Fleet Management in South Africa 2025

This report on fleet management in South Africa provides information on the industry’s main products and services, revenue, installed units, new applications and growth drivers, as well as vehicle population, production and sales figures and freight volumes. It includes information on notable players, corporate actions, and influencing factors such as environmental issues and crime.

There are profiles of 35 companies including major players Cartrack, MiX by Powerfleet, Tracker, Netstar and Ctrack, SOEs involved in fleet management such as Transnet and g-FleeT Management, freight and logistics companies including Onelogix Group and Super Group, and banking and financial institutions such as WesBank.

Introduction

• Fleet management technology has developed into a multi-billion-rand industry in South Africa in recent years.
• There were approximately 2.4 million active commercial fleet management systems in operation in 2023, projected to reach 3.9 million units by 2028.
• The industry is dominated by five major local providers - Cartrack, Tracker, MiX by Powerfleet, Ctrack and Netstar - providing vehicle tracking, driver behaviour monitoring, fuel management and route optimisation.
• Growth is being driven by technological advancements, leading to improved fleet efficiency and safety.
• Other factors include stricter regulations, and businesses wanting to reduce operating costs, improve fuel efficiency and optimise route planning, facilitated by fleet management.

Market Trends

• Emphasis on sustainability, decarbonisation and green fleet initiatives.
• Enhanced safety measures through telematics.
• Fleet companies’ focus on cost optimisation, with increased emphasis on leasing (operating rentals) over owning vehicles.
• Growing adoption of 5G connectivity for fleets.
• Increased adoption of EVs and hybrid vehicles in fleets.
• Increased attention on data privacy and cybersecurity.
• Integration of advanced technologies.
• Market growth and increased adoption of fleet management systems.
• Rise of MaaS is transforming traditional fleet management.
• Shift towards mobile and cloud-based solutions.

Market Opportunities

• Sustainability and green initiatives.
• Advanced data analytics and value-added services.
• Development and innovation of advanced telematics solutions.
• Expansion into Africa beyond SADC.
• Integration with smart infrastructure
• Mobility-as-a-service and shared mobility.
• Skill shortages provide employment opportunities.

Market Challenges

• Rising data privacy and cybersecurity risks
• Consumer price-sensitivity.
• Driver shortages and inadequate training.
• Environmental and sustainability pressures.
• High crime rates and security concerns.
• Poor road conditions and infrastructure limitations.
• Regulatory compliance and uncertainty.
• Rising operational costs.
• Technological adoption and integration challenges.

Market Outlook

• The industry is poised for strong growth in the short to medium term, driven by increasing vehicle sales and the adoption of technology-driven solutions.
• Increased use of telematics, GPS tracking and digital dashboards, and the growing adoption of cloud-based platforms are allowing scalability, data management and collaboration.
• The integration of AI, IoT, 5G networks and automation for predictive maintenance, driver behaviour analysis and automated processes will drive growth and expansion.
• South African fleet management companies have the opportunity to expand into other African countries.
• The industry faces challenges such as poor infrastructure, security concerns, energy reliability issues, economic volatility and regulatory compliance issues.