Information and Communications Technology
Market Overview
Argentina’s information technology (IT) market, including hardware, software, and services, reached $5 billion in revenues in 2011, a 15 percent increase from 2010 and is expected to increase an additional 12 percent in 2012. IT Services are growing in Argentina as outsourcing of IT-related solutions continues to be the main practice for companies worldwide. Total revenues of this subsector reached almost $1.5 billion in 2011 (30 percent of total sector revenues) in which the outsourcing of software development, network infrastructure, and management-related services played key roles.
Argentina’s internet penetration is twice as high as the world average and close to that found in European countries. Its broadband penetration on the other hand is less than half of Europe’s, although it is on a par with Chile’s, the highest in the region.
Argentina’s telecom market grew by 18 percent in 2011, and sales are expected to reach more than $10 billion in 2012. As in other Latin American countries, fixed-line revenues account for a decreasing portion of total telecom revenues, while the share of mobile and data/internet revenues continues to rise. Argentina has adopted a single license system (Licencia Única), which telecom companies must obtain regardless of the services they wish to provide. The country’s regulatory framework encourages competition and supports smaller telecom players. Both fixed and mobile number portability are scheduled for implementation in March 2012.
The continuing increase of broadband access (fixed 21 percent and mobile 150 percent) combined with the increased sale of notebooks and the record sale of smartphones and USB modems were highlights of 2011. This contributed significantly to the sale of broadband services over cellular and fixed networks and is expected to continue throughout 2012.
Sub-Sector Best Prospects
In the IT market, high-end branded PCs, notebooks, netbooks and minibooks, printers, servers, and multi-user systems are the major source of hardware imports. In addition, other consumer electronics, such as smart phones, digital cameras, MP3, MP4, other PDAs, digital storage devices, GPS, and portable and fixed gaming products are expected to see increased demand for the next year.
Since locally assembled PCs account for over 70 percent of the market, PC components will continue to be in high demand. Local assembly targets the residential/small and home-office PC segment. In the corporate segment, the cost benefit from local assembly does not outweigh the guarantee offered from an original vendor. The Argentine Government passed a law in 2009 imposing a 30 percent increase on taxes for electronics imported, manufactured, or assembled outside the Free Trade Zone of Tierra del Fuego. This law is expected to increase the market share of locally assembled products vis-à-vis imported products.
In hardware, servers and multi-systems present good opportunities. In 2011, the United States was the major exporter of servers with 40 percent of total imports, followed by Brazil (25%) and Mexico (12%). Servers account for 3 percent of total hardware revenues.
The IT Services sub-sector offers major opportunities for U.S. companies in network implementation, management and maintenance, legacy applications, wireless LANs, RTE (real time infrastructure) implementations, remote operation processing, back-up, critical mission services, disaster recovery systems, internet and network security systems, document digitalization, digital asset management, storage, utility computing, and information systems for rural areas (traceability, RFID, etc). Cloud computing and virtualization-related services will see high demand during 2012. The outsourcing of software development and call/contact centers will continue to realize investments, exports, and increased sales in the domestic market.
Regarding software, large projects in the areas of security solutions and business intelligence will present opportunities in 2012.
In the Telecom sector, best prospects for 2012 are broadband internet access (fixed and mobile); broadband wireless access networks (including point-to-point, point-to-multipoint, Wi-Fi, Wireless LANs, and Wi-Max); data transmission over cellular networks; SMS (short messaging services); broadband and multimedia content; and applications for cellular services, smartphones and 3G USB modems, IP Phones, VoIP networks, VPNs and IP VPNs, NGN and network security products. Blackberry/RIM was by far the best selling smartphone, followed by, Nokia, Motorola, Samsung, Sony and iPhone products.
Opportunities
The main factors will keep demand for IT hardware, software, and services high with an increased competition in 2012:
- New investments in the country in a number of industries (e.g., tourism)
- The majority of the systems installed need upgrading
- The growth of Internet access (fixed and mobile)
- The increasing complexity and convergence of technologies
- Highly educated and tech-savvy population
- New mobile number portability law
- Tendering of remaining frequencies to offer mobile services
- Nationwide extension of fiber optic lines under Argentina Conectada Program
In the telecom sector, investments in 2012 will be focused in three areas, the deployment and enhancement of the cellular GSM network (3G+), the expansion of broadband Internet access (via ADSL, cable modem, Wi-fi, Wi-Max, 3G USB modems and smart phones), the expansion of data transmission/ broadband and content over cellular networks, and the continuing migration to IP networks (NGN) and triple play.
Key Figures
(In US$ thousands) |
2009 |
2010 |
2011 |
2012est |
Total Market Size |
1,895,000 |
2,210,000 |
2,574,000 |
3,009,000 |
Total Local Production |
383,000 |
478,000 |
564,000 |
676,000 |
Total Exports |
21,000 |
21,000 |
23,000 |
25,000 |
Total Imports |
1,512,000 |
1,753,000 |
2,033,0000 |
2,358,000 |
Imports from the U.S.* |
17% |
20% |
22% |
22% |
- Percentage of Total Imports
Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
- Total Local Production: Unofficial estimates based on industry reports
- Total Exports: Nosis/Exi-Net export/import database
- Total Imports: Nosis/Exi-Net export/import database
- Imports from U.S.: Unofficial estimates based on Nosis/Exi-Net export/import database
Trade Events
In Argentina
Event: |
|
Dates: |
October 23-25, 2013 |
Place: |
Costa Salguero Convention Center, Buenos Aires |
Organizer: |
Argentine Association of Broadcasting Equipment Manufacturers and Suppliers (CAPER) |
Description: |
Trade Association that groups all the equipment providers for the broadcasting, cable and multimedia industries. The show features the latest technologies from the most important companies in the world that supply professional equipment for: Broadcasting stations, Digital Television / HDTV, Radio stations, Movie and Video production, Digital Cinema, Television and Radio Production, Recording Studios, Cinema, Television & Audio, Post-Production, Computer Graphics & Animation, Radio and Television Automation and Radio and Television Programming. |
In the United States
Event: |
CTIA Wireless |
Event: |
ITEXPO West |
Event: |
International CES |
Event: |
Satellite |
Event: |
NAB - National Association of Broadcasting |
Useful Links
Trade Associations
Consulting and Market Research
- Trends Consulting (Spanish)
- Prince & Cooke Market Research Company (Spanish)
- Convergencia (Spanish)
Contact Information
Please feel free to contact the U.S. Commercial Service Argentina Specialist mentioned below for additional information or assistance.
Marina Millet
Information Technology/Telecommunications Sector Specialist
U.S. Commercial Service Argentina
Embassy of the United States of America
Av. Colombia 4300
C1425GMN Buenos Aires, Argentina
Phone: (54-11) 5777-4851
Fax: (54-11) 5777-4203
E-mail: Marina.Millet@trade.gov
Please take note that all our market research is available in the U.S. Government Export Portal, free to registered users. If you have not already joined the Export.gov community, register now and access all the market information offered by the federal government.
