Brazil's ICT industry projected to expand 6.8% in 2024

The Brazilian ICT industry is set to expand 6.8% in 2024, according to the country’s software promotion agency Softex.

The estimate is contained in a study launched by Softex with support from the science, technology and innovation ministry (MCTI).

The forecast is “in line with global trends” said Softex, but still below the 7.4% estimate for the industry worldwide this year.

For 2025, the growth projection for the sector globally is 10.4%, according to the entity, which based its estimates on public data from research firms and multilateral organizations. Softex foresees a decline in the industry's growth for the following two years after 2025.

In Brazil, spending on ICT services and software amounted to 552bn reais (US$100bn) in 2023 and is forecast to reach 590bn reais this year.  

The sector contributed 321bn reais to GDP last year, or 3% of the total, according to Softex.

A previous report from Brazil's ICT association Brasscom said the industry generated 708bn reais in revenues last year, up 5.9% on 2022 in real terms and for a 6.5% share of GDP.

Brazil’s foreign trade in ICT, mainly IT and telecom services, generated more than US$13bn in 2022, an increase of 38.7% compared to 2021, according to Softex, which did not provide 2023 figures.

“Despite this growth, the sector faces challenges, such as the trade deficit, which is expected to increase 33% in 2024, reaching US$8mn. Imports exceed exports by 14%, highlighting the need for policies that stimulate the international competitiveness of Brazilian companies,” wrote the agency.

STARTUPS

In another chapter of the study, Softex said Brazil had 12,040 active startups at the end of 2023.

Although the number of new startups grew steadily from 2000 to 2018, there was a decline after 2018, notes the report. Most startups operate in the B2B model, with a greater concentration in the southeast region of Brazil, according to Softex.

Softex said the sectors with the most startups are information technology, health & wellness and education.

GLOBAL SCENARIO

In 2023, global investments in the sector grew 5.6% to US$3.7tn and are expected to exceed US$4tn this year, the study says.

The global market is led by the US with a 38% share, followed by China, while India stands out with the highest growth rate at 7.9%.

The full study can be accessed in the Documents box in the top-right corner of the screen.