Research was carried out on the healthcare industry of South Africa. A thorough PESTLE (political, economic, social, technology, legal and environmental) analysis was established for South Africa allowing for an accurate evaluation of the external factors impacting on the healthcare industry. Market size of the paediatric vaccine sector was calculated for 2006 and forecasts determined for the period 2006 to 2012. In addition, the market dynamics, such as challenges, drivers and restraints were also identified.