LATIN AMERICA TECH VALUE CREATION

Fernanda Bezerril
Sep 25
1 min read

Despite advances in digitalization, the contribution of technology companies to Latin America’s GDP remains very low — around 3%, compared to 19% in China and more than 80% in the United States.

This highlights a structural gap. If the region were to reach global levels of digital penetration, the market value of the sector could grow by up to $4.5 trillion in Brazil alone.

The infographic titled "LATIN AMERICA TECH VALUE CREATION" presents a bubble chart comparing the Tech Market Cap as a percentage of Gross Domestic Product (GPD) across different regions and countries, in addition to showing their growth potential (Catch-up Potential). The values are shown in US dollars (US$) in either Trillions or Billions. The reference date is Q2-2025. Market Value Comparison (Tech Market Cap as % of GPD): The four largest bubbles, representing the percentage of GPD, show: U.S (United States): 82.4% CHINA (China): 19.9% INDIA (India): 18.9% BRAZIL: 3.5% LATAM (Latin America): 3.1% Catch-up Potential: The bubbles for Brazil and LATAM show concentric rings indicating potential value increase, representing the "catch-up potential" if they were to reach the levels of other countries: BRAZIL shows rings corresponding to: +$1.58T (Trillion dollars), +$330B (Billion dollars), and +$310B (Billion dollars). LATAM shows rings corresponding to: +$4.56T (Trillion dollars), +$967B (Billion dollars), and +$910B (Billion dollars).

To unlock this potential, it will be essential to strengthen digital infrastructure and expand access, create a regulatory environment favorable to innovation, and foster the international scale of local companies.

The impact of such a shift would be profound: greater competitiveness, increased investment inflows, and the creation of highly qualified jobs. A horizon that underscores the importance of long-term strategies for both companies and investors.

LATIN AMERICA TECH VALUE CREATION

By DealMaker Insights | DealMaker