London, 16 June 2014: The 2014 FIFA World Cup host nation will see its IT industry grow by leaps and bounds over the next few years thanks to increased investment in IT infrastructure and services in the country by vendors hoping to capitalize on the World Cup and 2016 Summer Olympics, according to a recently released report from tech-focused research firm, TechNavio.
Per the report, Brazil’s IT market is posting a 10.12 percent CAGR from 2013-2018.
Software, IT Services, Infrastructure and Security Segments All Expecting Significant Growth
“The rapid overall growth of the IT market in Brazil is mainly because of growth in the software and IT services segments, thanks to a rise in digital consumers and increases in internet use,” says Faisal Ghaus, Vice President of TechNavio.
“In addition, hosting the FIFA World Cup this month and the Summer Olympics in 2016 is attracting major IT companies to cater to several markets in Brazil, which, in turn, is increasing the demand for IT services, products, and solutions in the country,” he says.
In terms of product segmentation, the infrastructure and security software segment accounted for 20.94 percent of the market in 2013 and this is expected to increase during the forecast period.
On the end-user side of things, the telecom sector accounted for 24.7 percent of the total IT market in 2013. However, the presence of large sporting events is driving an expansion in IT infrastructure.
For example, 4G coverage was once limited to the main urban areas in Brazil, but the World Cup is expected to play an important role in launching 4G services across several cities.
Government Funding Will be a Boon for IT
Additionally, the Brazilian government has undertaken a number of initiatives to grow the IT market in the country, including a $US 5.6 billion investment in 2013 (compared to $US 3.8 billion in 2012) to help start-up companies by paying for mentors, helping with angel funding, and providing technological consultants.
“Government funding for IT in Brazil is aimed at supporting university research institutes and fostering high-tech incubators. In addition, the Ministry of Science and Technology is planning to create national technology software and services certification standards for the local market, which will likely act as an evaluating body for Brazil’s software, and significantly improve the presence and quality of Brazil’s IT on a global stage,” says Ghaus.
Key Vendors:
- Accenture Inc.
- Hewlett-Packard Co.
- IBM Corp.
- Xerox Corp.
To determine these market scenarios over the next 3-4 years, TechNavio analysts have conducted in-depth analysis of the impact of market drivers, challenges and trends featuring data on product segmentations, vendor shares, growth rate by revenue and an evaluation of the different buying criteria in the order of importance.
If you are interested in more information on this topic and our upcoming research on the IT Market in Brazil please send an e-mail to media@TechNavio.com.
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