South America Internet of Things (IoT) Market by Solution (Real-Time Streaming Analysis, Security, Data Management, Remote Monitoring, Network Bandwidth Management), by Platform (Device Management, Application Management, Network Management), by Service (Professional [Deployment & Integration, Maintenance & Support, Consulting Services], Managed), by End User (Government, Building & Home Automation, Energy & Utilities, Manufacturing & Automotive, Healthcare & Hospitality, BFSI, Telecom, Retail, Logistics & Transport, Agriculture), by Country (Brazil, Argentina, Colombia, Peru, Chile) – Market Size, Share, Development, Growth, and Demand Forecast, 2013–2023

South America IoT Market Overview

The South American IoT market was valued at $3,258.3 million in 2017 and is forecasted to witness a CAGR of 35.0% during 2018–2023. Growing urbanization, increasing deployment of advanced technologies in industries, and improving economy are the major factors driving the market growth. Moreover, the rising demand for remote monitoring and real-time streaming solutions, particularly in areas such as agriculture, logistics and transport, and manufacturing, to keep a continuous check on the safety and operational efficiency of equipment and field area are supporting the South American IoT market growth.

SOUTH AMERICA IOT MARKET, BY PLATFORM, $M (2013 - 2023)

On the basis of solution, the South American IoT market has been categorized into real-time streaming analysis, security, data management, remote monitoring, and network bandwidth management. Of these, network bandwidth management is expected to hold the largest market share during the forecast period. IoT deployment in the region is considerably increasing, leading to massive network traffic. This, in turn, is creating the need for proper network bandwidth management, through service providers and software tools, to enhance the network speed and capacity to avoid congestion. Hence, network bandwidth management solutions are in high demand among the South American IoT users.

Based on service, the South American IoT market has been categorized into professional and managed services. South American deployers of IoT systems are generating a high demand for managed services in the market, owing to the increasing need for the continuous monitoring and administration of these systems. Managed service providers (MSPs) offer their services after the deployment of IoT systems. These services primarily include fault detection, data analysis, and security maintenance of the systems at a low cost.

Since managed services require less investment as compared to professional services, they are increasingly being adopted by the people in the region. Hence, during the forecast period, the South American IoT market is expected to witness faster growth in the category of managed services, with 37.2% CAGR.

Professional services have further been classified into deployment and integration, maintenance and support, and consulting. Deployment and integration services are anticipated to continue holding the largest share in the South American IoT market in the coming years, with a revenue share of 37.4% in 2023. This can be attributed to the growing need for professional expertise required for the proper deployment and integration of IoT systems. Deployment and integration services include the pre-deployment handling of devices and connecting of devices in an efficient manner. Since these services involve considerable hassles, they are relatively costlier than other services. Hence, the market for these services offers ample growth opportunities to the players in the IoT domain.

South America IoT Market Dynamics

Trend

With digital transformation in South America, dozens of startups have entered the region’s IoT landscape to leverage growing internet and 5G network penetration, increasing urbanization, and expanding e-commerce in the region. Moreover, growing awareness on advanced technologies, such as near-field communication (NFC), radio-frequency identification (RFID), robotics, artificial intelligence, and low-power wide-area network (LPWAN), through advertisements and marketing activities, along with their training, is boosting the scope for new entrants in the South American IoT industry. This is predominantly due to the application of these high-end technologies in IoT set-ups. For instance, LPWAN supports wide-area connectivity with considerably low battery usage to offer high IoT connectivity and application.

Moreover, rising urbanization is leading to the introduction and adoption of high-end technologies, such as artificial intelligence, RFID, NFC, robotics, low-energy Bluetooth, long term evolution-advanced (LTE-A), and Wi-Fi Direct. Smaller, cheaper, and more powerful devices, which are more customer-engaging, are being introduced in the market. With such technological advancements, South America is expected to continue witnessing increased deployment of IoT solutions.

Opportunity

South America offers a vast landscape for technology implementation and product enhancement. With a large portion of the region’s GDP generated through agricultural activities, technological improvements in the field are being emphasized with the use of IoT. Heavy investments on creating awareness, through technical programs, are being made in order to exploit the smart farming potential of the region.

Besides, mobile IoT solutions are increasingly being deployed in South America for asset monitoring purposes, particularly by farmers for the tracking and monitoring of crops. Additionally, these solutions assist farmers in securely controlling their assets and improving productivity.

For instance, in September 2016, Red Tecnoparque Colombia, a technical program in Colombia, deployed a wireless sensor network to monitor crops on various metrics, including humidity and temperature, soil moisture, and trunk and fruit diameters. Thus, the growing demand for IoT solutions in agricultural activities is expected to provide ample growth opportunities to the South American IoT market players in the coming years.

South America IoT Market Competitive Landscape

Competition in the South American IoT market is intense, with top five players holding over 50% of the market share. South America is witnessing digital transformation and industries such as retail, manufacturing, agriculture are becoming smarter, connected, and data-driven, with IoT at the center of all these developments. The years 2017 and 2018 witnessed numerous partnerships in the South American IoT market, followed by product launches by companies such as Qualcomm Technologies Inc., International Business Machines (IBM) Corporation, and Intel Corporation.

The South American IoT market is expected to witness double-digit growth in the coming years, with increased partnerships between network service providers and IoT solution providers. Some of the other key players operating in the South American IoT market are Microsoft Corporation, Cisco Systems Inc., and SAP SE.