A new report on the Edge Computing market in Latin America, conducted by the Grand View Research consultancy, estimates that the Latin American market for edge computing will reach USD 43.4 billion by 2027.
Edge computing brings data processing closer to IoT (Internet of Things) sensors to decrease latency and improve efficiency. The Internet of Things is driven by vast volumes of data generated by the activities of our daily lives. Collecting, sending, and processing massive amounts of data requires companies to act fast and make smarter business decisions. Edge computing runs around a network of data centers that store and process this data locally before sending it to the cloud. In addition, it optimizes computing to avoid interruptions related to the process of sending and receiving data.
The Latin American market for edge computing is also classified into applications and end-users. Depending on the application, it is subclassified into smart cities, smart factories, connected healthcare and vehicles, smart grids, and many more. Other applications include edge computing in gaming and e-commerce. Nevertheless, smart cities have the largest market share. The high pressure of urbanization in this region will require optimal smart city strategies to plan and solve citizens’ problems through digitization. Organizations will therefore adopt edge computing networks to improve customer efficiency.
Depending on the end-users, edge computing networks are used in manufacturing, energy and utilities, IT and telecommunications, health and life sciences, and consumer appliances. In the foreseeable future, the IT and telecommunications sector is expected to have the largest market share, followed by the manufacturing industry.
In recent years, increased investment in connectivity in Latin America has been shown. Still, the important thing is to reach the main centers and make all the infrastructure being developed as ubiquitous as possible, to reach the last corners where businesses and people need more connectivity.
The market is divided into Brazil, Mexico, and the rest of Latin America. Countries like Brazil and Mexico are expected to lead edge computing deployments due to their advances in connecting devices.
What are the key growth factors around these circumstances?
● Latin America is trying to progress in the IoT (Internet of Things). Approximately 60% of this region’s developers plan to develop IoT technology.
● Brazil’s manufacturing sector has adopted Industry 4.0: 48% of organizations have planned to invest in data exchange automation and manufacturing technologies since 2018. As a result, organizations are expected to adopt edge computing networks to support digital advancements.
● The crucial challenges that this region is facing are the lack of technical skills, inadequate penetration, and difficulty in integrating IT systems with advanced technology. In the same spirit, we must not forget that these systems require highly trained human resources, so it is critical to count on prepared human capital with the right skills needed in this industry.
An Edge-based solution must ensure that any application and transaction is developed in optimal conditions, mainly because there is critical data to customers and people in general, so from the operator’s point of view, the implementation of this technology must be carried out under the premise of “ever closer, ever faster, and ever more secure.”
Do you think Edge Computing will change the way we live and work in the future? Especially in Latin America?
