IoT Is Still In Its Nascent Stages Of Growth In SA

Looking forward, Deloitte said we can expect growth in the uptake of IoT services as these networks become more pervasive, new ecosystems emerge and as device costs drop.

IoT Is Still In Its Nascent Stages Of Growth In SA

Tomorrow’s internet is the Internet of Things (IoT). It’s a network where billions of connected objects will feel, understand and act, anticipating our needs and above all responding to our choices.

As individuals, telecoms group Orange argues that the IoT revolution will totally transform our lives.

From connected cars, and smart homes to health and medicine, safety, culture, education, and recreation – every aspect of our lives will evolve and free us from constraints. It promises all of us greater ease and peace of mind, and more time to connect to our essentials.

The connected device revolution is truly underway in South Africa with about 62% of consumers surveyed own a connected device, especially entertainment devices such as Games Consoles and Smart TVs, a new IoT report shows.

The Deloitte report titled “South-Africa-Mobile-Consumer-Survey-2017: The South African Cut” stated that the IoT revolution is in its nascent stages in South Africa.

Arun Abraham, Deloitte’s Associate Director, Strategy, and Operations,
South Africa, said as operators roll out networks capable of supporting
IoT traffic and as new ecosystems emerge, we expect to see more demand and commercially successful applications.

“As more sophisticated machine-learning applications come into the mainstream, supported by more powerful hardware and chipsets in the smartphone, we expect consumer adoption to rise,” Abraham said.

“New use cases will emerge which will capture the imagination of consumers and we expect these to become central to smartphone use.”

IOT. Smart home system application interface. Andrey Suslov / Shutterstock.com
IOT. Smart home system application interface. Andrey Suslov / Shutterstock.com

The study further shows that the penetration of connected home and IoT devices remains low in South Africa and is in early adoption stage.

Game console and Smart TV ownership is now at 30% and 23%, respectively. This is probably driven by the higher number of connected entertainment devices in the market and the phasing out of ‘dumb devices’.

Other contributing factors include improving affordability and the launch and growing popularity of streaming content services such as Netflix and Showmax.

The penetration of connected Set-top box/PVR and Video streaming devices (20% and 17%, respectively) shows that consumers are looking to access video content online. There has been a significant influx of streaming devices into the market recently, launched by local telecommunications operators (for example, Telkom’s LIT Android TV media player, Econet’s Kwese play and Cell C’s black set-top box) and various global and local technology service providers.

As the quality of connectivity improves and the price of data falls, the take-up of video streaming and video-on-demand services is expected to grow significantly.

Operators are in a race to roll-out IoT networks to capitalise on the
potential opportunity in the consumer and enterprise market, the report states.

Looking forward, Deloitte said we can expect growth in the uptake of IoT services as these networks become more pervasive, new ecosystems emerge and as device costs drop.

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