Top 10 Trends for Deep Tech Startups in South America in 2025
As South America emerges as a hub for innovation, deep tech startups are poised to become critical players in the global technology landscape by 2025. These trends are shaping the development and investment in technologies that tackle complex challenges across various sectors. Here are the Top 10 Trends for Deep Tech Startups in South America in 2025.
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1. Growth in Nearshore Outsourcing and Demand for Skilled Developers
Trend: Latin America will see continued growth in nearshore outsourcing for software development due to its cost benefits and similar time zones compared to the US and Europe.
Data Points:
- Increased outsourcing to Latin America from US and European companies.
- Brazil, Argentina, and Mexico are significant sources of skilled developers proficient in programming languages such as Python and Java.
- The availability of training programs and coding boot camps within the region is on the rise as businesses seek skilled workers.
- High demand exists for skills in areas like blockchain, cloud computing, and mobile application development.
- Learn more about this trend
2. Rise of Tech Startups and Entrepreneurial Support
Trend: An increasing number of tech startups will emerge, actively focusing on both local and global challenges. Government support through funding and entrepreneurship programs will facilitate this growth.
Data Points:
- Countries like Colombia and Chile are launching government initiatives to promote entrepreneurship.
- Startups innovate across fintech, health tech, and e-commerce sectors, addressing diverse local and global issues.
- Discover the impact of tech startups
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3. Increased Focus on AI and Machine Learning
Trend: Investment in AI and machine learning is set to grow significantly as businesses aim to enhance efficiency and operations.
Data Points:
- Applications of AI are expanding in customer service, with a notable rise in the adoption of ML for data analysis.
- The workforce is increasingly focusing on developing AI and ML skills to stay competitive.
- Expect the launch of more AI-driven products and platforms from local startups.
- Explore AI advancements
4. Adoption of Open-Source Technologies
Trend: Open-source tools will gain traction among small businesses and startups in Latin America due to cost-effectiveness and collaborative opportunities.
Data Points:
- Open-source solutions are perceived as affordable and efficient alternatives for various business needs.
- Developers are acquiring skills to leverage open-source platforms, enhancing collaboration and creating a knowledge-sharing community.
- Read about open-source trends
5. Quantum Computing and Cloud Revolution
Trend: The advancement of quantum computing is set to revolutionize industries like finance and pharmaceuticals, fueling further cloud adoption.
Data Points:
- Major players like IBM and Google are spearheading initiatives in quantum computing.
- Cloud computing is expected to generate substantial economic impact, contributing approximately $706 billion to Latin America by 2030.
- AWS is set to invest $5 billion in Mexico as part of its cloud infrastructure rollout.
- Check out the cloud revolution insights
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6. Digital Transformation and Advanced Automation
Trend: Businesses are prioritizing their digital transformation, leveraging AI and automation to enhance customer experiences.
Data Points:
- More than 80% of Latin American companies plan investments in digital tools by 2025.
- Automation is increasingly utilized for improving customer interactions and overall experience.
- Understand digital transformation
7. Personalization as a Key Differentiator
Trend: Companies will harness real-time data analytics to personalize services, enhancing customer loyalty and satisfaction.
Data Points:
- Real-time personalization is impacting sectors such as delivery and transportation.
- Flight services, for example, use predictive alerts to enhance passenger experience.
- Explore personalization strategies
8. Sustainability as a Strategic Imperative
Trend: Businesses are adopting sustainable practices in response to increasing consumer demand for ethical brands.
Data Points:
- Over 70% of small to medium enterprises in Colombia are planning to implement sustainable practices.
- Key areas for sustainability include cosmetics and food sectors, focusing on recyclable materials and reforestation initiatives.
- Learn more about sustainability trends
9. Deep Tech Focus on Climate, Health, and Infrastructure
Trend: Deep tech startups are increasingly addressing issues related to climate change, healthcare improvement, and infrastructure development.
Data Points:
- The valuation of the deep tech ecosystem in Latin America stands at $221 billion, projected to reach $2 trillion by 2030.
- Companies are innovating in areas such as lithium extraction and health solution innovations.
- Discover the deep tech focus
10. Investment and Funding Growth in Deep Tech
Trend: There has been significant growth in institutional funding for deep tech companies in Latin America, although still lower than other regions.
Data Points:
- Investment in deep tech reached about USD 2 billion by 2023, with a staggering 600% increase between 2019 and 2023.
- The Inter-American Development Bank indicates a possible 20x expansion in investment over the next decade.
- Read about investment growth
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FAQ
Q: What is driving the growth of nearshore outsourcing in South America?
A: The growth in nearshore outsourcing is driven by cost-effectiveness and time zone compatibility with regions like the US and Europe. Latin America, particularly countries like Mexico, Brazil, and Argentina, offers a large pool of skilled developers. Learn more about the growth in nearshore outsourcing.
Q: How are governments supporting tech startups in Latin America?
A: Governments in countries such as Colombia and Chile are providing funding, tax benefits, and entrepreneurship programs that encourage the emergence of tech startups focusing on local and global challenges. Discover governmental support for tech startups.
Q: What role will AI and machine learning play in the future of businesses in Latin America?
A: Businesses are expected to increasingly invest in AI and machine learning to enhance operations and efficiency, particularly in customer service through chatbots and data analysis. Explore the role of AI and machine learning.
Q: Why are open-source technologies gaining popularity among startups in South America?
A: Open-source technologies are preferred by startups because they are cost-effective and promote collaboration among developers, facilitating skill development in web development and task automation. Learn about the rise of open-source technologies.
Q: How will quantum computing impact industries in Latin America by 2025?
A: Quantum computing is anticipated to transform various industries, particularly finance and pharmaceuticals. The cloud revolution is also set to significantly contribute to the region's economy. Read more about quantum computing and cloud revolution.
Q: What is the status of digital transformation in Latin American companies?
A: Latin American companies are prioritizing digital transformation, with over 80% planning investments in digital tools to enhance processes and competitiveness, often focusing on automation to improve customer experience. Learn more about digital transformation.
Q: How will personalization affect customer loyalty in the future?
A: Real-time data analysis will enable companies to personalize services, enhancing customer loyalty through proactive solutions and targeted services in sectors like transportation and delivery. Discover the importance of personalization.
Q: What sustainable practices are deeptech companies adopting in South America?
A: Companies are integrating sustainability into their business models, with over 70% of SMEs in Colombia planning to adopt sustainable practices such as recyclable packaging and reforestation initiatives. Explore sustainability as a strategic imperative.
Q: What sectors are deep tech companies focusing on in South America?
A: Deep tech companies are increasingly addressing issues related to climate, health, and infrastructure, with a significant emphasis on innovative health solutions and climate action strategies. Learn about the focus areas for deep tech.
Q: How has investment in deep tech evolved in Latin America recently?
A: Investment in deep tech has surged, reaching USD 2 billion by 2023, with an increase of almost 600% between 2019 and 2023, indicating a promising future for deep tech funding in the region. Discover investment trends in deep tech.
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur.
Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond and launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks.
