South America Automobile IoT Market Research Report By Technology (Telematics, Vehicle-to-Everything, Remote Diagnostics, Fleet Management), By Application (Navigation, Safety Security, Remote Vehicle Management, Infotainment), By End Use (Passenger Vehicles, Commercial Vehicles, Electric Vehicles), By Connectivity (Cellular Connectivity, Satellite Connectivity, Wi-Fi Connectivity), and By Regional (Brazil, Mexico, Argentina, Rest of South America)-Forecast to 2035

South America Automobile IoT Market Overview

As per MRFR analysis, the South America Automobile IoT Market Size was estimated at 3.79 (USD Billion) in 2023.The South America Automobile IoT Market is expected to grow from 4.26(USD Billion) in 2024 to 15 (USD Billion) by 2035. The South America Automobile IoT Market CAGR (growth rate) is expected to be around 12.134% during the forecast period (2025 - 2035).

Key South America Automobile IoT Market Trends Highlighted

Due to a number of important variables, the South American automotive IoT market is developing quickly. The growing use of smart car technologies, which improve consumer convenience, safety, and connectivity, is one of the main market drivers. Initiatives to improve road safety, advance sustainability, and update transportation infrastructure are also being pushed by the region's governments.

IoT applications in cars are expanding thanks to this governmental support, which makes it a major market driver in South America. Another contributing cause is the increase in customer desire for improved in-car amenities including entertainment selections, real-time navigation, and vehicle diagnostics.

Opportunities to investigate include the Internet of Things' integration with autonomous and electric automobiles, a technology that is becoming more popular as nations like Argentina and Brazil pursue electrification projects.

Businesses can also benefit greatly from the possibility of using IoT data to lower operating costs and enhance fleet management in the logistics industry. Additionally, the emphasis on environmental sustainability is pushing automakers to use IoT technology that lower emissions and increase fuel efficiency.

In an effort to spur innovation, automakers and tech firms are increasingly working together, according to recent trends. Partnership models are becoming more prevalent with the goal of creating smart city solutions that combine urban infrastructure and IoT-enabled automobiles.

The need for linked cars in cities is also being driven by the growing use of mobile devices and the internet. All things considered, the South American automotive IoT market is expected to grow significantly as government assistance and technology breakthroughs meet consumer needs.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

South America Automobile IoT Market Drivers

Growing Demand for Connected Vehicles

The South America Automobile Internet of Things (IoT) Market is experiencing significant growth due to the rising demand for connected vehicles. An estimated 30% increase in vehicle connectivity is projected over the next five years in South America, driven by consumer preferences for advanced safety features and enhanced in-car experiences.

Organizations such as ANFAVEA (National Association of Motor Vehicle Manufacturers) report that connected vehicle technologies accounted for approximately 22% of new vehicles sold in Brazil in 2022, reflecting a growing trend towards IoT adoption in the automobile industry.

As local manufacturers increasingly incorporate features such as real-time data analytics and telematics into their vehicles, the overall surge in demand for connected mobility solutions is expected to significantly boost the South America Automobile IoT Market.

Furthermore, government regulations aimed at improving road safety and reducing traffic congestion further support the integration of IoT technologies into vehicles, enhancing their appeal and driving market growth.

Government Initiatives Favoring Smart Transportation

Governments across South America are implementing initiatives that promote smart transportation, thereby positioning the South America Automobile IoT Market for growth. For instance, Brazil’s National Policy on Urban Mobility aims to modernize the transportation infrastructure by incorporating digital technologies such as IoT in public and private transport systems.

An increase in investments, estimated at around 10 billion USD over the next decade, is allocated for developing smart city projects across major South American cities.

This push for modernization creates opportunities for IoT solutions tailored for automobiles, encouraging partnerships between government entities and technology providers. Such collaborative efforts drive innovation, enhance user experiences, and contribute to improving overall transportation efficiency.

Increasing Focus on Driver Safety and Compliance

The South America Automobile IoT Market is also being propelled forward by heightened focus on driver safety and regulatory compliance. A survey conducted by the Brazilian Ministry of Infrastructure indicated a staggering 25% reduction in road accidents attributed to the implementation of IoT-enabled safety systems in vehicles over the past two years.

As more evidence emerges linking IoT technologies to improved road safety, automotive manufacturers are investing heavily in developing solutions that meet the growing regulatory requirements pertaining to vehicle safety standards.

The active involvement of institutions like the National Traffic Department (DENATRAN) in promoting such technologies creates a more favorable environment for growth, enhancing the appeal of IoT-enabled vehicles in South America.

South America Automobile IoT Market Segment Insights

Automobile IoT Market Technology Insights

The South America Automobile IoT Market within the Technology segment is experiencing significant transformations and growth, driven by the increasing demand for smart and connected vehicles. As the region embraces advancements in technology, the focus has been on enhancing vehicle performance, safety, and user experience through various applications.

Telematics plays a crucial role in this market, as it facilitates real-time data transmission between vehicles and central systems, enabling features such as navigation, infotainment, and safety alerts. With automobile manufacturers and fleet operators investing heavily in telematics, this aspect of the market continues to lead in terms of innovations and applications.

Vehicle-to-Everything (V2X) technology also holds immense potential in the South American market, enabling vehicles to communicate with each other, infrastructure, and networks. This capability not only enhances road safety but also contributes to improved traffic management, reducing congestion and emissions.

Moreover, Remote Diagnostics are becoming indispensable as they allow for the monitoring and assessing of vehicle health. By providing early alerts for potential issues, this technology helps reduce repair costs and vehicle downtime, bolstering customer satisfaction and trust.

Fleet Management is another critical aspect of the Technology segment, showcasing its importance in optimizing logistics and operational efficiency. With the increasing need for businesses to improve supply chain processes, advanced fleet management solutions that incorporate GPS tracking, route optimization, and predictive maintenance are dominating.

This ensures businesses can enhance productivity while lowering operational costs. As the South American Automobile IoT Market evolves, the integration of these technologies is set to redefine not only the automotive industry but the broader ecosystem by fostering innovation and improving connectivity among vehicles and beyond.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Automobile IoT Market Application Insights

The South America Automobile IoT Market, specifically within the Application segment, presents significant opportunities for growth and development, reflecting the evolving landscape of the automotive sector in the region.

With a steady rise in vehicle connectivity, the importance of Navigation systems is becoming increasingly evident, as they enhance drivers' experiences by optimizing routes and providing real-time traffic data. Safety and Security applications play a crucial role in addressing rising concerns over vehicle theft and road safety, further driving demand among consumers and regulatory bodies alike.

Remote Vehicle Management serves as a pivotal tool for fleet operators, allowing for efficient monitoring and maintenance, which is essential for operational efficiency in this dynamic market. Meanwhile, Infotainment systems are advancing rapidly, offering a blend of entertainment and information that caters to the tech-savvy consumer base in South America.

This increasing integration of technology in vehicles is a strong indicator of the overall growth in the South America Automobile IoT Market, with statistical trends indicating that application-specific solutions are vital in shaping consumer preferences and driving market expansion.

Altogether, these applications not only enhance user experiences but also contribute to the market's ongoing transformation in the automotive landscape across South America.

Automobile IoT Market End Use Insights

The South America Automobile IoT Market is expanding rapidly, reflecting the increasing adoption of Internet of Things technologies across various vehicle applications. The market is primarily segmented into Passenger Vehicles, Commercial Vehicles, and Electric Vehicles.

Passenger Vehicles hold a significant share in the market due to rising consumer demand for connected features, enhancing safety and convenience. As urbanization increases, Commercial Vehicles are also experiencing growth as businesses seek to leverage IoT for fleet management and operational efficiency.

The Electric Vehicles segment is particularly notable, driven by governmental regulations promoting sustainable transportation and a growing emphasis on reducing carbon emissions. As more consumers shift towards environmentally friendly options, the integration of IoT in Electric Vehicles is likely to enhance user experience and improve vehicle performance.

The dynamics of the South America Automobile IoT Market are also influenced by economic factors, with varying infrastructure development across countries affecting the pace of IoT adoption in vehicles.

Overall, trends such as increased smartphone penetration and the rise of smart city initiatives are expected to further drive growth in these segments, contributing to the overall enhancement of the South America Automobile IoT Market landscape.

Automobile IoT Market Connectivity Insights

The Connectivity segment of the South America Automobile IoT Market plays a crucial role in enhancing automotive technologies through various integration methods. This segment primarily comprises Cellular Connectivity, Satellite Connectivity, and Wi-Fi Connectivity, each serving distinct functionalities that cater to the evolving demands of vehicle connectivity.

Cellular Connectivity has emerged as a preferred choice for real-time data transmission and vehicle tracking, particularly in urban areas, facilitating a seamless flow of information between vehicles and centralized systems.

Satellite Connectivity provides global coverage, making it indispensable for remote regions where traditional networks are inadequate, thus ensuring continuous vehicle communication regardless of location. Wi-Fi Connectivity allows vehicles to connect with local networks and offers enhanced data transfer speeds for passengers, underscoring its importance for in-vehicle entertainment and services.

As technological advancements continue to reshape the automotive landscape, the integration of these connectivity solutions is vital in accommodating the growing consumer preference for connected cars in South America, where increased urbanization and mobile device adoption fuel the need for innovative automotive solutions.

The South America Automobile IoT Market reflects significant opportunities for growth in the Connectivity segment, driven by advancements in 5G technology and rising investments in smart transportation networks.

Automobile IoT Market Regional Insights

The South America Automobile IoT Market has experienced significant growth, with noteworthy contributions from individual countries such as Brazil, Mexico, and Argentina, along with the Rest of South America. Brazil is a key player, dominating the market due to its robust automotive industry and increasing adoption of connected vehicle technologies, which enhance driver safety and vehicle efficiency.

Mexico, recognized for its strong manufacturing capabilities and a growing consumer base for smart vehicles, plays an essential role in driving innovation within the market. Argentina, with its expanding automotive sector, is increasingly embracing IoT solutions that improve operational efficiencies and contribute to overall automotive advancements.

The Rest of South America also presents opportunities as various regions focus on digital transformations in transportation. The growth drivers include rising disposable incomes, advancements in technology, and increasing demand for enhanced vehicle security.

Challenges such as infrastructure limitations and regulatory hurdles present significant hurdles. However, overall market progress in this region appears optimistic as stakeholders recognize the potential of connected vehicles and IoT in revolutionizing the automotive landscape.

This comprehensive understanding of the South America Automobile IoT Market segmentation allows for better planning and strategy formulation in harnessing the benefits of emerging technologies.

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

South America Automobile IoT Market Key Players and Competitive Insights

The South America Automobile IoT Market has been experiencing significant growth, driven by the increasing adoption of connected vehicle technologies and the demand for enhanced automotive safety, efficiency, and user experience.

Several key players have emerged in this competitive landscape, vying for market share by offering innovative solutions that harness the power of the Internet of Things. Companies are focusing on developing advanced data analytics, real-time monitoring, and vehicle-to-vehicle communication systems to cater to the evolving needs of consumers and businesses.

As the automotive sector in South America continues to evolve, understanding the competitive dynamics becomes crucial for stakeholders aiming to capitalize on market opportunities.

Oracle has established a strong presence in the South America Automobile IoT Market through its comprehensive suite of cloud-based solutions designed to enhance automotive operations. The company’s strengths include its robust data management capabilities and advanced analytics platforms, which have become essential for automotive manufacturers seeking to optimize their production processes and improve vehicle performance.

Oracle’s solutions enable real-time data collection and processing, thus enhancing insights into vehicle diagnostics and driver behavior, which are critical facets of IoT applications. Additionally, the company’s emphasis on partnerships with local automotive players fosters a collaborative ecosystem that further strengthens its market position in the region.

Toyota’s involvement in the South America Automobile IoT Market underscores its commitment to innovation and sustainability within the automotive sector. The company has been focusing on integrating advanced IoT technologies into its vehicles, enhancing connectivity, safety, and overall driving experience.

Key products such as telematics systems and connected services have been successful in appealing to the increasingly tech-savvy consumer base in South America. Toyota's market presence is bolstered by its reputation for reliability and trustworthiness, along with significant investments in local manufacturing facilities and research and development.

The company has also pursued strategic partnerships and collaborations within the region, allowing it to stay at the forefront of IoT advancements in the automotive space. Through these initiatives, Toyota aims to capitalize on the growing demand for smart vehicles and sustainable transportation solutions in South America.

Key Companies in the South America Automobile IoT Market Include

• Oracle
• Toyota
• Nissan
• Cisco
• SAP
• Microsoft
• Ford
• Volkswagen
• IBM
• General Motors

South America Automobile IoT Market Developments

In order to enable features like real-time telematics, OTA updates, remote controls, anti-theft alerts, and onboard Wi-Fi, Toyota partnered with NTT DATA's Transatel to integrate multi-network (e)SIM capabilities into vehicles sold in Brazil and Argentina in February 2025.

The rollout is scheduled to take place throughout Ecuador, Peru, Chile, and other countries. In order to improve vehicle services and safety systems, General Motors said in April 2024 that it will use extended LTE and NB-IoT networks to deploy one million connected cars throughout South America by 2025.

With cloud-based platforms, telematics infrastructure, mobility services, and data analytics across logistical, urban, and consumer vehicle environments, Ford, Volkswagen, Oracle, Microsoft, IBM, SAP, and Cisco continue to bolster their presence in South America's automotive IoT ecosystem, even though they are not bound by a specific date.

The speedy acceleration of intelligent mobility advances across South America between 2024 and 2025 is highlighted by these strategic achievements, which include Toyota's rapid eSIM deployment, GM's scale-up of linked fleet targets, and ongoing technology expenditures by global industry leaders.

South America Automobile IoT Market Segmentation Insights

• Automobile IoT Market Technology Outlook
  • Telematics
  • Vehicle-to-Everything
  • Remote Diagnostics
  • Fleet Management
• Automobile IoT Market Application Outlook
  • Navigation
  • Safety Security
  • Remote Vehicle Management
  • Infotainment
• Automobile IoT Market End Use Outlook
  • Passenger Vehicles
  • Commercial Vehicles
  • Electric Vehicles
• Automobile IoT Market Connectivity Outlook
  • Cellular Connectivity
  • Satellite Connectivity
  • Wi-Fi Connectivity
• Automobile IoT Market Regional Outlook
  • Brazil
  • Mexico
  • Argentina
  • Rest of South America

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	3.79(USD Billion)
MARKET SIZE 2024	4.26(USD Billion)
MARKET SIZE 2035	15.0(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	12.134% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Oracle, Toyota, Claro, Nissan, Cisco, SAP, Microsoft, Embratel, Ford, Volkswagen, IBM, General Motors, Movistar
SEGMENTS COVERED	Technology, Application, End Use, Connectivity, Regional
KEY MARKET OPPORTUNITIES	Connected vehicles expansion, Smart traffic management solutions, Fleet management optimization, Enhanced vehicle safety features, Real-time data analytics services
KEY MARKET DYNAMICS	increased connectivity demand, government regulatory support, growing vehicle electrification, enhanced consumer safety requirements, rising adoption of smart transportation
COUNTRIES COVERED	Brazil, Mexico, Argentina, Rest of South America