Data are part of the Brazilian Software Market Study – Panorama and Trends 2023 and point to stability in the Brazilian market

ABES – Brazilian Association of Software Companies and International Data Corporation (IDC) presented today (15/03), during a webinar open to the public in their YouTube channel, The Brazilian Software Market Study – Outlook and Trends 2023. According to IDC data, analyzed by ABES, Brazil maintained 1.65% of investments in technology globally, and 36% of investments in all of Latin America (against 40% in the previous survey). Considering the total global investments in information technology (software, hardware and services) during the year 2022 – which was US$ 3.11 trillion, against US$ 2.79 trillion –, Brazil fell two positions, now ranking in twelfth place in this investment ranking, with US$45.2 billion invested and leads in Latin America, whose total investments reached US$124 billion (against US$115 billion in 2021).

Brazil continues to be a reference among countries considered to be emerging, showing greater maturity in IT investments – which prioritizes the amounts dedicated to software development and increased service offerings. The total applied is distributed in 26% for the software market (U$ 11.7 billion), 19.5% for the services market (U$ 8.8 billion) and 54.6% for the hardware market (U$ 24 .7 billion), which shows that the country is moving towards the global average, whose distribution is 28% in software, 26% in services and 45% in hardware. At a national level, ABES points to a slight increase in the dispersion of investments in IT across the country, which signals that technology and innovation are reaching the most remote regions of the country in greater volume. In the Northeast and North regions, the growth was 1%, while in the South region the increase was 0.7%. In the Midwest region, the drop in participation in total IT investments was 0.4%, and in the Southeast region, the drop was 0.5%. To download the preview presentation, access the industry data on this portal.

“The growth of the technology market, at a global level, was 7.4% in 2022. In the same period, Brazil presented a growth of 3%, below the expected growth of up to two digits, and several factors contributed to this result . The War in Ukraine that was not on the radar, the high impact of inflation on the Global Economy, which impacts investments in Brazil, the most disputed presidential election in recent history, the World Cup itself, the rise in interest rates, the volatility of the dollar throughout the year, were some of the factors that contributed to this unexpected result of low growth. Another point worth highlighting was the drop in investments in devices, such as cell phones and notebooks, which pushed down the growth percentage. However, it may seem little, but this index of 3% shows the industry's positivity in continuing to invest in technology. And the trend, for 2023, is that there will be a global growth in the order of 4.5%, and Brazil, moreover, should present an index slightly above the average, of 5.4%”, points out Jorge Sukarie Neto, member of ABES.

Luciano Ramos, Country Manager, and Fabio Martinelli, Leader of the Software and Cloud Computing programs, both from IDC, presented the 10 trends mapped by the market intelligence company. Among the trends,

  • 5G: The new 5G core is designed to be cloud-native, with a virtualized core and functions. IDC believes that by 2023, there will be more agreements between Telcos and Cloud Providers for core network functions and virtualization. Over the next five years, cloud consumption by the Telecom segment will grow by an average of 35.2% in IaaS and 42.2% in PaaS annually.
  • Internet of Things (IoT): Driven by IoT spending in Brazil, which is expected to reach R$11.2B in 2026, with 38% of that amount going to connectivity, the private mobile network market is expected to grow by over 35% per year in this period . Opportunities will focus on efficiently connecting IoT endpoints, enterprise mobile devices, replacing network infrastructure, and converging and blending media.
  • Cybersecurity: The Latin America region will have the second highest growth rate on the planet in 2023 in cybersecurity, reaching 12.2% and second only to China. Cybersecurity Analytics, Intelligence, Response and Orchestration (CAIRO) solutions will see the biggest increase in demand. In Brazil, spending on security solutions will reach US$1.3B in 2023, up 13% from 2022.
  • Cloud: By 2023, IaaS+PaaS spend will exceed US$4.5B in Brazil, advancing 41% YoY. Spending on public cloud infrastructure will already correspond to just over half of spending on digital infrastructure (set of resources that enable the IT base. Among them we have public cloud, private cloud, data center services, in addition to servers and storage acquired for use in Data Centers, owned or contracted) in 2023.
  • Artificial Intelligence: AI continues to mature in Brazil and is expected to exceed US$1B of spending in 2023 – around 33% YoY. Spending on Intelligent Automation Solutions (IPA) will exceed US$214M in 2023 in Brazil, growth close to 17% yoy.
    The full text of the Brazilian Software Market Study – Panorama and Trends 2022 is available for download at this link.

Also participated in the webinar Paulo Milliet Roque and Jamile Sabatini Marques, president and Director of Innovation and Development at ABES, respectively.

Watch the webinar in full at ABES YouTube channel.

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