Latin America Tape Storage Market

Market Overview

The Latin America tape storage market size was valued at USD 750 million in 2022 and is projected to reach USD 1,621 million by 2031, registering a CAGR of 9.0% during the forecast period (2023-2031).

Tape storage employs digital recording to store digital data on magnetic tape. Tape drives read and write data. One of the oldest digital data storage technologies is tape. It's popular for long-term data storage because it's economical, secure, and scalable. Tape storage is cheap, durable, and provides high data storage capacity.

Rising data volumes and major enterprises using tape storage fuel the industry. Due to ransomware attacks on company networks, the sector increases. Industrialization drives the market growth. However, tape storage's high initial investment is expected to slow market growth. Higher-capacity tape storage is predicted to drive market growth.

Highlights

• Tape cartridges dominate the market by component.
• The LTO-8 dominates the market by technology.
• 1 T.B. to 200 TB dominates the market by capacity.
• By use case, backup holds a major share of the market.
• Datacenter dominates the market by the end user.
• I.T. and Telecom sector dominates the market by industry vertical.

Market Dynamics

Latin America Tape Storage Market Drivers

Rising Investments in Storage Solutions

Increased investments in storage solutions drive the market due to the region's media and entertainment sector's growing use of tape storage. This sector produces a lot of data, including audio and video information, necessitating dependable and large-capacity storage systems. For instance, corporations like Globo, the nation's largest media organization, have invested in tape storage technology to manage their enormous data archives. Brazil is the greatest generator of television material in Latin America.

Latin America Tape Storage Market Restraints

High Initial Investment

Many regional businesses prefer to invest in cheaper storage solutions. Additionally, many small and medium-sized enterprises in the region have limited I.T. infrastructure budgets, making expensive storage solutions less likely. Due to the expensive expense of tape storage, many small and medium-sized enterprises in Brazil still use external hard drives and USB flash drives. Since their storage solutions can't handle large amounts of data, these businesses struggle with data backup and recovery.

Latin America Tape Storage Market Opportunities

Affordable Internet Access

Daily and monthly mobile data rates have become cheap enough in Latin America for about 149 million low-income people to be able to use the Internet. As more people use the Internet, more data must be stored and kept safe. This increases the need for tape storage options. Datareportal says Brazil's internet users grew from 80 million in 2014 to more than 150 million in 2021. This growth has been helped by the country's attempts to increase internet access, like the National Broadband Plan and the installation of 4G networks. Because of this, the need for storage options, like tape storage, has increased.

Regional Analysis

The Latin America tape storage market is segmented by country into Brazil, Columbia, Argentina, and the Rest of Latin America. Brazil dominated the market with a CAGR of 8.7% during the forecast period. 

Around 149 million Latin Americans with low incomes now have access to the Internet thanks to daily and monthly mobile data plans that have become widely available. Users are accessing digital information in video and audio forms more frequently because of this, which has increased demand for advanced storage solutions like tape storage across the cinema, news, music, radio, telecom, and television sectors. Additionally, there has been an increase in storage solution investments across Latin America.

Segmental Analysis

The Latin America tape storage market is segmented based on component, capacity, technology, use case, industry vertical, end-user, and country.

The market is further segmented by component into Tape Cartridges, Tape Vault.

The Tape Cartridges segment domains segment dominates the market and is expected to grow at a CAGR of 8.8% during the forecast period.

By component, it is further segmented into LTO-1 to LTO-5, LTO-6, LTO-7, LTO-8, LTO-9, DDS-1, DDS-2, DDS-3, DDS-4, DLT IV

The LTO-8 dominated the market and is expected to register a CAGR of 9.5% over the forecast period.

The market is further segmented by capacity into Less than 1 T.B., 1 T.B. to 200 TB, 201 TB to 999TB, 1PB to 100PB, and More than 100 PB.

 The 1 T.B. to 200 TB segment dominates the market and is expected to grow at a CAGR of 8.8% during the forecast period.

The market is further segmented based on use case into Archiving, Backup

The backup segment dominates the market and is expected to grow at a CAGR of 8.9% during the forecast period.

By end-user, it is further segmented into Cloud Providers, Data Centers, and Enterprises.

The data center dominated the market and is expected to register a CAGR of 9.3% over the forecast period.

The market is further segmented by industry vertical into I.T. and Telecom, BFSI, Media and Entertainment, Healthcare, Oil and Gas, Government and Defense.

The I.T. and Telecom segment dominates the market and is expected to grow at a CAGR of 8.0% during the forecast period.

Recent Developments

• February 2023- The Adoption of Open Telecom Network Architectures was Hastened by Dell Technologies
• January 2023- Dell PowerEdge Servers of the Next Generation Offer Advanced Performance and Energy Efficient Design.
• May 2023- Cadence Design Systems, Inc. (Nasdaq: CDNS) uses IBM Cloud HPC to develop its chip and system design software faster, leveraging high-performance computing (HPC). IBM (IBM: NYSE) made the announcement.