Latin America Digital Transformation Market: Current Analysis and Forecast (2021-2027)


Emphasis on Component [Solutions (Cloud Computing, Big Data & Analytics, Mobility, Disruptive Technology, Social Media); Services (Professional Services, System Integration)]; by Deployment Type (On-Premises, Cloud); by End-User (Large Enterprises, Small and Medium Enterprises); Industry Verticals (BFSI, Government, Healthcare, Telecom & IT, Automotive, Retail & Consumer Goods, Media & Entertainment, Manufacturing, Other industry) and Country







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Report Description
Table of content
Research Methodology

Report Description

Digitalization is the cause of large-scale and sweeping transformations across multiple aspects of business, providing unparalleled opportunities for value creation and capture, while also representing a major source of risk. The rapid advances in digital technology are redefining the society. Organizations today increasingly realize they can no longer focus on just selling products; they need to sell an experience. An increasing number of products today both consume and generate data, and many are interconnected through the Web. Because of this increased intelligence, their usage can be monitored, additional services can be proactively offered, or maintenance can be provided when a problem is detected. Digital technologies are dramatically reshaping every industry, several companies are doing large-scale change efforts to capture the benefits of the ongoing digital transformation trend or simply to keep up with their competitors. The leading mobile access technology, 4G accounted for 41% of total connections in 2018. 4G is forecast to be the dominant technology in 2020, continuing to scale up even after 5G begins in 2020. This is evident with operator deployments of LTE-A; a total of 22 operators have launched speeds supporting 100 Mbps to 1 Gbps to date. A further 10 operator’s plans to do so in coming few years. For instance, Unique mobile subscribers to reach around 490 million in Latin America by 2025. Three market including Brazil, Mexico, and Argentina to account for more than 33% share in the overall Unique mobile subscribers in Latin America by 2025.

5G Launch Forecast by Country, Latin America

Insights Presented in the Report

“Amongst component, Solution segment holds the major share.”

Based on the component, the Latin American digital transformation market is bifurcated into Solutions and Services. The solution sub-segment is further divided into cloud computing, big data and analytics, mobility, disruptive technology, and social media. Moreover, Service segment is divided into professional services and system integration. Solution segment dominated the market in 2020. However, Service segment is expected to witness highest CAGR growth of 18.09% during the forecast period (2021-2027).

“Amongst deployment type, cloud dominated the market in 2020.”

Based on Deployment type the market is segmented into On-premises and cloud deployment. Currently, cloud deployment model dominated the market and generated revenue of US$ 324.5 billion in 2020. The On-premises segment is expected to witness CAGR growth of 12.9% during the forecast period.

“Amongst End-user, large enterprises are expected to dominate the market during the analyzed period.”

Based on end-user the Latin American digital transformation market is bifurcated into large enterprises and SME’s. Owing to high cost of digital technology deployment large enterprise invested most on digital technology. The segment generated revenue of US$ 2.79 billion in 2020. SMEs segment is expected to witness CAGR growth of 16.37% during the analyzed period.

“Amongst industry verticals, Banking Financial Services & Insurance dominated the market in 2020.”

Based on industry vertical, the market is fragmented into BFSI, healthcare, telecom & IT, automotive, education, retail & consumer goods, media & entertainment, manufacturing, government, and others. In the BFSI industry, digital transformation helps to make financial transactions speedy, secure, simple, and error-free. BFSI generated highest revenue of US$9.26 billion in 2020.

“United States represents as the largest markets in the Latin America Digital Transformation market.”

For better understanding of the market penetration of digital transformation, the report provides detailed analysis of major countries including Latin America (Brazil, Argentina, Rest of Latin America). Some of the major players operating in the market include IBM Corporation, Cognizant, SAP SE, Dell, Microsoft Corporation, Adobe Systems Incorporated, Accenture PLC, Capgemini, Oracle Corporation and Google Inc.

Reasons to buy this report:

  • The study includes market sizing and forecasting analysis validated by authenticated key industry experts
  • The report presents a quick review of overall industry performance at one glance
  • The report covers in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments
  • Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry
  • The study comprehensively covers the market across different segments
  • Deep dive country level analysis of the industry

Customization Options:

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1.1.Market Definitions
1.3.Stake Holders
1.4.Currency Used in Report
1.5.Scope of the Latin America Digital Transformation Market Study
2.1.Research Process
2.2.Research Methodology for the Latin America Digital Transformation Market
2.3.Forecasting Method
2.4.Respondent Profile
2.5.Main Objective of the Latin America Digital Transformation Market
5.1.Market Drivers
 5.1.1.Digitalizing Business Functions
 5.1.2.Rapid Proliferation of Smartphone
 5.1.3.Increasing Penetration of IoT and Other Disruptive technologies
5.2.Market Challenges
 5.2.1.Security and Privacy Concerns
 5.2.2.Issues Related to IT Modernizations
5.3.Market Opportunity
 5.3.1.Increasing Usage of Disruptive Technologies Such as AI, ML, and Big Data
6.1.Fostering growth in the digital ecosystem 
6.2.Data Protection Laws in Selected Latin American Countries
7.1.Demand Side Analysis
7.2.Supply Side Analysis
 7.2.1.Top Product Launches
 7.2.2.Top Partnerships
 7.2.3.Top Business Expansions, Investments and Divestitures
 7.2.4.Top Merger and Acquisitions
 9.1.1.Cloud Computing
 9.1.2.Big Data & Analytics
 9.1.4.Disruptive Technology
 9.1.5.Social Media
 9.2.1.Professional Services
 9.2.2.System Integration
10.2.Cloud Deployment
11.1.Large Enterprise
11.2.Small & Medium Enterprise
12.4.Telecom & IT
12.7.Retail & Consumer Goods
12.8.Media & Entertainment
12.10.Other Industries
13.1.Latin America Ditital Transformation Market 
 13.1.3.Rest of Latin America
14.1.Porters Five Forces Analysis
14.2.Digital Transformation Market Share, by Company 2020 (%)
15.1.IBM Corporation
15.2.SAP SE 
15.3.Google Inc.
15.4.Oracle Corporation
15.5.Microsoft Corporation
15.6.Dell Ems
15.7.Adobe Systems Incorporated
15.8.Accenture PLC

Research Methodology

Analyzing the historical market, estimation of the current market, and forecasting the future of the MEA Digital Transformation Market were the three major steps undertaken to create and analyze the adoption of Digital Transformation across various industry verticals in major MEA countries. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the digital transformation sector. Post assumption and validation of market numbers through primary interviews, we employed a bottom-up approach to forecast the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments the industry pertains to. Detailed methodology is explained below:

Analysis of Historical Market Size

Step 1: In-Depth Study of Secondary Sources:

Detail secondary study was conducted to obtain the historical market size of the MEA Digital Transformation through company internal sources such as annual report & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.

Step 2: Market Segmentation:

After obtaining the historical market size of the Digital Transformation market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments included in the report are by component, deployment type, end-user, and industry verticals. Further country-level analyses were conducted to evaluate the overall adoption of the Digital Transformation in the MEA region.

Step 3: Factor Analysis:

After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of Digital Transformation in the MEA region. Further, we conducted factor analysis using dependent and independent variables such as growth of penetration of digital technologies across different industry and various government initiatives in the region. A thorough analysis was conducted for demand and supply-side scenario considering top partnerships, merger and acquisition, business expansion, and product launches in the MEA Digital Transformation industry.

Current Market Size Estimate & Forecast

Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the MEA Digital Transformation market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.

Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., bottom-up approach was applied to arrive at the market forecast to 2027 for different segments and subsegments across the major countries in the MEA region. The research methodology adopted to estimate the market size encompasses:

  • The industry’s market size, in terms of value (US$) and the adoption rate of Digital Transformation across the major markets
  • All percentage shares, splits, and breakdowns of market segments and sub-segments
  • Key players in the Digital Transformation market in terms of services offered. Also, the growth strategies adopted by these players to compete in the fast-growing market.

Market Size and Share Validation

Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, and Regional Head, Country Head, etc.) across major countries. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.

Split of Primary Participants in Different Regions

Market Engineering

Data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers of each segment and sub-segment of the MEA Digital Transformation market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of component, deployment type, end-user, and industry verticals.

The main objective of the Digital Transformation Market Study

The current & future market trends of the MEA Digital Transformation market are pinpointed in the study. Investors can gain strategic insights to base their discretion for investments from the qualitative and quantitative analysis performed in the study. Current and future market trends were determined the overall attractiveness of the market at a country level, providing a platform for the industrial participant to exploit the untapped market to benefit as a first-mover advantage. Other quantitative goals of the studies include:

  • Analyze the current and forecast market size of Digital Transformation in terms of value (US$). Also, analyze the current and forecast market size of different segments and sub-segments
  • Segments in the study include areas of component, deployment type, end-user, and industry verticals
  • Defined analysis of the regulatory framework for the MEA Digital Transformation industry
  • Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry
  • Analyze the current and forecast market size of the Digital Transformation for the major MEA countries
  • Major countries studied in the report include Saudi Arabia, UAE, Qatar, South Africa and Rest of MEA
  • Company profiles of the Digital Transformation market players and the growth strategies adopted by them to sustain in the fast-growing market
  • Deep dive country level analysis of the industry