The year 2020 was marked by economic insecurity in several sectors, but the study "Brazilian Software Market - Panorama and Trends 2021", carried out by ABES - Brazilian Association of Software Companies - with IDC data, shows that even in this scenario, the sector grew 22.9% and invested around R$ 200.3 billion (US$ 50.7 billion), considering the software, services, hardware and also the sector's exports. The survey shows that Brazil conquered positions in the IT world ranking, from 10th position in 2019 to 9th in 2020, and maintained its leadership in the Latin American market, with a share of 44%. For this study, IDC adopted the average dollar conversion rate of R$ 3.95/US$ and interviewed companies that work with software development producing customized and customizable products, in addition to information collected from companies that use IT. The full analysis is available at https://abes.com.br/dados-do-setor/
“It is indisputable that the pandemic forced the acceleration of the digital transformation. The study clearly shows a significant increase in the use of technological solutions in 2020, mainly impacting the software market, which grew by more than 29% in the period and boosting several other segments, which should continue to grow significantly in 2021, such as the public cloud that should reach US$ 3 billion, with an expected growth in the order of 46%, and artificial intelligence reaching US$ 464 million, growing by 30%. Another important segment is information security, which added to the need to adapt to the requirements of the LGPD, should reach the figure of US$ 1.5 billion in 2021”, explains Rodolfo Fücher, president of ABES.
For this year, the forecast of the study is that there will be a growth of 11.1% in the sector compared to last year. 5G will be responsible for providing around US$ 2.7 billion in the generation of new business involving Artificial Intelligence, Augmented and Virtual Reality, Big Data and Analytics, IoT, Cloud, Security and Robotics.
Technology market grew 22.9%
According to the survey carried out, the technology sector in Brazil invested around US$ 49.5 billion in the domestic market, without considering exports. Within that amount, 53.7% (US$ 26.5 billion) were used in hardware; 26.3% (US$ 13 billion) in software; and 20% (US$ 10 billion) in services.
When analyzing the average of worldwide investments, the study shows that 45% is directed to hardware, 29% to services and 26% to software. “The degree of maturity of a country's IT investments is measured by how much more is invested in software and services. In Brazil, we still have a higher investment in hardware (53.7%), but this share has fallen over the years. To give you an idea, 15 years ago, the share of investments in hardware was greater than 67%, but over the years the share of investments in software and services has been growing, coming closer to countries with a higher degree of maturity, as per For example, the United Kingdom, Germany and the United States”, says Jorge Sukarie, vice-president of the Board of Directors of ABES.
5G, Cloud, Artificial Intelligence and Security will be the highlights of 2021
5G will be on the massification route with frequency auctions, large-scale deployments and new revenues. According to IDC, it is estimated that in the years 2021 and 2022, the technology will generate US$ 2.7 billion new businesses involving Artificial Intelligence, Augmented and Virtual Reality, Big Data & Analytics, Cloud, Security and Robotics .
The Cloud will also be a key element in IT infrastructure in 2021 as it is a fast track to building operational resilience. Adding spending on infrastructure (IaaS) and platform (PaaS) in the public cloud, Brazil should reach US$ 3 billion, which represents an increase of 46.5% in relation to the previous year. And the private cloud service (DCaaS) is also expected to grow and reach the milestone of US$ 614 million, an advance of 15.5% compared to last year.
With this new context of cloud and collaboration, driven by the pandemic, spending on security solutions will also increase. In 2021, it is estimated that the sector will have an increase of 12.5% compared to last year and Brazil will surpass US$ 900 million invested. Managed Security Services (MSS) will total US$ 615 million in the same period.
In addition, spending on ERP solutions (considering features such as finance, accounting, people management, asset management, production control, logistics, supply chain, among others) will grow 12.61TP1Q in 2021, reaching US$ 3, 4 billion. SaaS will already represent 14%. And in the scope of CX (including CRM solutions, marketing management, sales force, digital commerce, customer service solutions, etc.), spending in 2021 is expected to reach US$ 1.4 billion, which represents a growth of 21, 3% compared to 2020.
The survey also highlights the multiplication of embedded Artificial Intelligence resources. From business applications to security solutions, AI becomes an essential element in handling increasing volumes of events and information. With this expansion, spending in Brazil will reach a total of US$ 464 million in 2021, driven mainly by IT and business consulting services.
Download here the presentations made at the virtual event on the Market Study, which took place this Wednesday (04/08)
Presentation of Market Study 2021 – performed by Jorge Sukarie (ABES)
Presentation of 2021 Trends - performed by Fabio Martinelli (IDC)
Watch the event in full on ABES' YouTube channel
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