South Africa IoT Market to Grow at a CAGR of 36.0% to reach US$ 31,558.9 Million from 2022 to 2028
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 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.
Impact of COVID-19 Pandemic on South Africa IoT Market Growth
The social restrictions imposed by governments to curb the spread of COVID-19 led to disruptions in supply chains and imports & exports in 2020. The South Africa IoT market witnessed a negative impact in Q1 & Q2 of 2020. This was mostly due to the discontinuation of the ongoing projects. Many IoT projects were put on hold or slowed down. Several companies reduced their investments in new projects. However, the slowdown was for the short term as the demand for digitization began increasing from Q3 2020. Companies are strategically investing in connected technologies, such as remote asset management. Governing bodies in South Africa have recently uplifted travel restrictions from Q3 2020, allowing transportation operations with the implementation of safety and social distancing measures. In the medium to long run, the COVID-19 on IoT will be positive due to the increasing demand for smart and connected devices from verticals such as healthcare, manufacturing, and residential.
Further, companies are willing to build more resilience to be better prepared if another outbreak wave or SARS-CoV-2 variant rattles the world. Overall, the impact of COVID-19 on the South Africa IoT market was low to moderate. The economy of South Africa is anticipated to take longer than other countries to recover from a pandemic-induced shock, which will result in higher rates of poverty. The lack of funding and technical expertise, low levels of awareness, inadequate ecosystem of digital solution providers, and constraints of infrastructure are among the major obstacles to IoT adoption in South Africa. Additionally, the businesses had to transition to remote working, online operations and sales, and other business protocol modifications in response to the COVID-19 pandemic. As companies began to rely on cloud technologies, IoT, Big Data, AI, etc., the pandemic accelerated the implementation of IoT technology in 2020.
South Africa IoT Market Insights
Increasing Number of Smart City Projects Boosts South Africa IoT Market Growth
The fundamental goal of planning smart city projects is to provide enhanced life for people and deliver tangible benefits at national, provincial, and municipal levels. The government of South Africa is rolling out various smart city projects with the same goals. In the last few years, many IT companies have entered in the South African market to leverage its potential based on the growing economy and high investments in advanced technologies. South Africa wishes to focus on leveraging its links with tech-dominant nations, such as China, to efficiently move technical details from planning and development. A few of the recent smart city projects in South Africa are mentioned below.
- Lanseria is set to become South Africa's first smart city, as declared by South African President in 2021. 350,000–500,000 people are likely to live in the Lanseria Smart City by 2030. Over the next 30 years, the population of Gauteng City would rise from 12.5 million to 30 million, making it a megacity like Sao Paulo, Mexico City, and Jakarta.
- In Johannesburg, the Smart Cities Summit is a crucial gathering for architects and urban planners, development banks and financial institutions, researchers, transportation management players, digital solutions producers, and energy suppliers. 4,500 leaders in the construction industry are expected to gather at this summit in 2022, which coincides with the African Construction and Totally Concrete Expo, to examine emerging digital solutions and trends in smart city developments
Offering-Based South Africa IoT Market Insights
The South Africa IoT market analysis by offering, is segmented into hardware, software, and service. The service segment accounts for largest South Africa IoT market share in 2021. Based on hardware, the market is further sub-segmented into processors, sensors, connectivity modules, memory devices, and others. The connectivity modules segment accounts for largest South Africa IoT market share in 2021.
End User-Based South Africa IoT Market Insights
The South Africa IoT market analysis by end-user, the South Africa IoT market is segmented into manufacturing, energy & utilities, BFSI, IT & telecom, automotive &transportation, retail, residential, commercial, and others. The others segment accounted for the South Africa IoT market share in 2021.
Company Profiles
- 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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Offering, Hardware, and End-User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
South Africa
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
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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