South America Edge Infrastructure Market Overview
As per MRFR analysis, the South America Edge Infrastructure Market Size was estimated at 1.11 (USD Billion) in 2023.The South America Edge Infrastructure Market is expected to grow from 1.3(USD Billion) in 2024 to 4 (USD Billion) by 2035. The South America Edge Infrastructure Market CAGR (growth rate) is expected to be around 10.758% during the forecast period (2025 - 2035).
Key South America Edge Infrastructure Market Trends Highlighted
Due to a number of important market factors, the South American edge infrastructure market is expanding significantly. The region's adoption of edge infrastructure is being driven by the growing need for low-latency data processing and storage solutions.
This change is mostly due to the increasing trend of digital transformation in a number of industries, such as telecommunications, healthcare, and finance, where real-time data analysis is increasingly crucial.
The demand for regional computing resources is also being fueled by the proliferation of Internet of Things (IoT) devices throughout South America, which produce enormous volumes of data that must be processed instantly.
The edge infrastructure landscape in South America offers a plethora of chances for exploration. For example, there is a growing demand for better connection and digital services in the continent's rural areas.
Businesses have an opportunity to use edge computing solutions that can close the digital divide as long as governments keep funding the expansion of internet access and the improvement of telecommunications infrastructure.
For edge infrastructure providers hoping to integrate energy-efficient technology and solutions that satisfy the growing regulatory expectations for environmental responsibility, the emphasis on sustainable practices may also open openings.
The South American edge infrastructure market has seen a number of shifts in recent years. Businesses looking to increase their market presence are increasingly using local partnerships and collaborations as a strategy because they understand how important it is to cooperate in order to overcome the obstacles presented by geographical differences and infrastructural gaps.
Additionally, the growing popularity of multi-cloud and hybrid cloud systems is influencing how South American businesses are deploying edge solutions. By keeping critical data closer to the point of origin, this innovation improves data security in addition to facilitating better resource management.
Overall, the convergence of technology, regulatory frameworks, and the urgent demand for enhanced digital capabilities are driving the rapid evolution of the South American edge infrastructure industry.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South America Edge Infrastructure Market Drivers
Rising Demand for Low Latency Applications
The increasing adoption of low latency applications across industries such as gaming, finance, and autonomous vehicles is a major driver for the South America Edge Infrastructure Market. With the proliferation of Internet of Things (IoT) devices generating vast amounts of data, the need for rapid data processing at the edge has become essential.
For instance, a report by the Brazilian Internet Association indicated that the number of IoT devices in the country is projected to reach over 600 million by 2025.
This surge in IoT applications necessitates the deployment of edge infrastructure to facilitate faster processing and response times, thereby driving market growth. Established organizations like Vivo (Telefnica Brasil) have been investing significantly in edge computing facilities to cater to this demand, enhancing the overall digital infrastructure in South America.
Government Initiatives and Digital Transformation
Governments in South America are actively promoting digital transformation initiatives to bolster economic growth and technological innovation. For instance, the Brazilian Government's 'Digital Brasil' plan aims to improve connectivity and increase access to digital technologies across the nation.
This has led to increased investments in edge infrastructure to support various sectors such as healthcare, agriculture, and manufacturing. According to the National Telecommunications Agency (ANATEL), Brazil's internet user base is expected to surpass 150 million by 2024, further amplifying the need for efficient edge computing solutions.
As organizations like Embratel engage in strategic projects that leverage edge infrastructure, the South America Edge Infrastructure Market is set to expand.
Growth in Cloud Computing and Data Centers
The rapid growth of cloud computing and data center facilities in South America is propelling the demand for edge infrastructure. As companies increasingly migrate to the cloud, optimized edge computing solutions are required to enhance application performance and reliability.
According to the Cloud Infrastructure Market report, the cloud services market in South America is expected to witness a compound annual growth rate of 15% from 2023 to 2025. This growth puts pressure on existing data centers to incorporate edge computing as a means to improve latency and bandwidth.
Tech giants such as Microsoft and Amazon are actively establishing data centers in South America, further solidifying the need for robust edge infrastructure to support their operations.
South America Edge Infrastructure Market Segment Insights
Edge Infrastructure Market Technology Insights
The South America Edge Infrastructure Market is increasingly driven by advancements in Technology, which significantly impact various sectors across the region. This segment encompasses diverse areas, including the Internet of Things (IoT), 5G Networks, Content Delivery Networks, Edge Computing, and Artificial Intelligence (AI), each playing a critical role in shaping the future of digital infrastructure.
The Internet of Things is becoming a focal point, enabling immense connectivity and real-time data processing, which facilitates smarter decision-making in industries such as agriculture and healthcare.
Meanwhile, 5G Networks are essential for enhancing communication reliability and speed, fostering increased adoption of connected devices and applications that require ultra-low latency, thus revolutionizing sectors like transportation and manufacturing.
Content Delivery Networks enhance content accessibility and user experience by optimizing the delivery of web pages and media to end-users, which is increasingly important in a content-driven market. Edge Computing further reduces latency by processing data closer to end-users, enabling more responsive applications, particularly in urban areas where demand for speed and efficiency is high.
AI Integration in Edge Infrastructure also promotes operational efficiency through automation, predictive analytics, and improved resource management.
These advancements collectively represent a strong commitment to developing advanced digital ecosystems in South America, which aligns with governmental initiatives aimed at improving connectivity and technological integration across various touchpoints.
As a result, the South America Edge Infrastructure Market reveals strong potential for continued growth, driven by surging demand for seamless digital experiences, enhanced operational capabilities, and the ongoing convergence of technologies that underpin these essential infrastructure expansions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Edge Infrastructure Market Components Insights
The Components segment of the South America Edge Infrastructure Market encompasses various critical elements including Hardware, Software, Networking Equipment, Sensors, and Gateways, which together support the rising demand for edge computing solutions across diverse applications.
The increasing penetration of Internet of Things (IoT) devices in South America elevates the importance of Networking Equipment as it facilitates seamless communication and data exchange. Additionally, Hardware plays a key role in ensuring robust processing capabilities at the edge, which is essential for real-time data analysis and decision-making.
Further, Software solutions are critical for efficient data management and deployment of edge applications, thus driving innovation in various sectors such as healthcare, agriculture, and smart cities.
In a region marked by rapid urbanization and industrial modernization, the deployment of Sensors allows for enhanced monitoring and management, contributing significantly to optimized resource utilization and improved operational efficiency.
Gateways serve as pivotal communication links, ensuring secure and stable connections between edge devices and centralized systems. The growing focus on digital transformation initiatives across South America also highlights the relevance of this segment in addressing connectivity challenges and enabling advanced technological integration, ultimately pushing forward the regional economy.
Edge Infrastructure Market Application Insights
The South America Edge Infrastructure Market is seeing significant development in the Application segment, influenced by the ongoing digital transformation across diverse sectors. Smart Cities initiatives are driving urban innovation, leveraging Edge Infrastructure for real-time data processing and management, which enhances operational efficiency and improves public services.
Similarly, Autonomous Vehicles are heavily reliant on edge computing to process vast amounts of data generated on-the-move, facilitating safer transportation solutions and contributing to reduced traffic congestion and accidents.
In the realm of Industrial Automation, Edge Infrastructure plays a crucial role in optimizing manufacturing processes, enabling predictive maintenance, and ensuring better supply chain management. Meanwhile, the Healthcare sector is utilizing edge technologies to support telemedicine applications and remote monitoring of patients, significantly improving healthcare access and quality.
Retail is also evolving as businesses harness edge solutions to streamline inventory management and deliver personalized customer experiences. Overall, these Applications are crucial in positioning South America as a competitive landscape for technological advancements and economic growth, creating numerous opportunities for innovation and investment in the region.
Edge Infrastructure Market End-use Insights
The South America Edge Infrastructure Market displays significant growth potential across various end-use applications, highlighting its adaptability in a rapidly evolving technological landscape.
The telecommunications sector stands out as a primary driver, facilitating the rollout of 5G networks and enhancing connectivity in urban and rural areas, which is essential for economic development in the region.
The transportation sector utilizes edge infrastructure for real-time tracking and analytics, improving logistics and transit efficiency. Energy and utilities benefit from edge computing through optimized grid management and energy distribution systems, particularly important in countries striving for sustainable energy solutions.
The healthcare industry leverages edge solutions for remote patient monitoring and telehealth services, which gained momentum during the pandemic, emphasizing the need for improved healthcare access. Lastly, manufacturing utilizes edge infrastructure to support smart factories and IoT-enabled processes, enhancing operational efficiency and productivity.
Overall, the South America Edge Infrastructure Market reveals a trend toward integrating advanced technologies across these sectors, thereby contributing to regional economic growth and innovation.
Edge Infrastructure Market Regional Insights
The South America Edge Infrastructure Market is gaining traction with its diverse regional segmentation, particularly focusing on Brazil, Mexico, Argentina, and the Rest of South America. Brazil is a significant player in this market, driven by its large urban population and digital transformation initiatives, which enhance its infrastructure capabilities.
Mexico follows closely, as it experiences rapid adoption of edge computing solutions across various industries, bolstered by government support for technological advancement. Argentina shows promising growth, focusing on innovation in telecommunications and data centers to improve connectivity and service delivery.
Moreover, the Rest of South America is not lagging behind, showing potential for increased market participation as countries promote digital economies.
This regional segmentation reflects the varying levels of development and investment in edge technologies across South America, creating a landscape rich in opportunities for growth, driven by increasing demand for low-latency applications, IoT deployments, and improved network performance.
Overall, the South America Edge Infrastructure Market is poised for evolution as these regions address unique challenges and leverage opportunities to maximize their edge computing capabilities.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South America Edge Infrastructure Market Key Players and Competitive Insights
The South America Edge Infrastructure Market is an evolving landscape characterized by rapid technological advancements and an increasing demand for low-latency services. Edge computing, which focuses on processing data closer to the source rather than relying on centralized cloud data centers, has gained traction in the region due to the rise of IoT devices, smart cities, and real-time data analytics.
The competitive environment features multiple players, both local and international, striving to capture market share while responding to the specific needs of various sectors, including finance, telecommunications, and transportation.
Businesses are leveraging edge infrastructure to enhance operational efficiency, reduce costs, and meet the expectations of a digitally savvy customer base. As regional internet penetration improves and network capabilities expand, the competitive dynamics of the market are likely to intensify.
NTT Communications has emerged as a key player in the South America Edge Infrastructure Market, benefiting from its global footprint and strong technological expertise. The company offers a comprehensive range of services tailored to the needs of local markets, such as edge computing solutions, cloud services, and network infrastructure.
NTT Communications is particularly well-regarded for its robust security features and high-performance capabilities, which cater to businesses requiring secure and efficient data processing at the edge. The company has made strategic investments in its South American operations, including expansions through mergers and acquisitions aimed at enhancing its service portfolio and increasing its competitive edge.
This focus on strengthening regional capabilities ensures NTT Communications is adept at meeting the demands of a growing customer base, positioning it as a prominent contender in the South America edge infrastructure space.
Key Companies in the South America Edge Infrastructure Market Include
- NTT Communications
- Odata
- DigitalOcean
- Google Cloud
- Vantage Data Centers
- Akamai Technologies
- Microsoft
- Cloudflare
- Oracle
- IBM
- Equinix
- EdgeConneX
- Amazon Web Services
South America Edge Infrastructure Market Developments
Targeting generative AI and large-scale computing workloads, AWS stated in May 2025 that it will invest US$4 billion to construct its first cloud region in Chile, with three availability zones expected to be launched by late 2026. It will only use water 4% of the year and rely on air and evaporation cooling methods.
A few days later, Google Cloud teamed up with Chile to build the Humboldt undersea fiber-optic cable, which will connect Valparaíso to Sydney by 2027. This will improve the basis for cloud and edge services and increase Chile's access to APAC.
Under its "Mais Brasil" initiative, Microsoft said in September 2024 that it will invest US$2.7 billion to strengthen cloud and AI infrastructure in Brazil, including new data centers and edge zones, and train 5 million Brazilians in AI capabilities.
In December 2023, Oracle made its debut in South American cloud markets by opening its first public cloud region in Bogotá, Colombia. In line with regional edge and hyperscale expansion, Equinix and Vantage Data Centers have extended their colocation facilities in São Paulo, Brazil; Santiago, Chile; and Bogotá, Colombia.
With hyperscalers setting up specific areas in South America, significant cloud infrastructure expenditures, improvements in submarine connection, and strong colocation market momentum due to AI, GDPR-like digital sovereignty, and 5G/edge integration, these trends imply a robust rise.
South America Edge Infrastructure Market Segmentation Insights
Edge Infrastructure Market Technology Outlook
- Internet of Things
- 5G Networks
- Content Delivery Networks
- Edge Computing
- Artificial Intelligence
Edge Infrastructure Market Components Outlook
- Hardware
- Software
- Networking Equipment
- Sensors
- Gateways
Edge Infrastructure Market Application Outlook
- Smart Cities
- Autonomous Vehicles
- Industrial Automation
- Healthcare
- Retail
Edge Infrastructure Market End-useOutlook
- Telecommunications
- Transportation
- Energy and Utilities
- Healthcare
- Manufacturing
Edge Infrastructure Market Regional Outlook
- Brazil
- Mexico
- Argentina
- Rest of South America
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| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
1.11(USD Billion) |
| MARKET SIZE 2024 |
1.3(USD Billion) |
| MARKET SIZE 2035 |
4.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
10.758% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Billion |
| KEY COMPANIES PROFILED |
SoftLayer, NTT Communications, Odata, Telesystem, DigitalOcean, Google Cloud, Vantage Data Centers, Akamai Technologies, Microsoft, Cloudflare, Oracle, IBM, Equinix, EdgeConneX, Amazon Web Services |
| SEGMENTS COVERED |
Technology, Components, Application, End Use, Regional |
| KEY MARKET OPPORTUNITIES |
Rising demand for low-latency services, Expansion of IoT applications, Increased adoption of 5G technology, Growth in data center investments, Urbanization driving infrastructure development |
| KEY MARKET DYNAMICS |
growing IoT adoption, increasing data localization, demand for low-latency services, rising cloud computing, government investments in infrastructure |
| COUNTRIES COVERED |
Brazil, Mexico, Argentina, Rest of South America |
Frequently Asked Questions (FAQ) :
The South America Edge Infrastructure Market is expected to be valued at 1.3 billion USD in 2024.
By 2035, the market is anticipated to reach a valuation of 4.0 billion USD.
The South America Edge Infrastructure Market is projected to have a CAGR of 10.758% from 2025 to 2035.
Brazil is expected to hold the largest market share, with a valuation of 1.5 billion USD by 2035.
Edge Computing is projected to reach a market value of 1.3 billion USD by 2035.
Major players in the market include SoftLayer, NTT Communications, Odata, and Google Cloud among others.
The market in Mexico is expected to grow to 1.2 billion USD by 2035.
The Internet of Things segment is anticipated to reach a value of 0.8 billion USD by 2035.
Content Delivery Networks are projected to grow to 0.5 billion USD by 2035.
Emerging trends include advancements in 5G networks and edge computing, presenting both growth opportunities and challenges in infrastructure development.
