BMI View: Brazil's IT market has considerable potential because of the large population and the factdevice and solution penetration rates are below developed markets, and there is potential foroutperformance due to the extent of deferred spending in 2015 and 2016 at the height of the economiccrisis. Optimism surrounding the IT market outlook is however moderated by the high level of political risk,with the corruption scandal now expanding to include allegations against the president, which could deraileconomic reforms and recovery.
Latest Updates & Industry Developments
Computer Hardware Sales: BRL27.3bn in 2017 to BRL31.0bn in 2021, a CAGR of 3.2%. There ispent-up retail PC demand, but the dimensions of the rebound from 2017 are moderated by thecannibalisation of tablet and low-end notebook demand by smartphones.
Software Sales: BRL17.4bn in 2017 to BRL25.4bn in 2021, a CAGR of 9.8%. Application softwarespending can still drive software segment growth as adoption rates have scope for convergence towardsdeveloped markets, and investment should pick up as the economy improves.