Tablet computers account ed for around 4.2% of the Brazilian computer market in 2012, helping to boost the total number in the market to 118mn, around 60 % penetration . The lower price of the devices is putting them in the hands of more consumers and chipping away at the growth in notebooks. The changing dynamics of the market reflect the developing use of technology and availability of communications infrastructure to allow the advancement of such services. BMI sees the developing telecoms industry as key to the expansion of the country's IT market .
|Hardware Underpinning Future Expansion|
|Brazil IT Market Growth By Segment (%)|
The data on tablet growth in the market were part of a wider study undertaken by the Fundação Getúlio Vargas (FGV) in São Paulo, which reported that IT spending among medium and large enterprises has tripled over 18 years. In 2012, companies invested 7.2% of their revenues in IT, according to the study, with approximately BRL24,200 (US$11,976) spent on IT per employee.
The FGV study suggest that the rate of growth in computers will see Brazil hit its 100% PC penetration target in 2015, a year earlier than previously predicted. Much of this has been generated by the wider availability of tablets, which grew 11% in 2012 in a total of 22.6mn devices sold in the market. There were around 5mn tablets in 2012, as more manufacturers looked to emerging markets for growth. BMI expects tablets to help maintain the hardware sector's growth over our five-year forecast period, boosting the overall market growth.
As IT markets mature, spending on services and software increases, and Brazil is proving to be no exception. The FGV study says that local player Totvs, alongside major international companies SAP and Oracle, holds 81% of the Brazilian enterprise resource planning market with the local company leading among small companies with 52% of the market. Totvs' share of the customer relationship management market is considerably smaller, allowing SAP and Oracle to capture a larger share of this market. The strong position of local companies, particularly in the small enterprise market, offers strong opportunities for the Brazilian market to continue growing.
The growing incidence of small companies using computers will help drive the demand for software and services in Brazil. Strong growth in PC units provide the foundation for greater growth in IT services, and BMI's forecasts show the IT services market will grow at an average rate of 9.9% over 2013-2017 with software not far behind on 9.0%.