South Africa ICT Market Size (2024 - 2029)

South Africa ICT Market Analysis

The South Africa ICT Market size is estimated at USD 36.81 billion in 2024, and is expected to reach USD 53.85 billion by 2029, growing at a CAGR of 7.90% during the forecast period (2024-2029).

• South Africa's ICT and electronics industry, a notable GDP contributor, boasts a roster of global players like IBM, Microsoft, and Dell, who have established strong footholds in the nation. Notably, South Africa serves as a pivotal regional hub and supply center for neighboring countries.
• South African ICT goods and services are making significant inroads into the rapidly expanding African market. In fact, a majority of the continent's new telecommunications networks, both fixed and wireless, have been spearheaded by South African firms or local arms of international corporations.
• As internet providers increase and bandwidth, security, and broadband prices improve, cloud computing is gaining prominence. This shift is being further bolstered by upgrades to data center infrastructure. Notably, since 2016, approximately 60% of major South African businesses have integrated cloud computing into their operations.
• While South Africa leads in smart city technologies in Africa, there is a pressing need to ensure all citizens have access to basic services. Once fundamental needs like housing, water, and power are addressed, cities can focus on enhancing residents' lives through digital advancements.
• The IT industry, and specifically start-ups, are experiencing a boom in South Africa. The government's ICT Small, Medium, and Micro-Enterprises (SMME) Development Strategy aims to foster the growth of other businesss through initiatives like incubation, networking, and capacity-building, all backed by government funding.
• While the COVID-19 pandemic brought most activities to a halt, South Africa felt its significant impact. However, the nation is on a path to recovery. The pandemic catalyzed unprecedented changes for customers, governments, and organizations, reshaping both global and local ICT market dynamics. With the digital economy's rise and the increasing globalization of economic systems, the South African ICT industry is witnessing substantial growth.

South Africa ICT Industry Segmentation

Information and communication technologies (ICT) encompass a wide array of communication technologies, including wireless networks, the internet, computers, cell phones, software, videoconferencing, middleware, social networking, and various media applications. These technologies empower users to store, access, transmit, retrieve, and manipulate information in digital formats.

The South African ICT market is segmented by type into hardware, software, IT services, and telecommunication services. By size of the enterprise, the market is segmented into small and medium enterprises and large enterprises. By industry vertical, the market is segmented into BFSI, IT and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.