Berg Insight has released the "Fleet Management in South Africa – 7th Edition" report, offering an in-depth analysis of the latest trends in the South African fleet management market. This comprehensive 120-page report provides a strategic outlook, including insights into the broader African market beyond South Africa. It features five-year industry forecasts and expert commentary, designed to support informed business decisions. Capital Equipment News’ Juanita Pienaar spoke to Rickard Andersson who was the author of the report. He provided an overview of the report.
Main insights and findings
According to Berg Insight's latest research, the fleet management market in South Africa is set for significant growth. The number of fleet management (FM) systems is projected to increase from 2,3 million units in Q4-2023 to 3,8 million units by 2028, driven by a compound annual growth rate (CAGR) of 10,3%. South Africa's fleet telematics market is relatively mature.
The penetration rate in the total population of fleet vehicles used by businesses is expected to rise from 47,3% in 2023 to 70% in 2028. However, many of these deployments involve basic tracking systems rather than advanced FM solutions.
Data collection methodology
Information was gathered from leading domestic and international fleet management solution providers as well as smaller local vendors. Data on vehicle populations and commercial fleets was sourced from major industry stakeholders including eNaTIS, NAAMSA, and OICA.
Fleet management in South Africa
The author, Rickard Andersson notes: “A fair share of the vendors [in South Africa] have their roots in the security side of vehicle applications given the widespread adoption of stolen vehicle tracking and recovery solutions in the country”.
According to Andersson, some telematics companies have entered an ambiguous area in the market by adding fleet management functionalities to their basic SVR offerings. Companies sometimes differentiate between their low-end and premium offerings by using terms like ‘Light FM’ for more basic services.
Outlook for African fleet management
The African market, outside South Africa, remains challenging but promising. Sub-Saharan Africa (excluding South Africa) lags behind in fleet telematics adoption, whereas Northern Africa is relatively advanced. Economic conditions, political instability, and foreign exchange rate fluctuations present significant hurdles. However, there is considerable untapped potential, particularly for vendors offering cost-effective solutions.
Comparison of South African fleet management with other markets
South Africa leads the continent in fleet telematics adoption, with a higher penetration rate compared to other African regions. The country’s market is more mature, featuring a mix of low-end tracking systems and sophisticated FM solutions, unlike many parts of Sub-Saharan Africa where basic solutions dominate.
Price level of fleet telematics solutions in South Africa
The South African market includes a wide range of price points. Low-end solutions, such as light FM systems and SVR services, cater to cost-sensitive customers, while advanced FM solutions are available for those requiring comprehensive features.
Leading domestic providers of aftermarket fleet management solutions
The top five local fleet management companies include Cartrack, Tracker, MiX by Powerfleet (formerly MiX Telematics), Ctrack, and Netstar.
These five providers dominate the market, representing 70% of the total fleet management systems in use.
Companies like Bidtrack (Bidvest Group), Digicell, and GPS Tracking Solutions (Eqstra Fleet Management) are also included in the top 10 players in the South African fleet management market.
International fleet management providers targeting South Africa
International players in the South African fleet management market include Webfleet (Bridgestone), Gurtam, Lytx, Geotab, and Powerfleet (excluding MiX by Powerfleet).
Foreign players in the African Fleet Management Market
Foreign companies face challenges including economic instability, foreign exchange rate fluctuations, and political uncertainty. Adapting to local market dynamics and offering competitive pricing is crucial for success.
Most fleet management solutions in the local markets in Africa are limited. They involve low-cost hardware, basic software, and scant customer support.
According to Andersson, “Vendors which can offer the full range of solutions – from basic stolen vehicle tracking and recovery services and light fleet management alternatives all the way up to advanced FM solutions – are [thus] particularly well-equipped to serve the entire continent”.
Andersson believes that this could benefit the “major South African solution vendors which have comparably broad portfolios”.
For some vendors, the Rest of Africa (RoA) could prove to be more lucrative than the South African market. This is especially the case for providers who are quick to adapt to the changes and meet the needs of local markets.
Offerings from commercial vehicle OEMs
Most OEMs in South Africa have launched fleet telematics solutions. These include Scania, MAN, Daimler Truck, Volvo Trucks, UD Trucks, Isuzu, Toyota, and Iveco.
Industry Consolidation in 2024–2025
Increased M&A activity and a shakeout of weaker players are anticipated as the market remains fragmented with many small vendors.
Future evolution of the commercial vehicle telematics industry
The industry is expected to evolve with advancements in telematics technology, increased adoption of comprehensive FM solutions, and further integration of telematics into broader business processes. The trend toward consolidation and the entry of new technologies will shape the future landscape.
