LatAm to reach 125mn licensed cellular IoT connections by 2030 – RCR Wireless News

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The number of licensed cellular IoT connections in the region had reached 73 million last year

Licensed cellular IoT connections in Latin America are forecast to reach 125 million by 2030, according to a recent report by the GSMA.

The report stated that the number of licensed cellular IoT connections in the region had reached 73 million last year.

The GSMA noted that the cellular IoT market will experience steady growth in Latin America, expanding by a CAGR of 8% between 2023 and 2030.

“Brazil and Mexico will account for almost 80% of the growth, with IoT also gaining traction in Argentina, Colombia, Chile and Venezuela. The increasing availability of low-power, wide area (LPWA) networks is crucial to the widespread adoption of IoT, as reflected in Movistar Colombia’s launch of LTE-M in February 2024 and Entel Chile’s introduction of NB-IoT in October 2023,” the report stated.

“Operators see the potential in partnerships for jointly selling IoT solutions with IoT platform companies, telecoms vendors, systems integrators and business software platforms. For instance, Telefónica and Nokia announced an alliance in June 2023 to accelerate digital transformation for enterprises in Latin America. The alliance is focused on the most promising industries, including ports, mining, energy and manufacturing,” the GSMA report added.

The report also noted that eSIM technology is also gaining momentum in Latin America. An eSIM, or embedded SIM, is a built-in electronic SIM card inside a mobile device, enabling flexible and remote management of mobile subscriptions without the need for a physical SIM card.

In Latin America, 34% of MNOs have launched eSIM service for smartphones, in line with the global average, the GSMA said. The rollout in Latin America encompasses 30 operators across 14 countries. Argentina, Brazil, Chile, Colombia and Mexico lead the way. In each of these markets, three operators have launched eSIM service for smartphones, according to the report.

Meanwhile, two operators each in Costa Rica, Dominican Republic, Guatemala, Paraguay, Peru and Uruguay have launched eSIM service for smartphones. Ecuador, Honduras and Panama each have one operator with an eSIM service for smartphones.

The report also noted that 5% of smartphone connections in the region used eSIM at the end of 2023. This will grow to 16% by the end of 2025, reaching 75% by the end of the decade. “The sharp increase in eSIM adoption will be driven by device vendors introducing eSIM-only smartphones. The general expectation is that eSIM-only smartphones will launch in Latin America in 2026 or shortly thereafter. Operators need to develop medium- and long-term eSIM strategies given the technology’s potential to disrupt the competitive dynamics of the mobile sector,” the GSMA said.

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