The report states that the IT market in Latin America is projected to reach $77 billion by 2023, with a compound annual growth rate of 5.1%. This growth is driven by a number of factors, including the increasing adoption of cloud computing, artificial intelligence, and the Internet of Things (IoT).
One of the key drivers of this growth is the increasing adoption of cloud computing. IDC predicts that the cloud services market in Latin America will grow at a CAGR of 19.9% between 2018 and 2023, reaching $7.8 billion by 2023. This growth is driven by the increasing demand for cloud-based services, such as infrastructure as a service (IaaS) and software as a service (SaaS), as well as the growing awareness of the benefits of cloud computing among businesses in the region.
Another key driver of IT spending in Latin America is the growing adoption of artificial intelligence (AI). IDC predicts that the AI market in Latin America will grow at a CAGR of 34.5% between 2018 and 2023, reaching $1.2 billion by 2023. This growth is driven by the increasing use of AI in various industries, such as healthcare, finance, and retail, as well as the growing awareness of the benefits of AI among businesses in the region.
The Internet of Things (IoT) is also expected to play a significant role in driving IT spending in Latin America. IDC predicts that the IoT market in Latin America will grow at a CAGR of 15.8% between 2018 and 2023, reaching $4.5 billion by 2023. This growth is driven by the increasing adoption of IoT-enabled devices and the growing awareness of the benefits of IoT among businesses in the region.
In conclusion, IDC's report predicts that IT spending in Latin America will outpace GDP growth in 2023, driven by the increasing adoption of technologies such as cloud computing, AI, and IoT. Businesses in the region are becoming more aware of the benefits of these technologies, and are increasingly investing in them to drive digital transformation and improve efficiency.
