Emergent public policies will strengthen the market, finds Frost & Sullivan’s Digital Transformation team
SAO PAULO, Brazil – July 13, 2017
Ubiquitous connectivity and the growth of Internet of Things (IoT) are accelerating industrial IoT (IIoT) revenue growth in Latin America. Although in its early stages of growth, the IIoT ecosystem in Brazil will be fuelled by the National Bank for Economic and Social Development’s (BNDES) December 2016 annouwhen ncement regarding a study to formulate and implement public policies for IoT between 2017 and 2022. Still a fragmented space, IoT in manufacturing, transportation, smart cities, healthcare, and other verticals in Brazil will require entities from adjacent markets to work together to deliver end-to-end solutions.
“Healthcare and smart cities are expected to have the highest growth in the forthcoming years, while automotive and manufacturingwill gain maturity by 2021,” said Digital Transformation Senior Industry Analyst Maiara Munhoz. “Collaborating to deliver these services represents a robust opportunity for vendors, integrators, and service providers offering IoT wireless or fixed two-way communication technologies.”
The Brazilian IIoT market is expected to reach revenues of $3.29 billion by 2021. Factors fuelling this growth include:
Security, lack of regulations, limited end-to-end solutions as well as interoperability will be key challenges in this market. Embedding ubiquitous sensing and communication technology into machines and everyday objects can create the means to cripple entire process manufacturing plants or hack into personal medical devices. Creating common standards and protocols to govern cross-platform integration in complex and multiple IIoT service implementation sites, and developing coherent and customized solutions will take time, limiting or slowing the adoption of initial IoT deployments.
“Vendors can play a key role in addressing these challenges; they can assist organizations in managing the complexities of connecting to a seemingly unlimited number of devices, effectively integrate IoT data with data from other sources, and cover data access issues to encourage more companies to craft an IoT strategy,” observed Munhoz. “Similarly, telcos should consider investing in core enabling technologies, ecosystem partnerships, and acquisitions to bolster IoT expansion.”
Source: Frost & Sullivan
Illustration Photo: NXP Smart meter NFC (credits: Pierre Metivier / Flickr Creative Commons Attribution-NonCommercial 2.0 Generic (CC BY-NC 2.0))