As 2025 draws to a close, one truth has become undeniable among investors and corporate leaders: the IT Services & Cybersecurity sector is no longer a support vertical — it is the epicenter of global business transformation.
In Brazil, this movement has intensified over the past 24 months. Driven by rising demand for automation, digital security, and data intelligence, the IT Services market has become the most active segment in technology M&A, both in volume and value.
In 2024 alone, more than BRL 260 billion were mobilized — and the momentum continues through 2025.
This is no longer a sector in growth.
It has moved beyond the curve of uncertainty and established itself as a strategic priority for companies, investors, and funds worldwide.
A Market That Has Surpassed Promise and Become Reality
According to the ScapeData IT Services Report, conducted by Pipeline Capital, global investments in IT services surpassed USD 3.6 trillion in 2024, with a projected CAGR of 8.8% through 2028.
Over the past three years, more than 4,800 transactions have been mapped globally, with strategic buyers outpacing financial investors.
But what makes this sector so attractive for M&A?
Three factors stand out:
- Mass adoption of AI, ML, and Edge Computing, creating a continuous cycle of innovation and planned obsolescence.
- Growing demand for digital security, particularly across multicloud environments and integrated ecosystems.
- A clear preference for outsourcing infrastructure and IT services, accelerating the rise of full-service providers and fueling sector-wide consolidation.
Cloud, Data and AI: The New Strategic Trinity
The accelerated migration to the cloud has redefined the perimeter of technological decision-making.
By the end of 2025, 25% of all data volume in Brazil will be cloud-based, growing at twice the rate of on-premise storage.
This shift has created a new urgency: to orchestrate, protect, and interpret data in real time.
Solutions in observability, analytics, and AI-driven security are projected to attract over USD 2.1 billion in investments in Brazil by year-end.
Add to this the evolution of private mobile networks, the expansion of 5G, the rise of IoT, and the consolidation of edge computing — and a single truth emerges: intelligent infrastructure management is no longer optional, it’s essential.
M&A as a Strategic Response to a New Competitive Cycle
Companies still relying on organic growth in a market moving at this speed risk becoming irrelevant.
Consolidation is now a strategic response to complexity.
Pipeline Capital has identified that the best-positioned players in the IT Services sector share three common traits:
- Robust governance structures;
- Technological dominance in emerging areas;
- And a clear, convincing market narrative.
As always, valuation is not just about multiples — it’s about storytelling, differentiation, and vision.
With more than 3 million people employed directly in the IT Services industry in Brazil and a rising number of successful acquisitions, the time to position your company is now.
The Sector That Has Evolved from Support to Engine
IT Services and Cybersecurity companies now sit at the center of the new economy.
They don’t just enable digital operations — they define the next stages of economic growth.
The question is no longer if you should look at this sector.
It’s how your company will position itself within it.
Whether as an investor, operator, or founder pursuing a strategic exit, the best opportunities won’t wait.
At Pipeline Capital, we are deeply involved in this market — advising companies on growth, fundraising, and exit strategies.
This is the time to act with information, vision, and precision.
Want to discuss your positioning in the IT Services & Cybersecurity sector?
Get in touch with our team:
