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Cloud And 5G Investments To Boost Brazilian ICT Market In 2023 – Forbes


The IT and telecommunications market outlook in Brazil is positive, with that space set to grow 5%, reaching US$ 80 billion in 2023, according to IT analyst firm IDC.

In a more detailed analysis, the analyst firm noted the IT sector should bode well this year. With growth predicted at 6.2%, spending in that segment will be driven by an 8.7% increase in tech consumption by companies, particularly in cloud computing and software.

The current mood in the Brazilian IT sector for 2023 is “moderate optimism”, according to Luciano Ramos, country manager at IDC Brazil. “[This] is due to adjustments and budgets being redirected,” the executive said in a statement.

Meanwhile, the analyst house said the telecom segment should expand at 3%. According to IDC, this segment will be driven by the growing importance of connectivity and the advancement of cloud and 5G technologies.

Key trends

According to IDC, some of the main trends in the ICT space in Brazil include increasing maturity in cloud usage and spending among companies. Spending with Infrastructure as a Service (IaaS) and Platforms as a Service (PasS) should surpass $4,5 billion, up 41% in relation to 2022. In addition, corporate users will be demanding more information from providers about the impact of cloud computing on carbon emissions as part of their agendas around environmental, social and governance (ESG) pillars.

With the expansion of 5G networks, which started to be implemented in Brazil in 2022, companies are expected to invest more in private mobile networks to address their connectivity challenges and meet operational requirements.

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New revenue streams created by the growth in private mobile networks will translate into a positive impact for various sectors such as cloud, security, storage, management, and data analysis, resulting in growth of over 35% per year in Brazil’s private mobile network market until 2026.

In addition, other noteworthy areas in the Brazilian ICT space in 2023 include the software as a service space. Half of all the local spending on software will go towards offerings under the SaaS model, which is set to grow by 15.1%, driven by demands in security, data management, and customer experience.

Security is also moving to the top of priorities of tech decision-makers in Brazil: spending on that front should reach $ 1,3 billion in 2023, up 13% in relation to last year. Another key IT area Brazilian companies will invest in is artificial intelligence (AI). According to IDC, spending in that area will surpass $1 billion this year, an increase of 33% compared to 2022.

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