Brazil Returns to Top 10 Global Tech Powers with 6.8% Growth in 2024

Brazil’s high-tech industry achieved remarkable 6.6% growth in 2024, ending five consecutive years of decline, according to data compiled by the Institute for Studies on Industrial Development (Iedi).

This growth outpaced the manufacturing industry’s overall 3.8% expansion, positioning it as the second-best performer among industrial groups. Brazil surpassed South Korea and Italy to reclaim its position among the top 10 global technology powers, with investments reaching US$50 billion.

The country now ranks first in Latin America, representing 37.2% of regional tech investments, up from 36.5% in 2022. This achievement marks a significant milestone in Brazil‘s digital transformation journey.

The sector demonstrated exceptional momentum throughout 2024, expanding by 15.6% in the final quarter compared to the same period in 2023. December proved particularly strong with the sector advancing 20.3% year-over-year.

Leading industries driving this growth include aircraft manufacturing, pharmaceutical products, and computer electronics. Brazil currently invests R$186.6 billion in digital transformation initiatives focusing on semiconductors, industrial robotics, and artificial intelligence.

The pharmaceutical sector showed exceptional performance with 27.1% growth in December 2024 compared to the previous year. Meanwhile, the Information and Communication Technology sector expanded at approximately 6.8%.

This tech revival has sparked significant merger and acquisition activity. M&A deals in Brazil’s technology sector reached R$26 billion ($4.2 billion) in 2024, marking a 115% increase from 2023. The number of transactions increased from 145 to 169 during this period.

Brazil Faces Critical Talent Shortage

Brazil faces a critical talent shortage amid this growth. Current estimates suggest a deficit of approximately 150,000 tech professionals. This shortage has created a competitive job market with salaries for senior positions ranging from R$120,000 to R$200,000 annually.

The Brazilian government actively supports this growth through initiatives like the “AI for the Good of All” National Plan, projecting investments of $4 billion by 2028. Despite positive growth, Brazil’s high-tech industry remains 5.2% below its pre-pandemic levels.

The tech sector now contributes 7.8% to Brazil’s GDP, highlighting its growing economic importance. With continued government support and private investment, Brazil’s tech industry appears positioned to maintain its recovery trajectory despite economic headwinds.