South Africa IoT Market Forecast to 2028 – COVID-19 Impact and Country Analysis – by Offering [Hardware (Processors, Sensors, Connectivity Modules, Memory Devices, and Others), Software, and Service] and End-User (Manufacturing, Energy and Utilities, IT and Telecom, BFSI, Automotive and Transportation, Retail, Residential, Commercial, and Others).
Market Introduction
South Africa is among the most advanced countries in the African region. Ongoing digitization in the territory of South Africa is triggering technological developments in the communications, automotive, and manufacturing industries. IoT presents a huge opportunity for the progress of these businesses. Being a developing economy, several emerging companies in South Africa are venturing into the market with the need for cost-efficient manufacturing units. Infrastructure, healthcare, and automotive are the major sectors in the country. The integration of IoT and other advanced technologies in these sectors is projected to grow with the rising demand for streamlining the respective businesses. The rapid pace of urbanization and digitalization, construction of smart cities, and increasing adoption of smartphones and other consumer electronic devices are among the major factors driving the need for 5G technology in the IoT market which will lead to South Africa IoT market growth during the forecast period.
The Internet of Things (IoT) enables the use of data to support smart decision-making, which can simplify everyday lives. According to the IoT Industry Council of South Africa, IoT is anticipated to reach an installed base of 21.5 billion active, connected devices by 2025, despite some false starts and a difficult global economic environment. Consumer electronics, smart cities, smart homes, intelligent industrial applications, and automation quickly adopt IoT. Developing the Industrial Internet of Things (IIoT) would help diversify South Africa’s economy by expanding its manufacturing sector and capitalizing on a strong IT sector. Moreover, South Africa has also seen investments in the magnification of the scope of IoT.
Market Overview and Dynamics
The South Africa IoT market size is expected to grow from US$ 4,977.8 million in 2022 to US$ 31,558.9 million by 2028; the South Africa IoT market size is estimated to grow at a CAGR of 36.0% from 2022 to 2028.
The rapid rollout of the 5G network in South Africa by various telecom providers is creating lucrative opportunities for the South Africa IoT market growth. In February 2020, Vodafone announced a 5G service in South Africa using the network built by Liquid Telecom. Similarly, in July 2020, MTN, a South African operator, announced the initial deployments of 100 5G suits. The network is likely to encompass Cape Town, Bloemfontein, and Port Elizabeth. Further, the COVID-19 pandemic has accelerated developments in the 5G marketplace in South Africa. However, the service providers are facing challenges in the form of the lack of harmonized spectrum coverage, which is delaying the large-scale implementation of these networks in the country.
The Independent Communications Authority of SA (ICASA) announced the approval of the temporary allocation of high-value 4G and 5G spectrum frequencies to mobile operators in April 2020 to be able to meet increased network traffic needs and surged consumer demands for the spectrum by 2023. Several service providers—including MTN (the largest provider in the nation), Vodacom (the largest mobile network provider), Liquid Telecom (fixed-line and broadband provider), and Rain SA—have already launched non-standalone and commercial-standalone 5G in South Africa. With the major focus of telecommunication service providers on this issue, the early rollout of 5G is expected in South Africa.
The automotive industry is another industry that will present opportunities for the South Africa IoT market growth. In the automotive sector self-driving cars, security features, data analytics, in-vehicle infotainment, predictive maintenance, and real-time monitoring, and dashboard reporting are among the key areas for IoT implementation. Increasing disposable incomes and rising middle-class population are the major factors driving car sales in South Africa. According to the Marklines estimates, passenger car sales in South Africa reached 28,965 units in December 2019, with 9.1% Y-o-Y growth over the sales in December 2018. The high level of competition in the automotive sector is propelling automotive companies to adopt advanced technologies such as IoT and AI. Audi, BMW, General Motors, Mercedes-Benz, etc., are a few of the major automakers offering advanced infotainment systems integrated with various technologies into their cars. TomTom Africa (Pty) Ltd. is one of the key IoT players catering to the automotive sector in South Africa. Moreover, the mounting demand for connected vehicles, coupled with rising investments in autonomous cars, are further boosting the adoption of IoT and efficient communication technologies, such as 4G and 5G. Automotive systems that can be enhanced with the implementation of IoT technologies in logistics management, fleet management, telematics, sensor sharing, advanced driver assistance systems (ADAS), infotainment, and autonomous driving, which is bolstering the demand for IoT products in South Africa.
Key Market Segments
South Africa IoT market analysis by offering, the South Africa IoT market is segmented into hardware, software, and service. In 2021, the service segment accounted for the largest South Africa IoT market share. The South Africa IoT market for the hardware segment is sub-segmented into processors, sensors, connectivity modules, memory devices, and others. In 2021, the connectivity modules segment dominated the South Africa IoT market share in 2021. South Africa IoT market analysis by end-user, the South Africa IoT market is segmented into manufacturing, energy and utilities, BFSI, IT and telecom, automotive and transportation, retail, residential, commercial, and others. In 2021, the others segment led the market with the largest South Africa IoT market share.
Major Sources and Companies Listed
A few key primary and secondary sources referred to while preparing the report on the South Africa IoT market are company websites, annual reports, financial reports, national government documents, and statistical databases. Further, Communica South Africa; COREX (PTY) LTD; SAS Institute Inc.; SAP SE; QUALCOMM INCORPORATED; Bosch.IO GmbH; CISCO Systems, Inc; Google Inc.; Hewlett Packard Enterprise Development LP; IBM Corporation; Microsoft Corporation; Oracle Corporation; First Distribution; Pinnacle Solutions, Inc.; Axiz (Pty) Ltd; Syntech; Mustek Limited; Rectron; Drive Control Corporation; Frontosa Technologies; VMware are among the leading companies listed in the South Africa IoT market report.
1. Introduction
1.1 Study Scope
1.2 The Insight Partners Research Report Guidance
1.3 Market Segmentation
2. Key Takeaways
3. Research Methodology
3.1 Research Methodology
3.1.1 Data Collection:
3.1.2 Primary Interviews:
4. South Africa IoT Market Landscape
4.1 Market Overview
4.2 PEST Analysis
4.3 Ecosystem Analysis
4.4 Expert Opinion
4.5 Premium Insight
4.5.1 IoT Market – Revenue and Forecast to 2028 (US$ Million)
4.6 South Africa IoT Market – Regulatory Framework
5. South Africa IoT Market – Key Industry Dynamics
5.1 Market Drivers
5.1.1 Increasing Number of Smart City Projects in South Africa
5.1.2 Surging Number of Online and Offline IoT Product Distributors in South Africa
5.1.3 Escalating Demand for Implementation of IoT Technologies in the Automotive Sector
5.2 Market Restraints
5.2.1 Data Security and Interoperability Issues
5.3 Market Opportunities
5.3.1 Progressive Deployment of 5G Networks
5.4 Future Trends
5.4.1 Increasing Digitalization across Industries and Rising Importance of Service Providers
5.5 Impact Analysis of Drivers and Restraints
6. South Africa IoT Market Overview
6.1 Market Overview
6.2 South Africa IoT Market Forecast and Analysis
6.3 Market Positioning –Key Players
7. IoT Market Analysis – By Offering
7.1 Overview
7.2 South Africa IoT Market Breakdown, By Offering, 2021 & 2028
7.3 Hardware
7.3.1 Overview
7.3.2 Hardware Market Revenue and Forecast to 2028 (US$ Million)
7.4 Software
7.4.1 Overview
7.4.2 Software Market Revenue and Forecast to 2028 (US$ Million)
7.5 Service
7.5.1 Overview
7.5.2 Service Market Revenue and Forecast to 2028 (US$ Million)
8. IoT Market Analysis – By Hardware
8.1 Overview
8.2 South Africa IoT Market Breakdown, By Hardware, 2021 & 2028
8.3 Processors
8.3.1 Overview
8.3.2 Processors Market Revenue and Forecast to 2028 (US$ Million)
8.4 Sensors
8.4.1 Overview
8.4.2 Sensors Market Revenue and Forecast to 2028 (US$ Million)
8.5 Connectivity Modules
8.5.1 Overview
8.5.2 Connectivity Modules Market Revenue and Forecast to 2028 (US$ Million)
8.6 Memory Devices
8.6.1 Overview
8.6.2 Memory Devices Market Revenue and Forecast to 2028 (US$ Million)
8.7 Others
8.7.1 Overview
8.7.2 Others Market Revenue and Forecast to 2028 (US$ Million)
9. IoT Market Analysis – By End-User
9.1 Overview
9.2 South Africa IoT Market Breakdown, By End-User, 2021 & 2028
9.3 Manufacturing
9.3.1 Overview
9.3.2 Manufacturing Market Forecast and Analysis
9.4 Energy & Utilities
9.4.1 Overview
9.4.2 Energy & Utilities Market Forecast and Analysis
9.5 IT & Telecom
9.5.1 Overview
9.5.2 IT & Telecom Market Forecast and Analysis
9.6 BFSI
9.6.1 Overview
9.6.2 BFSI Market Forecast and Analysis
9.7 Automotive & Transportation
9.7.1 Overview
9.7.2 Automotive & Transportation Market Forecast and Analysis
9.8 Retail
9.8.1 Overview
9.8.2 Retail Market Forecast and Analysis
9.9 Residential
9.9.1 Overview
9.9.2 Residential Market Forecast and Analysis
9.10 Commercial
9.10.1 Overview
9.10.2 Commercial Market Forecast and Analysis
9.11 Others
9.11.1 Overview
9.11.2 Others Market Forecast and Analysis
10. Impact of COVID-19 Pandemic on IoT Market
10.1 South Africa
11. Industry Landscape
11.1 Overview
11.2 Market Initiative
11.3 Merger and Acquisition
11.4 New Development
12. Company Profiles
12.1 Communica South Africa
12.1.1 Key Facts
12.1.2 Business Description
12.1.3 Products and Services
12.1.4 Financial Overview
12.1.5 SWOT Analysis
12.1.6 Key Developments
12.2 COREX (PTY) LTD
12.2.1 Key Facts
12.2.2 Business Description
12.2.3 Products and Services
12.2.4 Financial Overview
12.2.5 SWOT Analysis
12.2.6 Key Developments
12.3 SAS Institute Inc.
12.3.1 Key Facts
12.3.2 Business Description
12.3.3 Products and Services
12.3.4 Financial Overview
12.3.5 SWOT Analysis
12.3.6 Key Developments
12.4 SAP SE
12.4.1 Key Facts
12.4.2 Business Description
12.4.3 Products and Services
12.4.4 Financial Overview
12.4.5 SWOT Analysis
12.4.6 Key Developments
12.5 QUALCOMM INCORPORATED
12.5.1 Key Facts
12.5.2 Business Description
12.5.3 Products and Services
12.5.4 Financial Overview
12.5.5 SWOT Analysis
12.5.6 Key Developments
12.6 Bosch.IO GmbH
12.6.1 Key Facts
12.6.2 Business Description
12.6.3 Products and Services
12.6.4 Financial Overview
12.6.5 SWOT Analysis
12.6.6 Key Developments
12.7 Cisco Systems, Inc.
12.7.1 Key Facts
12.7.2 Business Description
12.7.3 Products and Services
12.7.4 Financial Overview
12.7.5 SWOT Analysis
12.7.6 Key Developments
12.8 Google LLC
12.8.1 Key Facts
12.8.2 Business Description
12.8.3 Products and Services
12.8.4 Financial Overview
12.8.5 SWOT Analysis
12.8.6 Key Developments
12.9 Hewlett Packard Enterprise Development LP (HPE)
12.9.1 Key Facts
12.9.2 Business Description
12.9.3 Products and Services
12.9.4 Financial Overview
12.9.5 SWOT Analysis
12.9.6 Key Developments
12.10 IBM Corporation
12.10.1 Key Facts
12.10.2 Business Description
12.10.3 Products and Services
12.10.4 Financial Overview
12.10.5 SWOT Analysis
12.10.6 Key Developments
12.11 Microsoft Corporation
12.11.1 Key Facts
12.11.2 Business Description
12.11.3 Products and Services
12.11.4 Financial Overview
12.11.5 SWOT Analysis
12.11.6 Key Developments
12.12 Oracle Corporation
12.12.1 Key Facts
12.12.2 Business Description
12.12.3 Products and Services
12.12.4 Financial Overview
12.12.5 SWOT Analysis
12.12.6 Key Developments
12.13 First Distribution
12.13.1 Key Facts
12.13.2 Business Description
12.13.3 Products and Services
12.13.4 Financial Overview
12.13.5 SWOT Analysis
12.13.6 Key Developments
12.14 Pinnacle Solutions, Inc.
12.14.1 Key Facts
12.14.2 Business Description
12.14.3 Products and Services
12.14.4 Financial Overview
12.14.5 SWOT Analysis
12.14.6 Key Developments
12.15 Axiz (Pty) Ltd
12.15.1 Key Facts
12.15.2 Business Description
12.15.3 Products and Services
12.15.4 Financial Overview
12.15.5 SWOT Analysis
12.15.6 Key Developments
12.16 Syntech
12.16.1 Key Facts
12.16.2 Business Description
12.16.3 Products and Services
12.16.4 Financial Overview
12.16.5 SWOT Analysis
12.16.6 Key Developments
12.17 Mustek Limited
12.17.1 Key Facts
12.17.2 Business Description
12.17.3 Products and Services
12.17.4 Financial Overview
12.17.5 SWOT Analysis
12.17.6 Key Developments
12.18 Rectron
12.18.1 Key Facts
12.18.2 Business Description
12.18.3 Products and Services
12.18.4 Financial Overview
12.18.5 SWOT Analysis
12.18.6 Key Developments
12.19 Drive Control Corporation (DCC)
12.19.1 Key Facts
12.19.2 Business Description
12.19.3 Products and Services
12.19.4 Financial Overview
12.19.5 SWOT Analysis
12.19.6 Key Developments
12.20 Frontosa Technologies
12.20.1 Key Facts
12.20.2 Business Description
12.20.3 Products and Services
12.20.4 Financial Overview
12.20.5 SWOT Analysis
12.20.6 Key Developments
12.21 VMware, Inc.
12.21.1 Key Facts
12.21.2 Business Description
12.21.3 Products and Services
12.21.4 Financial Overview
12.21.5 SWOT Analysis
12.21.6 Key Developments
13. Appendix
13.1 About The Insight Partners
13.2 Glossary of Terms
LIST OF TABLES
Table 1. IoT Market – Revenue and Forecast to 2028 (US$ Million)
Table 2. South Africa IoT Market Revenue and Forecasts to 2028 (US$ Mn)
Table 3. Glossary of Term: IoT Market
LIST OF FIGURES
Figure 1. IoT Market Segmentation
Figure 2. South Africa IoT Market Overview
Figure 3. South Africa IoT Market, by Offering
Figure 4. South Africa IoT Market, by Hardware
Figure 5. South Africa IoT Market, by End User
Figure 6. South Africa: PEST Analysis
Figure 7. IoT Market Ecosystem Analysis
Figure 8. Expert Opinion
Figure 9. South Africa IoT Market: Impact Analysis of Drivers and Restraints
Figure 10. South Africa IoT Market Forecast and Analysis, (US$ Mn)
Figure 11. South Africa IoT Market Breakdown, By Offering (2021 and 2028)
Figure 12. Hardware Market Revenue and Forecast to 2028(US$ Million)
Figure 13. Software Market Revenue and Forecast to 2028(US$ Million)
Figure 14. Service Market Revenue and Forecast to 2028(US$ Million)
Figure 15. South Africa IoT Market Breakdown, By Hardware (2021 and 2028)
Figure 16. Processors Market Revenue and Forecast to 2028(US$ Million)
Figure 17. Sensors Market Revenue and Forecast to 2028(US$ Million)
Figure 18. Connectivity Modules Market Revenue and Forecast to 2028(US$ Million)
Figure 19. Memory Devices Market Revenue and Forecast to 2028(US$ Million)
Figure 20. Others Market Revenue and Forecast to 2028(US$ Million)
Figure 21. South Africa IoT Market Breakdown, By End-User, 2021 & 2028 (%)
Figure 22. Manufacturing Market Revenue and Forecast to 2028 (US$ Million)
Figure 23. Energy & Utilities Market Revenue and Forecast to 2028 (US$ Million)
Figure 24. IT & Telecom Market Revenue and Forecast to 2028 (US$ Million)
Figure 25. BFSI Market Revenue and Forecast to 2028 (US$ Million)
Figure 26. Automotive & Transportation Market Revenue and Forecast to 2028 (US$ Million)
Figure 27. Retail Market Revenue and Forecast to 2028 (US$ Million)
Figure 28. Residential Market Revenue and Forecast to 2028 (US$ Million)
Figure 29. Commercial Market Revenue and Forecast to 2028 (US$ Million)
Figure 30. Others Market Revenue and Forecast to 2028 (US$ Million)
Figure 31. Impact of COVID-19 Pandemic in South Africa Country Markets
- Bosch Software Innovations GMBH
- CISCO Systems, Inc
- Google Inc.
- Hewlett Packard Enterprise Development LP
- IBM Corporation
- Microsoft Corporation
- Oracle Corporation
- SAS Institute Inc
- SAP SE
- Qualcomm Technologies, Inc.
- Axiz
- Communica
- Syntech
- VMware
- First Distribution
- Pinnacle
- Mustek
- Corex (Pty) Ltd
- Rectron
- Drive Control Corporation
- Frontosa
- Save and reduce time carrying out entry-level research by identifying the growth, size, leading players and segments in the South Africa IoT market.
- Highlights key business priorities in order to assist companies to realign their business strategies
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- Develop/modify business expansion plans by using substantial growth offering developed and emerging markets.
- Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those hindering it.
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