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South African Telematics Installations to Reach 1.5M by 2020

January 01, 2016

According to a new research report from the analyst firm Berg Insight, the number of active fleet management systems deployed in commercial vehicle fleets in South Africa was 0.9 million in Q4-2015. Growing at a compound annual growth rate (CAGR) of 10.8 percent, this number is expected to reach 1.5 million by 2020.

The market is dominated by a group of aftermarket telematics players including MiX Telematics, Cartrack, Altech Netstar, DigiCore (Ctrack) and Tracker which are all headquartered in South Africa and have installed bases of more than 100,000 fleet management units on the domestic market. Notably, these top five players together represent as much as two thirds of the total number of active fleet management systems in use in the country today, according to the researchers.

“South Africa is a relatively mature telematics market and the penetration is comparably high from an international perspective,” said Rickard Andersson, senior analyst, Berg Insight.

He noted that the country is the home of a large number of telematics companies, including international players such as MiX Telematics and DigiCore.

“Many of the local telematics solution providers have their roots in vehicle security applications. These telematics companies have in many cases extended their SVR offerings with additional functionalities for fleet management,” said Andersson.

Some industry players use the categorization of light fleet management to distinguish low-end products from premium solutions.

“Far from all deployments are thus full-scale advanced fleet management solutions, and a notable share of the installed fleet telematics systems on the South African market is represented by comparably low-end tracking systems combining stolen vehicle recovery with basic fleet management features,” said Andersson.

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