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

South Africa IoT Market Report Scope