Brazil: 5G technology to generate US$25.5 billion in investments by 2025

RIO DE JANEIRO, BRAZIL – The arrival of 5G mobile networks should generate investments of US$25.5 billion by 2025 in the Brazilian technology market, especially in applications of artificial intelligence, internet of things, cloud computing, big data, and cybersecurity, informed the consultancy IDC Brazil.

Only in cybersecurity services, Brazilian companies should invest US$1.6 billion this year, an increase of 17.6% over 2021, due to the wave of cyber-attacks initiated in the pandemic.

According to IDC, the global shortage of components should still plague the electronics market, at least until the end of the year.

Reinaldo Sakis, research and consulting manager of IDC Brazil, observed that the global investments of the semiconductor manufacturers directed to the production of more advanced microprocessors – from 10 nanometers – shall generate delays or restriction of products with chips from previous generations. Currently, 65% of the components used in smartphones are of less advanced generations.

The sales of computers, smartphones, and tablets should total US$22.9 billion this year, which shows an increase of 12.6% in revenues, but a slowdown in the growth of units, which should exceed by 1.9% the volume sold in 2021.

In servers, the manufacturers’ projected revenue is US$481 million, this year, in the country, an increase of 5.5% over 2021.

The migration of companies to cloud infrastructures continues to grow rapidly. This year, IDC Brazil predicts that spending on infrastructure as a service in the public cloud will reach US$1.9 billion, 36% above the investment in 2021. On the same comparative basis, spending on private cloud should total US$540 million, surpassing by 7.9% the sum of the previous year.

Overall, the Brazilian market for technology and telecommunications will grow 8.2% this year. Only in technology services, excluding equipment and software, the market should grow 6.7% to US$44 billion.