Market Size of Latin America IT Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Latin America IT Market Analysis
The Latin American IT market is expected to register a CAGR of about 6.5 % during the forecast period. The increased IT spending worldwide, coupled with the widespread adoption of software-as-a-service and increased cloud-based offerings, indicates the demand for IT services in the industry. With an improved IT infrastructure, threats related to data (data breaches) are also on the rise, leading to a demand for advanced security solutions over traditional ones. With this trend gaining traction in the market, companies have started investing resources in enhancing their advanced security offerings.
- Trends like 5G, Blockchain, augmented reality, and artificial intelligence are anticipated to impact IT service offerings. With 5G technology on the horizon, businesses can set up networks on their premises. The digital revolution is intended to allow for the establishment of new networks based on local frequencies or the upgrade of current networks to LTE. This trend necessitates the establishment of real-time IT hubs to support the automation and autonomy of complex systems.
- A nonprofit affiliate of the Organization of American States participates in the effort and is dedicated to fostering Latin American economic, social, and political growth. For instance, in June 2022, the governor of Puerto Rico, Pedro R. Pierluisi, Labor Secretary Gabriel Maldonado-González, and executives from technology giant Microsoft signed a collaboration agreement that provides training for the people who are currently unemployed to become certified by the corporation within two years.
- In February 2022, Google, the world's significant public cloud provider, planned to expand its cloud into four additional major verticals in Latin America. The corporation established specific teams in Latin America to support the region's utilities, agricultural, manufacturing, and logistics verticals.
- IT services are gaining acceptance in the hybrid IT-managed environment as the IIoT platform expands across the Industry 4.0 platform. AI technology is also finding its way into the manufacturing and design sectors, fueling market demand throughout the forecast period.
- The vulnerability of supply chains was revealed with the outbreak of COVID-19. Most IT businesses' fragile ecosystems include providers of critical IT services. Work-from-home regulations compelled service providers to ensure that mission-critical enterprise customers have access to the tools and technology required to improve service speed, security, quality, and overall efficacy.
