The use of Internet of Things (IoT) in South Africa is expected to grow by 14% a year from 2020 to 2025, says information and communications technology market research firm IDC Middle East, Africa and Turkey associate VP for sub-Saharan Africa Mark Walker.

He notes that IoT adoption is expected to increase in the telecommunications, manufacturing, logistics, transport and government sectors and that IoT use cases in the financial services, energy, agriculture and healthcare industries are likely to grow over the next few months.

“In the agriculture sector, IoT devices can be used to tag animals, while in the energy sector, smart electrical grids will gain traction.

"The pandemic has also accelerated the adoption of IoT use cases such as surveillance solutions, personal protection equipment monitoring and device management to improve the quality of safety for employees and professionals working in the healthcare sectors.”

Manufacturing, which is leading the adoption of emergent technologies to transform operations and reduce costs, is already using IoT to streamline efficiencies and capabilities. The sector will likely continue to use IoT and artificial intelligence (AI) algorithms to deliver value through data aggregation and analytics, Walker points out.

On the consumer front, vehicular IoT applications and smart home devices are gaining traction, while in the public sector, municipalities are adopting IoT for intelligent transportation and public safety enhancements, he adds.

“There are multiple applications for IoT and these have come down significantly in cost and complexity. The use cases, applications and innovations that surround the technology have evolved considerably since IoT was first seen sliding onto the information technology desk or boardroom table.”

Global organisations have found measurable business value from IoT applications that range from improved business productivity and process efficiency to improved customer experiences, product quality and cost-efficiency, he says.

While South Africa is one of the fastest-growing IoT markets in the sub-Saharan Africa region, it is not yet fully mature and several challenges are impacting comprehensive adoption.

There is a lack of understanding around the business benefits of IoT, concerns around cybersecurity and privacy, limited skills and resources and difficulty proving return on investment. These challenges are affecting budget allocations and overall IoT adoption rates.

“There are measurable benefits to IoT implementations and applications. The technology has proven results in reducing operational and maintenance costs, and has shown organisations that it can be applied intelligently to deliver measurable value to the business and the bottom line.

"An organisational-level IoT investment plan is a solid move to make and South African organisations are expected to gain the same competitive advantages by making IoT investment plans and setting out strategic IoT roadmaps,” says Walker.

To overcome the concerns about IoT investment in the country, service providers should proactively address these issues and remove the stumbling blocks that are preventing increased IoT adoption, he suggests.

He further advises that they should develop ROI calculators that help technology buyers estimate their business outcomes and expenses so they can gain buy-in from senior management.

It is also worth providing companies with end-to-end IoT solutions that encompass the overall requirements of the business and underpin its ability to achieve strategic objectives.