Water Meters, Manhole Tamper, Assets In Transit, And ... · Amanzi Meters Protea Meters Precision...
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Water Meters, Manhole Tamper, Assets In Transit, And Driver Behaviour
Presented to SqwidNET 31 August 2018
2
Table of Contents
MANHOLES 5
WATER METERS 12
FLEET 19
APPENDIX 39
GOODS IN TRANSIT 22
DRIVER BEHAVIOUR 30
EXECUTIVE SUMMARY 3
3
• The number of manholes deployed
has grown by 1.9% over the period
2016 – 2018. To date there are over
2 million sewer and stormwater
manholes across South Africa's
eight major metropolitan
municipalities and over 320
thousand network provider
manholes, accounting 35% and
59% of their respective totals.
Several municipalities and network
providers don‟t have a full view of the
number of manholes they have.
• There is a rising prevalence of cast
iron manhole cover theft.
Municipalities do not have digital or
smart platforms to monitor their
assets.
• Manhole cover providers are
exploring innovative solutions to
minimize the risk of theft of covers.
Manhole Covers
Executive Summary
• The number of meters deployed has
grown by 1.6% over the period 2016
– 2018. To date there are over 3.5
million water meters across South
Africa's eight major metropolitan
municipalities, accounting for 40%
of the country’s total.
• Utilities and municipalities are
exploring using IoT in smart metering
to measure and control household
water consumption. However this
has been subdued due to cost
implications especially in smaller
municipalities.
• Sub-metering will drive new meter
deployments within municipalities.
This presents a greater opportunity
for smart water solutions with large
housing complexes and enterprises
than with municipalities.
Water Meters
• Commercial fleets are mainly owned
by businesses to carry out their
operations, with the remainder of
fleet owned by rental companies.
• CV telematics is on the rise, and
expected to reach 1.9 million units
by 2021.
• Telematics systems allow fleet
owners to operate more efficiently,
and reduce cost of operations. Fuel,
driver wages, maintenance, and
tires, together hold about 62% of the
total cost of operation; a „Connected
Truck‟ plays a huge role in
significantly optimizing these factors.
• Future joint ventures/partnerships
are expected between vehicle OEMs
and aftermarket vendors, becoming
preferred fleet management partners.
Fleet
4
Introduction
Project objectives
The objectives of the project were to determine the market size for manholes and water meters in eight of South Africa‟s metropolitan
municipalities. The manhole numbers were to include those of telecommunication service providers in these municipalities.
Additionally, the research endeavoured to understand the market dynamics for goods in transit and driver behaviour by delivery vehicles
(light, medium and heavy commercial). This research also included the number of vehicles per vehicle segment, overall volume estimate
and the number of average trips and the kilometres an average vehicle completes per annum.
The final component of the research was to identify and provide the market share of the key stakeholders within these focus sectors.
Project Approach
Data was collected through secondary information sources and primary interviews with the eight municipalities, telecommunication,
manhole, water meter, telematics and logistics services providers. The data collected was then cross validated to sense check for
accuracy. Over the six week period there were more than 70 primary interviews conducted.
Project Scope
For goods in transit and driver behaviour, the project scope looked at the dynamics within the whole of South Africa, whereas data
collected for manholes and water meters looked at the major metropolitan municipalities in South Africa, namely:
• Buffalo City Metropolitan
• City of Cape Town Metropolitan
• City of Johannesburg Metropolitan
• City of Tshwane Metropolitan
• Ekurhuleni Metropolitan
• eThekwini Metropolitan
• Mangaung Metropolitan
• Nelson Mandela Bay Metropolitan
MANHOLES
6
Manhole Cover Market Dynamics
Market Dynamics
Municipalities are facing budgetary constraints to monitor and replace stolen manhole covers,
leading to a growing number of human casualties.
Municipalities do not have digital or smart platforms to monitor their assets for
inventory, tamper detection and maintenance purposes and rely on physical count.
Manhole cover providers are exploring innovative solutions to minimize
the risk of theft of covers, including moving away from cast iron
manhole covers to polymer concrete covers.
There is a growing prevalence of cast iron manhole cover theft across both the large and small municipalities,
which are then sold on the black market for scrap metal.
Source: Frost & Sullivan
7
Number of Manholes
Municipality 2018 Percentage
Buffalo City 62 428 1.0%
City of Cape Town 386 806 6.3%
City of Johannesburg 502 445 8.2%
City of Tshwane 282 001 4.6%
Ekurhuleni 316 258 5.1%
eThekwini 374 532 6.1%
Mangaung 69 947 1.1%
Nelson Mandela Bay 174 534 2.8%
Other Municipalities 3 982 186 64.7%
Total 6 151 137 100.0%
Number of Manhole Covers by Municipality, South Africa,
2018 • The number of manholes deployed has grown by
1.9% over the period 2016 – 2018.
• A lot of the spend on manholes comes from
growth in the population sizes and replacement of
stolen and vandalized covers.
Manhole Covers, South Africa, 2016-2018
Source: Frost & Sullivan
5.9
6.0
6.2
5.7
5.8
5.9
6.0
6.1
6.2
2016 2017 2018
Nu
mb
er
of
Ma
nh
ole
C
ove
rs (
Mil
lio
n)
Year
8
Manholes by Type
Sewer The rising population particularly
in the metros is driving investment
in sewer pipes and manhole
covers.
01
Stormwater Stormwater manholes have been
a major priority especially for the
larger coastal cities who face
floods.
02
Telecoms Larger cities (CoJ, CoCT) have
more telecoms infrastructure and
manholes due to wider metro and
operator fibre networks.
03
Sewer (49.5%)
Maintenance of manholes is making up a growing portion of water and sanitation budgets within municipalities.
Telecoms (8.9%)
The eight metros combined have more telecoms manhole than the rest of South Africa.
Stormwater (41.6%)
The major metros have faced heavy financial losses recently as a result of flooding.
6.2
Million
Manhole
Covers
Source: Frost & Sullivan
9
Competitive Landscape
19%
17%
17%
15% 8%
7%
17%
Manholes 4 Africa
Aveng
Maverick Trading
Saint Gobain
National ManholeCovers
Manhole Covers
Other *
*Others include Rocla, Fiberite, S Systems, GCT Fabricators
• South Africa‟s manhole cover market is fairly
competitive, with the smaller providers having a
regional focus, whereas larger providers operate
nationally.
• Some of the larger providers such as Aveng and
Saint Gobain have a primary focus in other areas of
industry, mainly in construction.
• The larger providers have national coverage, which
makes them an ideal partner for track and trace
solutions because of their large footprint and
access to large municipal clients in the Road &
works and water & Sanitation departments.
• Others such Manholes 4 Africa (a subsidiary of
Civilworks Group) and National Manhole Covers
have a strong presence across the country.
Manhole Cover Market Share, South Africa, 2018
Source: Frost & Sullivan
10
Network Operators Fibre Size (km) Long-Distance Fibre Metro + Last Mile Access
Telkom 157,000 X X
Liquid Telecom / Neotel 16,000 X X
Broadband Infraco 15,000 X
Dark Fibre Africa 13,000 X X
Vumatel 8,000 X
FibreCo 4,000 X X
NLD 3,600 X
Eskom 5,500 X
Manhole Covers: Key Clients
Metros Sewer Manhole Covers Stormwater Manhole
Covers Fibre Manhole Covers
City of Cape Town 201 000 116 719 69 087
City of Johannesburg 262 800 160 600 79 045
eThekwini 140 000 106 099 53 509
City of Tshwane 170 316 150 707 35 902
Buffalo City 28 800 25 600 8 028
Ekurhuleni 144 432 128 384 43 442
Mangaung 31 248 27 776 10 923
Nelson Mandela Bay 80 472 72 000 22 062
Source: Frost & Sullivan
11
Manhole Covers: Leading Service Providers
Service Provider Cast Iron Ductile Iron Concrete Polymer Composite
Manholes 4 Africa X
Rocla X X
Aveng X X
Maverick Trading X
Saint Gobain X X
National Manhole Covers X
Fibrite X
S Systems X X X
GCT Fabricators X
Incledon X
Primus and Wuzland X
Cape Concrete X
Fab Manufacturing X
Salberg X
United Manhole Covers X
Service Providers by Manhole Cover Product Types, South Africa, 2018
Source: Frost & Sullivan
WATER METERS
13
Water Meter Market Dynamics
Market Dynamics
Sub-metering, which entails installing individual meters in housing and office complexes with
multiple units, will drive new meter deployments. This presents a greater opportunity for smart
water solutions with large housing complexes and enterprises than with municipalities.
Municipalities are moving towards prepaid and Advanced Meter Reading (AMR) as
they look to minimize their non-revenue water. Advanced Meter Infrastructure (AMI)
solutions may lead to job cuts as they eliminate the need for meter readers.
IoT applications will increasingly run on LPWAN technologies including
NB-IoT, LoRa and Sigfox, driven by the need for increased speed,
longer range, and higher power efficiencies.
South African utilities and municipalities are exploring the use of IoT in smart metering to measure and control
household water consumption and detect large leaks and inefficiencies. However, the high cost of smart
meters is expected to subdue the uptake these solution particularly among the smaller municipalities.
Source: Frost & Sullivan
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Number of Meters
Municipality 2018 Percentage
Buffalo City 120 000 1.4%
City of Cape Town 650 000 7.6%
City of Johannesburg 866 389 10.1%
City of Tshwane 461 400 5.4%
Ekurhuleni 524 520 6.1%
eThekwini 510 000 5.9%
Mangaung 139 469 1.6%
Nelson Mandela Bay 226 413 2.6%
Other Municipalities 5 083 780 59.2%
Total 8 581 971 100.0%
Number of Waters by Municipality, South Africa, 2018 • The number of meters deployed has grown by
1.6% over the period 2016 – 2018.
• New meter deployments in the long-term is
expected to be driven by sub-metering.
8.3
8.4
8.6
8.0
8.2
8.4
8.6
8.8
2016 2017 2018
Nu
mb
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of
Ma
nh
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C
ove
rs (
Mil
lio
n)
Year
Source: Frost & Sullivan
Water Meters, South Africa, 2016-2018
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Water Meters by Type
Residential Municipalities are looking to adopt
smart meter solutions in order to
minimize non-revenue water.
01
Commercial As with the residential segment,
the spend on new meters will come
from private property owners due
to sub-metering.
02
Industrial and Bulk Industrial buildings are investing
in smart water solutions to
monitor and manage their water
consumption.
03
Residential 94.9% A lot of the residential meters are owned and maintained by the municipalities.
Industrial 0.7%
Industrial users are the largest per capita
users of water.
Commercial 4.4%
Commercial properties represent a growing
opportunity for smart water solutions.
8.6
Million
Meters
Source: Frost & Sullivan
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Competitive Landscape
19%
14%
10%
10%
9% 9%
12%
17%
Elster Kent
Utility Systems
Lesira-Teq
Amanzi Meters
Protea Meters
Precision Meters
Sensus
Other
• Elster Kent is considered one of the leading
providers of water meters in the South African
market, with a share of 19%.
• This is followed by Utility Systems (14%) and
Sensus (12%) that have a strong presence in
eThekwini and City of Cape Town
municipalities.
• Though relatively smaller by market share,
Lesira-Teq is one of the few providers in the
market with Sigfox-compliant water meters
and focusing largely on smart water solutions
along with Kamstrup.
• While smart meter solutions are becoming a
growing trend globally, it is estimated that AMI
meters account for less than 5% of the total
deployed by municipalities. The municipalities
are increasingly deploying prepaid water
meters.
Water Meter Market Share, South Africa, 2018
*Others includes Aqua-loc, Kamstrup, Meter IT, Ontec
Source: Frost & Sullivan
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Water Meters: Key Clients
Metros Smart Meter Plans Sub-Metering Mandated Prepaid Meters
City of Cape Town
City of Johannesburg x
eThekwini x City of Tshwane x x
Buffalo City – x
Ekurhuleni – x Mangaung x x
Nelson Mandela Bay –
Already Implemented
– Under consideration / Pilot
x Not Disclosed
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Water Meters: Leading Service Providers
Service Provider Water Meter type
AMR AMI Pre-paid
Elster Kent Smart Meter X X
Kamstrup (*) X
Utility Systems X X X
Lesira-Teq X X
Amanzi Meters X
Protea Meters X X
Precision Meters N/A N/A N/A
Sensus X X
Aqua-loc X
MeterIT X X X
Meter Man X X X
* Focuses mainly on AMI meters that is also compatible with drive-by AMR readings
FLEET
20
Market Definitions and Segmentations
Vehicle
Classification Definition
Gross Vehicle
Mass Rating
(GVMR)
Light Commercial
Vehicle
LCVs represent vans and light trucks. The typical applications include
pickup and delivery, utilities, airport operations, facilities management,
and several other vocational applications.
<= 3500 kg
Medium
Commercial Vehicle
MCVs represent all types of mid-size trucks and vans. Their typical
applications include home delivery, logistics, parcel delivery, utilities,
waste and recycle collection, airport operations, and small and medium
school and transit buses.
Between 3501
kg and 8500 kg
Heavy Commercial
Vehicle
This classification constitutes all types of large trucks. Their typical
applications include line haul freight trucks, refuse trucks, mining and
construction trucks, and other types of vocations that demand high
GVMR trucks.
Between 8501 kg
and 16500 kg and
GVMR >16500 kg
Source: Frost & Sullivan
Rental Fleet Fleet owned by various rental companies, these are hired and utilised by businesses to perform
their daily operations. Rental contracts may last for one day to as long as 3 years.
Commercial Fleet Fleet that are owned by businesses to carry out their operations.
21
85%
15%
Commercial
Rental
70%
30%
Commercial
Rental
70%
30%
Commercial
Rental
97%
3%
Commercial
Rental
Fleet Segmentations
LCV MCV HCV Bus
Source: Frost & Sullivan
• South Africa‟s fleet can be divided into commercial and rental. The contribution of rental fleet to LCVs accounts for only 3% of total
fleet. Within this segment of vehicles, individuals often opt to own these vehicles as they may be used for both personal and
business purposes.
• 30% of MCV and HCV fleet are owned by rental companies, and are hired and used by business for the distribution of goods. Rental
companies often specialise in certain vehicles depending on the various needs of customers within their geographic location. The
remaining 70% of MCV and HCV commercial fleet vehicles are owned by businesses.
• There are currently 63,000 busses in South Africa. Approximately 30,000 of these are used for public transport. The remainder of
these busses make up South Africa‟s commercial bus fleet. Busses are both owned by bus companies, such as Greyhound and
Intercape, and bus hiring companies
GOODS IN TRANSIT
23
Goods In Transit: Sector Segmentation
Volume Contribution of Transportable Goods Value Contribution of Transportable Goods
• South Africa‟s land transportable GDP consists of Agriculture, Manufacturing, and Mining.
• Manufacturing dominates both the volume and value contributions of South Africa‟s transportable goods. This is
followed by Agriculture. The mining sector remains a significant contributor to South Africa‟s economy, but only 20%
of this contribution is transported by road.
21%
51%
28% Agriculture
Manufacturing
Mining
13%
77%
10%
Agriculture
Manufacturing
Mining
Source: Frost & Sullivan
24
Goods In Transit: Sector Segmentation
LCV MCV HCV
209 mt of Manufacturing goods distributed across
41.8mt 94.05mt 73.15mt
115 mt of Mining good distributed across
115mt
87 mt of Agricultural goods distributed across
17.4mt 69.6mt
• The transportable GDP contributions are made up of Agriculture, Mining, and Manufacturing, and are transported
across LCV, MCV, HCV vehicles.
• Agriculture utilises both MCV and HCV for distribution, whereas mining goods are only transported by HCV.
• Manufacturing, which is a broad industry, utilises a variety of vehicle types for the distribution of goods.
Source: Frost & Sullivan
25
Agriculture Manufacturing Mining
Grindrod X X X
Cargo Carriers X X X
Shipping & General Transport X X X
FBN Transport X X X
Unitrans X X X
Transnet X X X
Fairfield Longhaul X
Imperial Logistics X
Bras Trucking X
Bigfoot Express Freight X
Wardens Cartage X X
MacDonald's Transport Group X X
Indigo Logistics X
Transitex X X
Reinhardt Transport Group X
Maxillaria Logistics X
NM Freight Logistics X
Imvusa Transport X
Transcor X
Consolidated Trucking + Logistics X X
The Interlogix Group X X
SG Coal X
Goods in Transit: Industry Players
Source: Frost & Sullivan
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0
500
1000
1500
2000
2500
0
20
40
60
80
100
2016 2017 2018 2019 2020 2021 2022
Reven
ue
pe
r u
ser
(ZA
R)
Reven
ue
(Z
AR
Bil
lio
n)
Revenue Average Revenue Per User
Goods In Transit: Last Mile Delivery
e-Commerce Revenue
2018: ZAR 47 Billion
Number of e-Commerce
Users: 30 million
DHL Fastway
RAM Aramex
Interlogix Bex Express
City Couriers Courier Guy
CitiSprint Courierit
Time Freight Globeflight
Skynet Fastvan
FedEx OneLogix
TNT Express Pargo
XINT DSV Group
UPS Courier Freight
Group (CFG)
Mr. D Courier Sendr
Picup Wumdrop
Industry Players
South African e-Commerce Industry, 2016-2022
Last-mile delivery is the movement of goods to end users, typically to a personal or
business address. These goods are typically moved from distribution/consolidation
centres.
Courier, Express and Parcel (CEP) are non-palletized products and shipments
weighing less than 32kg.
E-Commerce revenue is expected to grow at an annual growth rate of 13.2%, and reach
ZAR 78 billion by 2022.
Source: Frost & Sullivan Note: Exchange rate: 1 USD= 14.68 ZAR
27
Goods In Transit: Last Mile Delivery
• The distance travelled by a delivery vehicle depends on a
number of factors:
• The drop factor, which is the number of packages
delivered per drop.
• Package size.
• Vehicle used.
• On average, a delivery van delivers 50 parcels per trip.
• Motorcycles are also utilised by last mile delivery services,
such as Mr D, where the number of packages delivered per
trip would be significantly less, but trips would be made more
frequently.
• The last mile delivery space has been disrupted with
innovations such as drone delivery, and the “Uber” business
model where non-professional couriers are utilised to deliver
goods. These innovations are yet to disrupt the South African
market.
Average packages delivered per trip: 50
Average trips per day: 2
Average radius travelled per delivery
vehicle : 5-10km
It is estimated that 110 million packages are
delivered across South Africa per year. Last mile
delivery of packages is able to reach consumers via
trucks, cars and motorcycles.
Source: Frost & Sullivan
28
Goods In Transit: Temperature Controlled Logistics
Dairy products
Such as milk,
Cream, butter,
Cheese,
Yoghurt and
Dairy beverages
0 to 7°C
Pharmaceuticals
Such as
Vaccines, Insulin's,
Cryoproducts
And thermolabine
products
0 °C to 8 °C
Frozen food
such as poultry,
Seafood, frozen
meals , frozen
fruit, veg and
ice cream
-18 to -28 °C
Processed food
such as fruit,
vegetables,
chocolate and
baked goods
-1 °C to 16°C
• The cold chain involves handling and management of sensitive products such as blood, biomedical
items, laboratory samples, vaccines, temperature-controlled drugs, meat fruits, vegetables, and
other perishable items.
• These critical items need to be continuously preserved in controlled and specific temperatures, else
they will be damaged.
• Complete traceability and visibility on all goods transported is crucial, specifically when items are
recalled. Goods should ideally be tracked from production or harvest up until consumption.
TCL requirements
for different end
user segments
Source: Frost & Sullivan
29
• Imperial Logistics Fast „n Fresh is the leading provider of temperature controlled
transport and services in south Africa.
– The Fast „n Fresh arm of the company operate from depots across Cape
Town, Gauteng and Limpopo. It also operates from client sites across South
Africa.
– Key clients include McCain, Woolworths and Tiger Brands
• Aspen Logistics specialises in the Fast Moving Consumer Goods (FMCG)
industry, by provided temperature controlled transport.
– Their clients include a variety of Blue Chip companies which supply to major
retailers.
• Fairfield Longhaul specialises in refrigerated transport for the movement of
goods such as perishables, fish, meat and dairy.
– FairField Longhaul operate across South Africa
Imperial
Logistics: Fast ‘n
Fresh
DB Schenker
Aspen Logistics
(Barloworld) CCS Logistics
Laser Logistics
Bidvest
Panalpina
Logistics
LMC Express Röhlig-Grindrod
Sequence
Logistics DHL
Supergroup:
Digistics
Crystal Cool
Logistix
Express FZ
Logistics DSC
HFR Fairfield
Longhaul
Industry Players
Goods In Transit: Temperature Controlled Logistics
Source: Frost & Sullivan
DRIVER BEHAVIOUR
31
Distance Travelled Per Fleet Segment
20,000km 30,000km 40,000km 50,000km 60,000km
HCV
Bus
MCV
LCV
• The average annual distance travelled by commercial
vehicles differs by vehicle segmentation.
• On average, HCVs travel twice the average distance
of MCVs, and three times as much as LCVs.
Average Annual Distance Travelled By Fleet Segment
Per Trip (km) Number of Trips Per Year
LCV 90 278
HCV 150 267
MCV 260 231
Source: Frost & Sullivan
32
Commercial Vehicle Telematics: Market Dynamics
Market Dynamics
There are no mandatory regulations/government compliances in place within the CV industry.
Telematics deployment, mandated by the state, can act as a driver for the telematics industry. As
a result, the SA telematics market is largely influenced by precautionary rather than regulatory
factors.
Services covering features for anti-theft, driver behaviour, and productivity are
dominating and are the most preferred services among fleets in South Africa.
Approximately 1.3 million telematics units are installed in vehicles
across South Africa to date.
South Africa is expected to experience 13% growth within the truck telematics market, and is considered
developed in terms of telematics penetration. A major shift in the South African fleet industry is expected, with
more fleet companies looking to utilize fleet management solutions to focus on total cost of ownership and the
economics of fleet expenditures.
Source: Frost & Sullivan
33
• The South African telematics industry is dominated by low-
end and basic fleet management solutions such as tracking,
recovery, and location based services.
• There are only a few foreign telematics providers in South
Africa, which include TomTom Telematics (supplying through
Tracker) and Geotab.
• Telematics for vehicle OEMs are fairly new and recently
established in the market. OEMs include MAN Truck &
Busses, Volvo Group, and Scania.
• Future joint ventures/partnerships are expected between
vehicle OEMs and aftermarket vendors, becoming preferred
fleet management partners.
• The telematics installed base, currently estimated to be 1.3
million units, is expected to reach 1.9 million units by 2021.
• The penetration of telematics in the LCV segment (17.6%) is
low compared to the MCV/HCV (52.9%), but contributes more
than 45% to the total installed base.
• Key End-User Groups include FMCG industry, transport and
logistics, cold chain, material handling, emergency,
rental/leasing, manufacturing, government, fleet insurance,
and risk management.
Competitive Landscape
18%
17%
13% 12%
11%
29%
South African Telematics Market
CarTrack
MiX Telematics
Ctrack
Altech Netstar
Tracker
*Other
*Other industry players include Pointer Telematics, Geotab, TomTom
Telematics, Digit Vehicle Tracking (Digicell), GPS Tracking Solutions ,
SmartSurv Wireless, Autotrak, Autowatch Telematics (PFK
Electronics)
Note: A share of Tracker systems is represented by solutions powered by TomTom Telematics.
34
Commercial Vehicle Telematics
Fleet Tracking
People Tracking
Asset Tracking
Route Planning
Driver Monitoring
Remote Access
• 10-15% Increase in Productivity
• 10-15% Overtime Reduction
• 20-25% Reduction in Fuel Expenses
• 5-10% Reduction in Total Miles
• 20-30 min Day/Driver Labour Savings
• 15-20% Increase in Vehicle Utilisation
• 20-30% Reduction in Vehicle Idle Time
Fuel, driver wages, maintenance, and tires, together hold about 62% of the total cost of fleet operation; a „Connected
Truck‟ plays a huge role in significantly optimizing these factors.
22 30 26 5 1 6 10
0 20 40 60 80 100
Percentage Contribution (%)
Cost of Fleet Operation Other (Tax, Interest)
Driver Wages
Fuel
Maintenance
Tires
Insurance
Depreciation
Benefits After Deployment of Fleet
Management Systems
Source: Frost & Sullivan
35
Telematics and Insurance
Usage Based Insurance
Insurance brokers are increasingly making use of telematics for usage based
insurance. Telematics data is used to determine an individual‟s premium for vehicle
insurance. Each vehicle is fitted with a Black Box used to record data such as distance
travelled, speed, time of travel, and date of travel. Information recorded is then
relayed to the driver through a mobile application.
South Africa's vehicle's in operation: 12 million
Approximately 60-70% of these vehicles are uninsured
Many motorists who have vehicle insurance often opt for the lowest premiums, without
understanding the disadvantages and benefits of the policy they are investing in.
MTN and Huawei, in partnership, have brought usage based insurance to the South
African market. It makes use of on-board devices, which connect to a mobile app,
which provides analyses of the drivers behaviour. Given the significant number of
uninsured vehicles, a large market opportunity exists. Partnerships will be key in
opening up these opportunities.
Asset-Based Cover
Person-Based Cover
Usage-Based Cover
Source: Frost & Sullivan
Evolution of Insurance Coverage
36
LCV MCV/HCV Bus
2017: 2,345
2016: 2,347
2017: 297
2016: 280
2017: 217
2016: 245
Driver Behaviour: Incidents Per Vehicle Segment
Total Fatal Crashes per Vehicle Segment
0 50 100
Human Factors
Vehicle Factors
Road & EnvironmentalFactors
Contribution (%) 2017 2016
Contributing Factors in Fatal Crashes
Fleet drivers are at a higher accident risk
than most drivers, as they spend a
significant portion of their day on the road. It
is the responsibility of fleet owners to ensure
that their drivers are safe at all times. LCV
fatal crashes are significantly higher than
those of MCV/HCV. This is followed by
minibus taxis, which experience an average
of 1,000 fatal crashes each year.
Accidents are a significant cost for fleet owners, and result in
down time and delays. South Africa‟s fatal crashes can mainly be
attributed to human factors. This reinforces the importance and
benefits of driver behaviour monitoring in commercial fleets, as it
can improve safety, and reduce unforeseen costs.
Source: Frost & Sullivan
37
Telematics and Logistics Trends - 2018
• Big Data Utilization
• The use of big data and Advanced Analytics is used to enable efficiency gains. Big Data will shift from descriptive
analytics to predictive analytics using advanced analytics algorithms. These will be beneficial to businesses as it
will reduce costs, improve fleet management, reduce risk and improve system integration.
• Driver Behaviour Monitoring
• A shift away from pure vehicle monitoring to driver behaviour monitoring will occur. This will increase efficiency by
reducing collisions and speeding. This will allow drivers to safely perform their daily operations, and in turn reduce
down time.
• Increased demand for faster turnaround times
• Customers are increasingly wanting same-hour or same-day delivery.
• Companies will have to improve last-mile delivery to keep up to customer satisfaction.
• Localisation of warehousing will occur as companies can no longer rely on 2-3 large depots to meet consumer
demands.
• Companies have changed to outsourcing last mile deliveries to favour customer satisfaction and reduce risk.
Source: Frost & Sullivan
38
Telematics and Logistics Trends - 2018
• IoT Connectivity
• In 2018, it is expected that more things will be fitted with sensor technology such as RFID, to easily monitor and
control assets. This will increase the availability of real-time data. With the rise of connectivity, logistics safety and
cyber security will be paramount.
• Mobile applications increase the accessibility of telematics data in real time.
• Automation and Robotics
• The presence of robotics will be an increasing trend in 2018 and beyond. Cobots (Collaborative robots) can work
with people and are involved in packaging, picking, shipping, delivery.
• At the end of 2018, it is estimated that 30% of new robots will be 3 times faster than those deployed 2 years ago.
And up to 45% of mainstream global e-commerce and omnichannel companies, will be using robotics for order
fulfilment warehousing and delivery.
• Autonomous trucks are being used by companies such as Uber for long haul deliveries.
• Blockchain
• Blockchain technology will impact key functions within logistics. The platform is able to verify digital transactions,
eliminating the uncertainty within the industry. It is expected to become the next operating system by keeping a
record of all logistics transactions. Routes, movement of goods, insights into drivers, will all be recorded.
Source: Frost & Sullivan
APPENDIX – MUNICIPALITIES
40
Buffalo City Municipality Overview
• Buffalo City Municipality (BCM) is one of the smaller municipalities out of the eight in the report, in terms of
population and economic activity but along with Mangaung municipality is a closer approximation of the rest of
the country.
• This municipality faces budgetary constraints to fund and monitor its critical infrastructure.
Metrics Measure
Geographic Size (sq km) 869 333
Population 2 750
Number of Households 272 518
Source: Frost & Sullivan
41
Buffalo City Municipality – Water Meters
119.0
119.5
120.0
120.5
2016 2017 2018
No
. o
f M
ete
rs (
00
0)
Year
Water Meters Deployed, 2016 – 2018, Buffalo City, CAGR = 2.3%
119.5
119.7 120.0
• There are currently 120,000 meters in the BCM,
growing at 2.3% per year.
• The municipality still relies on physical water meter
readings.
Meter Split by User
Residential : 95.1%
Commercial : 4.3%
Industrial & Bulk: 0.6%
Key Providers Honeywell / Elster Kent
Market Highlights
The BCM has struggled with accurate
water bills leading to some discontent
with the public and has experienced a
10% drop in annual water sales.
Implications for
SqwidNET
There may be an opportunity to offer
smart solutions for remote water meter
readings to provide more accurate billing.
Source: Frost & Sullivan
42
Buffalo City Municipality – Manhole Covers
250
260
270
280
2016 2017 2018No
. o
f M
an
ho
les
(00
0)
Year
Total Base of Manhole Covers, 2016 – 2018, Buffalo City, CAGR = 1.7%
264
268
273
• Buffalo City currently has 272,816 manhole covers,
which grew at 1.7%.
• The municipality is facing a financial challenge in
monitoring its manhole covers and its ability to replace
those stolen.
Manholes Split by
Type
Sewer : 46.1%
Stormwater : 41.0%
Telecoms : 12.9%
Key Providers
National Manhole Covers
Fab Manufacturing
Cementile
Market Highlights Buffalo City continues to experience the
theft of their manhole covers.
Implications for
SqwidNET
Despite the opportunity to offer track and
trace solutions for manhole covers, the
municipality‟s budgetary constraints may
limit the potential of deploying such
solutions.
Source: Frost & Sullivan
43
City of Cape Town Municipality Overview
• The CoT‟s recent struggles with water access has placed pressure on it to improve water management, and is
one of few municipalities to mandate sub-metering.
• As one of the two most developed municipalities, the CoCT also has made extensive investment in utility
infrastructure to meet the growing demand for its large population.
Metrics Measure
Geographic Size (sq km) 2 446
Population 4 232 276
Number of Households 1 360 860
Source: Frost & Sullivan
44
City of Cape Town Municipality – Water Meters
610
620
630
640
650
660
2016 2017 2018
No
. o
f M
ete
rs (
00
0)
Year
Water Meters Deployed, 2016 – 2018, Cape Town, CAGR = 2.1%
623
637
650
• In 2018, there were 650,000 municipal water meters in
the CoCT.
• The municipality is exploring smart solutions in
response to water shortages and the high and rising
number of inaccurate water bills.
Meter Split by User
Residential : 94.3%
Commercial : 4.7%
Industrial & Bulk: 1.0%
Key Providers
• Honeywell / Elster Kent
• Utility Meters
• Sensus (Industry & Bulk)
• Protea Meters
Market Highlights
The CoCT has been installing smart
water meters (mainly Honeywell) to help
households manage their consumption.
Implications for
SqwidNET
There may be scope to partner with
providers such as Honeywell and Elster
for municipal meters in the residential
segment and Kamstrup for gated
communities.
Source: Frost & Sullivan
45
City of Cape Town Municipality – Manhole Covers
144
146
148
150
152
154
2016 2017 2018No
. o
f M
an
ho
les
(00
0)
Year
Total Base of Manhole Covers, 2016 – 2018, City of Cape Town, CAGR = 2.8%
301
305 318
• The number of manholes has grown by 2.8% since
2016, reaching 317,719 in 2018, most of which were
sewer covers.
• The CoCT is also deploying a number of non-metal
manhole covers to minimize theft.
Manholes Split by
Type
Sewer : 52.0%
Stormwater : 30.2%
Telecoms : 17.8%
Key Providers
• Saint Gobain Pam
• National Manhole Covers
• Cape Concrete
• Maverick Trading
Market Highlights
The theft of water meters, manholes and
fire hydrants has cost the CoCT R40
million over the past two years.
Implications for
SqwidNET
There is scope to offer track and trace
solutions for both the municipality and
telecoms operators who have an
extensive fibre network.
Source: Frost & Sullivan
46
City of Johannesburg Municipality Overview
• Despite its small size, the municipality has the largest by population, development and economic activity
requiring extensive investment in infrastructure.
• The municipality has a range of challenges related to the damage, vandalism, tampering and theft of its utility
infrastructure.
Metrics Measure
Geographic Size (sq km) 1 645
Population 5 250 762
Number of Households 1 996 488
Source: Frost & Sullivan
47
City of Johannesburg Municipality – Water Meters
0.9
0.9
0.9
0.9
0.9
2016 2017 2018
No
. o
f M
ete
rs (
00
0)
Year
Water Meters Deployed, 2016 – 2018, City of Johannesburg, CAGR = 0.6%
856
861
866
• The CoJ currently has 866,389 water meters across
residential, commercial and industrial segments.
• There is a shift towards prepaid meters in order to
minimize non-revenue.
Meter Split by User
Residential : 93.4%
Commercial : 5.2%
Industrial & Bulk: 1.4%
Key Providers
Elster Kent
Sensus
Precision Meters
Lesira Teq
Market Highlights
AMI meter solutions are expected to
minimize the need for meter readers
resulting in retrenchments which the
municipality is looking to avoid.
Implications for
SqwidNET
The need for smart water solutions is
more prevalent in gated communities,
office parks and industrial properties. It
will require SqwidNET to partner with
some of the leading providers to grow its
presence in the market.
Source: Frost & Sullivan
48
City of Johannesburg Municipality – Manhole Covers
144
146
148
150
152
154
2016 2017 2018No
. o
f M
an
ho
les
(00
0)
Year
Total Base of Manholes, 2016 – 2018, City of Johannesburg, CAGR = 3.0%
399 411
423
• There was an estimated 420 manhole covers in the
CoJ, a majority of which were sewer.
• Like the CoCT, the CoJ is has been deploying non-
metal manhole covers in response to the high and
rising theft of covers in the city.
Manholes Split by
Type
Sewer : 52.3%
Stormwater : 32.0%
Telecoms : 15.7%
Key Providers
United Manhole Covers
Aveng Manufacturing
GCT Fabricators
Market Highlights
The city does not have a good record of
the number of its manholes relying on a
physical count and estimate. It also does
not have sight on damaged or tampered
manholes, relying on the public to report
faults.
Implications for
SqwidNET
The level of sewer and stormwater
infrastructure is an opportunity to offer
smart solutions to reduce theft and
improve maintenance.
Source: Frost & Sullivan
49
City of Tshwane Municipality Overview
• City of Tshwane is the second largest municipality in Gauteng by population and economic activity and
represents a growing opportunity for housing and infrastructure investment.
• In line with its drive to become a smart city, the municipality has looked to deploy smart meter solutions for its
water and electricity services.
Metrics Measure
Geographic Size (sq km) 6 298
Population 3 440 954
Number of Households 1 207 352
Source: Frost & Sullivan
50
City of Tshwane Municipality – Water Meters
448
452
456
460
464
2016 2017 2018
No
. o
f M
ete
rs (
00
0)
Year
Water Meters Deployed, 2016 – 2018, City of Tshwane, CAGR = 0.9%
453
457
461
• The number of meters in the municipality grew by
0.9% over 2016-2019.
• The City of Tshwane has been struggling with
accurate meter readings culminating in intense public
discontent.
Meter Split by User
Residential : 95.0%
Commercial : 4.1%
Industrial & Bulk: 0.9%
Key Providers
Elster Kent
Lesira-Teq
WaterWatch
Market Highlights
The municipality has been moving
towards prepaid meters for both
electricity and water to improve bill
accuracy.
Implications for
SqwidNET
Due to their relatively high cost, the shift
towards smart meters is expected to
fairly gradual. A larger potential
opportunity may lie in the gated
communities and business parks.
Source: Frost & Sullivan
51
City of Tshwane Municipality – Manhole Covers
228
232
236
240
244
248
2016 2017 2018No
. o
f M
an
ho
les
(00
0)
Year
Total Base of Manhole Covers, 2016 – 2018, City of Tshwane, CAGR = 2.5%
234 240
246
• There are currently 246,099 manhole covers in the
municipality growing by 2.5% over the period 2016-
2018.
• The municipality continues to experience theft and
tampering of lamp poles, manholes and cables.
Manholes Split by
Type
Sewer : 49.7%
Stormwater : 37.6%
Telecoms : 12.7%
Key Providers
Fiberite
Salberg Concrete Products Pty Ltd
Wuzland Manhole Covers
Aveng Manufacturing Infraset
Market Highlights
A majority of the providers are moving
away from cast iron covers in order to
minimize the risk of theft.
Implications for
SqwidNET
The city continues to experience high
incidence of theft and tamper to
manholes and other infrastructure but
does not have the manpower resources
to monitor them. A smart solution could
help combat the theft.
Source: Frost & Sullivan
52
Ekurhuleni Municipality Overview
• Relative to its larger counterparts in the Gauteng Province, the City of Ekurhuleni has struggled with upgrading
its utility infrastructure to meet the needs of its large and growing population due to limited funding.
• As part of its 2025 development strategy, the municipality is exploring smart city solutions.
Metrics Measure
Geographic Size (sq km) 1 975
Population 3 492 908
Number of Households 1 255 980
Source: Frost & Sullivan
53
Ekurhuleni Municipality – Water Meters
488
496
504
512
520
528
2016 2017 2018
No
. o
f M
ete
rs (
00
0)
Year
Water Meters Deployed, 2016 – 2018, Ekurhuleni, CAGR = 2.0%
505
514
525
• With its large population, the municipality had 525,000
meters growing at 2.0% per year.
• Despite upgrading its water billing system, the
municipality has been struggling with non-revenue
water.
Meter Split by User
Residential : 95.6%
Commercial : 3.9%
Industrial & Bulk: 0.5%
Key Providers Elster Kent
Lesira Teq
Market Highlights
The municipality has embarked on a
project to replace ageing meters which it
expects will improve billing accuracy and
minimize losses.
Implications for
SqwidNET
The municipality represents a big
opportunity for water meters, however
budgetary constraints may limit the
potential for smart meter solutions with
respect to municipality meters.
Source: Frost & Sullivan
54
Ekurhuleni Municipality – Manhole Covers
250
260
270
280
2016 2017 2018No
. o
f M
an
ho
les
(00
0)
Year
Total Base of Manhole Covers, 2016 – 2018, Ekurhuleni , CAGR = 1.7%
264
268
273
• There were 272,016 manhole covers in the
municipality in 2018, growing at 1.7% per year.
• The municipality has been moving towards plastic
manhole covers in response to the theft of cast iron.
Manholes Split by
Type
Sewer : 45.7%
Stormwater : 40.6%
Telecoms : 13.7%
Key Providers
GCT Fabricators
Aveng Manufacturing Infraset
Wuzland Manhole Covers
Market Highlights
A track and trace solution can aid the
municipality to crack down on nefarious
metal scrap yard owners.
Implications for
SqwidNET
There may be scope to partner with GCT
Fabricators and Wuzland who have a
large presence in the Gauteng area.
Source: Frost & Sullivan
55
eThekwini Municipality Overview
• eThekwini municipality‟s ambitions to become a smart city has seen it invest in refurbishing and expanding the
city‟s infrastructure, including the waterfront and port.
• With the expected increased economic activity, there is strong emphasis on improving the city‟s utility
infrastructure in line with the expected increase in jobs and population size.
Metrics Measure
Geographic Size (sq km) 2 556
Population 3 767 939
Number of Households 1 255 980
Source: Frost & Sullivan
56
eThekwini Municipality – Water Meters
480
488
496
504
512
2016 2017 2018
No
. o
f M
ete
rs (
00
0)
Year
Water Meters Deployed, 2016 – 2018, eThekwini, CAGR = 0.2%
490
500
510
• The number of meters in eThekwini grew by 0.2%
during 2016-2018 to reach 510,000.
• The municipality is exploring opportunities to help
minimize water wasted through inefficient metering.
Meter Split by User
Residential : 94.5%
Commercial : 4.6%
Industrial & Bulk: 0.9%
Key Providers
Elster Kent (may be losing some of its
market share in the municipality)
Sensus
Utility Systems
Market Highlights
In line with its aspirations to become a
smart city, the municipality has been
trialling AMI solutions.
Implications for
SqwidNET
As with the other major metros there is
scope to partner with providers serving
gated communities and business parks,
but also the municipality is open smart
solutions.
Source: Frost & Sullivan
57
eThekwini Municipality – Manhole Covers
308
312
316
320
324
2016 2017 2018No
. o
f M
an
ho
les
(00
0)
Year
Total Base of Manhole Covers, 2016 – 2018, eThekwini, CAGR = 1.2%
313
317
321
• There were 321,023 manhole covers in the
municipality which has grown 1.2% over the period
2016-2018.
• The municipality has experienced a spate of
challenges due to the loss of manhole covers, with
1,000 covers damaged or stolen a year.
Manholes Split by
Type
Sewer : 45.5%
Stormwater : 40.2%
Telecoms : 14.3%
Key Providers
Aveng Manufacturing Infraset
KFC Engineering
Saint Gobain Pam
Manholes 4 Africa
Market Highlights
The municipality has struggled to monitor
the assets of the city such as manhole
covers, and is relying on residents to
report damage to the infrastructure.
Implications for
SqwidNET
SqwidNET should consider partnering
with a leading provider such as KFC
Engineering whose product portfolio is
mostly cast iron covers that are prone to
theft.
Source: Frost & Sullivan
58
Mangaung Municipality Overview
• Despite its relatively larger land mass, the Mangaung Municipality is one of the smaller ones among the
selected eight, in terms of population and economy size.
• As a result, investment in water, roads, sewerage and electricity infrastructure is also relatively smaller.
Metrics Measure
Geographic Size (sq km) 9 886
Population 793 644
Number of Households 287 552
Source: Frost & Sullivan
59
Mangaung Metropolitan Municipality – Water Meters
0
0.4
0.8
1.2
1.6
2016 2017 2018
No
. o
f M
ete
rs (
00
0)
Year
Water Meters Deployed, 2016 – 2018, Mangaung, CAGR = 5.3%
126 132
139
• There were 139,469 water meters in 2018 for
Mangaung, 95.0% of which were residential.
• Growth in the number of new meter connections
averages 5.3% over the three year period, 2016-2018.
Meter Split by User
Residential : 95.1%
Commercial : 4.3%
Industrial & Bulk: 0.6%
Key Providers
Elster Kent – Has been the dominant
provider of water meters in the
municipality, having won a majority of the
meter tends in the region over the last 20
years.
Market Highlights
There is a strong drive to switch most of
the residential to prepaid waters to
minimize waste.
Implications for
SqwidNET
Smart water solutions is a longer-term
opportunity as the municipality is mostly
prioritizing revenue protection from
curbing basic water waste.
Source: Frost & Sullivan
60
Mangaung Metropolitan Municipality – Manhole Covers
144
146
148
150
152
154
2016 2017 2018No
. o
f M
an
ho
les
(00
0)
Year
Total Base of Manholes, 2016 – 2018, Mangaung, CAGR = 0.4%
148
150
152
• There were over 150,000 manhole covers in the
municipality with a growth of 0.4% per year over the
period 2016-2018. Manholes Split by
Type
Sewer : 44.7%
Stormwater : 39.7%
Telecoms : 15.6%
Key Providers
National Manhole Covers
Astro Concrete
Incledon (Key Distributor)
Market Highlights
The municipality has spent over R550
million on upgrading of streets and
stormwater.
Implications for
SqwidNET
The municipality does not have a digital
solution to monitor the status of manhole
covers. The opportunity to offer track and
trace solutions could be curtailed by
budgetary constraints.
Source: Frost & Sullivan
61
Nelson Mandela Bay Municipality Overview
• The Nelson Mandela Bay (NMB) Municipality is currently towards its smart city initiative by investing in
infrastructure while also providing basic utilities to the townships.
• There is also growing pressure on the municipality‟s water resources which it is looking to protect.
Metrics Measure
Geographic Size (sq km) 1 957
Population 1 290 470
Number of Households 403 272
Source: Frost & Sullivan
62
Nelson Mandela Bay Municipality – Water Meters
200
208
216
224
232
2016 2017 2018
No
. o
f M
ete
rs (
00
0)
Year
Water Meters Deployed, 2016 – 2018, Nelson Mandela Bay, CAGR = 3.8%
210
218
226
• There were 226,413 water meters in the NMB growing
by 3.8% during 2016-2018.
• The municipality has mandated sub-metering which is
expected to largely affect the residential segment.
Meter Split by User
Residential : 95.3%
Commercial : 4.2%
Industrial & Bulk: 0.5%
Key Providers Elster Kent
Water Watch
Market Highlights
Over the period 2016-2020 property
developers are expected to install water
meters in all the individual units to enable
direct billing of their tenants.
Implications for
SqwidNET
There is an opportunity to partner with
key water meter providers in the NMB
with the view to providing smart solutions
to help the municipality effectively
monitor consumption.
Source: Frost & Sullivan
63
Nelson Mandela Bay Municipality – Manhole Covers
144
148
152
156
2016 2017 2018No
. o
f M
an
ho
les
(00
0)
Year
Total Base of Manhole Covers, 2016 – 2018, Nelson Mandela Bay , CAGR = 1.5%
148
150
152
• The number of manhole covers in NMB grew by 1.5%
during 2016-2018 to reach 152,472.
• The NMB is experiencing losses estimated at R21m a
year on its sewer system due to theft and vandalism.
Manholes Split by
Type
Sewer : 46.1%
Stormwater : 41.3%
Telecoms : 12.6%
Key Providers Saint Gobain Pam
Rocla
Market Highlights
The municipality does not have the
manpower and resources to effectively
monitor its 3900 km of sewer system,
having had to replace close to a 1000
covers in 2014 alone.
Implications for
SqwidNET
There is an opportunity to the main
providers such as Rocla to offer a smart
monitoring solution.
Source: Frost & Sullivan
64
List of Abbreviations
Acronym Definitions
AMI Advanced Meter Reading
AMR Advanced Meter Infrastructure
BCM Buffalo City Municipality
CAGR Compound Annual Growth Rate
CEP Courier, Express and Parcel
Cobots Collaborative Robots
CoCT City of Cape Town
CoJ City of Johannesburg
CoT City of Tshwane
FMCG Fast Moving Consumer Goods
GDP Gross Domestic Product
GMVR Gross Vehicle Mass Rating
HCV Heavy Commercial Vehicle
IoT Internet of Things
LCV Light Commercial Vehicle
LoRa Long Range
LPWAN Low-Power Wide-Area Network
MCV Medium Commercial Vehicle
NB-IoT Narrow Band- Internet of Things
NMB Nelson Mandela Bay
OEM Original Equipment Manufacturer
RFID Radio Frequency Identification
SVR Stolen Vehicle Recovery
65
Contacts
Siyathemba Magobiane
Senior Consultant
+27 (0)21 680 3564
+27 (0)83 722 8805
Craig Parker
Research Director
+27 (0)21 680 3292
+27 (0)72 878 0698
Zaheera Ahmed
Research Analyst: Mobility
+27 (0)21 680 3261
+27 (0)76 292 8248
Lehlohonolo Mokenela
Consultant
+27 (0)21 680 3567
+27 (0)72 365 4600