Software - South America

South America

The Software market in South America is expected to achieve a revenue of US$15.47bn by 2024.
The dominant player in this market segment is Enterprise Software , which is projected to reach a market volume of US$6.58bn in 2024.
The revenue is expected to exhibit a compound annual growth rate (CAGR 2024-2029) of 5.49%, resulting in a market volume of US$20.21bn by 2029.
When compared globally, United States is anticipated to generate the highest revenue, amounting to US$363.40bn in 2024.
In South America's software market, Brazil is leading the way with a booming tech industry and a high demand for software solutions.

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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Market

Region

Region comparison

Currency

Analyst Opinion

The demand for software in South America has been on the rise in recent years, with several countries in the region experiencing steady growth in this market.

Customer preferences: South American customers are increasingly opting for software solutions that are cloud-based and offer mobile compatibility. This is due to the growing need for remote access and flexibility in the workplace. Additionally, customers in the region are placing a higher value on software that offers robust security features and reliable technical support.

Trends in the market: Brazil, Argentina, and Chile are the largest markets for software in South America, with Brazil leading the way in terms of revenue. The Brazilian software market is expected to see continued growth due to a rising demand for enterprise software solutions. Argentina is also seeing growth in the software market, particularly in the areas of e-commerce and mobile app development. In Chile, there is a growing trend towards the use of software in the healthcare and education sectors.

Local special circumstances: One of the unique challenges facing the software market in South America is the prevalence of piracy. This is particularly true in countries like Brazil, where piracy rates are among the highest in the world. Additionally, the region has a highly diverse linguistic and cultural landscape, which can make it difficult for software companies to develop solutions that are tailored to local needs.

Underlying macroeconomic factors: The growth of the software market in South America can be attributed to several underlying macroeconomic factors, including a growing middle class, increased investment in technology infrastructure, and a rise in entrepreneurship. Additionally, the COVID-19 pandemic has accelerated the adoption of digital solutions in the region, with many businesses and individuals turning to software to facilitate remote work and communication.

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.