South America Internet of Things (IoT) Market Size, Share & COVID-19 Impact Analysis, By Component (Platform, Solution & Services), By End-use Industry (BFSI, Retail, Government, Healthcare, Manufacturing, Agriculture, Sustainable Energy, Transportation, IT & Telecom, and Others), and Regional Forecast, 2023-2030

South America is the third largest region in the global IoT market. It is projected to grow at a CAGR of 24.3% during the forecast period. The global Internet of Things market size is projected to grow from USD 544.38 billion in 2022 to USD 3,352.97 billion by 2030.

Increasing internet penetration and the availability of new technologies such as 5G, narrow-band, lower power, and wide area networks contribute to the South American Internet of Things market growth. Various enterprises and government organizations are investing in such services/solutions due to their advanced features, such as enabling actual-time data analysis, value-added decision-making speed, and quality of product and service offerings. 

Hence, demand for these devices is increasing in the South American market and can be attributed to the future IoT market share in the region.

LATEST TRENDS

Growing Initiatives Toward Development of Smart Home Technologies to Propel Market Demand

The in-home IoT enables consumers to manage numerous devices, such as appliances, lights, and other home security solutions, and the technology is reaching its apex. This is driving consumer focus toward smart home automation and augmenting the demand for IoT networks. For instance,

• According to the GSMA Intelligence report, Latin America is expected to have an addition of 400 – 600 million industrial smart home appliances by 2025. And this market is significantly impacting the growth of these devices in the region.
• In November 2022, Telit announced its strategic partnership with Cámara Argentina de (CAIoT) to enhance the focus of enterprises on IoT. CAIoT is the Argentina Chamber of IoT that works to streamline the Internet of Things market and addresses the legal aspects regarding the demand and supply of IoT-based solutions in Argentina.

Additionally, smart technology solutions, such as smart grids, utility meters, smart manufacturing, smart transportation, and smart vehicles, are being progressively adopted by customers, thereby increasing the market potential of connected devices globally.

DRIVING FACTORS 

Ubiquitous Capabilities of Cloud Computing to Driving the Demand for IoT Devices in the Market 

Cloud computing provides universal and elastic computing competencies to IoT solution

vendors, thus enabling them to accomplish the multitudes of connected devices and to offer such applications cost-effectively. Such benefits of cloud computing are estimated to cater to IoT adoption in healthcare, agriculture, automotive, manufacturing, and utilities across small and medium-sized enterprises in the region.

Various market players are innovating new solutions and expanding their partner ecosystem with strategic alliances for better expansion in the market. For instance,

• In March 2021, IBM introduced its first Cloud Multizone region in Brazil to expand its global presence in the South American region. The expansion helped clients with future ecological plans for minimized carbon footprint from data centres and cloud workloads. Various clients such as Stone, Arezzo&Co, and Digisystem leveraged the IBM cloud to secure critical data. 

Thus, various advancements and high-tech technology implementations contribute to the growth of these solutions in the market. 

RESTRAINING FACTORS

Poor Telecommunication Infrastructure and Heavy Regulations to Hamper the Market Progress

One of the crucial requirements for technology is the connectivity of devices intrinsically associated with the region's telecommunications infrastructure. Heavy laws and regulations of telecom operators effectively impede the progress of technology in the region. Hence, substantial assistance regarding these regulations is essential, comprising issues such as numbering resources, spectrum, authorized devices, and other telecom-precise rules. For instance,

• According to Inmarsat, 83% of users in South America Internet of Things market, face the deployment issue of such projects due to poor connectivity. And it is much higher than average, which is 75% worldwide. Inmarsat is an IoT network operator that delivers services to companies such as Rumo, a Brazilian rail firm. 

Such issues impact the demand for these devices and hamper the development of these technologies in the region.

KEY INDUSTRY PLAYERS

Key market players, such as Dorotech, Oninn, Amazon Web Services, Inc., IBM, Cisco Systems, Inc., are investing considerably in high-tech technologies such as cloud computing, AI, and others. Investments in modernized technology have aided these players in growing their business into various end-user industries and gaining a competitive advantage.

LIST OF KEY COMPANIES PROFILED:

• DOROTECH (Brazil)
• Oninn (Brazil)
• G.A.C. Group (Brazil)  
• Altoros (U.S.)
• Techunting (U.S.)
• Cisco Systems, Inc. (U.S.)
• IBM Corporation (U.S.)
• Oracle Corporation (U.S.)
• Intel Corporation (U.S.)
• Amazon Web Services (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• December 2022 - Ericsson and FAPESB unveiled a research center to develop modernized connectivity services. FAPESB supports the initiative under its ERCs (Engineering Research Centres) program, and over 50 researchers allied with 15 Brazilian academic associations are participating. The new research arm of Ericsson would facilitate research regarding the latest 5G and 6G technological developments, along with next-generation tiny IoT devices and their cognitive architecture.
• September 2022 - Datora Telecom and Shield-IoT collaborated to launch advanced security services for such solutions. The innovative SaaS service enables Datora and its users to effortlessly secure and monitor cellular-connected devices across various applications at any scale.
• January 2022 - AWS and TD Synnex announced their new alliance agreement with IT providers and aggregators. The deal includes Latin America, North America, and the Caribbean. The expanded channel distribution increased its offerings and cloud computing solutions to support the development channel partners.

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