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South America Agile IoT Market

ID: MRFR/ICT/57029-HCR
200 Pages
Aarti Dhapte
October 2025

South America Agile IoT Market Research Report By Component (Hardware, Software), By Deployment (On-premises, Cloud), By Organization size (Large, Small, Medium), By Connectivity (LAN, Wi-Fi, Li-Fi), and By Regional (Brazil, Mexico, Argentina, Rest of South America)-Forecast to 2035

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South America Agile IoT Market Summary

As per MRFR analysis, the South America agile iot market Size was estimated at 5.9 USD Billion in 2024. The South America agile iot market is projected to grow from 6.97 USD Billion in 2025 to 36.95 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 18.15% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The South America agile IoT market is experiencing robust growth driven by technological advancements and increasing demand across various sectors.

  • Brazil leads the South America agile IoT market, showcasing significant adoption in agriculture and smart manufacturing.
  • Mexico emerges as the fastest-growing region, reflecting a surge in smart city initiatives and sustainability efforts.
  • The market is witnessing a strong focus on real-time data analytics, enhancing operational efficiency across industries.
  • Key drivers include government initiatives and support, alongside the expansion of telecommunications infrastructure.

Market Size & Forecast

2024 Market Size 5.9 (USD Billion)
2035 Market Size 36.95 (USD Billion)

Major Players

Amazon (US), Microsoft (US), IBM (US), Cisco (US), Google (US), Siemens (DE), Oracle (US), SAP (DE), GE (US)

South America Agile IoT Market Trends

The agile iot market in South America is currently experiencing notable growth, driven by increasing demand for connectivity and automation across various sectors. Industries such as agriculture, manufacturing, and logistics are adopting agile iot solutions to enhance operational efficiency and improve decision-making processes. The integration of advanced technologies, including artificial intelligence and machine learning, is further propelling this market forward. As businesses seek to optimize their resources and reduce costs, the agile iot market appears poised for continued expansion in the region. Moreover, government initiatives aimed at fostering innovation and digital transformation are likely to play a crucial role in shaping the future landscape of the agile iot market. Investments in infrastructure and supportive regulatory frameworks may encourage the adoption of agile iot technologies. Additionally, the growing awareness of sustainability and environmental concerns is prompting organizations to explore smart solutions that align with eco-friendly practices. This evolving environment suggests that the agile iot market will remain a focal point for technological advancement and economic development in South America.

Increased Adoption in Agriculture

The agile iot market is witnessing a surge in agricultural applications, where farmers utilize connected devices to monitor crop health, soil conditions, and weather patterns. This trend enhances productivity and resource management, allowing for more informed decision-making.

Smart Manufacturing Initiatives

Manufacturers in South America are increasingly implementing agile iot solutions to streamline operations and improve supply chain management. This trend focuses on real-time data analytics, enabling companies to respond swiftly to market demands and optimize production processes.

Focus on Sustainability

There is a growing emphasis on sustainability within the agile iot market, as organizations seek to reduce their environmental impact. This trend includes the adoption of energy-efficient devices and smart technologies that promote eco-friendly practices across various industries.

South America Agile IoT Market Drivers

Growing Focus on Smart Cities

The concept of smart cities is gaining traction in South America, driving the agile IoT market forward. Urban areas are increasingly adopting IoT technologies to enhance public services, improve energy efficiency, and optimize transportation systems. By 2025, it is anticipated that investments in smart city projects will exceed $5 billion in the region. This focus on urban innovation is likely to create a substantial demand for agile IoT solutions, as municipalities seek to implement systems that can adapt to changing needs and improve the quality of life for residents. The agile IoT market is thus positioned to thrive in this evolving landscape.

Government Initiatives and Support

Government initiatives play a crucial role in shaping the agile IoT market in South America. Various national and regional policies are being implemented to promote the adoption of IoT technologies across different sectors. For instance, funding programs and tax incentives are being introduced to encourage businesses to invest in agile IoT solutions. In 2025, it is estimated that government spending on IoT-related projects in South America will reach approximately $1 billion, reflecting a commitment to fostering innovation and technological advancement. This supportive environment is likely to stimulate growth in the agile IoT market, as companies are more inclined to adopt new technologies when backed by governmental support.

Increased Investment in Cybersecurity

As the agile IoT market expands in South America, the need for robust cybersecurity measures becomes increasingly critical. With the proliferation of connected devices, businesses are recognizing the potential risks associated with data breaches and cyberattacks. In response, investments in cybersecurity solutions are projected to grow by 40% over the next few years. This heightened focus on security is likely to drive the adoption of agile IoT technologies, as companies seek to ensure the integrity and safety of their data. The agile IoT market is expected to benefit from this trend, as organizations prioritize secure and resilient IoT deployments.

Rising Demand for Real-Time Data Analytics

The agile IoT market in South America experiences a notable surge in demand for real-time data analytics. Businesses across various sectors are increasingly recognizing the value of immediate insights derived from IoT devices. This trend is particularly pronounced in industries such as agriculture and manufacturing, where timely data can enhance decision-making processes. According to recent estimates, the market for data analytics in the region is projected to grow at a CAGR of 25% over the next five years. This growth is likely to drive investments in agile IoT solutions, as companies seek to leverage data for operational efficiency and competitive advantage. The agile IoT market is thus positioned to benefit significantly from this rising demand, as organizations prioritize agility and responsiveness in their operations.

Expansion of Telecommunications Infrastructure

The expansion of telecommunications infrastructure in South America is a significant driver for the agile IoT market. Improved connectivity, particularly in rural and underserved areas, facilitates the deployment of IoT devices and applications. As of November 2025, it is reported that mobile broadband coverage has increased to over 80% in many regions, enabling more businesses to leverage IoT technologies. This enhanced connectivity is expected to lead to a 30% increase in IoT device adoption in the next few years. Consequently, the agile IoT market stands to gain from this infrastructure development, as it allows for more robust and reliable IoT solutions.

Market Segment Insights

By Component: Hardware (Largest) vs. Software (Fastest-Growing)

In the component segment, hardware has established itself as the largest value, dominating the market share due to the significant demand for physical devices in various IoT applications. It provides essential infrastructure and connectivity solutions that are foundational for agile implementations. Conversely, software is rapidly gaining traction as the fastest-growing component, driven by the increasing demand for analytics, management tools, and user-friendly interfaces that enhance the functionality of IoT systems. The growth trends in this segment are notably influenced by several key factors. Hardware continues to thrive owing to advancements in manufacturing technology and the rising need for robust, scalable solutions. On the other hand, software's growth is propelled by the shift towards cloud-based solutions and the urgent need for improved cybersecurity measures in IoT systems. As businesses adapt to digital transformation, the reliance on software for seamless integration and management of diverse hardware components is expected to escalate.

Hardware (Dominant) vs. Software (Emerging)

Hardware remains the dominant force in this component segment, characterized by its essential role in establishing the physical infrastructure necessary for IoT solutions. With advancements in sensor technology, connectivity modules, and processing units, hardware provides the foundational backbone for various applications across industries. Meanwhile, software is emerging as a significant player by offering innovative applications that facilitate better data management and insights. This includes tools for automation, machine learning, and real-time analytics, which are transforming how businesses leverage IoT ecosystems. As organizations recognize the value of integrating these software solutions with existing hardware, the competitive landscape is evolving, positioning software as a critical component that drives future growth and adaptability in the IoT market.

By Deployment: Cloud (Largest) vs. On-premises (Fastest-Growing)

In the deployment segment, Cloud solutions dominate the landscape, capturing a significant portion of market share with their scalability and ease of access. On-premises setups, while historically prevalent, have seen a decrease in preference as organizations shift towards cloud-based options for enhanced flexibility and lower operational costs. Growth trends indicate that On-premises deployments are emerging as the fastest-growing category, driven by a rising demand for data security and compliance among organizations. Businesses that operate in highly regulated sectors are increasingly opting for these solutions to maintain control over their data infrastructure while still seeking the efficiencies provided by cloud capabilities. The balance between security and flexibility continues to shape investment decisions in this segment.

Cloud (Dominant) vs. On-premises (Emerging)

Cloud deployments are currently dominant within the agile IoT framework, offering unparalleled accessibility and integration capabilities that many enterprises favor. The expenses associated with managing on-premises systems often push organizations to adopt cloud solutions, making them a default choice for many startups and established players alike. Conversely, On-premises deployments are witnessing a resurgence as more companies emphasize data sovereignty and security amidst rising cyber threats. This deployment type is becoming a requisition for sectors that demand rigorous compliance with data governance. As the market evolves, hybrid models combining both deployment types are starting to gain traction, providing a tailored solution that caters to diverse business needs.

By Organization Size: Large (Largest) vs. Small (Fastest-Growing)

In the analyzed segment of Organization Size, the Large category holds the largest market share, reflecting the significant investment and adoption of agile IoT solutions by large enterprises in South America. This segment benefits from substantial resources, allowing for large-scale deployment and integration of advanced technologies, which enhances operational efficiency and competitiveness in various industries. Conversely, the Small organization segment is recognized as the fastest-growing, driven by the increasing accessibility of agile IoT solutions. Many small businesses are leveraging cloud-based services and affordable technology to enhance their agility and responsiveness to market changes. This trend is supported by the rise of IoT applications specifically designed for small enterprises, contributing to their growth in the market.

Large (Dominant) vs. Small (Emerging)

The Large organization segment is characterized by its substantial infrastructure and ability to implement comprehensive IoT strategies, yielding significant competitive advantages. Connectivity and data analytics play crucial roles for these businesses, allowing them to optimize operations and innovate their service offerings. Conversely, the Small organization segment is emerging quickly, with an increasing number of small businesses adopting agile IoT solutions to improve efficiencies and reduce costs. These businesses are often looking for modular and scalable solutions that fit their budget, enabling them to compete in the digital landscape. As technology evolves, small enterprises are expected to continue expanding their footprint in the market, becoming key players alongside larger corporations.

By Connectivity: Wi-Fi (Largest) vs. Li-Fi (Fastest-Growing)

In the South America agile iot market, the connectivity segment showcases a diversified landscape, with Wi-Fi taking the lead as the largest contributor due to its widespread availability and user-friendly nature. LAN follows as a significant player, catering to stable connections in commercial and industrial settings. Meanwhile, Li-Fi is emerging as a promising alternative, gaining traction for its high-speed data transmission capabilities and secure signal characteristics, creating a competitive dynamic in the market. The growth trends in this segment are driven by the increasing demand for reliable and high-speed internet connectivity across various applications, including smart cities and industrial automation. Initiatives focusing on enhancing digital infrastructure further bolster the expansion of the Wi-Fi technology, while the rapid advancements in Li-Fi technology position it as a fast-growing contender, poised to revolutionize data transmission in environments where traditional Wi-Fi faces limitations.

Wi-Fi (Dominant) vs. Li-Fi (Emerging)

Wi-Fi stands out as the dominant connectivity technology in the region, renowned for its ease of use and extensive support across devices and applications. Its ability to deliver robust internet access has made it a staple in homes, businesses, and public areas. On the other hand, Li-Fi, characterized by its unique use of light for data transmission, is emerging rapidly. It offers advantages such as higher speeds and enhanced security, making it particularly attractive for high-density environments. As infrastructure evolves, the competition between these two technologies is intensifying, with Wi-Fi expected to maintain its lead while Li-Fi carves out a niche in specialized applications.

By Vertical: Manufacturing (Largest) vs. Healthcare (Fastest-Growing)

The distribution of market share within the vertical segment shows that manufacturing continues to dominate with considerable adoption of agile IoT solutions, driven by the need for increased operational efficiency. This sector leverages IoT technologies for automation, real-time monitoring, and predictive maintenance, allowing manufacturers to stay competitive as they adapt to changing demands and optimize resources. On the other hand, the healthcare sector is emerging as the fastest-growing segment as it increasingly adopts agile IoT applications to enhance patient care and streamline operations. The integration of IoT in healthcare drives innovations like telemedicine, remote monitoring, and smart medical devices, providing significant improvements in patient outcomes and operational efficiencies, thereby attracting substantial investments and attention in the market.

Manufacturing: Dominant vs. Healthcare: Emerging

In the agile IoT market, the manufacturing segment is characterized by its robust infrastructure and established processes that effectively integrate IoT solutions, enabling manufacturers to optimize their production lines and reduce costs. Its dominance stems from the vast potential for automation and data analytics, offering companies a competitive edge. Conversely, the healthcare segment is emerging with rapid technological advancements and regulatory support, focusing on leveraging IoT for enhanced patient monitoring, data analytics, and streamlined operations. As healthcare organizations adopt IoT solutions, the market dynamics shift, highlighting the urgent need for patient-centric approaches and improved service delivery, thus presenting a wealth of opportunities for innovation and growth.

Get more detailed insights about South America Agile IoT Market

Regional Insights

Brazil : Strong Growth Driven by Innovation

Brazil holds a commanding 2.8 market share in the agile IoT sector, driven by rapid urbanization and a burgeoning tech ecosystem. Key growth drivers include government initiatives promoting digital transformation and investments in smart city projects. The demand for IoT solutions is surging, particularly in agriculture and manufacturing, as businesses seek efficiency and automation. Regulatory support, such as the National IoT Plan, fosters innovation and infrastructure development, enhancing connectivity across urban and rural areas.

Mexico : Emerging Market with High Potential

Mexico captures a 1.2 market share in the agile IoT market, with significant growth potential driven by its strategic location and trade agreements. The demand for IoT applications in logistics and manufacturing is on the rise, supported by government policies aimed at enhancing technological adoption. Infrastructure improvements, particularly in telecommunications, are facilitating greater connectivity, making IoT solutions more accessible to businesses across various sectors.

Argentina : Innovation Amid Economic Challenges

Argentina holds a 1.0 market share in the agile IoT sector, characterized by a growing interest in smart agriculture and energy management solutions. Despite economic challenges, local startups are driving innovation, supported by government incentives for technology adoption. The demand for IoT solutions is increasing in urban areas like Buenos Aires, where smart city initiatives are gaining traction. Regulatory frameworks are evolving to support the integration of IoT technologies across industries, enhancing the business environment.

Rest of South America : Varied Markets with Unique Needs

The Rest of South America accounts for a 0.9 market share in the agile IoT landscape, with diverse opportunities across countries like Chile, Colombia, and Peru. Each nation presents unique growth drivers, from mining in Chile to agriculture in Colombia. Local governments are increasingly recognizing the importance of IoT for economic development, leading to supportive policies and infrastructure investments. The competitive landscape features both local and international players, adapting to regional demands and sector-specific applications.

South America Agile IoT Market Regional Image

Key Players and Competitive Insights

The agile IoT market in South America is characterized by a dynamic competitive landscape, driven by rapid technological advancements and increasing demand for interconnected devices. Major players such as Amazon (US), Microsoft (US), and IBM (US) are strategically positioned to leverage their extensive cloud infrastructures and innovative solutions. Amazon (US) focuses on enhancing its AWS IoT services, while Microsoft (US) emphasizes its Azure platform to facilitate digital transformation across various sectors. IBM (US) is concentrating on integrating AI capabilities into its IoT solutions, thereby enhancing data analytics and operational efficiency. Collectively, these strategies foster a competitive environment that prioritizes innovation and customer-centric solutions.

Key business tactics within this market include localizing manufacturing and optimizing supply chains to meet regional demands. The competitive structure appears moderately fragmented, with several key players exerting influence over market dynamics. This fragmentation allows for niche players to emerge, while larger corporations consolidate their market share through strategic partnerships and acquisitions.

In October 2025, Amazon (US) announced the expansion of its AWS IoT services to include advanced machine learning capabilities tailored for the South American market. This strategic move is likely to enhance the company's competitive edge by providing localized solutions that cater to specific industry needs, thereby driving customer adoption and engagement.

In September 2025, Microsoft (US) launched a new initiative aimed at fostering partnerships with local startups in South America to co-develop IoT solutions. This approach not only strengthens Microsoft's presence in the region but also facilitates innovation through collaboration, potentially leading to the development of unique applications that address local challenges.

In August 2025, IBM (US) unveiled a new IoT platform designed specifically for the manufacturing sector in South America, integrating AI and blockchain technologies. This initiative is significant as it positions IBM as a leader in providing comprehensive solutions that enhance operational transparency and efficiency, which are critical for manufacturers looking to optimize their processes.

As of November 2025, current competitive trends in the agile IoT market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances are increasingly shaping the landscape, as companies recognize the value of collaboration in driving innovation. Looking ahead, competitive differentiation is expected to evolve, with a notable shift from price-based competition towards a focus on technological innovation, reliability in supply chains, and the ability to deliver tailored solutions that meet the unique needs of diverse markets.

Key Companies in the South America Agile IoT Market market include

Industry Developments

In recent months, the South America Agile Internet of Things (IoT) market has witnessed significant developments, notably in partnerships and technological advancements among key players such as SAP, Cisco, and Huawei. For instance, in April 2023, Honeywell announced a strategic partnership aimed at enhancing smart building technology across major South American cities.

Additionally, Intel made strides in boosting its presence in Brazil with enhanced edge computing capabilities, critical for IoT applications. The growth in market valuation is notable, with forecasts indicating an increase from USD 25 billion in 2021 to over USD 50 billion by 2025, primarily driven by demand for smart devices and connected solutions in sectors such as agriculture and manufacturing.

Mergers and acquisitions have also shaped the landscape; in January 2023, Amazon completed the acquisition of a local IoT startup to expand its service offerings in the region.

Meanwhile, firms like Microsoft and IBM are focusing on research initiatives to innovate IoT services tailored to South America's unique market challenges. Significant advancements, including regulatory support from governments across the region, have further contributed to an optimistic outlook for the Agile IoT sector.

Future Outlook

South America Agile IoT Market Future Outlook

The agile IoT market is projected to grow at 18.15% CAGR from 2024 to 2035, driven by increased connectivity, demand for automation, and enhanced data analytics capabilities.

New opportunities lie in:

  • Development of smart agriculture solutions leveraging IoT sensors for real-time monitoring.
  • Implementation of predictive maintenance systems in manufacturing to reduce downtime.
  • Creation of IoT-enabled logistics platforms for optimized supply chain management.

By 2035, the agile IoT market is expected to achieve substantial growth, driven by innovation and strategic investments.

Market Segmentation

South America Agile IoT Market Vertical Outlook

  • Manufacturing
  • Healthcare

South America Agile IoT Market Component Outlook

  • Hardware
  • Software

South America Agile IoT Market Deployment Outlook

  • On-premises
  • Cloud

South America Agile IoT Market Connectivity Outlook

  • LAN
  • Wi-Fi
  • Li-Fi

South America Agile IoT Market Organization Size Outlook

  • Large
  • Small
  • Medium

Report Scope

MARKET SIZE 20245.9(USD Billion)
MARKET SIZE 20256.97(USD Billion)
MARKET SIZE 203536.95(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)18.15% (2024 - 2035)
REPORT COVERAGERevenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR2024
Market Forecast Period2025 - 2035
Historical Data2019 - 2024
Market Forecast UnitsUSD Billion
Key Companies Profiled["Amazon (US)", "Microsoft (US)", "IBM (US)", "Cisco (US)", "Google (US)", "Siemens (DE)", "Oracle (US)", "SAP (DE)", "GE (US)"]
Segments CoveredComponent, Deployment, Organization Size, Connectivity, Vertical
Key Market OpportunitiesIntegration of advanced analytics and machine learning enhances operational efficiency in the agile iot market.
Key Market DynamicsRising demand for agile IoT solutions driven by regulatory shifts and increasing digital transformation in South America.
Countries CoveredBrazil, Mexico, Argentina, Rest of South America

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FAQs

What is the expected market size of the South America Agile IoT Market in 2024?

The South America Agile IoT Market is expected to be valued at 5.9 USD Billion in 2024.

What is the projected market growth rate for the South America Agile IoT Market from 2025 to 2035?

The market is anticipated to grow at a CAGR of 18.153% from 2025 to 2035.

Which region is expected to hold the largest share of the South America Agile IoT Market in 2024?

Brazil is expected to dominate the market with a valuation of 2.3 USD Billion in 2024.

What is the expected market size for the hardware segment of the South America Agile IoT Market in 2024?

The hardware segment is projected to be valued at 2.5 USD Billion in 2024.

What is the anticipated market value for the software segment of the South America Agile IoT Market in 2035?

The software segment is projected to reach 21.4 USD Billion by 2035.

Which key players are major competitors in the South America Agile IoT Market?

Major players include SAP, Cisco, Intel, Honeywell, Accenture, Huawei, Siemens, Amazon, Google, Microsoft, and IBM.

What will be the market size of Argentina in the South America Agile IoT Market by 2035?

Argentina's market size is expected to increase to 5.2 USD Billion by 2035.

What is the expected market size of Mexico in the South America Agile IoT Market in 2024?

The market size for Mexico is projected to be 1.5 USD Billion in 2024.

What are the growth opportunities driving the South America Agile IoT Market?

The growth opportunities are driven by increased demand for connectivity, enhanced automation, and innovative IoT applications.

What will be the overall market value for the South America Agile IoT Market in 2035?

The South America Agile IoT Market is expected to be valued at 36.95 USD Billion in 2035.

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