Hey everyone! The year is still young, and today we'll explore Brazil's technology landscape based on a study by ABES (Brazilian Software Association) that analyzed 2023 global data. The report paints a detailed picture of the local market and highlights the main investment opportunities for 2025 and the years ahead.
Although the country has climbed to important positions in the global IT investment ranking, the domestic market's growth stagnated. However, the adoption of emerging technologies like Cloud Computing, Artificial Intelligence and IoT opens new opportunities for companies chasing innovation and competitiveness.
Investment and market growth
In 2023, Brazil returned to the top 10 countries that invest most in IT globally, sitting at #10. However, that advance was driven by market growth. While the global IT market grew 4.1%, Brazil posted a slight contraction of -0.4%, with total investments of R$ 262.38 billion (US$ 50.76 billion).
Brazil's IT market represented 1.58% of the global market and 37.5% of the Latin American market. Within the sector, software and services grew while hardware shrank 11% — one of the main drivers for the country's stagnant investment figures.
Market segmentation
The sectors that invested most in technology in 2023 were:
- Finance, Services and Telecom: accounted for the largest share of investment.
- Industry and Commerce: strong growth, with Commerce standing out at a 27.3% increase.
- Government: slight contraction, cutting its share to 6.6%.
Brazil's software and services market climbed to #11 globally, representing 1.5% of the world market.
Exports and technology adoption
Software and services exports grew significantly:
- Software exports grew 17.1%.
- Services exports grew 17.5%. Even so, the domestic market remains the main focus for companies in the sector.
The study also shows that more than 90% of large Brazilian companies already use Artificial Intelligence (AI) at some level, and the trend is for GenAI (Generative AI) to gain even more ground in the coming years.
Cloud Computing adoption continues to accelerate, with significant growth in the segments of:
- Collaborative Applications
- CRM (Customer Relationship Management)
- Content Management
In the IoT sector, growth of 20.2% compared to 2021 highlighted the need for greater connectivity and real-time data processing.
Trends and opportunities
A few trends are consolidating as strategic opportunities for companies that want to innovate and stay competitive:
- Cloud Computing: the cloud solutions market is estimated to reach US$ 1.5 billion in Brazil.
- Cybersecurity: the market will grow 16%, reaching US$ 1.7 billion.
- IoT and Edge Computing: the Brazilian market could hit US$ 1.7 billion in investment across hardware, software and connectivity.
- AI-embedded devices: by 2026, laptops and smartphones with built-in AI are expected to boost sales and modernize business operations.
How CloudScript can help
Against this backdrop, CloudScript positions itself as a strategic partner for companies looking to modernize their operations and adopt cloud-native solutions. Our expertise in migrating on-premises systems to the cloud and managing cloud infrastructure lets our clients adapt to digital transformation trends, reduce costs and increase operational efficiency.
With the growing demand for digital security, data analysis and infrastructure optimization, CloudScript delivers tailored solutions for:
- Modernization and management of on-premises and hybrid environments, ensuring compliance and high availability.
- Adoption and optimization of Cloud-Native architectures, using Kubernetes and DevOps practices to guarantee scalability, resilience and automation.
Brazil's tech market is in constant evolution, and companies that invest in cloud solutions will have a competitive advantage. CloudScript is ready to help your company adopt the cloud strategically, driving innovation, efficiency and growth.
References:
ABES — Brazilian Software Association. Brazilian Software Market: outlook and trends, 2023: https://abes.com.br.
