Chile Software Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)
Description
The Chile software market is projected to grow at a CAGR of 13.10% between 2025 and 2034, aided by the rapid digitalisation of financial infrastructure in the country.
Chile Software Market Growth
The Chilean government incentivises companies which make investments in the research and development of new software technologies in the country. Law No. 20.570 significantly reduces the corporate tax bills for multiple companies, by providing a tax credit of nearly 35% on the investment amount. Moreover, it enables companies to claim deductions on the remaining 65% of their investment and gain a bonus of up to $1 million, thereby making investments in software development an extremely lucrative opportunity.
As per the Latin American Artificial Intelligence Index, Chile is a regional leader in South America for AI development. Nearly 70% of all local companies use AI tools for process automation and making data-driven decisions. Under the Chile 2035 programme, the government aims to expand the coverage of public sector digitisation, infrastructure and security. It also advocates for digital rights to remain a leading player in software development regionally. In 2023, the Chilean government increased the budgetary allocation for public sector digitisation by 64%. This is expected to accelerate the government’s transition to a 100% digital provider of citizen services by 2035, 86% of which was already accomplished in 2022.
Key Trends and Developments
Nearshoring of software development; thriving start-up scene; strong education system; and increasing investments in cloud technology are the major trends impacting the Chile software market growth.
July 30, 2024
Tapi, an Argentinian paytech company with a substantial market presence in Peru, Chile, and Mexico, raised nearly $22 million in a round of Series A funding.
June 21, 2024
Latin America witnessed a four-fold increase in the number of fintechs from 2018, as per a report of the Inter-American Development Bank, prepared in collaboration with a fintech development firm called Finnovista.
April 29, 2021
In a funding round led by SVG Ventures, Genesis Ventures, and Fundación Chile’s CLIN, AgTech Instacrops successfully raised $2.8 million for its crop management software, which provides real-time insights into crop health and weather conditions.
Dec. 9, 2020
Microsoft announced its decision to expedite business transformation under “Transforma Chile” with the establishment of a new data centre region and a commitment to skill nearly 180,000 people by 2025.
Nearshoring of software development
Major North American software companies are investing in expanding their technological capacities in Chile to fuel their business growth.
Thriving start-up scene
As per the Global Startup Ecosystem Index, Chile is the second most favourable country for startups in Latin America with a presence of over 122 new data centre startups.
Strong education system
Chile has 5 of the thirty leading universities for STEM education in Latin America, including Universidad de Chile, Pontificia Universidad Católica de Chile, and Universidad Técnica Federico Santa Maria, among others.
Increasing investments in cloud technology
There is a rising investment in cloud technology in the country, which can be attributed to its flexibility and scalability to enable businesses to cut costs and drive business transformation.
Chile Software Market Trends
Chile has over 61,000 ICT professionals and is only 2 hours ahead of major American cities such as New York and Boston. Nearly 75% of American companies are seeking to outsource IT operations from Chile to reduce expenditure on labour costs by 65% each. An average front-end software developer in Chile is paid nearly $38,000, which makes it substantially cost-effective for Americans to outsource software development to them. Chile also has a vibrant tech ecosystem, with regions such as Santiago, Valparaíso, and Concepción emerging as the leading areas for innovation. This is expected to sustain the market growth over the forecast period.
Chile Software Industry Segmentation
Chile Software Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:
Market Breakup by Type: Enterprise Resource Planning (ERP)
Customer Relationship Management (CRM)
Enterprise Content Management (ECM) Software
Supply Chain Management (SCM)
Enterprise Collaboration Software
Education Software Network Management Systems (NMS)
Storage Software
Security Software Enterprise Data Management (EDM)
Business Analytics and Reporting Tools
Application Servers
Integration and Orchestration Middleware
Data Quality Tools Office Software
Creative Software
Others
Market Breakup by Deployment:
Based on organisation size, the market is segmented into small and medium enterprises and large enterprises. Over the forecast period of 2025-2034, small and medium enterprises are estimated to grow at a CAGR of 14.4%, due to the increasing government encouragement for entrepreneurship and technological innovation.
Leading Companies in the Chile Software Market
Major software companies in Chile are expected to invest in research and development of innovative technologies for accelerating the industrial adoption of system infrastructure software and development and deployment software.
Chile Software Market Growth
The Chilean government incentivises companies which make investments in the research and development of new software technologies in the country. Law No. 20.570 significantly reduces the corporate tax bills for multiple companies, by providing a tax credit of nearly 35% on the investment amount. Moreover, it enables companies to claim deductions on the remaining 65% of their investment and gain a bonus of up to $1 million, thereby making investments in software development an extremely lucrative opportunity.
As per the Latin American Artificial Intelligence Index, Chile is a regional leader in South America for AI development. Nearly 70% of all local companies use AI tools for process automation and making data-driven decisions. Under the Chile 2035 programme, the government aims to expand the coverage of public sector digitisation, infrastructure and security. It also advocates for digital rights to remain a leading player in software development regionally. In 2023, the Chilean government increased the budgetary allocation for public sector digitisation by 64%. This is expected to accelerate the government’s transition to a 100% digital provider of citizen services by 2035, 86% of which was already accomplished in 2022.
Key Trends and Developments
Nearshoring of software development; thriving start-up scene; strong education system; and increasing investments in cloud technology are the major trends impacting the Chile software market growth.
July 30, 2024
Tapi, an Argentinian paytech company with a substantial market presence in Peru, Chile, and Mexico, raised nearly $22 million in a round of Series A funding.
June 21, 2024
Latin America witnessed a four-fold increase in the number of fintechs from 2018, as per a report of the Inter-American Development Bank, prepared in collaboration with a fintech development firm called Finnovista.
April 29, 2021
In a funding round led by SVG Ventures, Genesis Ventures, and Fundación Chile’s CLIN, AgTech Instacrops successfully raised $2.8 million for its crop management software, which provides real-time insights into crop health and weather conditions.
Dec. 9, 2020
Microsoft announced its decision to expedite business transformation under “Transforma Chile” with the establishment of a new data centre region and a commitment to skill nearly 180,000 people by 2025.
Nearshoring of software development
Major North American software companies are investing in expanding their technological capacities in Chile to fuel their business growth.
Thriving start-up scene
As per the Global Startup Ecosystem Index, Chile is the second most favourable country for startups in Latin America with a presence of over 122 new data centre startups.
Strong education system
Chile has 5 of the thirty leading universities for STEM education in Latin America, including Universidad de Chile, Pontificia Universidad Católica de Chile, and Universidad Técnica Federico Santa Maria, among others.
Increasing investments in cloud technology
There is a rising investment in cloud technology in the country, which can be attributed to its flexibility and scalability to enable businesses to cut costs and drive business transformation.
Chile Software Market Trends
Chile has over 61,000 ICT professionals and is only 2 hours ahead of major American cities such as New York and Boston. Nearly 75% of American companies are seeking to outsource IT operations from Chile to reduce expenditure on labour costs by 65% each. An average front-end software developer in Chile is paid nearly $38,000, which makes it substantially cost-effective for Americans to outsource software development to them. Chile also has a vibrant tech ecosystem, with regions such as Santiago, Valparaíso, and Concepción emerging as the leading areas for innovation. This is expected to sustain the market growth over the forecast period.
Chile Software Industry Segmentation
Chile Software Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:
Market Breakup by Type:
- Application Software
- System Infrastructure Software
- Development and Deployment Software
- Productivity Software
Market Breakup by Deployment:
- On-Premises
- Cloud
- Small and Medium Enterprises
- Large Enterprises
- BFSI
- Retail
- Healthcare
- Government
- IT and Telecom
- Other
Based on organisation size, the market is segmented into small and medium enterprises and large enterprises. Over the forecast period of 2025-2034, small and medium enterprises are estimated to grow at a CAGR of 14.4%, due to the increasing government encouragement for entrepreneurship and technological innovation.
Leading Companies in the Chile Software Market
Major software companies in Chile are expected to invest in research and development of innovative technologies for accelerating the industrial adoption of system infrastructure software and development and deployment software.
- Microsoft Corp.
- Oracle Corp.
- Cisco Systems, Inc.
- Adobe Inc.
- SAP SE
- Others
Table of Contents
123 Pages
- 1 Executive Summary
- 1.1 Market Size 2024-2025
- 1.2 Market Growth 2025(F)-2034(F)
- 1.3 Key Demand Drivers
- 1.4 Key Players and Competitive Structure
- 1.5 Industry Best Practices
- 1.6 Recent Trends and Developments
- 1.7 Industry Outlook
- 2 Market Overview and Stakeholder Insights
- 2.1 Market Trends
- 2.2 Key Verticals
- 2.3 Key Regions
- 2.4 Supplier Power
- 2.5 Buyer Power
- 2.6 Key Market Opportunities and Risks
- 2.7 Key Initiatives by Stakeholders
- 3 Economic Summary
- 3.1 GDP Outlook
- 3.2 GDP Per Capita Growth
- 3.3 Inflation Trends
- 3.4 Democracy Index
- 3.5 Gross Public Debt Ratios
- 3.6 Balance of Payment (BoP) Position
- 3.7 Population Outlook
- 3.8 Urbanisation Trends
- 4 Country Risk Profiles
- 4.1 Country Risk
- 4.2 Business Climate
- 5 Latin America Software Market Overview
- 5.1 Key Industry Highlights
- 5.2 Latin America Software Historical Market (2018-2024)
- 5.3 Latin America Software Market Forecast (2025-2034)
- 6 Chile Software Market Overview
- 6.1 Key Industry Highlights
- 6.2 Chile Software Historical Market (2018-2024)
- 6.3 Chile Software Market Forecast (2025-2034)
- 7 Chile Software Market by Type
- 7.1 Application Software
- 7.1.1 Historical Trend (2018-2024)
- 7.1.2 Forecast Trend (2025-2034)
- 7.1.3 Breakup by Type
- 7.1.3.1 Enterprise Resource Planning
- 7.1.3.2 Customer Relationship Management
- 7.1.3.3 Enterprise Content Management Software
- 7.1.3.4 Supply Chain Management
- 7.1.3.5 Enterprise Collaboration Software
- 7.1.3.6 Education Software
- 7.1.3.7 Others
- 7.2 System Infrastructure Software
- 7.2.1 Historical Trend (2018-2024)
- 7.2.2 Forecast Trend (2025-2034)
- 7.2.3 Breakup by Type
- 7.2.3.1 Network Management Systems
- 7.2.3.2 Storage Software
- 7.2.3.3 Security Software
- 7.3 Development and Deployment Software
- 7.3.1 Historical Trend (2018-2024)
- 7.3.2 Forecast Trend (2025-2034)
- 7.3.3 Breakup by Type
- 7.3.3.1 Enterprise Data Management
- 7.3.3.2 Business Analytics and Reporting Tools
- 7.3.3.3 Application Servers
- 7.3.3.4 Integration and Orchestration Middleware
- 7.3.3.5 Data Quality Tools
- 7.4 Productivity Software
- 7.4.1 Historical Trend (2018-2024)
- 7.4.2 Forecast Trend (2025-2034)
- 7.4.3 Breakup by Type
- 7.4.3.1 Office Software
- 7.4.3.2 Creative Software
- 7.4.3.3 Others
- 8 Chile Software Market by Deployment
- 8.1 On-Premises
- 8.1.1 Historical Trend (2018-2024)
- 8.1.2 Forecast Trend (2025-2034)
- 8.2 Cloud
- 8.2.1 Historical Trend (2018-2024)
- 8.2.2 Forecast Trend (2025-2034)
- 9 Chile Software Market by Organisation Size
- 9.1 Small and Medium Enterprises
- 9.1.1 Historical Trend (2018-2024)
- 9.1.2 Forecast Trend (2025-2034)
- 9.2 Large Enterprises
- 9.2.1 Historical Trend (2018-2024)
- 9.2.2 Forecast Trend (2025-2034)
- 10 Chile Software Market by Industry Vertical
- 10.1 BFSI
- 10.1.1 Historical Trend (2018-2024)
- 10.1.2 Forecast Trend (2025-2034)
- 10.2 Retail
- 10.2.1 Historical Trend (2018-2024)
- 10.2.2 Forecast Trend (2025-2034)
- 10.3 Healthcare
- 10.3.1 Historical Trend (2018-2024)
- 10.3.2 Forecast Trend (2025-2034)
- 10.4 Government
- 10.4.1 Historical Trend (2018-2024)
- 10.4.2 Forecast Trend (2025-2034)
- 10.5 IT and Telecom
- 10.5.1 Historical Trend (2018-2024)
- 10.5.2 Forecast Trend (2025-2034)
- 10.6 Others
- 11 Market Dynamics
- 11.1 SWOT Analysis
- 11.1.1 Strengths
- 11.1.2 Weaknesses
- 11.1.3 Opportunities
- 11.1.4 Threats
- 11.2 Porter’s Five Forces Analysis
- 11.2.1 Supplier’s Power
- 11.2.2 Buyer’s Power
- 11.2.3 Threat of New Entrants
- 11.2.4 Degree of Rivalry
- 11.2.5 Threat of Substitutes
- 11.3 Key Indicators of Demand
- 11.4 Key Indicators of Price
- 12 Value Chain Analysis
- 13 Price Analysis
- 14 Manufacturing Process
- 15 Competitive Landscape
- 15.1 Supplier Selection
- 15.2 Key Global Players
- 15.3 Key Regional Players
- 15.4 Key Player Strategies
- 15.5 Company Profiles
- 15.5.1 Microsoft Corporation
- 15.5.1.1 Company Overview
- 15.5.1.2 Product Portfolio
- 15.5.1.3 Demographic Reach and Achievements
- 15.5.1.4 Certifications
- 15.5.2 Oracle Corp.
- 15.5.2.1 Company Overview
- 15.5.2.2 Product Portfolio
- 15.5.2.3 Demographic Reach and Achievements
- 15.5.2.4 Certifications
- 15.5.3 Cisco Systems Inc.
- 15.5.3.1 Company Overview
- 15.5.3.2 Product Portfolio
- 15.5.3.3 Demographic Reach and Achievements
- 15.5.3.4 Certifications
- 15.5.4 Adobe Inc.
- 15.5.4.1 Company Overview
- 15.5.4.2 Product Portfolio
- 15.5.4.3 Demographic Reach and Achievements
- 15.5.4.4 Certifications
- 15.5.5 SAP SE
- 15.5.5.1 Company Overview
- 15.5.5.2 Product Portfolio
- 15.5.5.3 Demographic Reach and Achievements
- 15.5.5.4 Certifications
- 15.5.6 Others
Pricing
Currency Rates
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