Manufacturing Sector Expected to Post the Highest Overall IT Spending Growth in Latin America Through 2006
MIAMI, FL – NOVEMBER 14, 2002 – According to a recent report by IDC Latin America, total IT spending in Latin America is expected to grow from US $28 billion to about US $40 billion in 2006, with the manufacturing sector growing from the third largest sector in 2001 to the largest by 2006.
While IT spending is expected to grow, the growth rate of IT budgets driving that increase will be unevenly distributed across industry segments, industries differing significantly by country due to the global economic recession combined with domestic, political and economic crisis.
Manufacturing, which was the third largest IT sector in 2001, is expected to place the highest overall IT spending growth and become the largest vertical market by 2006 due to increased trade liberalizations between Latin American countries and countries in Europe and the US which will boost manufacturing exports, resulting in sector growth and greater IT investments among manufacturing companies. Many small and medium businesses are also expected to venture into this market and increase their investments.
"Vendor and government initiatives will improve financing availability and increase awareness of the benefits of IT for small and medium businesses," said Sr. Analyst for Latin America Melissa Utter and author of Latin America Vertical Black Book 2001-2006. "Manufacturing will be the primary driver of IT business consumption in both Brazil and Mexico, while increasing proportionally in Chile and Argentina."
The finance sector will continue to consolidate and relinquish its reign as the largest IT spending segment. 2001 saw financial institutions spend over US$ 5 billion on technology, more that any other industry in Latin America, and will now grow at a relatively low five-year compound annual rate of 4 percent.
The communications sector will also remain among the top consumers of IT, with an IT spending forecast of US $ 6.4 billion due largely to the increase in the strong competitive telecommunications market in Chile and Mexico.
Latin America Vertical Black Book 2001-2006 provides detailed information about IT spending data by country, over time, for various major technology segments and sub segments across major vertical market segments in the region. For more information regarding the study, Latin America Vertical Black Book, IDC, or to purchase the complete study, please contact Barbie Cordero of IDC Latin America firstname.lastname@example.org or at (305) 351-3131.
About IDC Latin America
IDC Latin America has established an unrivaled reputation for analysis of the IT, Internet, and Telecom markets in Latin America. Its research group is comprised of over 90 analysts in Argentina, Brazil, Chile, Colombia, Mexico and Venezuela who are devoted to generating the most authentic and up-to-date information on these markets. Following a commitment to excellence, IDC has pioneered primary research in the countries of Costa Rica, Dominican Republic, Ecuador, Guatemala, Panama, Peru and Puerto Rico.
This distinctive local presence results in the most comprehensive and trustworthy market coverage of the Latin American region. For more information, visit www.idclatin.com or call 305-351-3131.
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company.