In Latin America, 995 million devices will be connected to the Internet of Things (IoT) in 2023, according to estimates from the consulting firm Frost & Sullivan. If this figure is reached, Latin America will have grown at a rate of 26.7% in this sector.
This increase in connected devices will allow companies to get to know their customers better. “These sources of information are generating a lot of additional data that we did not know until now, and they will allow companies to get to know their clients better and offer value proposals based on that new proposal,” said Álvaro Martín, chief economist of Digital Regulation at BBVA Research.
This data will allow new competitors to enter the scene, but they also represent challenges not only for large companies, but also for micro, small, and medium-sized enterprises (MSMEs), in addition to governments.
Governments not only have the task of promoting the development of the IoT, but also they must avoid that the presence of these new technologies extends the digital divide. With this objective in mind, governments should look for ways to boost technological MSMEs and promote the adoption of this technology in this type of companies.
In Latin America and the Caribbean, MSMEs represent 99% of companies and generate 67% of jobs in the region. Therefore, it is essential that governments give constant attention to these companies in the development of their national IoT agendas.
Paula Peláez, head of SMEs (small and medium enterprises) and sustainable businesses of BID Invest, believes that one way that MSMEs can contribute to the development and innovation of the Internet of Things is to change the way business is done.
“Through the Internet of Things, companies are getting better perspectives from customers, automating and increasing the efficiency of their processes, and improving their products and services,” says Peláez.
In a seminar, Perrone mentioned that “the ultimate goal should not only be to improve efficiency with the Internet of Things, but also to generate new sources of income via innovative business models to justify investment in the area. The biggest threats for companies do not come from established players, but startups that disrupt the status quo. ”
Technological startups in IoT will also require financial support to scale up their solutions and for large companies to offer innovative open schemes to promote cooperation so that startups facilitate the resistance to change of large corporations, while these support their strengthening and growth.
José Otero, director of 5G Americas in Latin America, considers as a goal to achieve the connection of more than one million devices per square meter in Latin America for the coming years. The radio spectrum of the low, medium, and high bands will be required to achieve this objective.