Capital Equipment News July 2024

in the top 10 players in the South African fleet management market. International fleet management provid ers 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 solu tions – 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. 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. b Future evolution of the commercial vehicle telematics industry

Forecast for Fleet Management in South Africa (2023-2028) • Installed Base: Increase from 2,3 million units in 2023 to 3,8 million units by 2028.

• CAGR: 10,3%.

• Penetration Rate: Expected to grow from 47,3% to 70%.

agement functionalities to their basic SVR offerings. Companies sometimes differen tiate 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

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 after market fleet management solutions The top five local fleet management companies include Cartrack, Tracker, MiX

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

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.

by Powerfleet (formerly MiX Telematics), Ctrack, and Netstar. These five providers dominate the market, represent ing 70% of the total fleet

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

management systems in use. Companies like Bidtrack (Bidvest Group), Digicell, and GPS Tracking Solutions (Eqs tra Fleet Management) are also included

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