Brazil Big Data Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Brazil Big Data Analytics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Brazil Big Data Analytics Market is expected to register a CAGR of 27.7% over the forecast period 2022 to 2027. The growth in the data analytics market in the country can be accredited to various factors, such as the need to enhance business efficiency coupled with the growing utility of IoT analytics, big data analytics, and SaaS-based analytics in numerous end-user industries like BFSI, sports, retail, manufacturing, and healthcare.

Key Highlights

• Brazil is gradually advancing toward Industry 4.0, and Big Data services are anticipated to be widely adopted by the oil, gas, mineral, and agricultural industries. Over the next five years, the nation will progress significantly toward digitization, intelligent connected networks, and automated procedures. According to Software.org, between 21% and 24% of Brazil's small and medium-sized businesses believe that digitization will enable the creation of more specialized goods and services.
• Big Data analytics holds a lot of potentials, considering the volume of data individuals and businesses collect every minute. Additionally, it is anticipated that increased use of data center services in industries like media and entertainment, BFSI, and government agencies would increase demand for big data analytics. According to the predictions, most resources will acquire big data and analytics solutions. Spending on artificial intelligence (AI) and machine learning will increase by 28% to $490 million. Investing in fifth-generation technology by 2025 should total $25.2 billion and benefit emerging fields, including artificial intelligence (AI), big data, cloud analytics, and information security.
• The use of analytics tools is a significant trend in Brazil that promotes the development of big data analytics. Big data analytics examines data using analytical methods to uncover information such as hidden patterns, correlations, market trends, and consumer preferences. As a result, analytics support businesses in making wise decisions that result in practical operations, content customers, and higher profitability. For instance, Netflix uses big data to understand people's viewing preferences around the world. Similarly, The American Express Company examines client behavior using big data.
• When businesses acquire profile data, the potential for identity theft rises, especially if the data is not kept securely; the industry's progress is predicted to be hampered by the rising amount of data losses or cyberattacks on firms' stored customer data. In addition, high implementation costs and a lack of experienced workforce are anticipated to restrain the market growth.
• The requirement to extract, visualize, and act on this intelligence in near-real-time is gradually becoming a mission-critical goal, particularly amid the COVID-19 epidemic, including efforts to restrict its spread and aid firms in staying afloat. The big data and business analytics market is predicted to develop as many firms have begun to adopt work-from-home and remote working cultures, resulting in massive amounts of data and prospects for data analytics, thus boosting the Big Data Analytics market.

Key Market TrendsRetail & Consumer Goods is Expected to Register a Significant Growth

• Brazil has one of the largest consumer market sizes, with an overall population of 214.7 million in 2022, according to Data Reportal. Brazil generally has a more dynamic economy and a retail & consumer goods sector that is more active than other countries in North America. Retail sales in Brazil grew more slowly than expected in May 2022, decreasing momentum amid persistent inflation. However, Brazilian companies are catching up and have undergone a robust corporate modernization and retail transformation process. This transformation has leveraged the growth of the internal market, which has grown significantly and is expected to grow.
• Brazil's retail & consumer goods industry holds a significant share of the big data analytics market supply chain. It is expected to present vast growth opportunities, owing to the growing number of data sources being generated, with the adoption of IoT solutions, beacons, and RFID technologies across the supply chain. The Brazilian Supermarket Association (ABRAS) reported supermarket revenues of USD 145 billion in 2021, representing 5% of the country's GDP, which is 15% high compared to previous years, and such an increasing trend requires proper analytics to understand the customer needs; hence the need for Big Data is required.
• According to ecommerceDB, Brazil has the largest and most developed e-commerce market in Latin America, ranking 15th in the world for e-commerce sales; the population spent $26 billion on online products in 2021. The market is expected to grow by 22.2% in 2022, according to LABS Report. Social media comments significantly influence Brazilian consumers, so if there is a significant number of negative reviews about a product on social media, they will consider not making the purchase. E-commerce has been growing steadily, and Brazilian consumers have been making purchases online more often than they do in-store, enhancing the need for Big Data Analytics to understand the customer better.
• Big data powers AI, so it follows that AI will continue to find its way into the retail & consumer goods industry. Many big data companies in Brazil claim to assist marketers, retailers, and eCommerce companies in managing their data so that it would allow them to personalize customer engagement, forecast inventory, and segment customers in the region.
• Moreover, retailers in the country adopt IoT solutions and devices to analyze customer data, track stock levels, and strengthen customer relationships. These technological improvisations enable better tracking of the products across the supply chain and help gain a clear understanding of customer behavior.

Social & Site Analytics Account for a Significant Market Share

• Social & Site Analytics in big data analytics is a broad term used for referring to the approach of mining data from social media sources, using Big Data technologies for processing and presenting statistics-based insights to businesses to aid their decision-making processes. The rising number of social media users, increasing focus on the market and competitive intelligence, and rising need for social media measurement to enhance the customer experience drive the demand for Big Data Analytics in Brazil.
• The Brazilian government has invested heavily in internet connectivity to bridge the technology gap between the rich and the poor. According to Wordbank LLC, 122 million Brazilians are now on social media, which is 87.7% of the country’s total internet population which tends to increase data usage. According to ABES, the increasing focus on data in Brazilian organizations should prompt $2.9 billion worth of investments in 2022, and most resources will go towards acquiring big data and analytics solutions. Also, the Brazilian government, through the Ministry of Science, Technology, and Innovation, will use big data and artificial intelligence to seek funding sources worldwide for national science and technology projects.
• The growing adoption of social media analytics across all major verticals, such as BFSI, telecom and IT, retail and e-commerce, health care and life science, government and defense, media and entertainment, travel and hospitality, and other verticals strive for the need for big data in the country. Most social media analytics markets demand cloud-based solutions as they are cost-effective and easily scalable. It is also easy to maintain and manage data. Its low cost of Operating Expenditures (OPEX) helps users pay per usage and invest more time and energy in concentrating on core business goals, enhancing the need for Big Data.
• The Brazil social media landscape presents a great opportunity for brands looking to gain ground in Brazil. With high social platform usage rates, Brazil is an ideal testing ground for highly targeted campaigns across channels. However, several industries have faced concerns about whether social media analytics/insights could be used as a reliable sample size to reflect the sentiment of the entire customer base, as it is prone to bias. Customers active on social media may demonstrate utterly different behavior from regular customers.

Competitive Landscape

The Brazil Big Data Analytics Market is moderately competitive and has several significant players. Some of the players currently dominate the market in terms of market share. However, with the advancement in analytics across managed services, new players are increasing their market presence, thereby expanding their business footprint across the region. The vast expansion of capabilities in Big Data analytics technology (owing to the availability of open-source tools) may also push the companies in the area to keep up with rivals and give away too much of the improved product performance. The environment escalates costs and erodes industry profitability.

• In November 2021, Leroy Merlin Brazil, a subsidiary of Group Adeo, a platform of companies dedicated to home improvement, covering everything from home renovation and decoration to DIY and kitchen utensils, recently migrated its full analytics efforts to Qlik Cloud, enhanced by Qlik Catalog to support continued growth via trusted, governed data and self-service analytics.
• In October 2021, Orizon, a health tech part of the Bradesco Group, modernized IA development and data through a partnership with Microsoft to oversee a database with transactional information of nearly 16 million lives in this Brazilian supplementary healthcare system. The goal is to boost innovation in the development of data models, gain the flexibility to support usage peaks, and optimize resources to accelerate deliveries, improving performance and reducing operating costs.

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• The market estimate (ME) sheet in Excel format
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