SA Vertical Industry Market Sizing and Forecast 2023

This report tracks each vertical industry by IT and telecoms spend for 2022, broken down by ‘corporate’ and ‘SME and midmarket’ customer segments, as well as their five-year forecasts from 2023 to 2027.

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 2027.
Resultant ICT revenues and forecast growth rates segmented by IT and telecoms, each broken down further by category type and ‘corporate’, ‘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 size and 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
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

Business ICT spend

By customer segment: Corporate and SME
IT and telecoms spending growth, per ICT product/service category
Forecast to 2027

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 SIC5 classification does not offer categories that have more recently 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. For more information, contact info@bmit.africa.

Overview of the South African economy and its vertical industries
GDP growth 2000 to forecast 2024 (%)
GDP vertical segmentation over time
Industry sector employment, by type of worker, 2022
Employment by industry sector, and growth, 2022
ICT-related jobs
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 2022
Business sector ICT market by vertical sector, 2022
Projected growth for IT and telecoms by vertical sector 2022 to 2027
Business sector ICT spend growth per vertical.
Business sector ICT spend per vertical, by size category, 2022
Business sector ICT spend per vertical, by product category, 2022
Business sector telecoms spend per vertical, by category, 2022
Business sector telecoms spend growth per vertical, 2022
Business sector IT spend by vertical sector and IT category, 2022
Business sector IT spend growth per vertical, 2022 -2027

Economic trends and ICT spend per vertical

AGRICULTURE

Agriculture Industry Dashboard
Agriculture subsectors
Size of the agricultural subsectors, by employment
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 by the state in the agriculture sector – SIP23
Agriculture – government initiatives
Land reform in South Africa – progress to date
Agriculture technology trends
Agritech award winners
Case-study: Cool Lion refrigeration
Agriculture-focused satellite for South Africa
Crowd-driven AI and machine learning used to deepen understanding of marine life
Forestry management and AI

MINING & QUARRYING

Mining & Quarrying Industry Dashboard
Mining subsectors
Size of the mining subsectors, by employment
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
Mining – opportunities and challenges
Mining – the impact of the just energy transition on mining
“5G-oriented” diamond mine in Botswana

MANUFACTURING

Manufacturing Industry Dashboard
Manufacturing subsectors
Manufacturing major subsectors – sales values
Manufacturing major subsectors – employment
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 interventions
Manufacturing – Master Plans
Manufacturing – highlight on the Chemical industry
Manufacturing trends in SA sales and production
Manufacturing – localisation
Manufacturing – embracing digital technologies for success
Manufacturing becomes circular.
Autonomous vehicles (AV) 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
South African electricity landscape as at 2023
Eskom developments
Eskom’s failure to keep the lights on in 2023 thus far.
Eskom’s Just Energy Transition (JET) Financing Facility
Eskom’s JET progress – Komati Repowering and Repurposing Project
Government policies in energy – the IEP, IRP 2019, IRP 2023
Renewable energy developments and initiatives in SA
Renewable energy – large-scale investment opportunities in 2023
Anglo American – mining and renewable energy
Green hydrogen developments
Water trends and challenges in South Africa

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
Construction projects in 2022
Construction – issues and challenges
Infrastructure Investment Plan Pipeline
Salvokop Precinct
National Infrastructure Plan 2050 Phase 2
Technology developments in construction

TRADE

Trade Industry Dashboard
Trade subsectors
Size of the trade subsectors, by employment numbers
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
Retail trends
Retail trends – ecommerce and online shopping
Consumer spending patterns changing
Retail – food retail challenges specific to energy crisis
Impact of digital adoption on retail & wholesale
Carbon neutral online shopping
Jumia – African e-commerce platform
Kuloola

TRANSPORT, LOGISTICS & COMMUNICATIONS

Transport and Communications Industry Dashboard
Transport subsectors
Size of the transport and communications subsectors, by employment
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
Challenges in transport
Government policies in communications – SA Connect
Recent government regulations and policies in Communications
South African Post Office

FINANCE AND BUSINESS SERVICES

Financial & Business Services Industry Dashboard
Finance subsectors
Banking 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
Major players in the finance subsectors – digital finance, cont.
Banking organisations
Companies in medical insurance services sector
Other financial institutions
Banking sector – size of companies by geographic spread
Size of insurance companies
Major projects in the financial & business services sector
Postbank
The financial sector: major drivers of change
Further issues in the financial sector
AI and new users, previously unbanked
Digital banking developments in South Africa
Insurance challenges, trends and drivers of change

GOVERNMENT AND COMMUNITY SERVICES

Government & Personal Services Industry Dashboard
(incl. public & private Health & Education; Entertainment
Government and community services telecoms spend by category type & customer segment
Education & training landscape and numbers
Broadcasting
Government and community services telecoms spend by category type & customer segment
Government and community services sector IT spend by category type & customer segment
Companies in private education and health services subsectors
Research institutions, libraries and trade unions form part of the government and community sector
Major projects in the government and community
services sector
Trends in education
Government ICT policies – SOC rationalisation programme
Government policies for society – 4th Industrial Revolution
Higher education trends and drivers
Healthcare ICT trends – personalised medicine and its risks

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
SA ICT Regional Market Sizing and Forecast
SA ICT Spend in Government Suite of Reports – National, Provincial, Local and Overview of SOEs in South Africa

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