South Africa IoT Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 6.88 Billion |
| Market Size (2029) | USD 12.82 Billion |
| CAGR (2024 - 2029) | 13.28 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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South Africa IoT Market Analysis
The South Africa IoT Market size is estimated at USD 6.88 billion in 2024, and is expected to reach USD 12.82 billion by 2029, growing at a CAGR of 13.28% during the forecast period (2024-2029).
As per the GSMA, the number of cellular IoT connections in the South African region will reach 53 million at the end of 2030. Vodacom South Africa claims to have coverage for 80% of the population, a little less than their respective 4G population coverage.
- The smart city projects in South Africa are creating demand for IoT in the country. The government has already raised funds to develop three smart cities: Nkosi City, an African coastal smart city, and Lanseria Smart City. Investments are being made in other cities with the deployment of CCTVs, which can be used to analyze traffic volumes and other variables that affect congestion and need to be considered in city planning.
- According to the IoT Industry Council of South Africa (IOTIC), IoT adoption trends have surged. Smart water and energy management solutions are already deployed in commercial office space, mining, agriculture, and manufacturing sectors. For instance, in August 2022, Sigfox South Africa launched an LPWAN IoT solution for connectivity service in the country to bring down the cost and complexity of massive IoT adoption in many sectors, including energy, manufacturing, agriculture, healthcare, and logistics.
- IoT development in much of sub-Saharan Africa is at a more infantile level and confronts more challenges. These include less investment and innovation in products and gadgets that suit local use cases and decreased consumer and company purchasing power.
- The COVID-19 pandemic inspired a surge in IoT solutions within the healthcare environment designed to transform patient and practitioner care. The need for social distancing during the pandemic increased telemedicine and remote healthcare solutions that allowed practitioners to serve patients from multiple environments and locations.
South Africa IoT Market Trends
The Retail Segment to Witness a Significant Growth
- IT News Africa organized the Digital Retail Africa program in January 2023 to explore revolutionary ideas and cutting-edge technologies to ride the new wave of consumerism in the African retail sector.
- Retailers are adopting AI and IoT solutions to provide shoppers with distinct shopping experiences. For instance, retailer Woolworths adopted a physical solution, integrating its social platforms with its physical outlets through an in-store InstaShop. Woolworths intends to adopt more nascent technologies, such as near-field technology (NFT) and immersive metaverse shopping, going forward.
- Launching the Kyosk app gives traditional retailers market data visibility and last-mile delivery. Local eateries can order quality products at competitive prices and deliver them within 24 hours. Even small-holder farmers are using the app to get end-to-end value chain digitization.
- In August 2022, South African retailer Pick n Pay migrated its entire on-premises information technology infrastructure to its public cloud computing platform. This way, it was expected to be able to streamline its business operations and modernize its supply chain network for individual stores.
Growing Markets in Africa is Expected to Propel the Demand for IoT
- Telecom companies in South Africa intend to phase out their 2G and 3G networks as they invest in cutting-edge technologies. Solution providers, particularly in the IoT arena, are racing to manage this shift, and many are considering newer networking technologies like 4G, 5G, and NB-IoT as substitutes.
- At the beginning of 2023, there were 43.48 million internet users, with 112.7 million active mobile connections in South Africa, and internet penetration stood at 72.3 percent. The increasing demand for the internet is accelerating the use of IoT in various sectors. Since South Africa is an Android-dominant market, WhatsApp, most people's default messaging service, has become a fundamental tool for business communication.
- A large chunk of South African consumers shop at Shoprite. To enhance the customer shopping experience, the supermarket brand launched a shopping app called ShopriteX.
- DStv (Digital Satellite Television) is a Sub-Saharan African direct broadcast satellite service that started WhatsApp Services to enable customers to troubleshoot problems, update subscription packages, and manage their accounts through WhatsApp.
South Africa IoT Industry Overview
The massive increase in the number of smart wireless devices requires the integration of IoT for smooth functioning. Since many players serve this demand, this market has moderate competition. These IoT service providers sign contracts and invest with various companies to help expand their businesses. As the demand for automated gadgets increases, they have a broader scope of expansion with the development of enhanced IoT solutions. Some significant companies offering services in this sector include Microsoft Corporation, Huawei Technologies, Google Inc., and Cisco Systems, Inc.
In March 2023, Comsol and Ericsson entered into a partnership to digitalize South Africa's mining industry, improve worker safety, increase operational efficiency, and realize its sustainability goals. Comsol has access to the Ericsson Private 5G platform, which enables cutting-edge smart solutions for improved operational effectiveness and security. The high-speed wireless networking solution will be available to Comsol's customers in the mining sector of South Africa.
In February 2023, Liquid Intelligent Technologies was expected to deploy Nokia's innovative transport network technology in the new terrestrial fiber route connecting Mombasa to Johannesburg. This partnership is anticipated to help in the digital transformation of the African region and the expansion of the high-speed fiber backbone on the continent. Liquid's route is expected to provide businesses and households in many of Africa's landlocked cities, towns, and villages with more resilient connectivity and access to numerous data centers and cloud resources.
South Africa IoT Market Leaders
Microsoft Corporation
International Business Machines Corporation
Cisco Systems, Inc.
Huawei Technologies
Google Inc.
*Disclaimer: Major Players sorted in no particular order
South Africa IoT Market News
- March 2023: Sateliot plans to launch the first-ever satellite under 3GPP 5G NB-IoT. After the launch of this satellite, every NB-IoT device is anticipated to be able to quickly connect to cellular or satellite networks, enabling widespread IoT adoption even in the most remote locations. Sateliot's NTN enables widespread IoT deployment, reducing costs and boosting efficiency across various industries. The South African company Streamline is a partner for this mission, and it will assist livestock farmers in being able to monitor the position and health conditions of thousands of cattle with meager connection costs compared to competitors.
- December 2022: Qualcomm launched the Make in Africa startup mentorship program to identify startups eager to apply advanced connectivity and processing technologies to bring innovative end-to-end systems solutions, including hardware, for African needs.
South Africa IoT Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Buyers/Consumers
4.2.2 Bargaining Power of Suppliers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Rapidly increasing urbanization and increasing smart city initiatives
5.1.2 Increasing proliferation of mobile and IoT devices
5.1.3 Growing need for timely decision making and rising importance of data
5.2 Market Challenges / Restrain
5.2.1 Integration complexities with legacy infrastructure
5.2.2 Lack of regulatory support
6. MARKET SEGMENTATION
6.1 Component
6.1.1 Hardware
6.1.2 Software
6.1.3 Connectivity
6.1.4 Services
6.2 End User Industry
6.2.1 Manufacturing
6.2.2 Transportation
6.2.3 Healthcare
6.2.4 Retail
6.2.5 Energy and Utilities
6.2.6 Other End-User Industries (Residential, BFSI, Agriculture)
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 MTN Group
7.1.2 Microsoft Corporation
7.1.3 IBM Corporation
7.1.4 Huawei Technologies
7.1.5 Vodacom Group
7.1.6 Cisco Systems
7.1.7 Google
7.1.8 Telkom SA Limited
7.1.9 Comsol
7.1.10 SAP SE
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
South Africa IoT Industry Segmentation
The "Internet of Things" refers to devices connected over the internet using sensors, software, and other technologies incorporated with minimal human intervention. Wearable fitness trackers and autonomous vehicles all function by employing IoT. IoT technology is becoming more accessible to more firms because of inexpensive and trustworthy sensors.
South Africa's IoT market is segmented by component (hardware, software, connectivity, and services) and by end-user industry (manufacturing, transportation, healthcare, retail, energy and utilities, residential, and government).
The market sizes and forecasts are provided in terms of value (USD).
| Component | |
| Hardware | |
| Software | |
| Connectivity | |
| Services |
| End User Industry | |
| Manufacturing | |
| Transportation | |
| Healthcare | |
| Retail | |
| Energy and Utilities | |
| Other End-User Industries (Residential, BFSI, Agriculture) |
South Africa IoT Market Research FAQs
How big is the South Africa IoT Market?
The South Africa IoT Market size is expected to reach USD 6.88 billion in 2024 and grow at a CAGR of 13.28% to reach USD 12.82 billion by 2029.
What is the current South Africa IoT Market size?
In 2024, the South Africa IoT Market size is expected to reach USD 6.88 billion.
Who are the key players in South Africa IoT Market?
Microsoft Corporation, International Business Machines Corporation, Cisco Systems, Inc., Huawei Technologies and Google Inc. are the major companies operating in the South Africa IoT Market.
What years does this South Africa IoT Market cover, and what was the market size in 2023?
In 2023, the South Africa IoT Market size was estimated at USD 6.07 billion. The report covers the South Africa IoT Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa IoT Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
South Africa IoT Industry Report
Statistics for the 2024 South Africa IoT market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa IoT analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
