en.Wedoany.com Reported - Brazil remains the largest technology market in Latin America and maintains its position as the world's tenth-largest economy in information technology (IT) investment. This conclusion comes from the second phase of the "2026 Brazilian Software Market Study – Panorama and Trends" report, prepared by the Brazilian Association of Software Companies (ABES) based on IDC data.
In 2025, Brazil's IT market reached $67.8 billion, with software and service investments totaling $35.4 billion. This scale places Brazil ahead of any other Latin American market, alone accounting for 38.4% of all technology investments in the region. Mexico, ranking second, holds approximately 24% of the Latin American market, while other countries lag far behind. ABES believes this result reinforces Brazil's role as the primary technology investment destination in the region. Jorge Sukarie Neto, advisor and research lead for the association, stated that Brazil remains one of the top ten global technology powers and continues to be the main market in Latin America.
The study reveals significant changes in the technology agendas of Brazilian enterprises. Generative Artificial Intelligence and AI agents have become top priorities for companies in 2026. The survey shows that 53% of executives list generative AI and intelligent agents as their main investment focus, followed by information security and cloud security (41%), AI and machine learning (35%), cloud infrastructure (24%), and big data and analytics (24%). Currently, 40% of companies report investing in AI agents, with another 33% planning to launch projects within the next 12 months. This means over 70% of Brazilian organizations are either already investing or planning to invest in this technology in the short term. However, the study indicates that financial results have not yet fully matched expectations. Sukarie noted that many companies have recorded improvements in individual productivity but still face difficulties in measuring specific corporate returns.
The study identifies a series of bottlenecks limiting AI expansion in Brazilian enterprises, primarily related to data quality and governance. Issues involving data processing, organization, availability, and management are considered the biggest challenges for scaling AI projects. Other obstacles include modernizing legacy systems, project governance and control, initiative scalability, a lack of specialized talent, the need for reliable data for model training and operation, and cybersecurity and regulatory compliance concerns. According to ABES, the challenges are no longer purely technical but involve processes, corporate governance, and professional qualifications.
In the study's release, a notable point is the relatively low priority of data center infrastructure among surveyed executives. According to the research, data center infrastructure ranks fourth among five priorities, with an investment share of 24%. Sukarie pointed out that the survey respondents are chief information officers (CIOs) and technology leaders from user companies, not infrastructure operators, and their focus is more on service procurement than building in-house capabilities. Enterprise buyers tend to view data centers as an existing service layer in the market, concentrating their attention on AI applications, security, productivity, and digital transformation. This finding coincides with a period of strong expansion in Brazil's digital infrastructure investments, driven by the AI computing power race, cloud service growth, and data processing demands.
The study identifies 41,613 companies operating in the software and services sector in Brazil. The industry structure is highly fragmented: 62.5% are micro-enterprises, 31.8% are small businesses, 3.4% are medium-sized enterprises, and 2.3% are large companies. Micro and small enterprises together account for 94.3% of the entire national ecosystem. By activity, service-oriented companies have the highest share at 37.6%, followed by technology distributors (33.3%) and software developers (29.1%).
The financial sector remains the primary consumer of software and services in the country. In 2025, banks and financial institutions accounted for 25.4% of the national market, with investments of $8.99 billion. This is followed by services and telecommunications ($8.61 billion, 24.3%), industry ($6.92 billion, 19.5%), retail ($3.53 billion), the public sector ($2.44 billion), oil and gas ($1.34 billion), and agribusiness ($0.67 billion). The top three sectors account for approximately 70% of Brazil's total software and service investments.
Another trend highlighted by ABES is the gradual dispersion of technology investments. Although the Southeast region still accounts for 62.37% of the national total, its share is declining; in 2012, this region concentrated 65% of investments. Over the same period, the South region's share expanded from 12% to nearly 16%, and the North and Northeast regions also recorded growth. The association believes this reflects the maturation of Brazil's digital ecosystem and the expansion of digital transformation beyond traditional large economic centers.
For 2026, IDC expects investment expansion to be more selective. Forecasted growth includes: IT at 5.3%, telecommunications at 3.9%, and business IT at 4.6%. Companies are expected to prioritize projects with faster returns, measurable productivity gains, and specific operational benefits, while maintaining artificial intelligence as the primary driver of digital transformation.
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