Chile Software Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2024-2032)

Chile Software Market Growth

The Chilean government incentivises companies which make investments in the research and development of new software technologies in the country. Law No. 20.570 significantly reduces the corporate tax bills for multiple companies, by providing a tax credit of nearly 35% on the investment amount. Moreover, it enables companies to claim deductions on the remaining 65% of their investment and gain a bonus of up to $1 million, thereby making investments in software development an extremely lucrative opportunity.

As per the Latin American Artificial Intelligence Index, Chile is a regional leader in South America for AI development. Nearly 70% of all local companies use AI tools for process automation and making data-driven decisions. Under the Chile 2035 programme, the government aims to expand the coverage of public sector digitisation, infrastructure and security. It also advocates for digital rights to remain a leading player in software development regionally. In 2023, the Chilean government increased the budgetary allocation for public sector digitisation by 64%. This is expected to accelerate the government’s transition to a 100% digital provider of citizen services by 2035, 86% of which was already accomplished in 2022.

Key Trends and Developments

Nearshoring of software development; thriving start-up scene; strong education system; and increasing investments in cloud technology are the major trends impacting the Chile software market growth

July 30, 2024

Tapi, an Argentinian paytech company with a substantial market presence in Peru, Chile, and Mexico, raised nearly $22 million in a round of Series A funding.

June 21, 2024

Latin America witnessed a four-fold increase in the number of fintechs from 2018, as per a report of the Inter-American Development Bank, prepared in collaboration with a fintech development firm called Finnovista.

April 29, 2021

In a funding round led by SVG Ventures, Genesis Ventures, and Fundación Chile’s CLIN, AgTech Instacrops successfully raised $2.8 million for its crop management software, which provides real-time insights into crop health and weather conditions.

Dec. 9, 2020

Microsoft announced its decision to expedite business transformation under “Transforma Chile” with the establishment of a new data centre region and a commitment to skill nearly 180,000 people by 2025.

Nearshoring of software development

Major North American software companies are investing in expanding their technological capacities in Chile to fuel their business growth.

Thriving start-up scene

As per the Global Startup Ecosystem Index, Chile is the second most favourable country for startups in Latin America with a presence of over 122 new data centre startups.

Strong education system

Chile has 5 of the thirty leading universities for STEM education in Latin America, including Universidad de Chile, Pontificia Universidad Católica de Chile, and Universidad Técnica Federico Santa Maria, among others.

Increasing investments in cloud technology

There is a rising investment in cloud technology in the country, which can be attributed to its flexibility and scalability to enable businesses to cut costs and drive business transformation.

Chile Software Market Trends

Chile has over 61,000 ICT professionals and is only 2 hours ahead of major American cities such as New York and Boston. Nearly 75% of American companies are seeking to outsource IT operations from Chile to reduce expenditure on labour costs by 65% each. An average front-end software developer in Chile is paid nearly $38,000, which makes it substantially cost-effective for Americans to outsource software development to them. Chile also has a vibrant tech ecosystem, with regions such as Santiago, Valparaíso, and Concepción emerging as the leading areas for innovation. This is expected to sustain the market growth over the forecast period.

Chile Software Industry Segmentation

Chile Software Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Application Software
  • Enterprise Resource Planning (ERP)
  • Customer Relationship Management (CRM)
  • Enterprise Content Management (ECM) Software
  • Supply Chain Management (SCM)
  • Enterprise Collaboration Software
  • Education Software
• System Infrastructure Software
  • Network Management Systems (NMS)
  • Storage Software
  • Security Software
• Development and Deployment Software
  • Enterprise Data Management (EDM)
  • Business Analytics and Reporting Tools
  • Application Servers
  • Integration and Orchestration Middleware
  • Data Quality Tools
• Productivity Software
  • Office Software
  • Creative Software
  • Others

Market Breakup by Deployment

• On-Premises
• Cloud

Market Breakup by Organisation Size

• Small and Medium Enterprises
• Large Enterprises

Market Breakup by Industry Vertical

• BFSI
• Retail
• Healthcare
• Government
• IT and Telecom
• Other

Chile Software Market Share

Based on organisation size, the market is segmented into small and medium enterprises and large enterprises. Over the forecast period of 2024-2032, small and medium enterprises are estimated to grow at a CAGR of 14.4%, due to the increasing government encouragement for entrepreneurship and technological innovation.

Leading Companies in the Chile Software Market

Major software companies in Chile are expected to invest in research and development of innovative technologies for accelerating the industrial adoption of system infrastructure software and development and deployment software.

• Microsoft Corp.
• Oracle Corp.
• Cisco Systems, Inc.
• Adobe Inc.
• SAP SE
• Others

The comprehensive report looks into the macro and micro aspects of the market. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.