Berg forecasts 10.8% growth in South Africa’s fleet management by 2020 

Rickard Andersson, analyst, Berg Insight

Berg Insight forecasts that the market for fleet management (FM) in South Africa is in a growth period which will continue in the years to come.

The number of FM systems in active use is forecasted to grow at a compound annual growth rate (CAGR) of 10.8% from 0.9 million units in 2015 to 1.5 million by 2020. The penetration rate in the total population of non-privately owned fleet vehicles used by businesses is at the same time estimated to increase from 21.5% in 2015 to 32.% in 2020.

South Africa is a relatively mature telematics market and the penetration is comparably high from an international perspective. Far from all deployments are, however, full-scale advanced FM solutions. A notable share of the installed fleet telematics systems on the South African market is represented by comparably low-end tracking systems, e.g. light FM solutions, including SVR systems extended with basic FM features.

The South African fleet management market is dominated by five players with broad telematics portfolios which are all headquartered in the country and have installed bases of more than 100,000 FM units.

Berg Insight analyst, Rickard Andersson ranks MiX Telematics as the largest provider of fleet management solutions in South Africa with an estimated installed base of around 150,000 active units in the country. The runner-up is Cartrack followed by Altech Netstar and DigiCore (Ctrack). Tracker has also provided more than 100,000 active FM systems in the country, out of which a share is represented by solutions powered by TomTom Telematics.

Other renowned international providers active on the market include Pointer Telocation and Geotab. Foreign telematics players have however generally not managed to achieve any significant market shares on the South African fleet management market so far.

Additional examples of domestic aftermarket players include GPS Tracking Solutions (Eqstra Fleet Management), Global Telematics (Pointer SA), Autotrak, ACM Track and Digit Vehicle Tracking. Commercial vehicle OEMs including Daimler, Scania, Volvo Group and MAN have moreover introduced fleet telematics solutions in South Africa, though the adoption levels generally remain relatively modest so far.

Highlights from this report

  • Insights from numerous interviews with market-leading companies.
  • New data on vehicle populations and commercial fleets in South Africa.
  • Comprehensive overview of the fleet management value chain and key applications.
  • In-depth analysis of market trends and key developments.
  • Updated profiles of 22 aftermarket fleet management solution providers.
  • Summary of OEM propositions from commercial vehicle brands.
  • Market forecasts lasting until 2020.

Questions answered by the report

  • How does the fleet management market in South Africa compare with other markets?
  • What is the price level of South African fleet telematics solutions?
  • Which are the leading domestic providers of aftermarket fleet management solutions?
  • Which international fleet management providers are targeting the South African market?
  • What hurdles are there for foreign players?
  • What offerings are available from commercial vehicle OEMs?
  • Will the FM industry consolidate further during 2016–2017?
  • How will the commercial vehicle telematics industry evolve in the future?

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