Mexico’s IoT (internet of things) market has huge future prospects, but only if decision-makers can be persuaded to improve regulation and promote the industry as a way to increase national adoption.

Considering a report from consulting firm Frost & Sullivan, the IoT market in Mexico is on course to reach a value of US$3.9 billion by 2022. The only things holding it back are bureaucratic procedures, the absence of a stringent law that guarantees data protection, and a delay by some companies in moving data to the cloud.

Analysts say that IoT in Mexico will hugely benefit the country’s primary industries, such as automotive, energy, and manufacturing, helping businesses to become more efficient to compete on the global marketplace. Another advantage of IoT is smart city application, which will change the way Mexicans live, work, and travel.

A lack of knowledge about the topic is another factor slowing adoption. “Only 30% of companies in Mexico have understood the great advantages of IoT,” writes Germán Ortiz, lead analyst for Deloitte in Mexico, in his blogpost.

Internet of things, he says, allows companies to adopt better business models, obtain real-time information on mission-critical systems, and free up cash for expanding operations.

Telecommunications networks across the country are embracing long-term evolution (LTE) technology, providing broadband users with greater download speed. Furthermore, millions of people are expected to sign up to 5G networks over the next four years. US telecom giant AT&T, for example, has begun deploying LTE-M technology across its network in Mexico, which will pave the way for a speedy proliferation of IoT (internet of things) applications and devices.

High-speed telecom networks are ideal for the industry, as they support large-scale IoT deployments such as smart city services, smart metering, asset tracking, supply chain management, security and alarm monitoring, and personal wearables.

If key decision-markers and regulators begin to recognize the potential that Mexico has to grow in this market, the country will be on track to becoming a major global competitor in IoT.