Data are part of the Brazilian Software Market Study - Panorama and Trends 2022 and point to above-average growth for the Brazilian market
ABES – Brazilian Association of Software Companies presented, during the inauguration ceremony of the new Board of Directors for the triennium 2022-2024 and of 1/3 of its Deliberative Council, the preview of the Brazilian Software Market Study - Overview and Trends 2022. According to data from the International Data Corporation (IDC) analyzed by ABES, Brazil currently holds 1,65% of investments in technology at a global level, and 40% of investments throughout Latin America. Considering the total global investments in information technology (software, hardware and services) during the year 2021 – which was US＄ 2.79 trillion –, Brazil ranks tenth in this investment ranking, with US＄ 45, 7 billion invested, and leads in Latin America, whose total investments reached US＄ 115 billion.
Brazil remains a reference among the countries considered emerging, presenting a high degree of maturity in IT investments – which prioritizes the values dedicated to software development and increase in the offer of services. The total applied is distributed in 25% for the software market (U＄ 11.3 billion), 18% for the services market (U＄ 8.1 billion) and 58% for the hardware market (U＄ 26.3 billion) , which shows that the country is moving towards the global average, whose distribution is 26% in software, 27% in services and 47% in hardware. At the national level, ABES points to a slight increase in the dispersion of IT investments across the country. In the Northeast and North regions, the growth was 1%, while in the South region the increase was 2%. In the Southeast and Midwest regions, the drop was 2%.
“The growth of the technology market, at a global level, was 11% in 2021. However, in the same period, Brazil presented growth above 17%, which shows the country's potential in this segment. The trend for 2022 is for global growth of around 6.4%, and Brazil, once again, should present rates well above average, as our market is expected to grow at around 14 .3%, behind only Turkey, whose growth is estimated at 16% for this year”, points out Jorge Sukarie Neto, counselor at ABES.
Check out other trends presented firsthand by ABES during the event:
- 5G deployment: IDC estimates that 5G will move around US＄ 25.5B in Brazil by the year 2025, boosting technologies such as AI, Big Data & Analytics, Cloud, Security, AR/VR, Robotics and IoT.
- IoT: In 2022, a total of US＄ 1.6B is expected to be directed towards Internet of Things related services solutions, which represents a growth of 17.6% over the previous year.
- Cybersecurity: Security services will total almost US＄1B in Brazil in 2022, which represents an average growth of almost 10% YoY since the pandemic. Security solutions surpass US＄ 860M this year, with cloud receiving great attention.
- Hybrid Environment (Cloud): Public cloud infrastructure as a service (IaaS) spending will reach US＄1.9B in 2022, with growth above 36%. Private cloud maintains a more discreet growth pace, advancing 7.9% and reaching spending of US＄ 540M in Brazil.
- Use of Data: In 2022, a total of US＄ 2.9B is expected to be directed towards Big Data & Analytics solutions and services, which means an increase of 10.8%. For AI/ML, the expected growth for spending in 2022 is 28% YoY, reaching an amount of US＄504M.
The entirety of Brazilian Software Market Study - Overview and Trends 2022 will be presented by ABES in August.
About ABES
ABES (Brazilian Association of Software Companies) aims to contribute to the construction of a more digital and less unequal Brazil, in which information technology plays a fundamental role in the democratization of knowledge and the creation of new opportunities for all. In this sense, it aims to ensure a business environment conducive to innovation, ethical, dynamic, sustainable and globally competitive, always in line with its mission to connect, guide, protect and develop the Brazilian information technology market.
Currently, ABES represents approximately 2 thousand companies, which total about 85% of the revenue of the software and services segment in Brazil, distributed in 24 Brazilian states and in the Federal District, responsible for the generation of more than 210 thousand direct jobs and an annual revenue of the order of R＄ 80 billion in 2020.
Access the ABES Portal or speak to the Relationship Center: +55 (11) 2161-2833.
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