The Brazilian IT market grew a stunning 9.8% in 2018, beating estimation by a wide margin of 4.3% and posting revenue of US$46.6 billion.
Much of this money went to computer hardware makers, while the software development sector made US$10.5 billion in revenue, according to a study conducted by IDC for Brazilian Association of Software Companies (ABES).
Brazil is home to nearly 20,000 software and services companies, but more than 95% of them are very small in size. Among them, around 5,000 companies are completely focused on developing software.
The report confirms that Brazilian businesses are increasingly going digital and spending a large sum of money on new cutting-edge IT solutions.
The study projects 46.2% annual growth in the use of artificial intelligence (AI), predicting that AI and automation interfaces will replace one-third of application screen interfaces over the next five years.
“The growth of the Brazilian sector in 2018 signals an effective recovery in the technology segment following the market downturn in 2016,” says Rodolfo Fücher, ABES President.
“This scenario shows that technology has become an important component for companies’ competitiveness and efficiency in times of crisis. In this environment, ABES aims to continue to ensure a dynamic and attractive environment for investments and innovation development in the country.”
During the year, Latin America invested US$108.8 billion in the IT market, representing almost 11% of the world total.
Brazil has retained its number one position regionally, accounting for more than 42% of IT investments. Mexico came second with 20% of IT investment and is followed by Argentina with 7.5%.