The Brazilian IT market in 2026 is entering a phase of more selective growth, driven by operational efficiency, artificial intelligence, security, cloud computing, systems modernization, and data governance. According to the study... ABES/IDC Brazilian Software Market — Overview and Trends 2026, Brazil invested US$67.8 billion in IT in 2025, an increase of 18.5 billion over the previous year, maintaining its position as the largest market in Latin America and the 10th largest in the world.
What to expect from the Brazilian IT market in 2026
The Brazilian IT market is expected to grow by 5.31 P&T³ in 2026, following an increase of 18.51 P&T³ in 2025. The priority is shifting from purely technological expansion to value capture: automation, productivity, security, cloud computing, generative AI, AI agents, data management, and modernization of digital infrastructure.
Brazilian IT Market 2026 in Numbers
Data from the ABES/IDC study shows a mature, relevant, and resilient sector. In 2025, total IT investment — including software, hardware, and services — totaled US$67.8 billion, maintaining Brazil in 10th position in the global ranking and leading Latin America, with 38.4% of the US$176.6 billion invested in the region.
Brazil's growth of 18.5% surpassed the global average of 14.1%, reflecting the advancement of corporate digitalization, cloud adoption, technological modernization, and investments in artificial intelligence.
Combining IT and Telecom, the Brazilian ICT market reached US$97 billion in 2025, positioning the country as the 9th largest global market. For 2026, projections indicate a slowdown: growth of 5.3% in IT, 4.9% in ICT, 3.9% in Telecom, and 4.6% in Business IT, in a cycle marked by selectivity, efficiency, and greater discipline in investment allocation.
| Indicator | Brazil | Reference |
|---|---|---|
| IT investment in 2025 | US$ 67.8 billion | 10th in the world |
| IT Growth in 2025 | 18,5% | World: 14,1% |
| Participation in Latin America | 38,4% | 1st in the region |
| ICT Market in 2025 | US$ 97 bi | 9th in the world |
| IT Projection for 2026 | +5,3% | World: +9.7% |
Software grows faster than hardware.
Within the US$67.8 billion invested in 2025, hardware still holds the largest market share, but software is the fastest-growing segment—a typical sign of digital maturity. Software grew 21.4% in the year, a faster pace than hardware, which advanced 20.6%, and above IT services, which grew 9.7%.
| Segment | Investment 2025 | Participation | Growth |
|---|---|---|---|
| Hardware | US$ 32.5 bi | 47,9% | +20,6% |
| Software | US$ 21.7 billion | 32,1% | +21,4% |
| IT Services | US$ 13.6 billion | 20,0% | +9,7% |
The structural trend is the migration to cloud models. In CRM applications, the cloud model already represented 75.3% of licenses in 2025 and should reach 77.2% in 2026. In content applications, the cloud share should reach 70.7% in 2026. Even with this progress, hybrid environments continue to be the operational reality for many companies, requiring integration, governance, and asset visibility.
Who buys technology in Brazil: the financial sector leads the way.
From a demand perspective, the software and services market is projected to reach US$35.4 billion in 2025. The financial sector remains the largest consumer of technology in the country, accounting for 25.4% of the market. Combined with Services and Telecommunications (24.3%) and Industry (19.5%), this forms a three-pronged approach that concentrates approximately 70% of national investments in software and services.
| Vertical | Investment 2025 | Participation | Growth |
|---|---|---|---|
| Finances | US$ 8.99 billion | 25,4% | +16,2% |
| Services and Telecom | US$ 8.61 billion | 24,3% | +17,9% |
| Industry | US$ 6.92 bi | 19,5% | +20,3% |
| Retail | US$ 3.53 billion | 10,0% | +8,1% |
| Public Sector | US$ 2.44 billion | 6,9% | +16,7% |
| Oil and Gas | US$ 1.34 billion | 3,8% | +20,2% |
| Agribusiness | US$ 0.67 bi | 1,9% | +18,8% |
| Others | US$ 2.91 billion | 8,2% | +13,1% |
A fragmented market composed mostly of small businesses.
The Brazilian software and services ecosystem is made up of 41,613 companies, but its base is predominantly small. Micro-enterprises represent 62.5% of the total and small businesses, 31.8% — together, 94.3% of the sector. Medium-sized companies total 3.4% and large organizations represent only 2.3%.
By activity, service providers lead, with 37.61% of the total and 15,560 identified companies. Next are technology distributors, with 33.31% and 13,787 companies, and software developers, with 29.11% and 12,066 companies.
Security, generative AI, and AI agents dominate the 2026 agenda.
The strategic IT agenda in Brazil for 2026 is led by security and cloud security, mentioned by 46% of the executives consulted. This is followed by generative AI, with 37%, AI and machine learning, with 27%, cloud management and hybrid IT, with 25%, and agentic AI, with 23%.
| Strategic theme | Mentions |
|---|---|
| Security and Cloud Security | 46% |
| Generative AI | 37% |
| AI and Machine Learning | 27% |
| Hybrid IT and Cloud Management | 25% |
| Agentic AI | 23% |
| Cloud Infrastructure, IaaS, and PaaS | 17% |
| Cloud Apps and SaaS | 17% |
| Process automation | 14% |
| Managed Services and Outsourcing | 12% |
| App Dev and DevOps | 11% |
This data reinforces an important observation: the AI agenda is advancing rapidly, but it is not isolated. To generate value, generative AI and AI agents depend on security, cloud computing, reliable data, platform integration, and operational maturity.
Business initiatives that will drive IT in 2026
From a business perspective, the priorities driving IT investments in Brazil in 2026 are process automation, increased productivity, and revenue generation through digital services. This trend demonstrates that technology is no longer just operational support but is becoming an engine for growth, monetization, and competitive differentiation.
| Business initiative | Mentions |
|---|---|
| Process automation | 41% |
| Increase productivity | 35% |
| Revenue from digital services | 35% |
| Create or improve products | 28% |
| Data privacy | 27% |
| Digital and physical balance in the customer experience. | 22% |
| Customer acquisition and retention | 21% |
| ESG | 20% |
Challenges to transforming technology into results.
Despite increased investment, digitalization still faces significant barriers. The main challenges identified in the study are innovation mindset, cybersecurity and regulation, compliance and data, legacy systems, sector regulation, talent shortage, hybrid work, and ESG goals.
| Challenge | Mentions |
|---|---|
| Innovation mindset | 34% |
| Cybersecurity and regulation | 33% |
| Compliance and data | 28% |
| Legacy systems | 27% |
| Sectoral regulation | 24% |
| Lack of talent | 23% |
| Hybrid work | 22% |
| ESG Goals | 20% |
These challenges explain why the 2026 agenda cannot be treated solely as the adoption of new technologies. The competitive advantage will lie in the ability to integrate data, assets, processes, security, automation, and governance into a consistent operational architecture.
Where will technology investments go in 2026?
IDC projects that IT services will remain one of the main spending categories, while the highest growth rates are concentrated in AI, cloud, business applications, security, and connectivity. The AI category, considering software and services, is expected to grow 36.11% year-on-year, the fastest acceleration among the groups analyzed.
Methodological note: The chart below follows the investment trends analysis from IDC Trackers & Spending Guides, while the consolidated 2025 data presented earlier follows the IDC Worldwide Black Book. Therefore, the figures should be read as complementary analytical snapshots, not as a linear comparison between the data sets.
| Category | Estimated investment for 2026 | Growth |
|---|---|---|
| IT Services | US$ 13.5 billion | +9,8% |
| Business applications, CRM, ERM, POA and SCM | US$ 7.9 billion | +20,2% |
| Public cloud, IaaS | US$ 3.4 billion | +20,5% |
| Security, hardware and software | US$ 2.3 billion | +19,2% |
| Networks and connectivity | US$ 2.0 bi | +20,9% |
| AI, software and services | US$ 1.9 billion | +36,1% |
| Traditional infrastructure, servers and storage | US$ 1.2 billion | Excerpt associated with modernization |
Regional distribution of IT investments
IT investments remain concentrated in the Southeast, which represents 62.37% of the market, followed by the South, with 15.86%, the Midwest, with 10.96%, the Northeast, with 7.70%, and the North, with 3.12%.
| Region | Participation |
|---|---|
| Southeast | 62,37% |
| South | 15,86% |
| Central-West | 10,96% |
| North East | 7,70% |
| North | 3,12% |
The long-term trend, however, is one of gradual decentralization. Between 2012 and 2025, the Southeast's share fell from 65% to 62%, while the South rose from 12% to 16%, the Northeast advanced from 7% to 8%, and the North went from 2% to 3%.
What the data is signaling to CIOs and technology leaders.
Beyond the numbers, the study points to a significant shift in priorities. The organizations that will capture value from technology in 2026 will not only be those that define where to apply AI, cloud, or security. They will be those that build the operational conditions to execute this agenda with governance, scale, reliability, and predictability.
This requires reliable data, up-to-date inventory, asset visibility, system integration, a mature CMDB, lifecycle management, process automation, operational security, and modernization of legacy environments. Without this foundation, generative AI initiatives and AI agents tend to remain limited, with low scalability and higher operational risk.
It is at this execution layer that platform maturity makes a difference. How ServiceNow Elite Partner in Brazil, Recognized with the Technology Excellence Partner Award 2024–2025 and with more than 80 certified specialists, 4MATT operates in the integration between IT asset management, ITAM, CMDB, CSDM, ITOM, automation and digital operations — the necessary foundation for... Agency AI with governance Operate with security, context, and business value.
Frequently asked questions about the Brazilian IT market in 2026.
What is the size of the Brazilian IT market?
The Brazilian IT market reached US$67.8 billion in investments in 2025, considering software, hardware, and services. Brazil remains the largest technology market in Latin America and ranks 10th globally.
How much is the Brazilian IT market expected to grow in 2026?
The projection for 2026 is for growth of 5.31 Tbp in IT. This pace is slower than that recorded in 2025, indicating a phase of greater selectivity, operational efficiency, and focus on return on investment.
What are the main IT trends for 2026 in Brazil?
The main trends are security and cloud security, generative AI, AI and machine learning, hybrid and cloud IT management, agentic AI, SaaS applications, process automation, managed services, outsourcing, App Dev, and DevOps.
Which sector invests the most in technology in Brazil?
The financial sector leads investments in software and services in Brazil, with a 25.41 TPF share. This is followed by Services and Telecommunications, Industry, Retail, Public Sector, Oil and Gas, and Agribusiness.
Why are CMDB, ITAM, and data governance important for AI?
CMDB, ITAM, and data governance create the necessary foundation of trust for AI initiatives. They help organize assets, services, relationships, risks, costs, and operational dependencies, allowing AI automations and agents to operate with more context, security, and traceability.
Conclusion
The Brazilian IT market in 2026 will be marked by selective growth, pressure for efficiency, and accelerated investments in security, AI, cloud computing, business applications, and IT services. The main executive agenda will not only be adopting new technologies, but also structuring the operational foundation so that these technologies deliver measurable results.
For companies operating in complex environments, this foundation includes asset governance, a reliable CMDB, automation, observability, data integration, and platforms capable of connecting strategy, operations, and execution. This is the frontier between investing in technology and transforming technology into a competitive advantage.