The market for applications and hardware based on the Internet of Things (IoT) approach is set to generate $3,29 billion in Brazil by 2021, according to a study by consulting firm Frost and Sullivan.
Hardware, software and service offerings servicing connected environments in the country has generated $1,35 billion in 2016, the study says, adding that telematics for commercial vehicles represented the majority of that investment - that is due to the need for transport efficiency and load security as Brazilian logistics networks are heavily road-based due to the lack of railways.
Going forward, the Brazilian IoT market should be driven mostly by the automotive and manufacturing industries, the research points out, though "significant opportunities" also lie within segments such as smart cities, utilities, agriculture and healthcare. This is despite the fact that the local IoT ecosystem is still fragmented.
"New business models evolve rapidly across different markets in Brazil, both through established companies and startups, which creates a positive scenario for innovation and co-innovation of solutions that cater to the country's specific needs", says Frost & Sullivan's director for research and consulting on digital transformation in Latin America, Renato Pasquini.
The Brazilian government has been working on the creation of public policies and identification of opportunities for the application of IoT and signed a deal with the national development bank to carry out a study on the topic.
Smart cities, health and agriculture have already been identified as target areas for directing initiatives and official guidelines, according to the conclusions of phase two of the technical study, which is aimed at creating a national IoT plan.