Brazil’s IT Market Surges 13% in 2024, Leading Latin America

Brazil’s Information Technology (IT) sector grew by 13.9% in 2024, surpassing the global average of 10.8% and solidifying its position as the largest IT market in Latin America, with 34.7% of regional investments.

The South American country is now the 10th largest IT investor globally and has increased its market share in software and IT services to 1.5%, according to a study by the country’s IT lobby group ABES.

The sector’s expansion was driven by artificial intelligence (AI), business digitalization, and advancements in cloud and cybersecurity infrastructure

Investments in IT reached $1.44 billion in 2024, slightly down from $1.49 billion in 2023. However, ABES projects 9.5% growth for 2025, outpacing the global forecast of 8.9%.

Generative AI has been a key growth driver, with 90% of large Brazilian firms implementing AI applications. This has fueled modernization in data centers and enterprise networks, with 28% of providers adapting their infrastructure for AI workloads.

High-speed networks (400G and 800G Ethernet) are also becoming critical for growing data demands.

Cybersecurity investment is another primary focus, with spending projected to reach $2.1 billion by 2025. Companies are increasingly adopting AI-driven security measures following reports that the region is among the worst victims of cybercrime.

“Brazil is strategically positioning itself to lead the new technological era,” said Jorge Sukarie, ABES adviser.