This report tracks each vertical industry by IT and telecoms spend, broken down by ‘corporate’ and ‘SME and midmarket’ customer segments, as well as their five-year forecasts from 2021 to 2025.

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 will change in future
  • Overall ICT spending levels and growth trends in each service category including forecasts to 2025.
  • 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.

Research methodology

BMIT has analysed all the vertical industries 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.

Analysis framework used in this report

  • Business ICT spend.
  • By customer segment: Corporate and SME.
  • IT and telecoms spending growth, per ICT product/service category.
  • Forecast to 2025.

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 some 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

  • Overview of the South African economy and its vertical industries
  • GDP growth 2000 to forecast 2023 (%)
  • GDP vertical segmentation over time
  • Employment by industry sector, 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 by customer
  • SA ICT market spend – Business market
  • Business sector ICT market by vertical sector, 2020
  • Projected growth for IT and telecoms by vertical sector 2020 to 2025
  • Business sector ICT spend growth per vertical
  • Business sector ICT spend per vertical, by size category, 2020
  • Business sector ICT spend per vertical, by product category, 2020
  • Business sector telecoms spend per vertical, by category, 2020
  • Business sector telecoms spend growth per vertical
  • Business sector IT spend by vertical sector and IT category, 2020
  • Business sector IT spend growth per vertical, 2020-2025

Economic trends and ICT spend per vertical

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
  • South African government policies for agriculture
  • Government support programmes to assist farmers
  • Government support programmes to assist agri-processors
  • Development of Agri-Parks
  • Government programmes – “Working For / With …”
  • Government initiatives creating opportunities in fresh fruit & vegetables industry
  • Fisheries policies, regulation and legislation
  • Cooperatives in the fisheries industry
  • Trends in forestry & wood processing industry
  • Challenges / drivers / inhibitors of agricultural sector growth
  • Fruit and vegetable production inhibitors
  • Fresh fruit & vegetables inhibitors and challenges
  • Technological trends in the agricultural industry
  • Technological implementation in the timber/forestry industry
  • An example of a wood monitoring process with IoT sensors: A sawmill in Southern Italy
  • Technology in the agricultural industry
  • Technology in the fisheries industry

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
  • Government policies in mining – exploration & hydrogen
  • Trends in the mining sector – iron ore and copper
  • Trends in the mining sector – coal, platinum and gold
  • Drivers of mining sector growth and mining volatility
  • Inhibitors to mining sector growth
  • Trends in mining – transparency and asteroid mining
  • Technology in mining – adoption
  • Technology in mining – smart mining
  • Technology in mining – digital twinning and asteroid mining
  • Technology in mining – digital innovations in operation
  • Technology in mining – identifying new deposits and exploration.

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
  • Department of Science and Innovation: developing South Africa’s ability to develop and manufacture vaccines locally
  • Manufacturing trends in sales and production
  • Trends in manufacturing – general trends and tech trends
  • Inhibitors to manufacturing sector growth in South Africa

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 sector
  • Government policies in energy
  • Government priorities in energy – renewable energy
  • Government initiatives in energy – RMIPPP programme
  • Renewable Energy Development Zones (REDZ) and gas pipeline corridors
  • Water, gas and nuclear – government policies and initiatives
  • Trends in energy, globally
  • Trends in energy, South Africa
  • Inhibitors to energy sector growth
  • Tech trends in the energy sector – green hydrogen
  • Water sector – challenges

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
  • Trends in construction
  • Drivers of building and construction sector growth
  • Inhibitors to building and construction sector growth
  • 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
  • Government initiatives in trade sector
  • Impact of Covid-19 on trade sector – case study: Game
  • E-commerce trends in South Africa
  • Retail & wholesale trends – formal sector
  • Retail trends – informal sector
  • Retail sector trends – impact of covid-19, globally & locally
  • Retail sector trends – e-commerce terminals and in-store counters
  • Tech trends in fast food restaurants – self-driving robots

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 – Wireless Open Access Network (WOAN)
  • Government policies in communications – Spectrum Assignment
  • Government policies in communications – SA Connect
  • Challenges in transport in South Africa
  • Courier services challenges
  • Trends in transport – global shipping and freight capacity

FINANCE AND 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
  • Companies in medical insurance services sector
  • Major projects in the financial & business services sector
  • Government policies in the finance sector
  • Challenges in the finance sector
  • Trends in the insurance sector
  • Tech trends in banking – open banking and online marketplace
  • Trends in finance – cryptocurrencies
  • Trends in cryptocurrency adoption
  • Tech trends in the finance sector – volatility of bitcoin

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 the education and health services subsectors
  • Government policies for society – 4th Industrial Revolution
  • Government ICT policies – Integrated Justice System (IJS)
  • 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
  • DHET interventions to ameliorate the COVID19 lockdown
  • Tech trends in healthcare sector

 

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.

Related research

  • SA ICT Market Overview Sizing and Forecast 2021
  • SA ICT Spend in Government 2020

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