According to a recent report published by Allied Market Research, titled, “Africa Vehicle Tracking System Market by Type, Vehicle type, Application, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2020–2027,” the Africa vehicle tracking system market was valued at $8.99 million in 2019, and is projected to reach $26.53 million by 2027, registering a CAGR of 14.9% from 2020 to 2027.
At present, the Ivory Coast dominates the market, in Africa region. However, Rwanda is expected to grow at a higher CAGR during the forecast period.
The key factor that drives the growth of the Africa vehicle tracking system market includes upsurge in adoption of smart transport solutions. Moreover, rise in fleet operations especially in emerging markets is expected to boost the revenue growth of the market during the forecast period. In addition, vehicle tracking systems ensure safety and security within transportation services; thereby, increasing their demand.
The wide range of vehicle tracking system solutions and value-added services attract new players, new solutions, and new business models that contribute to the rapid expansion of the overall Africa vehicle tracking system market. Automotive OEMs and the foremost car manufacturers have embarked on implementing numerous connectivity solutions. Industries such as solid waste management from utilities sector are gaining importance in terms of vehicle tracking and telematics for its bin management, tracking and scheduling utility tasks, and exception management utility tasks. There is a huge potential untapped in most of the regions for insurance telematics.
Further, the new 5G standard mobile network is expected to encourage entire new functionalities in and beyond the vehicle. It is anticipated to open the way for future mobility and automated driving, but also for enhanced car infotainment and multimedia features. For future mobility, for example, 5G means vehicle-to-vehicle real-time communication due to higher bandwidths of up to 10 Gbit/s and an estimated latency of less than 1 millisecond in data transmission. But over-the-air updates of vehicle applications and software are also practically possible in real time. Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) communication capabilities by telematics companies are expected to be enabled by 5G. Thus, with the help of 5G, a vehicle is anticipated to develop a platform hosting disruptive and innovative applications enhancing the end-user experience.
COVID-19 impact analysis:
- Due to COVID-19 pandemic, the Africa vehicle tracking system market has been affected as the supply chain has been affected.
- Due to the imposed lockdown, manufacturing units across the globe has halted their production which has affected the demand of the vehicle tracking systems across the region.
- The unavailability of skilled labor has also affected the Africa vehicle tracking system market as people preferred to maintain social distancing thus affecting the production of the vehicle tracking systems.
Key Findings Of The Study
- By application, the cellular tracking segment generated the highest revenue in 2019.
- By country, Rwanda is anticipated to exhibit the highest CAGR during the forecast period while considering Africa vehicle tracking system market growth.
- By vehicle type, the passenger vehicles dominated the market in terms of revenue in 2019.
- Transportation & logistics segment leads the market by industrial vertical segmentation.
The key players profiled in the Africa vehicle tracking system market share include AT&T Inc., Cartrack Holdings Limited, Continental AG, Geotab Inc., Inseego Corp., ORBCOMM, Robert Bosch GmbH, Ruptela, TomTom International N.V., Verizon Communications Inc., Frotcom, Tramigo, Teltonika, Nsoroma, and Geo Tracking.