Latin America’s population is highly digital, with more than 82% of the population connected to 4G networks, presenting opportunities for FinTech, EduTech, HealthTech and AgriTech. In particular, FinTech is a sector with high growth potential, especially in Brazil, Mexico, Colombia, Argentina, Chile, Peru, Ecuador, Uruguay and Venezuela.
Mexico has the 12th largest population in the world, with 45% of its population under 25 years of age. There is a great demand for educational services, triggering the growth of private and public institutions of higher education, as well as the emergence and entry of online and blended education offerings. Telemedicine has also been growing in popularity.
Columbia is the second-fastest-growing country in Latin America and has a growing middle class with increasing spending power. The Sharing Economy, AgriTech and FinTech are bright areas for Columbia.
Brazil has a ready environment for tech solutions. Brazil is highly connected, has a growing middle class representing 70% of total households and has seen an 88% urbanisation rate, which indicates that consumers will be more receptive to new trends and technology.
Brazil is a massive market, placed top 10 globally in terms of size, population and GDP. As with the rest of LatAm, Brazil is experiencing a connectivity hype, with mobile, internet, and smartphone penetration surging. Brazil is at the forefront of this digital transformation, with the country’s digital economy being expected to grow from USD 2.3 billion in 2017 to USD 41.11 billion by 2024. As Brazil continues to urbanise, its consumers are also known to be early adopters of technology.
Given Brazil’s position as the leader for 4G, it is also anticipated to become the first few economies to embrace 5G integration, creating opportunities for technology solutions providers in myriad areas including financial services, telecommunications, and cybersecurity. The country’s manufacturing sector is also moving towards industry 4.0 technology implementation, with an estimated impact of USD 200 billion over the next 5 years. Opportunities for ICT companies also present themselves in the FTTH market. Internet user growth and demands are projected to exceed the CISCO forecasts on the region as the country increases digitization in healthcare and education to face the global pandemic.