Software in Brazil Global vs Local Outlook Analysis¶
Global vs Local outlook¶
The software value chain, both globally and in Brazil, follows a similar structure encompassing Research & Development, Development/Production, Distribution, Implementation/Deployment, and Support & Maintenance. However, the maturity, scale, and specific dynamics within each step differ between the global and local contexts.
Globally, the software market is vast and projected for significant growth, driven by rapid technological advancements, particularly in AI and cloud computing, increased digitalization across industries, and government initiatives promoting technology adoption. [2, 3, 6, 7, 10, 11, 12] North America currently dominates the global market in terms of size and adoption of advanced solutions like data integration, but Asia-Pacific is expected to be the fastest-growing region. [2, 8, 21] The global market is characterized by the widespread adoption of cloud-based solutions, with SaaS being a major driver of growth. [3, 4, 5, 6, 11] Large enterprises are the dominant segment for software adoption globally, benefiting from solutions that enhance productivity and manage complex data ecosystems. [2, 4, 7, 21]
Brazil, as the largest IT market in Latin America, mirrors many of these global trends but with its own set of characteristics and challenges. The Brazilian software market is also experiencing robust growth, fueled by digitalization and cloud investment. [Value Chain Analysis, 5, 8] SaaS adoption is accelerating in Brazil, aligning with the global shift towards cloud-based models. [Value Chain Analysis, 4] While large global players have a strong presence, a significant ecosystem of local companies also thrives, particularly in segments like ERP and specialized vertical software. [Value Chain Analysis]
Key differences emerge in the scale of the markets and the specific challenges faced. The global market, valued at hundreds of billions of dollars, dwarfs the Brazilian market, although Brazil is a regional leader. [2, 4, 5, 6, 7, 8, 10, 11, 12, Value Chain Analysis] While the global market benefits from a more mature technology ecosystem in regions like North America, Brazil grapples with bottlenecks such as talent scarcity, regulatory complexity, and infrastructure gaps, particularly outside major urban centers. [Value Chain Analysis] Legacy system integration also remains a notable challenge in Brazil. [Value Chain Analysis]
Despite these local hurdles, both global and Brazilian markets show a strong focus on emerging technologies like AI and a clear trend towards cloud-native development and subscription-based models. [2, 3, 4, 5, 6, 7, 12, 14, 16, 17, 18, 20, 21, Value Chain Analysis] The demand for solutions that enhance efficiency, transparency, and security is a common thread driving growth in both outlooks. [4, 5, 6, 9, 10, 11, 13, 15, 17, 20, 22]
Trends detailing¶
| Trend | Global Outlook | Local Outlook (Brazil) | Similarities / Differences |
|---|---|---|---|
| Market Size & Growth | Global market estimated at USD 730.70 billion in 2024, projected to grow at 11.3% CAGR from 2025-2030. [2] Overall IT spending projected to grow by 9.3% in 2025. [7, 12] | Brazilian IT outlays topped US$ 90 billion in 2024, with software capturing ~US$ 15 billion. [Value Chain Analysis] Optimistic growth forecasts of 9–13% annually for IT market. [Value Chain Analysis, 5] Software segment grew over 18% in 2024. [Value Chain Analysis] | Similarity: Both markets show strong growth projections for 2024-2025. Difference: Global market is significantly larger in absolute terms. Brazilian software growth rate in 2024 appears higher than global average. |
| Technology Adoption: Cloud (SaaS) | SaaS market size estimated at USD 358.33 billion in 2024, projected to grow at 13.32% CAGR from 2025-2034. [4, 5] Cloud computing is a key trend for cost savings and flexibility. [6, 11] 89% of companies use cloud-based SCM tools. [23] | SaaS adoption accelerating (46% of Brazilian software houses in 2024). [Value Chain Analysis] SaaS is fastest-growing segment, projected at 30% of 2025 IT budgets. [Value Chain Analysis] Cloud investment robust (US$ 3.5 billion in 2025 for public cloud). [Value Chain Analysis] | Similarity: Both show strong and increasing adoption of cloud computing and SaaS models. This is a major shared driver of growth. |
| Technology Adoption: AI | Worldwide spending on AI anticipated to grow at 29% CAGR from 2024-2028. [3, 7] AI and machine learning are revolutionizing business processes. [6] AI is changing demand forecasting in supply chain. [23] Generative AI is a standout trend. [14] | Cross-segment innovation in AI. [Value Chain Analysis] Local champions like TOTVS and Stefanini investing heavily in AI. [Strategic Priorities and Investments Analysis] AI/ML specialization in development. [Value Chain Analysis] | Similarity: AI is a major focus and growth driver in both global and local markets, integrated across various software segments and value chain steps. |
| Key Segments | Application software leads the global market (44% share in 2024), including ERP, CRM, SCM. [2, 6] Cybersecurity software demand increased by remote working. [6] Enterprise software market growing at 11.74% CAGR (2024-2034). [7] | ERP still significant (40% of enterprise spend), dominated by local player TOTVS. [Value Chain Analysis] SaaS fastest-growing. [Value Chain Analysis] Cybersecurity on track for US$ 1.7 billion in 2024, driven by LGPD. [Value Chain Analysis] Vertical software strong in healthcare, agro, fintech. [Value Chain Analysis] | Similarity: ERP and Cybersecurity are important segments in both. Difference: Brazil has strong local champions in ERP, while global market is more diverse. Vertical software shows local strength in specific Brazilian industries. |
| Challenges | High licensing and support costs can be a challenge. [6] Networking issues for developers. [4] Cybersecurity concerns and data privacy are major restraints. [10] | Talent shortage, regulatory complexity, infrastructure gaps, legacy integration, funding constraints for startups, cybersecurity threats. [Value Chain Analysis] | Similarity: Cybersecurity threats are a shared concern impacting both. Difference: Brazil faces more pronounced challenges related to talent availability, regulatory environment, and infrastructure compared to more developed global regions. |
| Value Chain Activities | Increasing adoption of data integration software by large enterprises. [2, 6] Cloud transformation is making SCM solutions cloud-native. [4] Focus on digital transformation. [4, 5, 6, 9, 10, 11, 22] Need for real-time data access and collaboration in supply chain. [4, 15, 23] | Value chain spans R&D, Development/Production, Distribution, Implementation/Deployment, and Support & Maintenance. [Value Chain Analysis] Hybrid architectures common in implementation (64% enterprises). [Value Chain Analysis] 24/7 bilingual support increasingly standard. [Value Chain Analysis] | Similarity: Digital transformation and the need for real-time data and collaboration are driving changes across the value chain globally and locally. Difference: Specific implementation approaches (hybrid) and support requirements (bilingual) are highlighted in the Brazilian context. |
| Geographical Focus | North America dominated in 2024 (41% of global revenue). [2] Asia-Pacific expected to be fastest-growing region. [8, 21] | Brazil is the largest market in Latin America (~35% of regional IT spending). [Value Chain Analysis] Cloud hyperscalers establishing local regions (AWS, Azure, Google Cloud). [Value Chain Analysis] | Difference: Highlights the regional leadership of Brazil within Latin America compared to the dominance of North America and the rapid growth in Asia-Pacific globally. Establishment of local cloud regions is a key local trend. |
References¶
- ABES – Associação Brasileira das Empresas de Software. “Dados do Setor 2024.” https://www.abes.org.br/dados-do-setor
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- TELETIME. “Investimento em TIC no Brasil alcança US$ 90 bi em 2024, alta de 14%.” https://teletime.com.br/31/01/2024/investimento-em-tic-no-brasil/
- TekRevol. "Top 25+ Tech Industry & Software Development Trends 2025". https://www.tekrevol.com/blog/software-development-trends-2025/
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