Argentina Information Technology (IT) Market by Application, End-user and Type - Forecast and Analysis 2024-2028

Argentina Information Technology Market Size 2024-2028 

The Argentina Information Technology Market size is forecast to increase by USD 7.71 billion, at a CAGR of 8.81% between 2023 and 2028. The market's growth trajectory is shaped by various factors, notably the heightened embrace of cloud-based services, reflecting a broader trend of digital transformation. This is complemented by a surge in IT consolidation and modernization efforts as businesses seek to streamline their operations and enhance efficiency. Additionally, the growing preference for remote work arrangements in Argentina has contributed significantly to market expansion. This shift towards remote work is driven by factors such as flexibility, cost savings, and the need to adapt to evolving work trends. Collectively, these factors underscore a dynamic landscape where technological advancements and changing work paradigms intersect, driving the market's growth and evolution.

Moreover, the market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about 20 market companies, including Apple Inc., AVEVA Group Plc, Capgemini Service SAS, Cisco Systems Inc., Dassault Systemes SE, Dell Technologies Inc., Hewlett Packard Enterprise Co., Hexagon AB, Infosys Ltd., International Business Machines Corp., Lenovo Group Ltd., Microsoft Corp., Oracle Corp., SAP SE, Siemens AG, Telefonaktiebolaget LM Ericsson, Toshiba Corp., and Fujitsu Ltd.. Additionally, Accenture Plc offers IT services such as Cloud Infrastructure managed services, Cloud and data center, Network, Cloud migration, and Database platforms.

What will be the Size of the Market During the Forecast Period?

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Market Dynamics 

The market encompasses a diverse range of sectors including computer hardware, software products, telecommunications equipment, and computer peripherals. It caters to Large Enterprises and Small and Medium Enterprises across various industries such as retail & wholesale, healthcare facilities like hospitals, financial institutions like banks, and commercial establishments like shops. The market thrives on services like Hardware Support Services, Software and BPO Services, and Cloud Services, supporting IT industries with advanced solutions in computer networking, Edge computing, and Cybersecurity. Technologies like the Internet of Things and Edge computing are reshaping how businesses operate and interact with their environments. With a robust infrastructure for systems design services and information distribution technologies, Argentina's IT sector continues to grow, offering innovative solutions tailored to local and international demands. Our researchers analyzed the market research and growth data with 2023  as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage. 

Key Market Driver

The increasing adoption of cloud-based services is a key factor behind the growth of the market. The cost efficiency, flexibility, and scalability offered by cloud-based solutions are essential to digitalization. In addition, cloud-based solutions are helping Argentinian companies overhaul their business models by leveraging technologies such as big data, AI, and IoT that provide a robust platform for the digital transformation of their business. Furthermore, cloud-based solutions are highly accepted among SMEs and large enterprises in Argentina. SMBs are spending money on public cloud-based data storage services. Software as a Service (SaaS) and large enterprises prefer to outsource their private cloud operations to IT service providers.

Moreover, the increasing digitization in end-user segments in the country has led software companies and service providers operating in the market to include cloud-based solutions in their offerings. In addition, these solutions have eliminated the need for the procurement and installation of IT infrastructure for enterprises in Argentina. As a result, enterprises benefit from process alignment and business consistency, which enable internal and external users to access applications from anywhere. Therefore, such factors are positively impacting the Argentina IT market. The pay-as-you-go subscription model of infrastructure as a service, platform as a service, and software as a service drives the adoption of cloud-based solutions and is anticipated to facilitate the growth of the market during the forecast period.

Significant Market Trends

Increasing adoption of mobility solutions is a major trend in the market. Mobility enables e-government initiatives in tier-2 and tier-3 urban and rural areas that lack IT infrastructure. Therefore, mobility enables uninterrupted data exchange. In addition, financial inclusion can be achieved through mobile solutions, making m-commerce, mobile banking, and mobile money accessible to those without access to a bank. The unprecedented growth of the smartphone market will lead to an increase in the number of users of mobile applications.

Moreover, mobile application developers need IT services such as backend as a service (BaaS) and web-integrated development environments (IDE) for innovative mobile application development solutions. In addition,  IT services such as BaaS solutions help mobile app developers reduce application development time, improve front-end tasks such as design and content development, and enhance user interface (UI) design for a better user experience. helps. Hence, such factors are positively impacting the Argentina information technology market. Therefore, the above factors are expected to drive the growth of the market during the forecast period.

Major Market Restrain

The shortage of qualified IT professionals is a major challenge to the growth of the market. Argentinian companies are currently facing a serious shortage of qualified IT specialists. They face significant challenges in recruiting and retaining employees in their IT departments. A lack of professional qualifications is reducing the number of candidates for vacancies. As a result, small businesses and public sector companies face difficulties in recruiting the right candidates. The recruitment process relies heavily on online platforms. The company publishes job vacancies on its own website or relevant career portals.

Moreover, the number of IT-related job vacancies increased by 2% in 2022 compared with the previous year. However, these positions have been vacant for nearly five months. The lack of skilled IT professionals in the areas of cloud, AI, Big Data, and IoT can severely impact the digital transformation initiatives of enterprises in Argentina. This can hamper the ability of service providers to meet the increasing demand from the client base, which can adversely affect the market during the forecast period.

Market Segmentation 

The market is thriving with advancements across various segments. The demand for IT equipment and cutting-edge software solutions is on the rise, particularly in the areas of mobile technology and fixed broadband services, including Pay TV offerings. The telecom sector is experiencing rapid growth, fueled by the deployment of FTTH (Fiber to the Home) infrastructure and the widespread use of communication platforms like Skype, Zoom, and Hangouts. With the rollout of 5G and LTE networks, broadband Internet access is becoming more accessible, supported by robust data transmission and satellite services. The expansion of fiber optic networks and the adoption of cloud computing solutions, including hybrid cloud architectures, are transforming the IT landscape in Argentina. Moreover, initiatives such as Smart Cities and the proliferation of IoT Hardware are driving systems design and integration efforts. Technologies like Python, TensorFlow, Cloud APIs, SQL, R, and NLP are empowering businesses with advanced capabilities in AI and machine learning.

By Application

The large enterprises segment is estimated to witness significant growth during the forecast period. Large enterprises segment in Argentina are actively pursuing digital transformation initiatives to improve operational efficiency, agility, and competitiveness. In addition, this involves the adoption of comprehensive IT solutions to modernize business processes and stay ahead in a rapidly evolving digital landscape. Furthermore, the demand for integrated business systems is rising among large enterprises.

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The large enterprises segment was the largest segment and was valued at USD 9.03 billion in 2018. Moreover, enterprise Resource Planning (ERP) solutions, Customer Relationship Management (CRM) software, and other applications are crucial for streamlining workflows, optimizing resource allocation, and improving overall organizational efficiency. In addition, large enterprises recognize the value of data-driven decision-making. Furthermore, the implementation of advanced analytics and business intelligence solutions enables them to derive actionable insights from vast datasets, facilitating strategic planning and enhancing competitiveness. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

By End-user

The rapid technological advancements in the BFSI segment will increase the market growth. Companies operating in the banking, financial services, and insurance (BFSI) sector are increasingly investing in IT solutions to minimize costs, find new revenue-generating streams, improve security and compliance systems, and make customer support more efficient. In addition, BFSI companies in Argentina are undertaking digital transformation initiatives, thereby offering good potential for software and IT service providers. Furthermore, BFSI companies in Argentina are investing significantly in numerous technology and innovation trends that are emerging in the country. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.

Global Market Customer Landscape

Market Companies

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Amadeus IT Group SA: The company offers IT services such as Search, Pricing, Ticket Booking, Reservations, Inventory Management and Real time processing services.

Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

• Application Outlook
  • Large enterprises
  • SME
• End-user Outlook
  • BFSI
  • IT and telecom
  • Government
  • Healthcare
  • Manufacturing and others
• Type Outlook
  • Services
  • Software
  • Hardware

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Market Analyst Overview

The market encompasses a broad spectrum of industries and technologies, catering to Large Enterprises and Small and Medium Enterprises alike. It includes essential components such as Computer Peripheral Equipment, Computer Storage Devices and Servers, and Communications Hardware used by Wireless and Wired Telecommunication Carriers, and Satellite & Telecommunication Resellers. The market thrives on Storage & Backup Software Publishing, Business Analytics & Enterprise Software, and Video Game Software, alongside emerging technologies like the Internet of Things (IoT) and Artificial Intelligence. Open-source alternatives and platforms play a significant role in software development, supported by a growing emphasis on Digital skills and Cybersecurity measures to combat cybercrime networks. As Argentina's IT sector expands, it collaborates with both tech giants and start-ups to deliver innovative digital solutions across diverse sectors including broadcasting, telecommunications, transportation, and hospitality. Data analytics is utilized in various sectors, such as software product development, libraries, prisons, hotels, airports, and train stations, to enhance operational efficiency and decision-making processes.

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What are the Key Data Covered in this Market Report?

• CAGR of the market report forecast during the forecast period
• Detailed information on factors that will drive the growth of the Argentina information technology market between 2023 and 2028
• Precise estimation of the market size and its contribution to the Argentina IT market on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Argentina
• Thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of Industry companies

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