrating of 100% of its datacenters, suituated in São Paulo and Rio de Janeiro, to a multi-cloud environment. Further, as a part of strategic initiative, the company partnered with Microsoft and Oracle, to improve customer service processes in the country.

BRAZIL CLOUD COMPUTING MARKET COVERAGE

Analysis Period

2019 – 2031

Actual Data

2019 – 2022

Base Year

2022

Estimated Year

2023

CAGR Period

2023 – 2031

Research Scope

Service Model

  • Infrastructure as a Service (IaaS)
  • Platform as a Service (PaaS)
  • Software as a Service (SaaS)

Deployment Model

  • Public Cloud
  • Private Cloud
  • Hybrid Cloud

Subscription Model

  • On-Demand Subscription
  • Committed Use Subscription
  • Package Subscription
  • Hybrid Subscription

Enterprise Size

  • Startups & Small Businesses (1-50 employees)
  • Mid-Sized Companies (51-250 employees)
  • Large Enterprises (251+ employees)

End User

  • IT and Telecom
  • Media and Entertainment
  • Energy and Power
  • Transportation and Logistics
  • Healthcare
  • BFSI
  • Retail
  • Manufacturing
  • Government
  • Education
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