Technology in Peru: How this industry has changed in recent years

When talking about technology, many people think that Peru is a backward country, that it does not have the capacity to develop and innovate in this field, and that its population is still reluctant to apply technological tools. However, this perception is not entirely true as Peru has made significant progress in science, technology and innovation (STI) over recent years, bringing it ever closer to international standards and allowing it to face the challenges of the 21st century.

From the proliferation of Fintechs in Peru to the growth of the Software and Saas sector, the country has taken huge strides forward in this area. But we must be clear that there is still work to be done. Let’s take a look at some important points to help understand the current state of advanced technology in Peru.

Who is driving technology development in Peru?

Technological development in Peru has been stimulated by various factors, both public and private, who have bet on investment, research, training and dissemination of STI. Among them, the role of the National Council for Science, Technology and Technological Innovation (Concytec) stands out, which is the governing body of the National System of Science, Technology and Innovation (Sinacti), created in 2021 with the purpose of articulating and coordinating policies and actions in this area.

In addition to Concytec, other public and private institutions have contributed to technological development in Peru, such as universities, research institutes, companies, social organizations and fintechs. The latter have gained special relevance in recent years, as they have offered innovative solutions to financial problems through digital platforms that make life easier for users. 

Some examples of successful Peruvian fintechs are B89, a 100% digital banking platform, Kambista and Rextie, both digital platforms for currency exchange, Rebaja Tus Cuentas and Prestamype, which allows you to finance projects and the nationally well known Yape, which serves to make various payments from the cell phone and now has the function of interoperability with other banks.

Peruvians’ attitude towards technology

We mentioned fintechs as the latest breakthrough of companies in terms of the use of technology to provide solutions. But this success is not only the merit of companies that bet on scientific advances, but also of users who constantly seek and demand more tools to make their lives easier.

Peruvians are increasingly open to technology and adopt it as something considered key to the development of their activities. This is proven by looking at some statistics such as the presence of smartphones in households (91.9% have at least one, according to Osiptel), the number of Peruvian users on Facebook (24 million according to the Statista portal) and the incorporation of more than 3.7 million mobile lines between 2020 and 2021 alone.

In fact, according to Produce (Peru’s Ministry of Production), technological items are ranked as the 8th most purchased products by Peruvians in 2023, behind essentials such as food, beverages, medicines, furniture, among others. The most purchased technological products in Peru according to T21 are cell phones, televisions, computers, electric personal care products, video game consoles, home appliances and automobiles.

And if we talk about online shopping, the demand for technology is much higher. According to EWorldTrade, after clothing, the most purchased items by Peruvians are cell phones, laptops and tablets.

Technology after the pandemic

The COVID-19 pandemic presented a great challenge for Peru, but also an opportunity to drive the country’s digital transformation. Faced with the confinement and social distancing measures imposed by the health emergency, many sectors have been forced to adapt quickly to digital processes, such as e-commerce, tele-education, teleworking, telemedicine and online entertainment.

This has in turn has generated a greater demand and supply of digital services in the country, as well as a greater awareness among people of the importance of technology to improve their quality of life. According to a study conducted by Ipsos Peru, 30% of Peruvians with Internet access adopted some form of online measure to generate extra income during the pandemic: 72% used the networks to search for various information, 64% to keep up to date on news about COVID-19 and online shopping increased to 44% of the total.

Likewise, video calls have become a mandatory procedure to stay connected with friends and loved ones. Companies have also adopted the remote model of communication, according to Microsoft and Edelman, more than 94% of small and medium enterprises (SMEs) in Peru invested in technology, including video calling software. 

However, there is also evidence of the digital gaps that remain, both in terms of access to technology in Peru and its use and appropriation. According to the National Institute of Statistics and Informatics (INEI), until the third quarter of 2021, only 55% of households had internet access, a number that reduces further when talking about rural households, where only 20.7% have it.

These figures show the need to expand and improve infrastructure and connectivity throughout the national territory, as well as to promote literacy and digital inclusion of all Peruvians, especially the most vulnerable and excluded.

The current technology market in Peru

The Peruvian technology market has experienced sustained growth in recent years, driven by internal and external demand for digital products and services. According to a study by EY Peru, the country reached 62.63 points in the average digital maturity in 2021, 3 points higher than the previous year (when the pandemic began).

Among the sectors with the highest level of digital maturity in 2021, banking and insurance (73.01) are in the lead, followed by mass consumption and retail (67.42) and telecommunications (66.04).

Among the segments to have boosted the technology market in Peru most are software, hardware, telecommunications and digital services. According to the Peruvian Chamber of Electronic Commerce (Capece), e-commerce has grown  30% in 2023, reaching a turnover of US$ 12.1 billion last year by the end of 2022.

Likewise, the software sector has been registering steady growth over recent years. According to the International Data Corporation (IDC), between 2010 and 2017 the software industry in Peru grew by 10.8%, higher than global growth, collecting, only in the last mentioned year, US$ 396.8 million.

All this demonstrates the potential that the technology market has in Peru, as well as the opportunities that open up for entrepreneurs, investors, professionals and consumers who want to take advantage of the benefits offered by digitization. 

It is also very important for companies to be able to communicate their key messages correctly to their target audiences, through PR campaigns or also through digital marketing strategies. Therefore, having an agency like Sherlock Communications can be a great opportunity to move forward in this market.

Conclusion

Technology in Peru has changed a lot in recent years, going from being an incipient industry to a thriving one with good prospects, which has contributed to the economic, social and environmental development of the country. But this cannot hide the fact that there are still challenges to overcome to consolidate Peru’s digital transformation, such as closing the digital divide, increasing investment in STI, strengthening the innovative ecosystem and improving the quality and competitiveness of digital products and services. 

Keep an eye on our blog at Sherlock Communications to learn more about Peru and other Latin American countries not only in the cultural sphere, but also about their different industries and how each is evolving.