Author: Sophia, Original
The world's largest smart water IoT (Internet of Things) project is now being implemented in Brazil.
Recently, SABESP (Companhia de Saneamento Básico do Estado de São Paulo) announced that it will join hands with Telefónica/Vivo and IDEMIA Secure Transactions (IST) to launch a 14-year smart water project, enabling secure connectivity for 4.4 million smart water meters in the cities of São Paulo and São José dos Campos.
Data shows that Brazil is a water-rich country, with freshwater reserves accounting for approximately 12% of the global total. However, the distribution of water resources is highly uneven. The sparsely populated northern region holds 70% of the country's available freshwater resources, while the southeastern region, home to major cities like Rio de Janeiro and São Paulo, has a population density of over 86 people per square kilometer but possesses only about 6% of the national freshwater resources. To alleviate the increasingly severe water crisis, the Brazilian government has been actively exploring scientific and rational water resource management systems, attempting to improve water utilization efficiency through technological upgrades. Against this backdrop, the planning of this large-scale smart water project is critical—the project will enable water users to monitor hourly consumption in real time, quickly locate anomalies and leaks, and is expected to save billions of liters of water resources for Brazil.
For Chinese IoT enterprises accelerating their global layout, such large-scale public utility projects also signal new market opportunities—the focus of future IoT competition will shift from merely providing devices and connectivity to offering comprehensive solutions covering connectivity, security, management, and operations.
A Typical Example of Large-Scale IoT Projects
Large-scale water management IoT projects rarely fail due to sensors being unable to read data. The truly tricky issues often arise after the devices are deployed: Can the network operate stably in the long term? How can millions of terminals complete identity authentication and security configuration? How can devices be remotely managed after a failure occurs? If a smart water meter needs to operate on-site for years, even spanning the lifecycles of operators, networks, and devices, how can continuous connectivity be guaranteed? In response to this, the cooperation model among SABESP, Vivo, and IDEMIA Secure Transactions will provide valuable reference for similar large-scale projects in the future.
From the perspective of project division of labor, the three companies actually occupy different positions in the IoT value chain: SABESP is responsible for the core application scenario of water resource management, Vivo provides telecommunications network and IoT infrastructure capabilities, and IDEMIA Secure Transactions brings in secure digital transactions, digital identity, and trusted connectivity capabilities. This combination also means that the core of an ultra-large-scale IoT project is no longer just a "connected water meter," but rather establishing a long-term operating connectivity system around millions of terminals.
Among them, as one of the largest mobile operators in Brazil, Vivo has a strong network and customer base in the enterprise mobile communications market. As of May 2026, Vivo's market share in Brazil's enterprise mobile communications market is approximately 38%, leading other major operators. For connectivity service providers, water management terminals typically require stable, predictable network coverage, long service lifecycles, and stable operational processes. Therefore, business opportunities come not only from connectivity service subscriptions but also from the ability to provide secure activation, unified management, and continuous stable operation for large-scale distributed device groups.
Adriano Pereira, Director of IoT and B2B Innovation at Vivo, stated, "This project demonstrates that Vivo's role goes far beyond network connectivity. By combining network scale and coverage with end-to-end integration capabilities, from data collection and IoT infrastructure to solution design and operational execution, we can provide smarter and more sustainable essential services."
The addition of IDEMIA Secure Transactions further completes another piece of the puzzle. IDEMIA's value is not simply "providing an eSIM for water meters," but rather making device identity, network connectivity, and remote management infrastructure that can be digitally operated. Of course, currently available public information does not disclose the specific cellular network standard, SIM card form factor, eUICC deployment method, and complete platform architecture adopted by the SABESP project. Even without these details, a practical judgment remains very clear: a project of this scale cannot be managed merely as a one-time procurement of connected water meters or field devices; it requires coordination among operational technology teams, telecommunications provisioning processes, and security controls throughout the entire device lifecycle.
"We are honored to partner with SABESP and Vivo in Brazil to advance one of the world's most important IoT initiatives. This collaboration demonstrates how innovation and sustainable development can go hand in hand to create tangible impacts, protect natural resources, and strengthen future critical infrastructure construction," said Diego CECCHINATO, Senior Vice President of Connectivity Services for Latin America at IDEMIA Secure Transactions.
SGP.32 Enters Large-Scale Smart Water IoT Projects
A key highlight of this project is the adoption of the GSMA SGP.32 eSIM IoT standard.
As we know, since the inception of eSIM, the IoT industry has hoped to break free from the dilemma of "difficult SIM card replacement, operator binding, and complex configuration," achieving plug-and-play for devices and seamless switching for global deployment. However, early eSIMs (such as SGP.02/SGP.22 standards) were mainly targeted at mobile phones and some high-end terminals. Facing the needs of IoT fragmentation, automated configuration, and batch remote management, they had shortcomings such as complex operations, high customization difficulty, and high costs. The birth of SGP.32 aims to thoroughly simplify the connectivity and lifecycle management of global terminals, injecting new momentum into typical scenarios such as smart cities and smart metering.
However, research shows that although the SGP.32 specification aims to simplify the architecture and reduce the technical integration burden, 80% of Mobile Network Operators (MNOs) still regard long-term costs and complexity as the main challenges facing its deployment. This cautious attitude reflects the profit pressure within the IoT connectivity market and the limited practical deployment experience accumulated for SGP.32 to date. Nevertheless, the strong demand from IoT customers largely offsets these concerns, as they see opportunities to expand the application scope of eSIM to a broader range of devices, including low-power devices. This large-scale smart water project provides fertile ground for the promotion of the SGP.32 standard.
IDEMIA Secure Transactions itself is a GSMA-certified eSIM provider for end-to-end solutions. At Enlit Europe 2025, the company demonstrated its ability to download, activate, and swap telecommunications packages in real time using GSMA SGP.32 technology. This enables device manufacturers and utility providers to efficiently manage massive IoT connections, including smart metering across different mobile networks.
Through eSIM IoT technology, IST can achieve flexible connectivity orchestration, such as: In-Factory Profile Provisioning (IFPP) enables single-SKU management, thereby simplifying manufacturing and logistics across regions. On-Site Profile Provisioning (OSPP) ensures successful installation by automatically selecting the best network at the deployment point. Remote SIM Provisioning (RSP) allows devices to be activated and managed on-site without the need for physical SIM card replacement.
More notably, IDEMIA Secure Transactions focuses not only on the implementation of eSIM IoT specifications but also on post-quantum cryptography, AI (Artificial Intelligence) and data analysis, as well as advanced OTA (Over-The-Air) services.
Smart water meters are typical long-lifecycle IoT devices, and the longer the device lifecycle, the greater the uncertainty faced by network security. Cryptographic algorithms that are sufficiently secure today do not necessarily remain secure ten years later. Therefore, IDEMIA has incorporated "cryptographic agility" as part of its eSIM IoT layout, enabling devices to adjust to changes in cryptographic technology and security threats by supporting remote secure updates. True IoT infrastructure oriented towards long-term operations needs to extend from device identity and profile management all the way to secure updates and cryptographic algorithm evolution.
Overall, the SABESP project proves that the significance of SGP.32 is not as simple as "switching water meters to eSIM," but rather truly enabling IoT connectivity to have the possibility of remote management and continuous evolution over a long-term lifecycle. This may also be a key step for large-scale cellular IoT to move from the "connectivity era" to the "operations era" in the next decade.
Global Water Digitalization Trend Brings New Opportunities for Chinese IoT Enterprises
In terms of market size, Brazil itself is a market worthy of key attention. Data from Mordor Intelligence shows that in 2025, Brazil accounted for approximately 37.95% of the smart water meter market in South and Central America, making it the largest market in the region; another market research estimates that Brazil's smart water meter market revenue will grow from about USD 274 million in 2024 to USD 439 million in 2030, with a compound annual growth rate of about 8.3% from 2025 to 2030. Meanwhile, Brazil's water infrastructure still has continuous digitalization and investment needs. Previous industry reports by the U.S. Department of Commerce have also listed smart water meters, IoT, AI, and digital solutions for leak identification as important demand directions for Brazil's water market. This means that 4.4 million smart water meters are not an isolated super project, but could serve as a window to observe the smart water market in Brazil and even Latin America.
For Chinese smart water enterprises committed to going global, the trend of global water digitalization also brings new opportunities.
The first opportunity comes from the cost and delivery advantages brought by a mature industrial chain. China has formed a complete industrial ecosystem from water meters, communication modules, and chips to IoT platforms and data analysis, accumulating rich experience in product manufacturing, supply chain organization, and engineering delivery for large-scale projects. Domestic enterprises have not just begun to explore overseas markets; some Chinese water meter enterprises have already established sales and service systems in markets such as Brazil, South Africa, and Mexico. However, it needs to be emphasized that participating in global smart water projects is not simply about selling water meters. This process requires a comprehensive understanding of local regulations, metrology standards, communication standards, data security, operator systems, and water business processes.
The second opportunity comes from the differentiation of demands in different overseas markets. The European and American markets place more emphasis on standards, data security, interoperability, and refined operations, with the focus often on the digital upgrading of existing infrastructure; whereas markets in Latin America, the Middle East, and Southeast Asia have simultaneous demands for large-scale infrastructure construction and digital transformation. This means that Chinese enterprises cannot simply replicate domestic products but should form a model of regionalized products + localized delivery + long-term operation services based on the infrastructure conditions and policy requirements of different markets.
In the future, as more and more water meters, electricity meters, gas meters, charging piles, and industrial equipment go global, any enterprise that can solve the problems of "how to connect, how to manage, how to ensure security, and how to continuously create business value" for overseas deployed devices will be more likely to move beyond the manufacturing advantages of China's IoT industrial chain and climb toward the upstream of the value chain of global IoT infrastructure.
References: "Brazil Strives to Resolve Water Crisis", People's Daily "Brazil: A Water-Rich Country Plagued by Water Shortages", China Water Resources News "IST Showcases Resilient Connectivity Orchestration for Smart Meters", Idemia "SABESP Partners with Vivo and IDEMIA Secure Transactions, to Power the World’s Largest IoT Initiative for a Secure and More Sustainable Water Management in Brazil", prnewswire "SABESP partners with Vivo and IDEMIA Secure Transactions", iot-now "Sabesp, Vivo and IDEMIA target secure IoT for water management in Brazil", iotbusinessnews "Insights from Brazil's 4.4 Million Water Meter Mega-Order: China's Smart Water Sector Officially Ushers in the Era of Global Expansion", Smart Water