According to ABI Research, commercial telematics subscriptions in the Middle East and Africa (MEA) region is expected to grow from 1.82 million in 2015 to 4 million in 2020, at a CAGR of 17%.
“With interest of fleet management suppliers in BRIC countries waning due to regulatory, cultural, or economic challenges, the Middle East and Africa is coming into focus as an alternative region for expansion. With economic growth fueled by human and natural resources in Africa and the oil and gas industry in the Middle East, opportunities exist to offer fleet management and asset tracking technologies in an increasing number of segments including people and goods transportation, construction, mining, and utilities,” commented Practice Director Dominique Bonte.
MiX Telematics (South Africa), Mobiliz (Turkey), and Arvento (Turkey) “already aggressively target the MEA market with premium solutions from their established bases,“ wrote ABI Research.
The company sees opportunities but also challenges for global providers. “To be successful, companies need to develop deep relationships by establishing a local presence through acquisitions, partnerships or joint ventures with local players. Examples include TomTom Telematics’ partnership with Tracker and Pointer Telocation’s acquisition of Global Telematics.“