Building a National Iot Plan: Policy Recommendations and the Case of Brazil

Abstract

The Internet of Things (“IoT”) is an expression that refers to a whole set of new services and devices that includes at least three fundamental aspects: connectivity, use of sensors or actuators, and computational capacity for data processing and storage. The Internet of Things goes beyond connecting objects to each other; it also gives them the power to process data (thereby making them “smart”).

This development emerges from increased accessibility of already available technologies, which are now being used in mass. For example, a tractor equipped with an IoT device does not simply plow but can also collect data for subsequent analysis. This is done through an app hosted at a data center, which produces reports that allow farmers to make decisions about where and when to plant. In assembly lines, sensors provide data for analysis, which can in turn be used to determine the ideal times to perform equipment maintenance.

Estimates show that the Internet of Things has the potential to add from $4 to $11 trillion to the global economy by 2025; in Brazil alone that number could hit between $50 and $200 billion. Beyond the economic impact, IoT could lead to extremely significant social gains, such as helping countries to achieve United Nations Sustainable Development Goals.