The Future Of Telematics In Africa

Telematics services are rapidly evolving across Africa, presenting significant growth opportunities as the continent embraces more data-driven solutions in transportation, logistics, and beyond.

The market for telematics services in Africa remains underpenetrated, particularly in the fleet management sector. Despite the potential, high costs of data and reliability of coverage are barriers that influence how commercial fleet owners in Africa adopt telematics services.

According to Roydon Michael, CEO of 3Dtracking, a global provider of telematics software platforms, the market for telematics in Africa remains underpenetrated, particularly in the fleet management sector.

“Market penetration of fleet management services across the continent is still low, meaning there is significant room for growth. This is especially true in countries that have historically been slower to adopt newer technologies, but are now catching up,” Michael said.

Michael also points out that in recent years there has been a significant increase in the volume and complexity of data transmitted by telematics devices. Examples include vehicle diagnostics extracted from the vehicle’s CAN bus or OBDii systems, driver behavior monitoring, and data obtained from wireless sensors installed around the vehicle. In addition, the introduction of video telematics has also resulted in extremely high volumes of data.

“As the complexity of telematics data increases, so does the importance of making that data easily accessible to users,” Michael explained, highlighting that telematics providers need access to their data in a way that is “simple and intuitive”.

Emerging Trends and Opportunities

The telematics landscape in Africa is poised for transformation as emerging trends and growth opportunities reshape the industry. One of the standout trends is the connectivity transition from legacy 2G and 3G networks to new 4G connectivity, which continues to gain momentum across the continent.

Valdemar Markovski, Chief of Africa Sales Group at telematics hardware provider Teltonika Telematics, views this transition from 2G and 3G to 4G as a pivotal shift in the industry, creating new opportunities for telematics providers in Africa.

Markovski sees that telematics service providers can create competitive advantages from this transition to 4G networks and advises that they should expand their portfolios with new services in order to expand and improve their operations.

According to Markovski, what he calls “autonomous tracking” is also gaining traction. These solutions offer high levels of automation and streamline data collection without complex hardware installations on the vehicle.

Markovski also expects a rise in e-mobility across Africa to be another key trend, increasing the need for telematics solutions for electric vehicles, e-bikes, and e-scooters.

“These affordable and sustainable transport options are becoming increasingly popular in East and West Africa,” noted Markovski.

Taha Bouras, International Business Development Manager at telematics hardware manufacturer Queclink Wireless Solutions, also agrees that there will be many new growth opportunities for telematics service providers in Africa in the coming year.

“In Africa, the adoption of telematics is expected to expand beyond the traditional sectors of transportation and logistics, and reach industries such as construction, agriculture, and healthcare,” Bouras said.

Bouras also notes that there are new opportunities for insurance companies in Africa to get involved with telematics.

“With extensive data generated by telematics, service providers will also explore opportunities to monetise the ability to provide valuable insights and analytics to third parties such as fleet operators and insurers,” he added.

Challenges to Overcome

Despite the opportunities, challenges remain. Coverage issues are a significant limitation, especially in remote areas.

However, Michael is optimistic.”Today’s advanced tracking devices record data when coverage is lost, and then transmit it later when coverage becomes available again. Equally important in this scenario is the need for a telematics platform that can rapidly and effortlessly process large volumes of data from reconnecting vehicles,” noted Michael.

“This ensures all telematics data is captured and analysed, which is key for telematics service providers across Africa to maximize the value they deliver to their fleet management customers,” concluded Michael.

As Africa transitions toward a more connected future, telematics has the potential to revolutionize industries, enhance efficiency, and drive data-informed decisions. Providers that invest in advanced technologies, partnerships, and education will be well-positioned to unlock growth by 2025. With a focus on affordability and adaptability, the next phase of telematics in Africa promises to be transformative.