The Fleet Management Industry in South Africa 2022

Introduction

Fleet management is becoming increasingly important for organisations in a world of changing mobility. Fleet management has developed into a multi-billion-rand industry in South Africa in recent years, and growth looks set to continue. South Africa has a relatively mature fleet management market and the penetration rate is relatively high. A notable share of installed fleet management systems is represented by comparably low-end tracking systems, such as stolen vehicle tracking devices with extended basic fleet management features. South Africa has a very competitive market, with JSE-listed companies, private companies and fleet management divisions of commercial banks competing for market share.

The industry is largely dominated by five key players, with broad vehicle telematic portfolios, that together represent 70% of the market. In recent years several international commercial vehicle original equipment manufacturers have entered the market or substantially expanded their fleet management operations.

Opportunities

Automotive market conditions and the evolving nature of the automotive industry towards autonomous vehicles.

Broadening customer segment focus. Consolidation of global system providers. Expanding geographic presence. Introducing new and innovative solutions to address market demand. Large and under-penetrated market for non-commercial passenger vehicles. Potential market for commercial fleet management solutions is large, growing and under-penetrated. Pursuing strategic acquisitions and partnerships to improve efficiencies and profitability Significant advances in networks, computing power and data storage capabilities, supporting cloud computing, will result in a more efficient delivery of SaaS products and services. Technological advances and market shifts foster demand for subscription-based fleet and mobile asset management solutions.

Outlook

The fleet management industry in South Africa is expected to grow strongly. There have been substantial advances in the capabilities, reliability and affordability of vehicle data technologies. There is increasing demand for subscription-based fleet and mobile asset management solutions. Global and multinational companies are increasingly looking to consolidate their fleet management systems by moving to providers that have global reach. The addressable market in South Africa is large, growing and underpenetrated, both in commercial fleet vehicles and non-commercial passenger vehicles, and the rate of consumer adoption of mobile asset management solutions is growing rapidly.

Report Coverage

This report focuses on fleet management in South Africa, and includes comprehensive information on the state of the industry, notable players, developments such as technological advancements and the growing ecommerce sector, corporate actions and information on the state of the vehicle industry, on which the fleet management industry depends.

There are profiles of 43 companies including the major players Cartrack, MiX Telematics, Tracker, Netstar and Ctrack, state-owned companies operating in the sector such as g-FleeT Management and Transnet, and private companies such as Motus, Super Group, OneLogix, Value Logistics and WesBank.

Strengths

Formation of partnerships with different participants in the value chain to improve efficiencies Highly diverse range of customers from large to small fleets and consumers.

Large global presence of the main South African players. of technologies Scalable, intuitive and web-based technology platforms. Solutions adaptable to multiple customer segments. Substantial advances and innovations in capabilities, reliability and affordability Well-established local automotive industry and market is providing choice to fleet managers and owners.

Threats

Dependence on cellular network providers for the transmission of data.

Disruption of various supply chains would impact supply of hardware and services and production capacity. Disruptions caused by global geopolitical events, local civil unrest, local labour disputes and natural disasters. Economic, social, political and other conditions and developments in South Africa and globally. Failure of fleet management businesses to adopt fleet management solutions. Failure to attract, train and retain highly qualified personnel. Government green transport strategy. Increasingly competitive and highly regulated environment. Industry consolidation may result in increased competition. Rising operating costs. The effects of a pandemic or widespread outbreak of an illness.

Weaknesses

Dependence on key suppliers and vendors to manufacture hardware. Dependence on third-party technology and licences. Disruption in service on, or security breaches of, websites or computer systems Fleet management is not a dedicated operational activity in most companies. Highly competitive and highly fragmented market. Inability to adapt to rapid technological change. Legacy fleet management technology provides limited functionality. Limited protection of intellectual property rights. Loss of key technical personnel. Technical skills shortages. Variety of motivations influencing existing and potential customers