IDC Forecasts $175 Billion in ICT Investment in Brazil this year

Brazil is on course to become the world’s fourth largest ICT market, with telecom and technology firms preparing to spend more than $175 billion this year, according to market analyst firm IDC.

Several operators are rolling out 4G networks and analysts say more than 3 million Brazilians will have connected to LTE networks by the end of the year. Smartphone sales in Brazil have surpassed feature phone sales already and are expected to represent 71% of the total base in 2014.

Brazil is the world’s sixth-biggest market in terms of Internet users, with 86 million users in 2012. Businesses across the country are likely to invest $6 billion to bolster their IT infrastructure this year.

However, ICT investment in Brazil is driven not by high-speed wireless networks but by the growing demand for cloud, Big Data, mobility and social tools designed to improve businesses. The Big Data analytics market is set to start maturing, pushed by retail, telco and finance vertical, while public cloud services are set to rise by 67%, IDC says.

“Solutions based on mobility, cloud, big data and social tools will drive business innovation” said Alexandre Campos, director of research at IDC Brazil.

The analyst firm says the security of networks (WAN) will also gain space on CIO agenda and predicts that Brazil’s investment in public cloud services may reach $569 million by 2017.

Smartphones and tablets will end the year with sales of over 58 million units, gaining even more ground than sales of desktops and notebooks. Meanwhile, programs like BYOD (bring your own devices) may bring in 5 million mobile computers to enterprise world, IDC predicts.