The ICT Market Revenue in Brazil to Grow 7% in 2021

The ICT Market Revenue in Brazil to Grow 7% in 2021

5G, artificial intelligence, public cloud, and security are among the main focus areas – claims a recent IDC study.

The information technology and communications market revenue in Brazil is anticipated to reach US$ 64.4 billion in 2021 – which is about a 7% growth. Primarily, security technologies and the public cloud are top areas of focus, according to IDC.

Nearly 60% of user organizations in Brazil had been planning to raise their ICT spend from the beginning of 2020. However, the unprecedented time brought by the pandemic changed their plans and intentions drastically. In fact, these boosted investments plunged to a record low during May and June last year.

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In contrast, the researchers noted that the buyers are currently a lot more confident about ICT investments in the region. About 50% of companies are planning to increase their spend in 2021.

Some other areas where businesses will increase spend are the modernization of enterprise software, artificial intelligence, and customer experience. Such investments are most likely to speed-up productivity while reducing operational costs.

In addition, the technology users are expecting that new areas of investments would facilitate them to strike a balance between online and physical channels. It can also help introduce new products, services, and technology that supports processes around enhancing customer acquisition as well as retention.

Even the spending on security will surpass US$ 900 million in 2021 – around 12.5% more YOY. This involves investments in managed security services, touching US$ 615 million due to the rapid increase in cyber-attacks and data protection demands.

However, the study found only 50% of companies to be in advanced stages of compliance along with the data protection rules. Another 66% of technology leaders noted that their biggest challenge is mapping as well as controlling information.

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As a result, the cloud solution will advance, with public cloud infrastructure and platform-as-a-service spend to hit US$ 3 billion – nearly a 46.5% increase from 2020. According to the statistics, nearly 43% of firms intend to bring some of their management systems into the cloud within the next two years.

With the accelerating demand for digital transformation, more than 25% of large-size Brazilian organizations use AI and ML. Indeed, the AI spending in Brazil is anticipated to reach US$ 464 million by the year-end. This will majorly be driven by business consulting, and IT services companies.

And this trend is pushing chatbots and digital assistants to incorporate applications to grow. It will continue as we advance – with the adoption rate set to reach nearly 30% more.

Clearly, this fast-paced migration, integration, and automated data management and advanced applications will become more common among businesses – to keep up with the modern marketplace.

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