BNDES Publishes National IoT Action Plan Study

The Brazilian authorities are presenting the Internet of Things as an opportunity for the country to move up to 10 percent of the nation's GDP, which is currently $2 trillion.
Published: May 7, 2018

The Brazilian government is delivering 100 percent of the National Internet of Things (IoT) Action Plan, the National Bank for Economic and Social Development (BNDES) reported on Tuesday. In December 2016, BNDES presented a public call for the Internet of Things (IoT), which aimed to receive proposals to obtain non-refundable financial support for proposing public policies regarding the IoT.

On that occasion, Minister Gilberto Kassab, then with the Ministry of Science, Technology, Innovation and Communications (MCTIC), signed a transfer of 17 million Brazilian real (US$4.8 million) to the consortium at BNDES’ headquarters in Rio de Janeiro. The consortium was formed by McKinsey & Co., Fundação CPqD and Pereira Neto and Macedo Advogados (PNM) to develop the plan. The agreement was signed with Maria Sílvia Bastos Marques, then the president of BNDES, in front of the consortium’s representatives.

Pulpit: ex-Minister Gilberto Kassab. Table: BNDES director Cláudia Prates, BNDES ex-president Maria Sílvia Bastos Marques and MCTIC ex-secretary of IT Maximiliano Martinhão (Photo: Edson Perin, December 2016).

Now, BNDES has announce that the study, titled “Internet of Things: an Action Plan for Brazil,” has been fully published on is website. “The Internet of Things field is a unique opportunity for Brazil to capture its value,” the BNDES document states.

By 2025, throughout the world, the Internet of Things will have an economic impact of US$4 trillion to $11 trillion, which is higher than advanced robotics, cloud technologies and the mobile internet. In Brazil, the expected impact is up to US$200 billion per year, representing around 10 percent of the Brazilian GDP, which is currently close to US$2 trillion.

According to BNDES, the IoT has been gaining ground not because of the emergence of disruptive technologies, but due to the evolution of a set of technologies that are already available. These technologies are now becoming more accessible, enabling them to be massively adopted.

According to the federal document, the main goal for the construction of an IoT Action Plan to accelerate the development of the Internet of Things in Brazil was the creation of an aspiration to “accelerate the implementation of the Internet of Things as an instrument of sustainable development of Brazilian society, capable of increasing the competitiveness of the economy, strengthen national productive chains, and promote the improvement of quality of life.”

In the study, application environments based on demand, supply and development capacity were prioritized for four work fronts: cities, health, rural and industries. On each front, strategic objectives were defined, which identify the challenges to be solved through the use of IoT, generating value to society.

For cities: “To raise the quality of life in cities through the adoption of technologies and practices that enable the integrated management of services for the citizen and the improvement of mobility, public security and resource use.” For health: “To contribute to the expansion of access to quality health in Brazil through the decentralization of health care, integration of patient information and improvement of health units efficiency.” For rural environments: “To increase the productivity and the relevance of Brazil in the world trade in agricultural products, with high quality and socio-environmental sustainability, and position it as the largest exporter of IoT solutions for tropical agriculture.” And for manufacturing: “Increasing local industry productivity through more efficient and flexible manufacturing processes, integrating production chains, and designing higher value-added business products and models.”

In order to organize the measures to be implemented, BNDES says, several initiatives were structured: human capital; innovation and international insertion; connectivity infrastructure and interoperability; and regulatory, security and privacy. For each horizontal, a series of specific objectives was defined.

Horizontal human capital will help Brazil to capture the potential of the IoT, while directly benefiting the population. Its specific objectives are to expand the qualified workforce in the IoT in prioritized environments, with a focus on demand; to engage young people in the IoT, as well as in information and communication technologies (ICT); to strengthen the research and development and engineering body for world-class IoT efforts; and to promote the training of public managers for the IoT.

For innovation and international insertion, the project aims to allow Brazil to increase its international representation in the IoT and become a reference in key applications. Its specific objectives are to stimulate the experimentation, cooperation and dissemination of successful business models; to improve and disseminate financing and promotion instruments for scientific and technological research institutions (ICTs) and innovative companies; to build an environment for continuous and participatory monitoring of the IoT Action Plan; and to internationalize local solutions in line with global and interoperable standards.

The infrastructure for connectivity and interoperability will be essential for the IoT to spread in Brazil. Its objectives are to expand the supply of communication networks in accordance with the demands for IoT services; to articulate the IoT theme in public policies for expanding solutions and infrastructure for connectivity; and to promote the interoperability and standardization of IoT networks, devices and solutions.

Finally, the regulatory, security and privacy horizontal will be an important enabler toward driving the adoption of the IoT. Its objectives are to address telecommunications regulatory barriers with a view to accelerating the development of IoT applications; to create a regulatory framework for the protection of personal data adequate to fostering innovation and protection of individual rights; to identify and address specific regulatory issues pertaining to prioritized verticals; and to establish an appropriate institutional design to address privacy and security challenges for the IoT.

The structuring of an IoT Action Plan for Brazil, BNDES reports, is a fundamental landmark, as it allows the consolidation of a strategic vision for the Internet of Things. Its collaborative construction has engaged diverse actors from the public and private sectors, ranging from business associations to academia. In addition to a survey of initiatives representative of the IoT ecosystem, this process of collaborative construction has enhanced the commitment of key actors with the continuation of the Action Plan.

According to BNDES, the proposed Action Plan is not limited to the study initiatives or the governance structure that will lead it in the next five years. “This technical study, conducted in an innovative way, will serve as the basis for the National Internet of Things Plan, which is about to be established through publication of a Decree of the Presidency of the Republic,” the document states. “By identifying the main bottlenecks for the expansion of IoT and proposing a robust set of initiatives to address them, it will allow the country to become a protagonist in its development.”

The biggest challenge now, according to the authorities, lies in the implementation of the initiatives and the continuity of the engagement of the various actors necessary for the success of the Action Plan. However, they add, the result of the effort will be rewarded with massive impacts on the economy and the quality of life of Brazilians.

To access the IoT study online, visit BNDES’ website or MCTIC’s website.