Latin America Device as a Service (DaaS) Market Research Report: Forecast (2024-2030)

Market Definition

Device-as-a-Service (DaaS) is a subscription-based model in which businesses or enterprises opt for rented hardware devices like computers, laptops, tablets, smartphones, IoT devices, and software platforms from a service provider instead of buying and owning them directly.

Market Insights & Analysis: Latin America Device as a Service (DaaS) Market (2024-30):

The Latin America Device as a Service (DaaS) Market size is estimated to grow at a CAGR of around 29.80% during the forecast period, i.e., 2024-30. The factors attributing to the growth in the demand for the Device as a Service in Latin America are growing fintech startups, rising implementation of digitalization initiatives, and the increasing arrival of foreign-based companies into the region.

In recent years, Latin American countries have witnessed a surge in startups owing to flexible and favorable policies. According to the research conducted by Finnovista, one of the leading investment firms, in 2023, more than 1,500 new fintech companies were registered in the region, showcasing an approximately 43% year-on-year growth. These tech-based startups heavily depend on electronic hardware to run their daily operational task. However, the purchasing price of these products in bulk is costly for these new startups. Therefore, these emerging companies procure these pivotal computational products through lease or subscription-based models, driving the Latin America Device as a Service Market.

Additionally, large as well as small-scale enterprises necessarily upgrade their computational products every 3-4 years to maintain operational efficiency. However, the cost of replacing and upgrading each and every component in a large organization is relatively higher. As a result, these organizations are shifting towards DaaS solutions to cut down their asset costs. As per the survey by the International Data Corporation (IDC), more than 40% of the organizations are planning to engage in the DaaS to address their computational hardware requirement, enlarging the Latin America Device as a Service market size.

Further, the governing bodies in Latin American nations are increasingly implementing digitalization initiatives to gain a competitive advantage over other countries and improve the quality of living for its inhabitants. This digitalization drive is compelling organizations to offer their services via online mediums. Therefore, there is an increasing requirement for hardware & software. Hence, enterprises are seeking DaaS solutions to provide digital services to consumers, uplifting market growth.

Latin America Device as a Service (DaaS) Market Driver:

Increasing Adoption of DaaS Within the BFSI Sector Amplifying Market Growth– In recent years, the BFSI sector in Latin American countries has significantly digitalized. The financial institutions in Latin America are increasingly providing digital payment solutions to consumers to provide them with more flexibility and reliability. This transition towards digitalization is increasing the requirement for storage, servers, desktops, and other computation devices in the region. As a result, they are actively seeking DaaS solutions to fulfill the need for the devices to maintain their operative productivity.

Additionally, consumers in Latin American nations are also shifting towards online payments. According to Visa, a top credit card service corporation company, more than 60% of the consumers in Latin America receive their money via online bank transfers and about 14% of the individuals receive it via digital means. This increasing shift towards online payment solutions is resulting in the requirement for high-power computing devices. As a result, financial institutions are actively opting for DaaS solutions, expanding the Latin America Device as a Service (DaaS) market size.

Latin America Device as a Service (DaaS) Market Challenge:

Data Security Concerns & Rising Cybersecurity Breaches Impedes Market Growth – Cybersecurity breaches have significantly increased in Latin America. According to the research by Fortinet, during H1 2022, there were around 137 billion cyber-attack attempts registered in Latin America. These cyberattacks result in the loss of critical financial & client data. Based on the study, 31% of organizations in Latin American countries reported an economic loss of more than USD1 million due to cyberattacks. Therefore, enterprises are apprehensive about using subscription-based hardware since these solutions require data share. Thus, organizations prefer to use in-house hardware & software solutions rather than subscription-based devices, negatively impacting the Latin America Device as a Service market.

Latin America Device as a Service (DaaS) Market Trend:

Rising Inclination Towards Cloud-Based Services – In recent years, Latin American nations have witnessed a surge in internet penetration and smartphone accessibility. According to the Data Reportal, as of 2023, 78% of the overall Mexican population have access to the internet. This proliferation of the internet across the region is resulting in the generation of vast amounts of data. Therefore, to store and manage this enormous data, the organizations in the region are looking for cloud-based solutions. Based on the research by NTT Data, more than 80% of the companies in Latin America have adopted cloud-based services. This increasing adoption of cloud-based services is resulting in the requirement for advanced cloud-based subscription services, augmenting the Latin America Device as a Service market.

Moreover, private entities in Latin American nations are allocating funds to facilitate the adoption of cloud computing. As per the Information World Bank, in 2022, the spending on cloud computing in the Latin American region reached approximately USD13 billion. Therefore, the demand for HPC devices would continue to grow. This would consequently uplift the Latin America Device as a Service market in the forecast period.

Latin America Device as a Service (DaaS) Market (2024-30): Segmentation Analysis

The Latin America Device as a Service (DaaS) Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2030 at the national levels. Based on the analysis, the market has been further classified as:

Based on Enterprise Size:

• Large Enterprises
• Medium Enterprises
• Small Enterprises

Of them all, small enterprises hold a dominant market share in the Latin America Device as a Service (DaaS) Market. Latin American countries have a higher prevalence of SMEs. According to the Development Bank of Latin America and the Caribbean, as of 2024, more than 90% of the businesses in the region are small and medium-scale. Small-scale enterprises have limited capital owing to which they invest the majority of their money in expanding and scaling up their business rather than purchasing electronic hardware products. Additionally, the purchase of electronic articles is relatively expensive for these small organizations. Therefore, these organizations look out for solutions that enable them to receive the electronic components at relatively lower prices. Hence, these small companies prefer to opt for DaaS solutions, enhancing market growth.

Based on End User:

• IT/ITES & Telecom
• Government
• BFSI
• Healthcare
• Education
• Others

Among them, IT/ITES & Telecom holds a notable market share in the Latin America Device as a Service market. Smartphone accessibility in Latin American countries has significantly expanded. According to the GSMA, the number of mobile phone internet users in Latin America is more than 380 million. This higher number of mobile phone users is resulting in the expansion of the IT & Telecom networks in the Latin American nations. This expansion is resulting in the requirement for the computation devices, owing to this, the IT & Telecom companies are adopting the DaaS solutions. Moreover, with the population growth, the number of mobile phone users would continue to grow. Therefore, the demand for DaaS solutions within the IT/ITES & Telecom companies would witness growth in the forecast years.

Latin America Device as a Service (DaaS) Market (2024-30): Regional Projection

Geographically, the Latin America Device as a Service (DaaS) Market expands across:

• Mexico
• Brazil
• Argentina
• Chile
• Rest of Latin America

Geographically, Mexico holds a prominent market share in the Latin America Device as a Service (DaaS) market. In recent years, Mexico has undergone digital transformation owing to the rising government programs and funds allocation. This rapid digital revolution in the country is resulting in the shift of enterprises towards digital services. Additionally, the governing authorities in the country have reformed the corporate tax, creating an ease of business in the country. This ease of business is resulting in the arrival of foreign-based tech giants in Mexico. The increasing penetration of the companies in Mexico is amplifying the requirement for solutions that help in providing devices on a subscription-based payment model. This is consequently uplifting the Latin American device as a Service (DaaS) market.

Latin America Device as a Service (DaaS) Industry Recent Development:

• 2024 Years: Amazon Web Services in partnership with Citrix, a cloud computing company, announced the launch of DaaS solution on their Amazon Workspace core.

Gain a Competitive Edge with Our Latin America Device as a Service (DaaS) Market Report

• Latin America Device as a Service (DaaS) Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Latin America Device as a Service (DaaS) Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.