The software market in Latin America grew by 16% in 2012, with Brazil accounting for 55% of the regional market, according to the technology market research firm IDC. Such a growth rate is unusual in the region, where the Internet has yet to pick up speed or become accessible to a large majority of people in remote areas.
The fastest growing technologies, according to IDC, were Big Data, CRM, ERP and collaboration applications. According to the report, Big Data, mobility and cloud have proved to be major engines of technology market growth. The report also noted that a large number of Latin American firms are turning to social networks to connect with their customers.
IDC believes that Latin America’s annual investment in software could rise to $20 billion by 2017. César Longa, IDC’s Market Manager, says software market growth accelerated markedly in 2012 and that the trend is most likely to continue into 2013 and beyond.
LATAM’s IT industry has been transforming in the last three years, with both the software market and the IT service sector set for high growth in the near future, the research firm said.
Of the fastest growing technologies, ERP represented 25% of business Software in the region and Big Data accounted for 21 % of revenue in the software market. Content Management and Collaboration Applications represented 11 percent.
Brazil led the region, with a 55% share of the software market, while Mexico came close second with 20% of the market. Mexico’s IT market could receive a big boost given the rate at which companies there are investing in technology, IDC added.