IoT Snapshot: Companies in Brazil and Latin America plan to invest in the Internet of Things

The adoption of the Internet of Things (IoT) is increasing year by year. According to the IoT Snapshot 2022 study, produced by Logicalis, a global ICT solutions and services company, technology is already a reality in Latin America and continues to expand. Between 2018 and 2021, the number of companies in the stage of PoCs (proof of concept), pilot projects or initiatives already in production grew by 15 percentage points in Latin America and 25 percentage points in Brazil, with 57% of companies already in the process of implementing IoT .

Among the solutions most used by these organizations are: asset monitoring (sensors) and predictive maintenance (31%), geolocation (28%) and tracking of deliveries and loads and/or external logistics (27%), in Brazil. In Latin America, use is more focused on video analytics for monitoring people and environments (49%), inventory management and internal logistics (27%) and geolocation (26%).

Among the solutions most used by these organizations are: asset monitoring (sensors) and predictive maintenance (31%), geolocation (28%) and tracking of deliveries and loads and/or external logistics (27%), in Brazil

Despite the growth in projects involving the Internet of Things, the realization of the importance of this technology has, in the short term, been affected by the pandemic. Since 2016, Brazil has been on a continuous growth curve, and in 2021, the data revealed a decrease of 9% (from 42% to 33%) among those who rated the importance of IoT solutions as “very high” or “very high”. High”, compared to the perception reported in 2019, the latest version of the study.

However, when we look at the future of IoT technology in the medium term (three to five years), we see an upward trend, with 71% of respondents rating the importance of IoT solutions to their business as “very high” and “high” As a result, 42% of companies in Brazil and 35% in Latin America plan to invest in IoT projects in the next 18 months.

Within this forecast, nationally, the sectors with concrete investment plans are agribusiness (50%) and manufacturing (49%). In Latin America, the utilities sector stands out, with 56% of companies aiming to implement IoT technology in their business, followed by the services area (40%).

Among the benefits of technology highlighted by participants: operational efficiency, cited by 68% of Brazilian executives as the main benefit, followed by productivity/agility and decision support at 58% and 46%, respectively.

As for the challenges of IoT adoption in the country, the uncertainties in the country’s economic scenario, the pandemic and the growing need to justify IoT investments were the reasons that prompted 44% of Brazilian participants to place the financial viability clause as the main barrier. to adopt this technology. In other countries, budget is the biggest obstacle for 45% of respondents. Second, there is a topic whose importance has already emerged in the 2019 edition of the study: organizational culture, identified by 33% of Brazilian CEOs and 37% of Spanish countries as the main barrier to IoT initiatives.

According to Yassuki Takano, Director of Consulting Services at Logicalis, this data shows that, overall, despite the fact that there is still a long journey of knowledge to follow within organizations, they are already mobilizing to change this scenario.

Throughout the development of this release, we have worked to solidify the vision that technology has the power to transform and solve problems and challenges in the most diverse market segments. We have passed the stage of demonstrating the success of the Internet of Things and we are now in the moment to demonstrate the true results of the technology”, says Takano. For him, there are positive prospects with amplification and acceleration of digitization. He concludes: “If the trends continue to invest and harness the benefits through solutions, it will be a matter of Time before we see more impactful data in upcoming releases of IoT Snapshot.”

About IoT Snapshot
In its fifth edition, the IoT Snapshot study investigated the Latin American market to paint a picture of maturity with regard to the adoption of Internet of Things (IoT) solutions. As in previous years, in addition to Brazil, the study covers four other countries in Latin America to provide a regional view of technology, namely Argentina, Chile, Colombia and Mexico.

The research included interviews, between August and September 2021, with 255 CEOs, broken down as follows: Brazil (133), Colombia (40), Mexico (29), Argentina (23), and Chile (30). In addition, in-depth interviews were conducted with 10 other CEOs from various sectors in a qualitative manner.

The samples reflect the reality of the markets in terms of the sectors processed, and the focus on large companies.

To learn more, visit: https://imagine.la.logicalis.com/iot-snapshot-2022

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IoT Snapshot Study

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Internet of Things projects

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