Peru's IT market is one of the least developed in Latin America, with low device and solution penetration among households and enterprises, but we do consider it to have bright prospects as the household income profile improves over the medium term, alongside the ongoing trend of enterprise modernisation. This will see the market move to a higher growth trajectory from 2017, after a marked deceleration in 2015 and 2016 when a downturn in economic sentiment, and nuevo sol depreciation against the US dollar that resulted in deferred spending and heightened price sensitivity. We also consider government policies to support IT sector growth in Peru positively in the context of industry trends such as declining device prices, improvements in network infrastructure and cloud computing adoption. The major downside risk to our bullish outlook is weaker Chinese demand for the country's raw materials.
Latest Updates & Industry Developments
- Computer Hardware Sales: PEN2.9bn in 2016 to PEN3.8bn in 2020. After contraction in 2015 and stagnant market in 2016 we believe strong household income growth from 2017 will allow vendors to tap the low PC penetration in Peru, particularly outside Lima where penetration is much lower.
- Software Sales: PEN1.1bn in 2016 to PEN1.5bn in 2020. The enterprise software SME market isunderpenetrated but should be unlocked by lower cost SaaS, while more complex demands from large Peruvian enterprises should also be a strong growth areas they modernise.
- IT Services Sales: PEN2.4bn in 2016 to PEN3.5bn in 2020. IT services will outperform in 2016 in challenging economic environment due to cost savings for enterprises, while over the medium term cloud adoption and outsourcing will drive strong demand growth.
Table: IT IndustryHistorical Data And Forecasts (Peru 2013-2020)
Industry Risk/Reward Index
Table: IT RRI Breakdown By Region, Q216
Table: Americas IT Risk/Reward Index, Q216
Industry Trends And Developments 43
Table: Peru Regulatory Authorities
Table: StartUp Peru Admission Criteria
Table: GranaMontero Digital (GMD)
Table: Population Headline Indicators (Peru 1990-2025)
Table: Key Population Ratios (Peru 1990-2025)
Table: Urban/Rural PopulationLife Expectancy (Peru 1990-2025)
Table: Population By Age Group (Peru 1990-2025)
Table: Population By Age Group(Peru 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: IT Risk/Reward Index Indicators
Table: Weighting Of Components