Barriers to adoption of IOT solutions in Latin America
Updated: Dec 17, 2022
Latin America is rapidly adopting internet of things (IoT) solutions, but deficient connectivity is representing a barrier. In a survey by satellite operator Inmarsat, 83% of respondents in Latin America said they struggled to deploy IoT projects because of connectivity issues. “That’s much higher than the average, which is about 75% worldwide,” Inmarsat Enterprise president Mike Carter told BNamericas. Carter said Latin American businesses could generate a 20% return on IoT investments within five years. “Almost half of the respondents to our survey have accelerated IoT adoption and said it has impacted positively the ability to operate and provided resilience,” he added. Inmarsat is operating the Elera IoT network in Latin America, which offers narrowband connectivity. Carter said over 80% of companies adopt at least one IoT project. Investment in agriculture is cost-driven while utilities are focusing on security. Because terrestrial connectivity isn’t fully suitable, mining is a very important vertical for Inmarsat, although mining companies are “quite conservative on the ground.” Inmarsat is also providing connectivity for Brazilian rail company Rumo. And the company has connectivity contracts for electrical grids in Brazil, while a major miner in Chile is using Inmarsat technology for environmental monitoring. Inmarsat is working with numerous partners, including Globalsat, in key verticals like agriculture, mining, utilities, and oil and gas. The company is eyeing regional expansion through an ecosystem of partners that can offer solutions and meet organizational demands.
Latin American Investments -- Update 2019
Latin American enterprises are investing an average of $54.7 million in IoT initiatives. Almost half of companies in Latin America track customers through their mobile devices and are using IoT in their production or distribution operations.
Latin American enterprises are investing an average of $54.7 million in IoT initiatives
Almost half (45%) of companies in Latin America track customers through their mobile devices and are using IoT in their production or distribution operations
Companies in Latin American regions are less likely to place sensors in products
A quarter (24%) of Latin American companies are changing their business models to increase the leasing of products, i.e. a higher percentage of companies than the other three regions
The IoT projects at Latin American firms, on average, increased revenues by 18.3%
Looking at 2020
Executives predict that the biggest impact of the IoT will be greater insights for salespeople on key aspects of products (for example, product features) that customers use the most
Latin American executives emphasize cultural issues as key success factors for IoT initiatives. Getting managers and staff to change their thinking – how the Internet of Things affects the way they look at customers, products, and customer service processes – is the top factor
Source: Pedro Ozores- https://sites.tcs.com/internet-of-things/regions/latin-america/
2015 How are Latin American firms investing in IoT?
Latin America is where companies are investing the least in Internet-of-Things (IoT) initiatives, according to a recent study from Indian IT outsourcing giant Tata Consulting Services (TCS).
Latin American companies, mainly Brazilian and Mexican firms, will spend 0.23% of their total IT budgets on IoT initiatives in 2015, or a mean of US$54.7mn, compared to 0.45% in North America, 0.40% in Europe, and 0.34% in Asia-Pacific, according to the TCS Global Trend Study 2015.
Global average per-company IoT spending will reach US$86mn this year. Industry manufacturers are expected to invest the most, at US$121.8mn on average.
TCS surveyed 795 large companies, with average revenue of US$22bn, from 13 industry segments and four regions worldwide, including Brazil and Mexico.
IoT investments will reach mean levels of approximately US$79.9mn in Brazil and US$1.8mn in Mexico this year.
A new report by Juniper Research released this Tuesday predicts that the world will reach 38.5bn connected devices by 2020, three times more than the current 13.4bn, driven by industrial applications and the public.
An IDC study from August 2014 said retail companies were leading IoT investments in LatAm. According to the analyst, LatAm retailers will spend more than US$466mn on IoT technologies in 2017,
Another study released this Tuesday, from Gartner, showed how IoT was creating new software vendors, as hardware manufacturers would have to dive into the software world to differentiate product and solution offerings.
"Like vendors in the traditional software industry, device manufacturers need to protect and monetize the intellectual property (IP) contained in applications. They can do this by adopting licensing and entitlement management (LEM) systems that control access to the internet-connected device, its functions, and its features. LEM also enables flexible pricing and packaging, allowing manufacturers to bundle product features, capabilities, and capacities, ensure payment, provide verified upgrade paths, and create new revenue streams," the Gartner report read
Gartner expects that by 2020, the lack of a LEM system will lead to a 20% drop in potential revenue generated from software for device manufacturers connecting to IoT.