Preview of the study “Brazilian Software and Services Market” places Brazil in 9th place in the global ranking of investments in IT (software, hardware and services); study also brings balance of the ICT market and forecasts of investment in technology in the Brazilian market in 2019
Brazil remains in 9th place in the world ranking of investments in IT, according to a preview of the study “Brazilian Market for Software and Services”, by ABES (Brazilian Association of Software Companies) with IDC, released during the inauguration dinner of new executive board of the association, which took place on April 1, in São Paulo. The document, which uses data from the IDC for the last year, shows that investments in IT (software, hardware and services) in Brazil exceeded expectations for 2018, reaching US$47 billion, a growth of 9.8% compared to 2017, more than double the forecast for the year, which was 4.1%.
Of this amount, US$23.9 billion (51.3%) refers to investments in hardware, US$12.2 billion (26.2%) to services and US$10.5 billion (22.5%) to software. "With a growth of 9.8%, Brazil surpassed the world average of IT investments in 2018, which was 6.7%. These data show that a timid recovery of the Economy observed in 2018, combined with the expectation of a more vigorous recovery as of 2019, they brought a resumption of investments in technology that exceeded expectations, proving the importance of the sector so that companies can seek more productivity, efficiency and competitiveness ”, comments Jorge Sukarie, vice president of the ABES Board, who presented the study during the dinner that Rodolfo Fücher, founding partner of FEMP Participações, took on, as the new President of ABES and Paulo Milliet Roque, Director of the Digiforte Certification Authority, as the entity's vice-president.
On that occasion, the new members of the executive board for the next three years were also sworn in: Vanda Scartezini, senior partner at Polo Consultores Associados, President of the DNS Women Institute and Chairman of the Board of the Sitec Foundation; Fábio Rua, director of Government and Regulatory Affairs at IBM Latin America; and Lauro de Lauro, Senior Cloud Guru at Sky.One Cloud Solutions.
Worldwide IT market
Preliminary figures from the study, which should be published in full in the second half of 2019, indicate that the sum of IT investments in 2018, among the countries analyzed, reached US$2.23 trillion, a value of 6.7% higher than the last year. The United States leads the world ranking with US$ 822 billion, followed by China and Japan with US$250 billion and US$140 billion, respectively.
In Latin America, Brazil remained in first place in the regional ranking, responsible for 42.8% of investments in IT, more than twice registered by Mexico (20%), which was in second place, followed by Argentina (7.5%) and Colombia (7.1%). The region invested US$108.8 billion in the IT market in 2018, representing almost 11% of the world total.
In relation to investment in ICT, which includes IT and Telecom, Brazil fell one place, ranking 7th in the world, with US$ invested 97 billion, following a trend of slight retraction in the last years of this sector, closely related to the transition of voice for consumer data. In this regard, Brazil was still ahead of India (US$86 billion) and soon after France (US$109 billion).
Forecasts for the Brazilian IT Market in 2019
Among some trends pointed out in the study, next-generation solutions for information security figure as an area that is expected to reach US$ 671 million in 2019, growing 2.5 times faster than traditional solutions. Regarding the use of Artificial Intelligence (AI), the study indicates that, in Brazil, 15.3% of medium and large companies have this technology among the main initiatives and it is expected that this will double in the next four years.
Big Data and Analytics are expected to advance in 2019, reaching US$ 4.2 billion. The Public Cloud market in Brazil will reach US$ 2.3 billion in 2019. The IoT ecosystem is expected to generate US$ 9 billion in 2019, and grow over 20% year on year until 2022. The device market will represent 38% of all investment in IT in Brazil (about US$ 24.5 billion), with the sale of higher value devices.
The expectation of growth for IT investments in Brazil for 2019 is 10.5%, still driven by the sale of devices, against an average global growth expectation of 4.9%. It is Brazil, once again growing twice the world average, as it did until 2013. For ICT, more moderate growth is expected, in the order of 4.9%.
“The growth of 9.8% in the sector compared to the GDP of 1.1 % demonstrates a growing movement of companies and government in Brazil, in absorbing technology in a significant way, certainly motivated by the benefits of cost reduction and improved productivity, essential factors to face an increasingly competitive market. In this sense, ABES 'main objective is to ensure an attractive and innovative investment environment. I believe that information technology, in addition to helping business performance, plays a fundamental role in making Brazil less unequal ”, concludes Rodolfo Fücher, President of ABES.
About ABES
ABES, Brazilian Association of Software Companies, with more than 33 years of experience, is the most representative entity in the information technology sector, with about 2,000 associated or associated companies, distributed in 23 Brazilian states and in the Federal District, responsible for for the generation of more than 200 thousand direct jobs and an annual turnover of the order of US$ 20 billion per year. The companies associated with ABES represent about 86% of the turnover of the software development and commercialization segment in Brazil.
Since its foundation, on September 9, 1986, the entity has exercised the mission of sectorial representation in the legislative and tax areas; in proposing and guiding policies aimed at strengthening the IT Sector's value chain; in the defense of Legal and Tax Security, of intellectual property; support for Brazil's digital transformation initiatives, innovation and its promotion and the continuous improvement of national software.
ABES - Press contacts:
Weber Shandwick Brasil
PABX: (11) 3027-0200 / 3531-4950
Erika Borges - eborges@webershandwick.com Telephone: (11) 3027-0212
Matheus Briet - - mbriet@webershandwick.com Telephone: (11) 3027-0241
Ana Jones - ana.jones@webershandwick.com Telephone: (11) 3027-0200 Extension 312
Of this amount, US$23.9 billion (51.3%) refers to investments in hardware, US$12.2 billion (26.2%) to services and US$10.5 billion (22.5%) to software. "With a growth of 9.8%, Brazil surpassed the world average of IT investments in 2018, which was 6.7%. These data show that a timid recovery of the Economy observed in 2018, combined with the expectation of a more vigorous recovery as of 2019, they brought a resumption of investments in technology that exceeded expectations, proving the importance of the sector so that companies can seek more productivity, efficiency and competitiveness ”, comments Jorge Sukarie, vice president of the ABES Board, who presented the study during the dinner that Rodolfo Fücher, founding partner of FEMP Participações, took on, as the new President of ABES and Paulo Milliet Roque, Director of the Digiforte Certification Authority, as the entity's vice-president.
On that occasion, the new members of the executive board for the next three years were also sworn in: Vanda Scartezini, senior partner at Polo Consultores Associados, President of the DNS Women Institute and Chairman of the Board of the Sitec Foundation; Fábio Rua, director of Government and Regulatory Affairs at IBM Latin America; and Lauro de Lauro, Senior Cloud Guru at Sky.One Cloud Solutions.
Worldwide IT market
Preliminary figures from the study, which should be published in full in the second half of 2019, indicate that the sum of IT investments in 2018, among the countries analyzed, reached US$2.23 trillion, a value of 6.7% higher than the last year. The United States leads the world ranking with US$ 822 billion, followed by China and Japan with US$250 billion and US$140 billion, respectively.
In Latin America, Brazil remained in first place in the regional ranking, responsible for 42.8% of investments in IT, more than twice registered by Mexico (20%), which was in second place, followed by Argentina (7.5%) and Colombia (7.1%). The region invested US$108.8 billion in the IT market in 2018, representing almost 11% of the world total.
In relation to investment in ICT, which includes IT and Telecom, Brazil fell one place, ranking 7th in the world, with US$ invested 97 billion, following a trend of slight retraction in the last years of this sector, closely related to the transition of voice for consumer data. In this regard, Brazil was still ahead of India (US$86 billion) and soon after France (US$109 billion).
Forecasts for the Brazilian IT Market in 2019
Among some trends pointed out in the study, next-generation solutions for information security figure as an area that is expected to reach US$ 671 million in 2019, growing 2.5 times faster than traditional solutions. Regarding the use of Artificial Intelligence (AI), the study indicates that, in Brazil, 15.3% of medium and large companies have this technology among the main initiatives and it is expected that this will double in the next four years.
Big Data and Analytics are expected to advance in 2019, reaching US$ 4.2 billion. The Public Cloud market in Brazil will reach US$ 2.3 billion in 2019. The IoT ecosystem is expected to generate US$ 9 billion in 2019, and grow over 20% year on year until 2022. The device market will represent 38% of all investment in IT in Brazil (about US$ 24.5 billion), with the sale of higher value devices.
The expectation of growth for IT investments in Brazil for 2019 is 10.5%, still driven by the sale of devices, against an average global growth expectation of 4.9%. It is Brazil, once again growing twice the world average, as it did until 2013. For ICT, more moderate growth is expected, in the order of 4.9%.
“The growth of 9.8% in the sector compared to the GDP of 1.1 % demonstrates a growing movement of companies and government in Brazil, in absorbing technology in a significant way, certainly motivated by the benefits of cost reduction and improved productivity, essential factors to face an increasingly competitive market. In this sense, ABES 'main objective is to ensure an attractive and innovative investment environment. I believe that information technology, in addition to helping business performance, plays a fundamental role in making Brazil less unequal ”, concludes Rodolfo Fücher, President of ABES.
About ABES
ABES, Brazilian Association of Software Companies, with more than 33 years of experience, is the most representative entity in the information technology sector, with about 2,000 associated or associated companies, distributed in 23 Brazilian states and in the Federal District, responsible for for the generation of more than 200 thousand direct jobs and an annual turnover of the order of US$ 20 billion per year. The companies associated with ABES represent about 86% of the turnover of the software development and commercialization segment in Brazil.
Since its foundation, on September 9, 1986, the entity has exercised the mission of sectorial representation in the legislative and tax areas; in proposing and guiding policies aimed at strengthening the IT Sector's value chain; in the defense of Legal and Tax Security, of intellectual property; support for Brazil's digital transformation initiatives, innovation and its promotion and the continuous improvement of national software.
ABES - Press contacts:
Weber Shandwick Brasil
PABX: (11) 3027-0200 / 3531-4950
Erika Borges - eborges@webershandwick.com Telephone: (11) 3027-0212
Matheus Briet - - mbriet@webershandwick.com Telephone: (11) 3027-0241
Ana Jones - ana.jones@webershandwick.com Telephone: (11) 3027-0200 Extension 312
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