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 an

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)

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.

Increasing Number of Distributors of IoT Products, both Online and Offline in South Africa

With the increasing number of IoT-based projects, coupled with the growing demand for IoT devices from various end-user industries, the South African market is witnessing the emergence of a high number of online and offline IoT product distributors. At present, offline distribution holds a major share of the IoT market in South Africa. However, the demand for online distribution is expected to surge during the forecast period, mainly, due to the booming e-commerce sector in the country. In 2019, South Africa ranked 37th among the top countries with e-commerce businesses in the world, with revenue of around US$ 3 billion. The user penetration of IoT products is expected to hit over 53% by 2025. Kerlink, a prominent player in the IoT marketplace, announced a distribution agreement with IoTdc to expand its presence in South Africa; IoTdc is a distributor of connected hardware and device-related applications for the IoT in the country. Serving as a solution integrator and an IoT reseller, IoTdc focuses on smart cities, mining, agriculture, smart homes, medicine, retail, and manufacturing segments, among others. Similarly, more internationally operating IoT players are likely to expand their footprint in South Africa, which will lead to South Africa IoT market growth during the forecast period.

The number of IoT part distributors is increasing due to the proliferation of e-commerce, which is attributed to the convenience of digital purchases and the rising penetration of smartphones. This is one of the prime factors favoring the growth of the IoT market in South Africa. The Amber Group acquired Intelli-Business Solutions Limited (Pty) Limited (IBS), an IoT hardware producer, in 2022; the acquisition would enable the commercialization of several end-to-end hardware products created for the South African banking, insurance, and security sector. Further, the burgeoning requirement for data analysis and the integration of analytics in South Africa is likely to boost the South Africa IoT market growth during the forecast period.

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.

Th South Africa IoT market, based on offering, is segmented into hardware, software, and service. In 2021, the service segment accounted for the largest market share. The Internet of Things (IoT) is the network of physical objects (“things”) that are embedded with software, sensors, and other technologies to connect and exchange data with other devices and systems over the internet. The IoT facilitates network connectivity among numerous devices to collect and exchange real-time information for providing intelligent services. Thus, IoT aids the control and remote access of connected devices within the adequate network infrastructure. The market for the service segment is further segmented into managed and professional services. AWS IoT Core is a managed cloud service that connects devices easily and securely interact with cloud applications and other devices. AWS IoT Core can support billions of devices and trillions of messages and processes, further routing those messages to AWS endpoints and other devices reliably and securely.

South Africa IoT market analysis by hardware, is segmented into processors, sensors, connectivity modules, memory devices, and others. In 2021, the connectivity modules segment accounted for the largest South Africa IoT market share. 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. In 2021, the others segment accounted for the largest South Africa IoT market share.

The overall South Africa IoT market size has been derived using primary and secondary sources. Exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the South Africa IoT market. The process also serves the purpose of obtaining an overview and forecast for the South Africa IoT solution concerning all the segments. Also, primary interviews were conducted with industry participants and commentators to validate data and gain more analytical insights into the topic. This process includes industry experts such as VPs; business development managers; market intelligence managers; national sales managers; and external consultants, including valuation experts, research analysts, and key opinion leaders, specializing in the South Africa IoT market.

A few leading players operating in the South Africa IoT market are 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; and VMware.

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