Software - Brazil

Brazil

The Software market in Brazil is expected to reach a projected revenue of US$9.40bn in 2024.
Among the different segments, Enterprise Software dominates the Brazilian market with a projected market volume of US$4.03bn in the same year.
Looking ahead, the Software market is expected to grow at an annual growth rate of 5.98% from 2024 to 2029, resulting in a market volume of US$12.57bn by 2029.
In comparison to other countries, United States is anticipated to generate the highest revenue with US$363.40bn in 2024.
Brazil's software market is experiencing significant growth with a surge in demand for cloud-based solutions and a focus on digital transformation.

Key regions: United States, Canada, Germany, China, Japan

Definition:

In general, software is defined as a set of instructions written as programming code to execute specific tasks on a computing device. The Software market covers a wide range of software products and solutions that are publicly sold by various companies. Most software solutions in this market are designed for professional use, but some can also be suitable for personal use. They can also range from basic productivity tools such as word processors and spreadsheets to complex software solutions such as project management tools, graphic design software, and enterprise resource planning software.

Products in the Software market can be obtained in two ways: as on-premises software that is sold via a transactional license or a subscription and as cloud-based software (software as a service/ SaaS) that is most frequently sold as a subscription.

Structure:

The market contains four markets that are based on the functionality of the software:

Productivity Software refers to application software that supports activities such as producing documents, spreadsheets, drawings, and presentations. This market includes Administrative Software, Collaboration Software, Office Software, Creative Software, and Construction and Design Software.
Enterprise Software refers to all software that supports essential large-scale business activities such as enterprise resource management, customer management, and supply chain activities. This market includes Enterprise Resource Planning Software, Customer Relationship Management Software, Business Intelligence Software, Supply Chain Management Software, Content Management Software, and Other Enterprise Software.
Application Development Software refers to software and tools that help the overall application development process.
System Infrastructure Software refers to software that provides the base framework for operating and managing organizational processes and services on hardware devices.

Additional Information:

The Software market comprises revenue and revenue change as the key performance indicators. Only revenues that are generated by primary vendors at the manufacturer price level either directly or through distribution channels (excluding value-added tax) are included, and revenues generated by resellers are excluded. Revenues are generated through both online and offline sales channels and include spending by consumers (B2C), enterprises (B2B) as well as governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed.

Key players in this market include Microsoft, Adobe, SAP, Oracle, and Salesforce.

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Analyst Opinion

The Brazilian software market has been experiencing a steady growth in recent years, driven by various factors such as the increasing adoption of cloud computing, rising demand for automation and digitalization, and the growing popularity of mobile and web applications.

Customer preferences: In Brazil, customers have shown a strong preference for software solutions that offer flexibility, scalability, and cost-effectiveness. Cloud-based software solutions, in particular, have gained significant traction due to their ability to offer on-demand access to resources, reduced infrastructure costs, and simplified maintenance and upgrades. Additionally, customers are increasingly seeking software solutions that are easy to use, customizable, and can integrate with existing systems.

Trends in the market: One of the key trends in the Brazilian software market is the growing demand for automation and digitalization across various industries. This has led to an increased focus on developing software solutions that can streamline business processes, improve operational efficiency, and enhance customer experience. Another trend is the rising popularity of mobile and web applications, as more consumers and businesses are relying on smartphones and tablets for their daily activities.

Local special circumstances: Brazil is the largest economy in Latin America, with a large and diverse population of over 211 million people. The country has a well-established IT industry, with a significant number of software development companies and startups. However, the local software market is also highly competitive, with both domestic and international players vying for market share. Additionally, the country has a complex tax system and regulatory environment, which can pose challenges for software companies looking to operate in the market.

Underlying macroeconomic factors: The Brazilian software market is influenced by various macroeconomic factors, including GDP growth, inflation, and exchange rates. The country has been experiencing a period of economic recovery in recent years, following a recession in 2015-2016. This has led to increased business confidence and investment in the IT sector. However, the country is also facing political and social challenges, including corruption and income inequality, which can impact the overall business environment. Additionally, the Brazilian real has been subject to significant volatility in recent years, which can affect the cost of software development and pricing strategies for software companies operating in the market.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises, except for the Enterprise Software segment, in which consumer (B2C) spending is not considered. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of the market-leading companies and reports from our primary research. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, level of digitization, GDP sector composition, and observed level of software piracy. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.