The South Africa IoT market is expected to grow from US$ 2,167.41 million in 2019 to US$ 29,615.41 million by 2027; it is estimated to grow at a CAGR of 40.1% from 2020 to 2027.
The internet of things (IoT) technology helps connect various smart devices to ease the operation and sharing of data. There are different smart devices such as sensors, smartphones, and wearable, which collect necessary data from devices and are further utilized to enhance customer’s experience. The rising need for data analysis and integration of analytics is expected to propel the utilization of IoT in the forecast period.
Based on offering, the services segment led the South Africa IoT market in 2019. Internet of things (IoT) facilitates billions of devices to be enabled with network connectivity to collect and exchange real-time information for providing intelligent services. Thus, IoT allows connected devices to be controlled and accessed remotely in the presence of adequate network infrastructure. The services segment can be sub 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.
With the increasing number of COVID-19 cases globally, South Africa's economy also significantly impacted in 2020. The country's governing bodies have recently uplifted the travel restrictions, which enabled transportation but with all safety measures and social distancing norms. The supply chain and import & export is getting disrupted due to the COVID-19 outbreak. The growth of the IoT market in South Africa was declined in Q1 and Q2 of 2020, as most of the IoT projects were on hold or slowed down. Numerous companies reduced the investments in new projects. However, the slowdown was for the short term, and from Q3 2020, the demand for digitization got accelerated. Now, companies are strategically investing in connected technologies such as remote asset management. In the medium to long run, the impact of the COVID-19 pandemic on IoT market will be positive due to the increasing demand from various industries such as healthcare, manufacturing, and smart homes. Also, companies will want to build more resilience to be better prepared if another pandemic rattles the world. Additional investment in digital infrastructure can be expected in 2021 and 2022. Overall, the impact of the COVID-19 outbreak on the South Africa IoT market was low to moderate, and it is expected to witness high growth from 2021 onwards.
The overall South Africa IoT market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the South Africa IoT market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the South Africa IoT market. 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; Tarsus; Rectron; Drive Control Corporation; and Frontosa are among the players operating in the market.