Investments in the sector grew 17.6% in one year, with a strong impact from AI and digital infrastructure; ABES projects growth of 9.5% for the IT sector in Brazil in 2025, surpassing the global average of 8.9%
ABES – Brazilian Association of Software Companies, which aims to build a more digital and less unequal Brazil, presented in a live broadcast open to the public at its YouTube channel O Brazilian Software Market Study – Panorama and Trends 2025. According to data from the International Data Corporation (IDC) analyzed by ABES, the twenty-first edition of the study – considered the main reference for the sector in the country –, the Brazilian Information Technology (IT) market registered a significant growth of 13.9% in 2024, surpassing the global average of 10.8%. The country has consolidated itself as the largest IT player in Latin America, accounting for 34.7% of investments in the region.
Investments in the sector jumped from US$1.49 billion in 2023 to US$1.44 billion in 2024, with emphasis on the advancement of artificial intelligence (AI), business digitalization, and the modernization of cloud and cybersecurity infrastructures. “The IT sector in Brazil has demonstrated a strong recovery and resilience, driven by the advancement of artificial intelligence, the digitalization of companies, and the growth of cloud and cybersecurity infrastructures,” says Paulo Milliet Roque, president of ABES.
ABES projects growth of 9.5% for the IT sector in Brazil in 2025, surpassing the global average of 8.9%. The study indicates that the coming months will be decisive for the consolidation of new technologies, such as generative AI, autonomous networks and advanced digital security solutions. “Brazil is on the right track to become one of the world’s leading technology hubs. Investments in digital infrastructure, security and innovation will boost the sector’s growth and the competitiveness of Brazilian companies,” says Jorge Sukarie Neto, ABES advisor and responsible for the study.
Brazil maintains position in global Top 10
The study also points out that Brazil maintained 10th place in the world ranking of IT investments, consolidating itself as the main emerging market in the sector.. In addition, it increased its global share in the software and IT services segment, from 1.4% to 1.5%. In terms of regional investments, Brazil leads Latin America, followed by Mexico (22.1%) and Argentina (13.6%). “The figures confirm that Brazil continues to be one of the world’s leading technology hubs, with a rapidly expanding and increasingly competitive market. Our leadership in Latin America reflects the advance of digitalization, the growing adoption of new technologies and the strengthening of the software and services sector. In other words, we continue to attract investments and consolidate our position in the global IT scenario,” explains Jorge Sukarie.
Artificial Intelligence drives new investments
Generative AI has been a key growth driver in the sector, with 90% of large Brazilian companies already using AI in at least one use case. And the demand for AI infrastructure has also driven the modernization of data centers and enterprise networks, with 28% of providers already adjusting their structures to support new generative AI workloads. In addition, high-speed networks (400G and 800G Ethernet) are becoming essential to support the growing need for data processing.
“Generative AI is already a reality in the Brazilian corporate environment, driving investments and reconfiguring IT infrastructure. The significant advance in the adoption of AI reflects not only its transformative potential, but also the growing need to modernize data centers and networks to support this digital revolution. With projected investments of over US$1.4 billion in 2025, Brazil is strategically positioning itself to lead this new technological era,” explains Jorge Sukarie.
Cybersecurity becomes a priority for companies
The study reveals that 361% of Brazilian companies consider security to be essential to achieving their business goals. In response, there has been a growth in the adoption of Zero Trust and Secure by Default architectures, as well as the use of AI for cybersecurity.
“Security investments are expected to reach US$2.1 billion by 2025, reinforcing the need for more robust strategies to protect data and mitigate risks in hybrid environments. Automation and the use of AI have also gained traction as tools to simplify compliance and improve digital protection,” says Jorge Sukarie.
The research also points to a shift in the telecommunications sector, with operators investing in programmable networks and API monetization. In addition, connectivity via low-earth orbit (LEO) satellites is gaining ground, with 25% of Brazilian companies planning to adopt this technology by 2025. Another highlight is the adoption of private mobile networks and the expansion of 5G Advanced, which strengthens the digitalization of industries and Internet of Things (IoT) applications.
Hardware and devices market is growing again
After a period of contraction, the PC market in Brazil has resumed growth, with a forecast growth of 11.2% in 2025 and a turnover of US$$ 6.2 billion. The education sector will be one of the main drivers of this growth, with investments projected at US$$ 592 million.
The adoption of notebooks with embedded AI is also on the rise, going from 5% to 22% of the market in one year. And in the smartphone sector, the presence of embedded AI and 5G connectivity is expected to move US$ 7.5 billion in Brazil, while efforts to reduce smuggling should make the market more regulated and competitive.
The preview of the Brazilian Software Market Study – Panorama and Trends 2025 is available for download at this link.
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 around 2,000 companies, which total approximately 80% of the software and services sector's revenue in Brazil, distributed across 24 states and the Federal District, responsible for the generation of more than 260 thousand direct jobs and an annual revenue of around R$103 billion in 2024. Access the ABES Portal or call +55 (11) 5094-3100.
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