At 24.6% CAGR, the South America IoT Market is projected to be worth US$ 128.16 billion by 2030, says Business Market Insights

According to Business Market Insights’ research, the South America IoT market is expected to grow from US$ 27.50 billion in 2023 to US$ 128.16 billion by 2030, registering a CAGR of 24.6% from 2023 to 2030. Increase in number of smart city projects, low cost of connected devices and increase in investments in IoT and rise in implementation of IoT in automotive sector are the critical factors attributed to the South America IoT market expansion.         

In the past few years, 2G, 3G, and 4G communication technologies were mainly developed for mobile broadband and personal communication services and have proven extremely proficient in meeting the demands for IoT. However, the emergence of 5G has encouraged dedicated capabilities tailored for numerous IoT applications. There is an increase in investment in 5G infrastructure across developed and developing countries as 5G enables stable, faster, and secure connectivity, helping advance IoT applications for self-driving vehicles, smart grids for renewable energy, and AI-enabled robots on factory floors. According to Qualcomm, an American multinational corporation, the global 5G value chain is anticipated to reach US$ 3.5 trillion by 2035, which is greater than the mobile value chain as of 2021. Therefore, this growth of the 5G value chain is a major contributor to the expansion and deployment of the 5G network. Moreover, according to the report published by GSM Association, the number of IoT-connected devices is expected to reach 25.2 billion by 2025. The integration of 5G network technology with IoT devices is projected to enable seamless and reliable connection. Due to the growth of the critical communication services industry, there is a rapid rollout of the 5G network by various telecom providers, which is expected to create lucrative opportunities for IoT software players in the coming years. This is expected to drive the South America IoT market during the forecast period.

On the contrary, data security and interoperability Issues hurdles the growth of South America IoT market. 

Based on component, the South America IoT market is categorized into hardware, software, and services. The hardware segment held 44.7% market share in 2023, amassing US$ 12.28 billion. It is projected to garner US$ 59.28 billion by 2030 to expand at 25.2% CAGR during 2023–2030. Further, software segment is divided into device management, application management, data management, and network management.

Based on enterprise size, the South America IoT market is bifurcated into large enterprises and SMEs. The large enterprises segment held 74.8% market share in 2023, amassing US$ 20.56 billion. It is projected to garner US$ 93.07 billion by 2030 to expand at 24.1% CAGR during 2023–2030.

Based on application, the South America IoT market is categorized into building & automation, smart energy & utilities, smart manufacturing, connected logistics, banking & financial services, aerospace & defense, and others. The smart manufacturing segment held 18.6% share of South America IoT market in 2023, amassing US$ 5.13 billion. It is projected to garner US$ 28.06 billion by 2030 to expand at 27.5% CAGR during 2023–2030.

Based on country, the South America IoT market has been categorized into Brazil, Argentina, and the Rest of South America.  Our regional analysis states that Brazil captured 72.6% share of South America IoT market in 2023. It was assessed at US$ 19.96 billion in 2023 and is likely to hit US$ 100.30 billion by 2030, exhibiting a CAGR of 25.9% during the forecast period.            

Key players dominating the South America IoT market are Amazon Web Services Inc.; Cisco Systems Inc.; Google LLC; Software AG; International Business Machines Corp; Intel Corp; Microsoft Corp; Oracle Corp; Siemens AG; and SAP SE among others.

• In Oct 2021, SAP Recognized as a Leader in IDC MarketScape for Industrial IoT Platforms and Applications in Manufacturing.
• In Feb 2023, Siemens Unveils IoT-Based Innovations to Transform Buildings into Smart Ecosystems.

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