Brazil - Commercial Guide
ICT - Informations and Communications Technologies

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2019-10-13

Overview
The Brazilian Information Technologies (IT) market grew 9.8 percent in 2018, reaching $47 billion. It surpassed previous forecasts of 4.1 percent growth for the period and will continue to grow in 2019 according to a study prepared by IDC in partnership with the Brazilian Software Association (ABES). Additionally, the device market is expected to represent 38 percent of all IT investments in Brazil (about $24.5 billion), due to sales of higher value devices.  The growth expectation for IT investments in Brazil for 2019 is 10.5 percent, still driven by the sale of devices, while the global average growth is estimated at 4.9 percent.

With approximately a third of Latin America’s population, Brazil is the region’s largest telecom market. The Brazilian telecommunications services market is expected to reach $45.76 billion by 2022, a market growth of 20.42 percent  since 2016 based on a study prepared by Frost & Sullivan. Investments in 5G are expected to occur gradually, without significant impact to the sector in 2019/2020.

Leading Sub-Sectors
Information Security
Investments in artificial intelligence (AI) and machine learning for security are expected to reach $671 million. The reason is the prevention of ransomware attacks and compliance with the General Law of Protection of Personal Data, which is expected to take effect in August 2020.
AI
In Brazil, 15.3 percent of medium and large companies already have AI technology among their priority initiatives, and this percentage should double in the next four years. The areas with the greatest growth potential are related to customer service, fraud analysis and investigation, IT automation, diagnostics and health care.

Big Data & Analytics
The big data & analytics market in Brazil is expected to grow to $4.2 billion in 2019 from $3.7 billion in 2018

Public Cloud
The public cloud segment in Brazil is expected to reach $2.6 billion in 2019, growing 35 percent annually to reach $6.5 billion in 2022. Portaria No 9 regulates cloud computing for the federal government and includes a data localization requirement. 

Internet of Things
The Internet of Things (IoT) segment in Brazil is estimated to reach $9 billion this year, driven by applications in agribusiness, health and public services, and is expected to grow by more than 20 percent  annually by 2022. "The National Plan of IOT” has not yet been signed into law.

Opportunities
The Brazilian government has conducted several studies to improve the information and communication technologies (ICT) market and to address challenges and gaps in Brazil’s adoption of its Digital Transformation Strategy. The “Brazil Efficient” program was created with the objective to present guidelines to simplify and modernize public services. The program lists priorities and goals related to the Digital Governance Strategy (EGD) and presents opportunities for U.S. companies. The following areas will be addressed within the “Brazil Efficient” program: interoperability of government data, digital citizenship platform, e-Health services, innovation policies for schools, simplification projects for taxes, social security and services for companies and citizens and digital work identity.

The growing importance of mobile telephony requires improvements in service delivery, especially for developing countries, where the challenges for improving and expanding the existing infrastructure network are greater. Investments in the service and infrastructure areas are necessary for the expansion of the market, but government assistance is needed to take the service to the most remote areas of the country. Brazil will be among the five largest markets in the world for smartphones by 2025, with around 200 million connections.

According to Brazilian regulations, ICT products to be sold and used in Brazil, must have a Certificate of Conformity issued by a Designated Certification Body (OCD), indicating that they comply with Brazilian regulatory requirements. This certificate must also be approved by the Brazilian Telecommunications Agency (ANATEL). The chosen OCD will examine the technical characteristics of the product, determine the applicable regulations and laboratory tests which will be necessary for the certification and approval process. The list of OCDs designated by Anatel to conduct certification processes is available under the tab "Informações Técnicas" then "Certificação de Produtos" and OCDs. It is also important to note that, for imported products, the manufacturer must have a local representative, established according to Brazilian legislation, who will be responsible for product supply and warranty in Brazil. For additional information please visit Anatel’s website. 

Web Resources
Brazilian Association of Information and Communications Technology Companies (BRASSCOM)
Brazilian Association of Telecommunications (TELEBRASIL)
Brazilian Electrical and Electronics Industry Association (ABINEE)
Telecommunications Intelligence (TELECO)