Research reveals that Brazil has 480 million digital devices in use, 2.2 per inhabitant

As of May 2024, Brazil had 480 million digital devices (computers, laptops, tablets and smartphones) in corporate or personal use, or 2.2 per inhabitant, according to the 35th edition of the Annual Survey of the Brazilian IT Market and Corporate IT Use. The survey’s results were released on Wednesday, June 26 by the FGV Center for Applied Information Technology (FGVcia), part of the Sao Paulo School of Business Administration (FGV EAESP).

The study also reveals that there are 258 million smartphones in use in Brazil, or 1.2 per inhabitant. Including laptops and tablets, there are 384 million portable devices, or 1.8 per inhabitant. Across the country, three cellphones are sold for every TV set.

In relation to computers, Brazil has 222 million (desktops, laptops and tablets) in use, or 1.02 computers per inhabitant. In 2023, computer sales fell 3%, to 12 million units. Total sales are expected to remain stable in 2024, with a higher proportion of laptops.

The survey found that OpenAI’s ChatGPT, Google Gemini and Microsoft Copilot are the AI tools most used (in that order) for chatbots, machine learning and biometric recognition (digital, facial and palm), among other purposes.

According to FGVcia’s research coordinator, Professor Fernando Meirelles, “Smartphones’ dominance in applications and user classes has grown. The most common IT projects at companies are artificial intelligence integrated with analytics, digital transformation and the implementation of “new” ERP, with a focus on strategic alignment. IT spending and investment continues to grow in value, maturity and importance to businesses. At banks, IT spending and investment is expected to reach around R$56 billion by 2025/26.”

The survey calculated IT spending and investment (encompassing all investments, expenses and funds allocated to IT, including equipment, facilities, supplies and consumables, software, services, communications and the direct and indirect cost of own and third-party IT personnel) and divided it by each company’s net revenue.

It was found that the more computerized a company is, the more of its revenue it spends on IT. Over the last 36 years, this spending has grown by 6% a year, from 1.3% of revenue in 1988 to 9.4% in 2023/24. Even so, there is plenty of room to grow and reach the levels seen in the most developed countries. Researchers expect this indicator to reach 11% in the next two to three years.

Another indicator, among the more than 50 analyzed in the survey, is Annual IT Cost per User, which now stands at R$56,000. This figure refers to the IT spending and investments of the companies surveyed last year, divided by the number of users in the company.

This indicator does not seem to have any economies of scale but merely grows with the size of the company. However, it does vary according to the sector. The average rate is R$66,000 at service companies, R$49,000 in industry, R$35,000 in commerce and R$150,000 at banks.

Software market share

The study also mapped market share in 30 software categories. Microsoft continues to dominate several end-user categories, with usage rates approaching 90% in some areas. The companies that increased their share the most were Google and Qlik. For videoconferencing, Microsoft Teams rose to 44%, overtaking Zoom, which had 33%.

The enterprise resource planning (ERP) systems offered by Totvs and SAP each have 34% of the market, while Oracle has 12% and other players account for 20%. Totvs leads among small enterprises, while SAP has a market share of 50% among large companies. New technologies are driving the need to increasingly integrate the physical with the digital and they demand the implementation of new integrated processes internally, externally and with the company’s ecosystem. “New” ERP remains at the heart of digital transformation.

Business intelligence and analytics programs continue to be a prominent category, and among the most lucrative for software companies. SAP (with a market share of 24%), Oracle, Totvs, Microsoft and Qlik (16% each) and IBM (9%) are the leaders in this segment, accounting for 96% of the market. Despite all this arsenal of modern tools, 90% of analytical intelligence in companies’ finance departments is done using Excel. On average, the cloud handles 45% of companies’ data processing.

IT spending and investment in banks, private hospitals and agribusiness

The study took an in-depth look at three sectors of the Brazilian economy: banks, private hospitals and agribusiness.

In the last decade, IT spending and investment by banks has doubled. This growth is expected to continue, with annual outlays reaching approximately R$56 billion by 2026.

The study also found that mobile banking now accounts for 90% of banking transactions. In private hospitals, the Annual IT Cost per Bed is R$180,000, and the agribusiness sector is similar to the industry average.

You can find the full report here.

Methodology

Every year since 1988, FGVcia has published a broad portrait of the information technology market, based on the results of studies and surveys on the use of IT in companies. In this edition, 2,664 medium and large companies took part.

The results show that companies and society are undergoing digital transformation. FGVcia is considered a leading center in this field and its research provides unparalleled and interesting figures, portraying the current situation and trends in this environment, making a valuable contribution to business and academic circles.