Market Size of South Africa IoT Industry
|Study Period||2018 - 2028|
|Base Year For Estimation||2022|
|Market Size (2023)||USD 6.07 Billion|
|Market Size (2028)||USD 11.32 Billion|
|CAGR (2023 - 2028)||13.28 %|
*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 6.07 billion in 2023, and is expected to reach USD 11.32 billion by 2028, growing at a CAGR of 13.28% during the forecast period (2023-2028).
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.