Executive Summary: ISG Provider Lens™ Internet of Things - Services and Solutions - Brazil 2022
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IoT- Internet beyond things to people and industries using AI
Since the publication of the National IoT Plan, the market related to consulting, implementation and managed services for IoT has been growing and maturing significantly. The management and monitoring of assets of all kinds and the usage of data and AI for making decisions have become common activities in areas such as telecommunications, agribusiness, medicine, logistics and manufacturing processes (with increasing frequency). In addition, the ability to meet industry-specific regulatory requirements and business compliance standards is becoming essential among service providers.
In commercial buildings, the deployment of room monitoring devices not only enables more organized spaces/facilities but also become a factor reducing health risks. In this way, facility maintenance and cleaning companies can increase the quality of their services, while significantly reducing costs.
However, the restrictions induced by the COVID-19 pandemic had both negative and positive impacts on the investment priorities of companies. In terms of healthand logistics-related concerns, the impact was highly positive; executives understood how having real-time information on all the components and agents involved in an organizational processes can be a differentiating and business survival factor.
Data collected in huge volumes and of different types create new service opportunities such as options for offering enhanced predictive maintenance and fine-tuning of goods and service flows in a supply chain. In the automotive space, automated driving with exact maps enables accuracy and timeliness, which was unimaginable until recently.
Global and Brazilian Market
ISG estimates that the total number of connected devices may reach 27.1 billion by 2025. In Brazil, IoT initiatives are now evolving from discrete, customized proofs of concept to scalable solutions for businesses and the society, at large. The concept of IoT is increasingly being integrated into transformational strategies, both by private companies and government facilities.
Given the geographical extent of Brazil, one critical area is the deployment of integrated networks of smart devices that can monitor location and movement of vehicles, equipment, goods, animals and people, as well as collect and analyze a huge volume of data about asset usage. Providers that already make use of edge computing, and data collection and analysis using AI and machine learning are positioning themselves better now. The assessment of security resources includes a provider’s strategies to manage multiple devices and networks in an integrated, heterogeneous environment. This is a critical factor, determining the success of providers in the market.
IoT initiatives often require support from an ecosystem of technology partners in three areas: strategy consulting to identify opportunities, define goals and chart a journey; technology implementation expertise to integrate multiple devices, applications and platforms; and ongoing management of the IoT ecosystem through managed services. In such a scenario, there is an opportunity that is also a warning point for local companies— knowing how to work in partnership is a matter of business survival.
A difference in the Brazilian market, in relation to the other markets analyzed by ISG this year, is the prominence that telecom companies have obtained. Owing to historical and legislative reasons, these companies have created specific services for the priority areas of the National IoT Plan and the Brazilian Development Bank (BNDES):
- Smart cities: Covering mobility, public safety, energy efficiency and sanitation
- Health: Continuous monitoring of patients with chronic diseases, promotion and prevention, and management efficiency
- Agribusiness: Efficient use of natural resources, inputs and machinery, as well as sanitary security
- Industries: Resource and process optimization, IoT-based business models, supply chain integration and cooperation
Cloud and IoT technologies are highly correlated — IoT components are generally not designed to have a selfstorage element and the data generated must be stored in a cloud environment, public or private. Consequently, IoT service providers are adopting cloud platforms to deliver new and differentiated services to organizations; IoT as a Service is a contracting model that is anticipated to continue finding relevance in the market.
The demand for endpoint security solutions has increased the need for managed IoT security services to protect data for organizations and their employees. Enterprises are increasingly adopting cutting-edge AI software to support critical applications such as autonomous vehicles and robots. Furthermore, the significant increase in wearable device usage has the potential to foster software sophistication as these devices require processing on the move without relying on remote cloud services. With the increasing use of sensors in devices due to the wide acceptance of the IoT concept and the need for rapid decision making, cutting-edge AI is likely to gain substantial traction in the market in the coming years.
IoT for digital transformation enables operational efficiency
IoT, a crucial digital transformation technology, enables companies to improve operational efficiency. Big data analytics, cloud computing and edge computing are just some of the technologies driving the demand for enterprise digital transformation. Service providers offering IoT consulting have been forced to retool their current IoT service offerings due to the growing need for digital transformation. The increasing use of advanced technologies enables enterprises to opt for IoT-based digital transformation. Retail, agriculture, manufacturing, transportation and healthcare are some of the major verticals that are undergoing this change. Smart retail, smart manufacturing and connected health are some of the key applications in these verticals, driving companies to opt for IoT-based digital transformation. Furthermore, convergence of IT/OT is becoming an increasingly common means of integration in enterprises.
The digitalization of industrial control systems (ICS) and the evolution of OT are decreasing the dependency on human resources in manufacturing. IT and OT security capabilities are merging into a single unified monitoring environment that detects anomalies promptly and facilitates data protection. Security is expanding beyond the IT sector into several other domains, including OT. These changes are bringing in a number of benefits such as reduced order fulfillment cycles, sustainable production processes and improved product quality. Additionally, vendors are driving the concept of integrating a general monitoring system across the entire IT/OT value system without causing any interference in the way devices function.
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