IDC: Africa’s Internet of Things industry to boom
International Data Corporation has predicted the Africa Internet of Things industry will continue its strong growth, with the number of units or ‘things’ – connected to increase from 3.1 billion to 8.6 billion by 2020.Over this same period, the total Africa excluding South Africa market size will increase from $5 billion to $18 billion.According to an insider in charge of Mobility and Internet of Things at IDC Africa said the IoT industry has matured considerably over the one year in Sub Saharan Africa region, with a number of large government initiatives across South Africa, and Kenya in particular, driving demand.The increase in market demand has led to an increased focus on Internet of Things from leading ICT vendors, as well as start-ups with each keen to grab its share of the growing IoT market. High-level IoT market forecasts of information by three main regions of East and Central, Southern and Western Africa or country can be useful to certain audiences. It adds little value to those functional areas with more specific requirements.
Sales and marketing, for instance, require Internet of Things forecasts aligned to industry verticals so they can effectively set targets and tailor their go-to-market messaging and that is what South Africa has been doing.Product management requires Internet of things forecasts aligned to use cases such as digital signage so they can understand the addressable market for their solution portfolio across multiple industries.IDC’s Internet of Things Market Forecast shows that South Africa not only will continue to dominate the Africa region, accounting for 60 per cent of the Sub Saharan Africa market opportunity by 2020, but also be one of the leading markets globally. However, market size like that of Nigeria is not the same as market maturity of South Africa according to a researcher who works with an American research company. The top three most mature markets in Africa were South Africa,Egypt and Nigeria, while Kenya and Tunisia came in fourth and fifth out of the 10 Countries surveyed.The Internet of Things market forecast also looks at which industries are leading the way.The government industry leads the way, as national, regional and city governments aggressively try to leverage Internet of Things solutions to drive new revenue streams, reduce costs and enhance citizen services as part of their Smart Government initiatives like one Kenya government launched recently. Other leading industries include utilities, discrete manufacturing, healthcare and retail.