Brazil is one of the largest consumers of applications in the world. The country is the fifth on a global level in applications’ downloads. This industry globally generates 25 thousand million dollars, and according to estimations it will reach 70,000 million dollars by the end of 2017.

According to the analysis developed by Progressive Policy Institute, called “Economia de Aplicativos no Brasil”, technologies focused on the use of mobile devices can already be considered as a key source of incomes, as well as a major generator of employment in the entire country.

The study shows that around 312,000 people are employed by the applications’ market in the country. Sao Paulo is the state that employs the largest share of workers (146,000); followed by Rio Grande do Sul (32,000); Río de Janeiro (28,000); Parana (26,000); Minas Gerais (16,000); Santa Catarina (9,000); Distrito Federal (9,000); Pernambuco (8,000); and Ceará (8,000).

The survey shows that 85% of workers -285,000 people- work with the operation system Android, while iOS developers account for 53% or workers (166,000). The number surpasses the 100% as many workers use both operation systems.

One of the main reasons for the rise of the development of applications is that they complement the services industry and make things easier for users. Currently, companies use mobile applications to complement traditional applications and, in the near future, they will become the main business platform.

The useful life of applications focused on services and businesses is way larger when compared to applications focused on entertainment. The reason is that the later are uninstalled faster as a new fashionable application appears.

Even though the figures presented may be a clear signal that, in this area, the country’s economy is growing, other factors such as training and skills, plus government support, reduce the real potential it has for the government, as well as for large companies and startups.

In Brazil, it is important to generate a culture that enables professionals to be more trained and learn about the necessary resources for development, such as the cloud, graphic interfaces, and mobile platform frameworks.

Despite the fact that the business world and the government are discussing the creation of strategies that rise the value of the projects created, there is a huge disadvantage when compared to other countries, particularly in the tax area. This fact makes Brazilian companies less competitive in comparison to similar Latin American or Asian companies.

There are over 168 million smartphones in Brazil, and the applications’ demand keeps on growing. There is great potential to create, manage and support a very large market.

A recommended action would be for the government to provide more tools and simplify the processes to create companies, reducing bureaucracy and creating the basis for new jobs, which shall benefit the entire economic cycle.

In addition, Brazil must improve its positions as an IT producer, starting with the internal market. Currently, there is a public policy to induce the national production. In 2013, the Ministério da Ciência, Tecnologia, Inovações e Comunicações (MCTI) enacted a law that forces smartphones produced in the country to have a least five Brazilian applications. In January 2014, the number went up to 15 applications, and in December 2017 it shall be 50 applications of national companies. But this is not the only solution for the development and growth of the IT industry. There are several challenges, problems and opportunities to solve.

Almost three out of five Brazilian consumers (59%) with internet access have already used an app to purchase something. According to a survey called “Consumption through Applications”, developed by the Credit Protection Service (SPC Brasil) and the National Confederation of the Leaders of Businessmen (CNDL), around 27% of the consumers connected use apps to do their shopping.

The survey estimates that, in addition to communication, research and prices comparison, the use of applications for purchases continues to grow. According to the study, the platforms that consumers use the most are linked to trading used products, such as Mercado Libre, Enjoei, OLX, and others (46%).

These platforms are followed by private driver or taxis services (45%), national shops (42%), discount applications, such as Peixe Urbano and Groupon (31%), streaming services such as Netflix and Spotify (31%), international shops (30%) and  food delivery shops (29%).

Besides these effective transactions, many connected consumers use applications to perform bank operations (68%), use geolocation services, such as Waze and Google Maps (67%), to compare prices (49%), and organize finances (20%).

For 35% of the survey respondents, easy access in mobile devices is the main trigger to consume applications. Another 27% takes into account practicality, and the 14% state they find better prices this way.

“The mobile has become an irreversible consumption trend. Therefore, it is necessary to develop experiences to lure consumers and facilitate commitment, thinking about the use of social networks”, says Roque Pellizzaro, president of the SPC Brasil. “This shows that the consolidation of mobile devices will be the road to follow in electronic commerce in the years to come”.