Alexandra Borgeaud
Research expert covering cybersecurity and tech in Latin America
Smart cities in Latin America – statistics & facts
Smart cities are generally defined as locations where digital and telecommunication technologies are manipulated to make the use of resources more efficient. Digital transformation has had a significant expansion – especially over the past few years - and already impacts and facilitates a myriad of aspects of daily life: from communication to mobility, from shopping to one’s own home. In fact, technology spending on smart city initiatives worldwide was forecast to more than double between 2018 and 2023, amounting to approximately 190 billion U.S. dollars in the latter year. While Latin America’s participation in the sector’s spending was estimated at less than ten percent in 2020, in recent years projects have been gaining space in the region.
Currently, 85 percent of respondents in Latin America believed that the deployment of 5G technology in the region will help bridge the digital divide by providing connectivity to more citizens. Already in 2022 there have been 130 million 5G-enabled smartphone shipments in Latin America, up from just three million in 2020. By 2025, half of Latin America’s 5G mobile connections will be concentrated in Brazil, Mexico and Chile.
Developing telecommunications framework
Latin America’s underlying structure for smart cities development in the region continues to make progress despite having smaller smart city expenditures when compared to China and Japan, for example. Nevertheless, Internet access is one of the most important conditions enabling the development of smart cities. In 2022, the number of mobile internet users in Latin America was estimated at 383 million, accounting for more than half of the region’s population. Meanwhile, between 2019 and 2025, the number of internet of things (IoT) connections in Latin America is expected to increase by nearly 150 percent, with the sector of smart homes accounting for the largest number of new connections.Currently, 85 percent of respondents in Latin America believed that the deployment of 5G technology in the region will help bridge the digital divide by providing connectivity to more citizens. Already in 2022 there have been 130 million 5G-enabled smartphone shipments in Latin America, up from just three million in 2020. By 2025, half of Latin America’s 5G mobile connections will be concentrated in Brazil, Mexico and Chile.
Connectivity inside the home
Like smart cities, the term smart home refers to a residence where appliances or devices can be controlled and automated via an internet connection. The sector includes, among others, domestic appliances, security and lighting systems, and home entertainment devices. In 2022, the number of smart homes in Latin America was estimated at nearly 15 million and was forecast to surpass 23 million by 2025. In 2026, the smart home market revenue in Latin America is expected to exceed four billion U.S. dollars. The smart appliances segment alone will account for over 40 percent of the sector’s revenue, followed security and control and connectivity.
