South Africa ICT market seen reaching $89.64B by 2035

South Africa’s information and communication technology market is projected to nearly double by 2035 as cloud adoption, AI, cybersecurity spending and broadband expansion accelerate across the economy. The forecast points to a market worth $89.64 billion by 2035, up from $42.31 billion in 2025.

Why it matters: - South Africa’s ICT market is expected to grow fast enough to reshape enterprise spending, public-sector digitization and connectivity demand through 2035. - The market’s projected rise signals more room for cloud services, cybersecurity, data analytics, 5G and digital infrastructure providers. - Government digital initiatives and broadband expansion could help narrow access gaps and support broader economic digitization.

What happened: - South Africa’s ICT market was valued at about $42.31 billion in 2025. - The market is projected to reach $45.69 billion in 2026 and nearly $89.64 billion by 2035. - The forecast implies an 8.42% compound annual growth rate from 2026 to 2035. - Market Research Future published the outlook and made a sample report available here. - The full report is available here.

The details: - Digital transformation across public and private sectors is a core growth driver. - Higher internet penetration and expanding mobile connectivity are increasing demand for ICT solutions. - Cloud adoption is pushing demand for cloud platforms, managed services and data center infrastructure. - Enterprises are investing in AI, cybersecurity, big data analytics and IoT platforms to improve efficiency and customer experience. - Government-led digital initiatives, broadband buildout and enterprise technology spending are supporting the long-term outlook. - Key market segments include hardware, software and services. - Major technology categories include cloud computing, artificial intelligence, IoT, big data analytics, cybersecurity and blockchain. - Deployment is split between cloud-based and on-premises systems. - Major end users include BFSI, telecommunications, government, healthcare, retail and e-commerce, manufacturing, education, energy and utilities, and transportation and logistics. - The market includes global technology companies, telecom providers, cloud vendors and regional ICT firms. - Named participants include Microsoft, IBM, Cisco, Oracle, Huawei, Dell, SAP, AWS, Google Cloud, Vodacom, MTN, Telkom SA, Dimension Data, BCX and Liquid Intelligent Technologies. - Gauteng is the largest provincial market because of its concentration of businesses, financial institutions, technology companies and government offices. - The Western Cape is emerging as a technology center driven by startups and cloud and software investment. - KwaZulu-Natal is seeing more ICT adoption in manufacturing, logistics, retail and public sector organizations. - Eastern Cape and other provinces are expanding adoption through digital initiatives, better connectivity and broader broadband access.

Between the lines: - The forecast suggests South Africa’s ICT growth is being pulled by both consumer connectivity and enterprise modernization. - The biggest upside appears to be in services tied to cloud migration, security and automation rather than hardware alone. - The main drag remains uneven infrastructure, especially outside major urban areas. - High implementation costs and a shortage of specialized talent may slow adoption among smaller companies. - Cybersecurity risk and data privacy compliance are likely to keep spending elevated even as digital adoption accelerates. - 5G, smart cities, e-government and fintech growth could create additional demand beyond the core IT market.

What's next: - Cloud migration is expected to continue across South African enterprises. - Telecom operators are likely to keep expanding 5G networks in major urban centers. - International cloud providers are expected to keep enlarging local data center capacity. - Government digital programs and smart city projects should continue to lift ICT demand. - Artificial intelligence and automation are expected to gain more traction in banking, healthcare and telecommunications.

The bottom line: - South Africa’s ICT market is moving from growth to scale, with digital infrastructure, cloud and cybersecurity set to define the next phase of expansion.