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Demand for international bandwidth predicted to rise in Latin America

Demand for international bandwidth predicted to rise in Latin America

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TeleGeography, a global telecommunications market research and consulting firm, has predicted that used international bandwidth in Latin America will rise from around 150 Tbps in 2021 to almost 700 Tbps by 2026 at a CAGR of 36%.

Its latest regional overview of Latin American connectivity market trends shows that demand is strong and continues to rise, largely driven by Internet backbone providers and content providers.

While backbone providers take the majority share of used capacity in Latin America at 64% in 2021, demand from content providers has been growing. 

Content providers claimed around 30% of LATAM used capacity in 2021, with demand rising from key industry players like Microsoft, Google and Facebook. These players have been increasing capacity to accommodate the impact of lockdowns and restrictions in 2020, as well as remote working trends post-pandemic. 

“We see that bandwidth demand remains strong across the region,” said Anahí Rebatta, Senior Analyst at TeleGeography. “It’s worth noting that 100Gbps wavelength price erosion is outpacing 10Gbps price erosion in nearly all routes. This suggests it will be more cost-effective for customers to upgrade their networks moving forward.”

Brazil is a hotspot for connectivity, with over 30 IXs, while Argentina follows with over 20. 

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