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South African fleets trying out telematics

If you're in the fleet management systems business South Africa is a good place to be. It's a market that's on the up.  With around 900,000 active fleet management systems in commercial fleets at the end of 2015, the 2nd biggest economy in Africa is becoming an important place for an industry that's starting to get going on a global basis. 

Analysts at Berg insight reckon compound annual growth rate of 10.8 percent over the next few years will see 1.5 million units installed by 2020.

DigiCore (Ctrack), MiX Telematics, Altech Netstar, Cartrack, and Tracker, which represent around two thirds of the market, are the players to watch.  They currently have around 100,000 fleet management units each and are well poised to take advantage of rising demand.

Penetration in South Africa is comparably high from an international perspective, according to Berg's researchers.
Rickard Andersson, Senior Analyst at Berg Insight, believes that many local telematics solution providers have their roots in vehicle security applications.  It's this that has given them a foot hold into fleet management systems 
South Africa, as fleet managers inside and outside the country know, isn't the safest of places.  Brazen gun totting and car jackers are something that impact fleets heavily in the southern tip of Africa.

Telematics companies have in extended their SVR offerings with additional functionalities for fleet management according to Andersson. 

Full-scale advanced fleet management solutions aren't the norm says the report, with a "notable share of fleet telematics systems being low-end tracking systems combining stolen vehicle recovery with some basic fleet management." 

It may not all be in the top tier, but South Africa is getting in tune with what telematics can do for fleet management.  

Picture copyright: MIX Telematics 28/02/2016  |  Jonathan Green


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