The number of telematics-connected fleet vehicles in South Africa will grow at a CAGR of 12.2% from the 2.1 million units reported the end of 2022 to 3.8 million by 2027, according to a new report, “Fleet Management in South Africa,” produced by research and analysis firm Research And Markets.

Although a “relatively mature telematics market,” a significant number of installed fleet telematics systems on the South African market are comparably low-end tracking systems, Research And Markets analysts found.

The South African fleet management market is “clearly dominated” by five domestic players with broad telematics portfolios that represent 70% of the total number of fleet management systems in use in the country,” the report states.

Cartrack, Tracker and MiX Telematics are the largest providers of fleet management solutions in South Africa, according to Rickard Andersson, Research And Markets principal analyst, noting that. Cartrack alone has more than 500,000 active FM units in the country. “The remaining top-five players are Ctrack and Netstar,” said Andersson.

The report identifies other top players in the market: local providers such as Bidtrack (Bidvest Group), Digicell and GPS Tracking Solutions (Eqstra Fleet Management); international fors Webfleet (Bridgestone), Gurtam. Lytx, Autotrak, Digital Matter, Scania and Powerfleet (Pointer SA) are additional top-15 providers, all having estimated installed bases of at least 15,000 fleet management units in the country.

Players just outside of the top list include Key Telematics/Radius Payment Solutions, Geotab, Mtrack (Electronic Tracking Systems), iCAM Video Telematics, FleetCam and Globaltrack.

“In addition to Scania, comparably large installed bases of OEM fleet telematics systems in South Africa have also been achieved by manufacturers such as Daimler Truck, UD Trucks and Volvo Trucks,” said Andersson.

The South Africa fleet telematics market report also covers:

• Price levels

• Aftermarket solutions.

• Hurdles facing foreign players.

• Commercial vehicle OEM offerings.

• Market Consolidation possibilities.

• The market’s future evolution.

The study also includes an outlook on the overall African market, a “highly diverse geographic region from a fleet management perspective.” The South African fleet telematics market is far ahead of the rest of the continent in terms of adoption, analysts determined.

Beyond South Africa, the continent’s telematics market is a “challenging business environment overall,” due to weak economic conditions and foreign exchange rate fluctuations combined with unstable political climates. However, Research and Markets analysts find the rest of the Africa market “has considerably more untapped opportunity than what South Africa can offer at this stage,” with “promising prospects” for companies that can adapt to local market dynamics.

Additional information on the Research and Markets “Fleet Management in South Africa” is available at the company’s website.