Research Component

This report tracks each vertical industry by IT and telecoms spend for 2021, broken down by ‘corporate’ and ‘SME and midmarket’ customer segments, as well as their five-year forecasts from 2022 to 2026.

The key components of the research, as reflected in the report’s chapter structure, are:

  • Number of business customers in each size category, segmented by key vertical market sector
  • Vertical sector spend on IT and telecoms, and how this could change in future
  • Overall ICT spending levels and growth trends in each service category including forecasts to 2026
  • Resultant ICT revenues and forecast growth rates segmented by IT and telecoms, each broken down further by category type and ‘corporate’ and ‘SME and midmarket’ spend
  • Note: Excluded from the market revenue numbers are in-house spending on ICT salaries and spending on ICT intermediary consultants such as management consultancy firms, unless these form part of an ICT project.

Methodology

BMIT has analysed all the vertical industries by company, sized by employee bracket, and their spending patterns, formulated from primary and secondary research input from:

  • BMIT databases and other secondary sources, including SARS reporting of the number of VAT-paying companies, StatsSA’s QLFS and QES reports 
  • Enterprise ICT spending patterns, based on BMIT’s end user surveys and derived models, and
  • Top-down industry revenue figures tied back to BMIT in-depth reports on IT and telecoms market segments, which in turn are informed by primary research (vendor interviews) and analysis of operator reporting.
  • Qualitative assessment of key vertical markets in South Africa, based on extensive secondary research.

Business ICT spend 

  • By customer segment: Corporate and SME
  • IT and telecoms spending growth, per ICT product/service category
  • Forecast to 2026

Vertical segmentation

  • Agriculture, forestry & fishing
  • Mining 
  • Manufacturing
  • Electricity, gas & water
  • Construction
  • Retail, wholesale & hospitality 
  • Transport, storage & logistics
  • Financial and business services
  • Government, healthcare, education & personal services

Within each sector:

  • Statistical dashboard
  • Overview of sector and subsectors
  • ICT spend and forecast
  • Major companies
  • Major projects
  • Government policies & programmes
  • Trends/challenges/drivers/inhibitors
  • Tech trends

Note:

  • Official statistics, such as GDP, labour, etc, currently are reported in terms of the Standard Classification of All Economic Activity or SIC codes, version 5, linked to international codes.
  • The SIC classification does not offer categories that have become important sectors, such as media, and ICT, which must currently be constructed from several subsectors. Conversely, SIC combines, for example, transport, storage, logistics, postal, courier and telecommunications services into one sector. 
  • A new set of classification codes has been prepared, SIC version 7, which allows for changes in the economic landscape, including ICT sectors. However, Statistics SA is not yet reporting according to these new codes.
  • In this report, we perforce must report in the basic 9 categories of the SIC5 code format, in order to give an overview of the whole economy’s ICT spend, segmented by vertical sectors that correspond to official GDP, labour and other economic statistics.
  • BMIT offers Vertical “deep-dive” reports, which delve deeper into various sectors. Some of these are transversal vertical deep-dives, where we provide a landscape of those sectors which cross traditional boundaries and touch many industries. Vertical “deep-dives” are customised to client’s requirements.

Table of Contents

  • Introduction and Methodology
  • Research Components and Methodology
  • Analysis framework used in this report
  • BMIT ICT category segmentation
  • Overview of the South African economy and its vertical industries
  • GDP growth 2000 to forecast 2024 (%)
  • GDP vertical segmentation over time
  • Employment by industry sector 2021, split by type of worker
  • Employment by industry sector, and growth
  • Number of companies, by vertical sector and size
  • Number of companies by vertical sector

SA vertical market by customer segment and ICT category

  • SA ICT market spend – Business market in 2021
  • Business sector ICT market by vertical sector, 2021
  • Projected growth for IT and telecoms by vertical sector 2021 – 2026
  • Business sector ICT spend growth per vertical
  • Business sector ICT spend per vertical, by size category, 2021
  • Business sector ICT spend per vertical, by product category, 2021
  • Business sector telecoms spend per vertical, by category, 2021- 2026
  • Business sector telecoms spend growth per vertical, 2021 – 2026
  • Business sector IT spend by vertical sector and IT category, 2021
  • Business sector IT spend growth per vertical, 2021-2026
Agriculture
  • Agriculture Industry Dashboard
  • Agriculture subsectors
  • Agriculture sector telecoms spend by category type & customer segment
  • Agriculture sector IT spend by category type & customer segment
  • Top companies in the agriculture sector
  • Capital investment in the agriculture sector is driven by the state
  • South African government policies by the Department of Agriculture, Land Reform and Rural Development
  • South African government policies by the Department of Forestry, Fisheries and the Environment
  • Government programmes: ABIPP
  • Oceans Economy in South Africa
  • Fisheries policies, regulation and legislation
  • Challenges / drivers / inhibitors of agricultural sector growth
  • Technological trends in the agricultural industry
  • Case Study: Mogale Maleka and Tumelo Pule: Using Hydroponics to enhance food security
Mining & Quarrying
  • Mining & Quarrying Industry Dashboard
  • Mining subsectors
  • Mining sector telecoms spend by category type & customer segment
  • Mining sector IT spend by category type & customer segment
  • Top companies in the mining sector
  • Major projects in the mining sector
  • Government policies in mining – exploration & hydrogen
  • Government policies in mining – hydrogen
  • South Africa’s proposed Hydrogen Valley
  • Drivers of mining, globally
  • Inhibitors to mining sector growth in South Africa
  • Trends in mining, globally 
  • Technology in mining
  • Mining case study: Enaex claims world first completely robotic & autonomous underground explosives loading operation using its UG-iTruck
Manufacturing
  • Manufacturing Industry Dashboard
  • Manufacturing subsectors
  • Manufacturing sector telecoms spend by category type & customer segment
  • Manufacturing sector IT spend by category type & customer segment
  • Top companies in the manufacturing sector
  • Major projects in the manufacturing sector
  • Manufacturing – government policies and related initiatives
  • Government policies in manufacturing – incentive programmes
  • Manufacturing trends in SA sales and production
  • Inhibitors to manufacturing sector growth in South Africa
  • Technology in Manufacturing 
Energy & Water
  • Energy Industry Dashboard
  • Energy subsectors
  • Energy, water and gas sector telecoms spend by category type & customer segment
  • Energy, water and gas sector IT spend by category type & customer segment
  • Energy and water companies
  • Major projects in the energy, water and gas sector
  • Government policies in energy sector
  • Government policies in the gas energy sector
  • Government policies in nuclear and renewable energy
  • Eskom’s Just Energy Transition (JET) Financing Facility
  • Government policies in energy – the IRP 2019
  • Global trends in energy  
  • Inhibitors to energy sector growth – unreliable power supply
  • Tech trends in the Energy sector
  • Tech trends in the water sector
Construction
  • Construction Industry Dashboard
  • Construction subsectors – building and construction
  • Construction sector telecoms spend by category type & customer segment
  • Construction sector IT spend by category type & customer segment
  • Major companies in construction sector
  • Government policies in the building and construction sector – Infrastructure Delivery & Procurement Management (FIDPM)
  • Trends in construction in South Africa
  • Technology trends in construction
Trade
  • Trade Industry Dashboard
  • Trade subsectors
  • Trade sector telecoms spend by category type & customer segment
  • Trade sector IT spend by category type & customer segment
  • Top companies in the trade sector
  • Major capital investment in trade sector
  • E-commerce trends in South Africa
  • Trends in mobile phone retail in South Africa
  • Retail & wholesale trends – formal sector
  • Retail & wholesale trends – Checkers Sixty60 and Checkers Rush
  • Restaurant trend
Transport, Logistics & Communications
  • Transport and Communications Industry Dashboard
  • Transport subsectors
  • Transport sector telecoms spend by category type & customer segment
  • Transport sector IT spend by category type & customer segment
  • Top companies in the transport and logistics sectors
  • Top companies in the courier & communications sectors
  • Major projects in the transport and communications sector
  • Government policies in communications – Spectrum Assignment
  • Government policies in communications – SA Connect
  • ICT legislation – Data and Cloud Policy
  • Courier services challenges
  • Logistic tech trends 
  • Electrical minibus taxis being tested for South Africa
Finance & Business Services
  • Financial & Business Services Industry Dashboard
  • Finance and business services subsectors
  • Finance and business services sector telecoms spend by category type & customer segment
  • Finance and business services sector IT spend by category type & customer segment
  • Major players in the finance subsectors – banks and insurers
  • Major players in the finance subsectors – digital finance
  • Companies in medical insurance services sector
  • Major projects in the financial & business services sector
  • Government policies: FSCA’s Regulatory Strategy for the period 14 December 2021 to 31 March 2025
  • Government policies in the finance sector
  • Regulating the fintech sector
  • Challenges in the finance sector – eIDs
  • South African Financial Blockchain Consortium (SAFBC)
  • Trends in banking – the move away from branches must not be exclusive 
  • Trends in finance – cashfree societies
  • Developments in blockchain technology are making insurance from specialised providers cheaper, faster and more accessible.
Government and Community Services
  • Government & Personal Services Industry Dashboard (incl. public & private Health & Education)
  • Government and personal services subsectors
  • Government and community services telecoms spend by category type & customer segment
  • Government and community services sector IT spend by category type & customer segment
  • Major projects in the government and community services sector
  • Companies in private education and health services subsectors
  • Government policies for society – 4th Industrial Revolution
  • Government ICT policies – SOC rationalisation programme
  • Public education government ICT developments and initiatives
  • DBE’s ICT response to covid-19
  • Impact of covid-19 on school education
  • Tech trends in healthcare sector: future of prosthetic limbs

Deliverables and format

The research and analysis is documented in a rich PowerPoint document with supporting Excel tables. The PowerPoint document contains tables and charts and is detailed enough to provide all the qualitative insights and interpretation, including market sizing and forecasting.

BMIT also offers a virtual workshop/presentation, while reserving the option to combine this topic with other published topics. 

Further information

For further information and details on how to subscribe to this research please contact Anita Mathews on 082 466 2327 or anita@bmit.africa