According to a new research report from leading IoT analyst firm Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in South Africa reached an estimated 2.0 million in Q4-2021.
Growing with a compound annual growth rate (CAGR) of 12.6 percent, this figure is expected to reach 3.6 million in 2026. South Africa is a relatively mature country the telematics market and the penetration is comparably high in an international perspective. However, far from all implementations are advanced FM solutions in full scale. A significant proportion of the fleet telematics systems installed in the South African market are represented by comparable low-end tracking systems, e.g. lightweight FM solutions, including SVR systems enhanced with basic FM features.
“The South African fleet management market is clearly dominated by five domestic players with broad telematics portfolios, which together represent 70 percent of the total number of fleet management systems in use in the country.”said Rickard Andersson, Principal Analyst, Berg Insight.
He adds that Berg Insight ranks Cartrack and MiX Telematics as the largest providers of fleet management solutions in South Africa. Cartrack alone has more than half a million active FM devices in the country.
“The remaining top 5 players are Tracker, Netstar and Ctrack”continued Mr. Andersson.
Other top-10 players in the South African fleet management market include local vendors such as Bidtrack (Bidvest Group), Digicell and GPS Tracking Solutions (Eqstra Fleet Management), as well as international players including Webfleet Solutions (Bridgestone) and Gurtam. Autotrak, Digital Matter, PFK Electronics, Key Telematics / Radius Payment Solutions and Pointer SA (PowerFleet) are additional top-15 providers, all of which have estimated installed bases on at least 15,000 fleet management units in the country. Players just outside the top list include Mtrack (Electronic Tracking Systems), Geotab and Globaltrack.
“International OEMs for commercial vehicles, including Scania, Daimler, Volvo Trucks, UD Trucks, MAN and Toyota have all further introduced fleet telematics solutions in South Africa”concluded Mr Andersson.
Berg Insight’s report on Fleet Management in South Africa also includes a view of the overall African market. Africa is clearly a very diverse geographical region from a fleet management perspective. The continent can generally be divided into three sub-regions – South Africa, sub-Saharan Africa (excluding South Africa) and North Africa.
That South African Navy Telematics Market is far ahead of the rest of the continent in terms of adoption, whereas sub-Saharan Africa is the least developed region. North Africa is relatively advanced and well ahead of sub-Saharan Africa when it comes to naval telematics penetration, though still some distance behind South Africa.
That African fleet management market Beyond South Africa has been described by many industry representatives as challenging – but certainly also promising – for several reasons. The weak economic conditions and exchange rate fluctuations combined with the unstable political climate make the rest of Africa’s market a generally challenging business environment. However, there are promising prospects for players to adapt to local market dynamics, as the market in the Rest of Africa has significantly more untapped opportunities than what South Africa has to offer at present.