Water Meters, Manhole Tamper, Assets In Transit, And Driver Behaviour - Presented to SqwidNET 31 August 2018
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Water Meters, Manhole Tamper, Assets In Transit, And Driver Behaviour Presented to SqwidNET 31 August 2018
Table of Contents
EXECUTIVE SUMMARY 3
MANHOLES 5
WATER METERS 12
FLEET 19
GOODS IN TRANSIT 22
DRIVER BEHAVIOUR 30
APPENDIX 39
2Executive Summary
• The number of manholes deployed • The number of meters deployed has • Commercial fleets are mainly owned
has grown by 1.9% over the period grown by 1.6% over the period 2016 by businesses to carry out their
2016 – 2018. To date there are over – 2018. To date there are over 3.5 operations, with the remainder of
2 million sewer and stormwater million water meters across South fleet owned by rental companies.
manholes across South Africa's Africa's eight major metropolitan • CV telematics is on the rise, and
eight major metropolitan municipalities, accounting for 40% expected to reach 1.9 million units
municipalities and over 320 of the country’s total. by 2021.
thousand network provider • Utilities and municipalities are • Telematics systems allow fleet
manholes, accounting 35% and exploring using IoT in smart metering owners to operate more efficiently,
59% of their respective totals. to measure and control household and reduce cost of operations. Fuel,
Several municipalities and network water consumption. However this driver wages, maintenance, and
providers don‟t have a full view of the has been subdued due to cost tires, together hold about 62% of the
number of manholes they have. implications especially in smaller total cost of operation; a „Connected
• There is a rising prevalence of cast municipalities. Truck‟ plays a huge role in
iron manhole cover theft. • Sub-metering will drive new meter significantly optimizing these factors.
Municipalities do not have digital or deployments within municipalities. • Future joint ventures/partnerships
smart platforms to monitor their This presents a greater opportunity are expected between vehicle OEMs
assets. for smart water solutions with large and aftermarket vendors, becoming
• Manhole cover providers are housing complexes and enterprises preferred fleet management partners.
exploring innovative solutions to than with municipalities.
minimize the risk of theft of covers.
Manhole Covers Water Meters Fleet
3Introduction
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 • Ekurhuleni Metropolitan
• City of Cape Town Metropolitan • eThekwini Metropolitan
• City of Johannesburg Metropolitan • Mangaung Metropolitan
• City of Tshwane Metropolitan • Nelson Mandela Bay Metropolitan
4MANHOLES
Manhole Cover Market Dynamics
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.
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.
Market Dynamics Source: Frost & Sullivan
6Number of Manholes
Number of Manhole Covers by Municipality, South Africa,
• The number of manholes deployed has grown by 2018
1.9% over the period 2016 – 2018.
Municipality 2018 Percentage
• A lot of the spend on manholes comes from
growth in the population sizes and replacement of Buffalo City 62 428 1.0%
stolen and vandalized covers.
City of Cape Town 386 806 6.3%
Manhole Covers, South Africa, 2016-2018
City of Johannesburg 502 445 8.2%
6.2 6.2
City of Tshwane 282 001 4.6%
Number of Manhole
6.1
Covers (Million)
6.0 Ekurhuleni 316 258 5.1%
6.0
5.9 eThekwini 374 532 6.1%
5.9
Mangaung 69 947 1.1%
5.8
Nelson Mandela Bay 174 534 2.8%
5.7
2016 2017 2018 Other Municipalities 3 982 186 64.7%
Year Total 6 151 137 100.0%
Source: Frost & Sullivan
7Manholes by Type
Telecoms (8.9%) Sewer
The eight metros combined Sewer (49.5%) The rising population particularly
have more telecoms Maintenance of 01 in the metros is driving investment
in sewer pipes and manhole
manhole than the rest of manholes is making
South Africa. up a growing portion covers.
of water and
sanitation budgets
within municipalities.
Stormwater
6.2 Stormwater manholes have been
Million 02 a major priority especially for the
larger coastal cities who face
Manhole floods.
Covers
Telecoms
Larger cities (CoJ, CoCT) have
Stormwater (41.6%) 03 more telecoms infrastructure and
manholes due to wider metro and
The major metros have faced operator fibre networks.
heavy financial losses recently
as a result of flooding. Source: Frost & Sullivan
8Competitive Landscape
Manhole Cover Market Share, South Africa, 2018
• South Africa‟s manhole cover market is fairly
competitive, with the smaller providers having a Manholes 4 Africa
regional focus, whereas larger providers operate 15%
nationally. 8% Aveng
• Some of the larger providers such as Aveng and 7%
Maverick Trading
Saint Gobain have a primary focus in other areas of 17%
industry, mainly in construction. Saint Gobain
• The larger providers have national coverage, which 17%
makes them an ideal partner for track and trace National Manhole
Covers
solutions because of their large footprint and
access to large municipal clients in the Road & 17% Manhole Covers
works and water & Sanitation departments.
19% Other *
• Others such Manholes 4 Africa (a subsidiary of
Civilworks Group) and National Manhole Covers
have a strong presence across the country.
*Others include Rocla, Fiberite, S Systems, GCT Fabricators
Source: Frost & Sullivan
9Manhole Covers: Key Clients
Stormwater Manhole
Metros Sewer Manhole Covers Fibre Manhole Covers
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
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
Source: Frost & Sullivan
10Manhole Covers: Leading Service Providers
Service Providers by Manhole Cover Product Types, South Africa, 2018
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
Source: Frost & Sullivan
11WATER METERS
Water Meter Market Dynamics
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.
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.
Market Dynamics Source: Frost & Sullivan
13Number of Meters
Number of Waters by Municipality, South Africa, 2018
• The number of meters deployed has grown by
1.6% over the period 2016 – 2018.
Municipality 2018 Percentage
• New meter deployments in the long-term is
expected to be driven by sub-metering. Buffalo City 120 000 1.4%
City of Cape Town 650 000 7.6%
Water Meters, South Africa, 2016-2018
City of Johannesburg 866 389 10.1%
8.8
Number of Manhole
City of Tshwane 461 400 5.4%
8.6
Covers (Million)
8.6
Ekurhuleni 524 520 6.1%
8.4
8.4 eThekwini 510 000 5.9%
8.3
Mangaung 139 469 1.6%
8.2
Nelson Mandela Bay 226 413 2.6%
8.0
2016 2017 2018 Other Municipalities 5 083 780 59.2%
Year Total 8 581 971 100.0%
Source: Frost & Sullivan
14Water Meters by Type
Industrial Residential
0.7%
Industrial users are Residential 01 Municipalities are looking to adopt
the largest per capita 94.9% smart meter solutions in order to
users of water. A lot of the residential minimize non-revenue water.
meters are owned
and maintained by the
municipalities.
Commercial
8.6 As with the residential segment,
Million
02 the spend on new meters will come
from private property owners due
Meters to sub-metering.
Industrial and Bulk
Commercial Industrial buildings are investing
4.4%
Commercial properties
03 in smart water solutions to
monitor and manage their water
represent a growing consumption.
opportunity for smart
water solutions. Source: Frost & Sullivan
15Competitive Landscape
Water Meter Market Share, South Africa, 2018
• Elster Kent is considered one of the leading
providers of water meters in the South African
market, with a share of 19%. 9% Elster Kent
9%
• This is followed by Utility Systems (14%) and Utility Systems
12%
Sensus (12%) that have a strong presence in 10%
Lesira-Teq
eThekwini and City of Cape Town
municipalities. Amanzi Meters
10%
• Though relatively smaller by market share, Protea Meters
17%
Lesira-Teq is one of the few providers in the
market with Sigfox-compliant water meters Precision Meters
and focusing largely on smart water solutions 14% Sensus
along with Kamstrup.
19% Other
• While smart meter solutions are becoming a
growing trend globally, it is estimated that AMI
meters account for less than 5% of the total
*Others includes Aqua-loc, Kamstrup, Meter IT, Ontec
deployed by municipalities. The municipalities
are increasingly deploying prepaid water
meters. Source: Frost & Sullivan
16Water 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
17Water Meters: Leading Service Providers
Water Meter type
Service Provider
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
18FLEET
Market Definitions and Segmentations
Gross Vehicle
Vehicle
Definition Mass Rating
Classification
(GVMR)
LCVs represent vans and light trucks. The typical applications include
Light Commercial
pickup and delivery, utilities, airport operations, facilities management, 16500 kg
GVMR trucks.
Fleet owned by various rental companies, these are hired and utilised by businesses to perform
Rental Fleet
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.
Source: Frost & Sullivan
20Fleet Segmentations
LCV MCV HCV Bus
3% 30% 30% 15%
Commercial Commercial Commercial Commercial
Rental Rental Rental Rental
97% 70% 70% 85%
• 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
Source: Frost & Sullivan
21GOODS IN TRANSIT
Goods In Transit: Sector Segmentation
Volume Contribution of Transportable Goods Value Contribution of Transportable Goods
10% 13%
21%
28% Agriculture
Agriculture
Manufacturing Manufacturing
Mining Mining
51% 77%
• 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.
Source: Frost & Sullivan
23Goods In Transit: Sector Segmentation
• 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.
LCV MCV HCV
87 mt of Agricultural goods distributed across
17.4mt 69.6mt
115 mt of Mining good distributed across
115mt
209 mt of Manufacturing goods distributed across
41.8mt 94.05mt 73.15mt
Source: Frost & Sullivan
24Goods in Transit: Industry Players
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
Source: Frost & Sullivan
25Goods In Transit: Last Mile Delivery
Last-mile delivery is the movement of goods to end users, typically to a personal or
Industry Players business address. These goods are typically moved from distribution/consolidation
centres.
DHL Fastway Courier, Express and Parcel (CEP) are non-palletized products and shipments
RAM Aramex weighing less than 32kg.
Interlogix Bex Express
E-Commerce revenue is expected to grow at an annual growth rate of 13.2%, and reach
City Couriers Courier Guy ZAR 78 billion by 2022.
CitiSprint Courierit
Time Freight Globeflight South African e-Commerce Industry, 2016-2022
Skynet Fastvan 100 2500
Revenue per user (ZAR)
e-Commerce Revenue
FedEx OneLogix Revenue (ZAR Billion) 80 2000 2018: ZAR 47 Billion
TNT Express Pargo 60 1500
XINT DSV Group 40 1000
Courier Freight Number of e-Commerce
UPS 20 500
Group (CFG) Users: 30 million
0 0
Mr. D Courier Sendr 2016 2017 2018 2019 2020 2021 2022
Picup Wumdrop Revenue Average Revenue Per User
Note: Exchange rate: 1 USD= 14.68 ZAR Source: Frost & Sullivan
26Goods In Transit: Last Mile Delivery
It is estimated that 110 million packages are • The distance travelled by a delivery vehicle depends on a
delivered across South Africa per year. Last mile number of factors:
delivery of packages is able to reach consumers via • The drop factor, which is the number of packages
trucks, cars and motorcycles. 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.
Average packages delivered per trip: 50 • The last mile delivery space has been disrupted with
Average trips per day: 2 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
Average radius travelled per delivery market.
vehicle : 5-10km
Source: Frost & Sullivan
27Goods In Transit: Temperature Controlled Logistics
• 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 -18 to -28 °C -1 °C to 16°C 0 to 7°C 0 °C to 8 °C
for different end Frozen food Processed food Dairy products Pharmaceuticals
user segments such as poultry, such as fruit, Such as milk, Such as
Seafood, frozen vegetables, Cream, butter, Vaccines, Insulin's,
meals , frozen chocolate and Cheese, Cryoproducts
fruit, veg and baked goods Yoghurt and And thermolabine
ice cream Dairy beverages products
Source: Frost & Sullivan
28Goods In Transit: Temperature Controlled Logistics
Industry Players • Imperial Logistics Fast „n Fresh is the leading provider of temperature controlled
transport and services in south Africa.
Imperial – The Fast „n Fresh arm of the company operate from depots across Cape
Logistics: Fast ‘n DB Schenker Town, Gauteng and Limpopo. It also operates from client sites across South
Fresh
Africa.
Aspen Logistics
(Barloworld)
CCS Logistics – Key clients include McCain, Woolworths and Tiger Brands
Bidvest
Laser Logistics Panalpina • Aspen Logistics specialises in the Fast Moving Consumer Goods (FMCG)
Logistics industry, by provided temperature controlled transport.
LMC Express Röhlig-Grindrod – Their clients include a variety of Blue Chip companies which supply to major
retailers.
Sequence
DHL
Logistics
Supergroup: Crystal Cool • Fairfield Longhaul specialises in refrigerated transport for the movement of
Digistics Logistix goods such as perishables, fish, meat and dairy.
Express FZ – FairField Longhaul operate across South Africa
DSC
Logistics
Fairfield
HFR
Longhaul
Source: Frost & Sullivan
29DRIVER BEHAVIOUR
Distance Travelled Per Fleet Segment
• The average annual distance travelled by commercial
vehicles differs by vehicle segmentation. Per Trip (km) Number of Trips Per Year
• On average, HCVs travel twice the average distance LCV 90 278
of MCVs, and three times as much as LCVs.
HCV 150 267
MCV 260 231
Average Annual Distance Travelled By Fleet Segment
HCV
Bus
MCV
LCV
20,000km 30,000km 40,000km 50,000km 60,000km
Source: Frost & Sullivan
31Commercial Vehicle Telematics: Market Dynamics
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.
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.
Market Dynamics Source: Frost & Sullivan
32Competitive Landscape
• The South African telematics industry is dominated by low-
South African Telematics Market
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 CarTrack
Tracker) and Geotab. 18%
• Telematics for vehicle OEMs are fairly new and recently MiX Telematics
29%
established in the market. OEMs include MAN Truck &
Busses, Volvo Group, and Scania.
• Future joint ventures/partnerships are expected between
Ctrack
vehicle OEMs and aftermarket vendors, becoming preferred 17%
fleet management partners. Altech Netstar
• The telematics installed base, currently estimated to be 1.3
million units, is expected to reach 1.9 million units by 2021. 11% Tracker
• The penetration of telematics in the LCV segment (17.6%) is
low compared to the MCV/HCV (52.9%), but contributes more 13%
12% *Other
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, *Other industry players include Pointer Telematics, Geotab, TomTom
Telematics, Digit Vehicle Tracking (Digicell), GPS Tracking Solutions ,
and risk management.
SmartSurv Wireless, Autotrak, Autowatch Telematics (PFK
Electronics)
Note: A share of Tracker systems is represented by solutions powered by TomTom Telematics.
33Commercial Vehicle Telematics
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.
Benefits After Deployment of Fleet
Management Systems
Cost of Fleet Operation
Other (Tax, Interest) • 10-15% Increase in Productivity
Driver Wages
• 20-30 min Day/Driver Labour Savings
Fuel
22 30 26 5 1 6 10
Maintenance • 15-20% Increase in Vehicle Utilisation
Tires
• 20-30% Reduction in Vehicle Idle Time
Insurance
Depreciation • 10-15% Overtime Reduction
0 20 40 60 80 100
Percentage Contribution (%) • 20-25% Reduction in Fuel Expenses
• 5-10% Reduction in Total Miles
People Tracking Route Planning Remote Access
Fleet Tracking Asset Tracking Driver Monitoring Source: Frost & Sullivan
34Telematics and Insurance
Usage Based Insurance Evolution of Insurance Coverage
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
Asset-Based
travelled, speed, time of travel, and date of travel. Information recorded is then Cover
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 Person-
Based Cover
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 Usage-Based
Cover
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.
Source: Frost & Sullivan
35Driver Behaviour: Incidents Per Vehicle Segment
Fleet drivers are at a higher accident risk Total Fatal Crashes per Vehicle Segment
than most drivers, as they spend a
significant portion of their day on the road. It LCV MCV/HCV Bus
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.
2017: 2,345 2017: 297 2017: 217
2016: 2,347 2016: 280 2016: 245
Contributing Factors in Fatal Crashes
Road & Environmental
Factors
Accidents are a significant cost for fleet owners, and result in
Vehicle Factors down time and delays. South Africa‟s fatal crashes can mainly be
attributed to human factors. This reinforces the importance and
Human Factors benefits of driver behaviour monitoring in commercial fleets, as it
can improve safety, and reduce unforeseen costs.
0 50 100
2017 2016 Contribution (%) Source: Frost & Sullivan
36Telematics 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
37Telematics 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
38APPENDIX – MUNICIPALITIES
Buffalo City Municipality Overview
Metrics Measure
Geographic Size (sq km) 869 333
Population 2 750
Number of Households 272 518
• 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.
Source: Frost & Sullivan
40Buffalo City Municipality – Water Meters
• There are currently 120,000 meters in the BCM,
growing at 2.3% per year. Residential : 95.1%
• The municipality still relies on physical water meter Meter Split by User Commercial : 4.3%
Industrial & Bulk: 0.6%
readings.
Key Providers Honeywell / Elster Kent
Water Meters Deployed, 2016 – 2018,
Buffalo City, CAGR = 2.3%
No. of Meters (000)
120.5 The BCM has struggled with accurate
120.0 water bills leading to some discontent
119.7 Market Highlights
with the public and has experienced a
120.0 10% drop in annual water sales.
119.5
119.5
There may be an opportunity to offer
119.0 Implications for
smart solutions for remote water meter
2016 2017 2018 SqwidNET
readings to provide more accurate billing.
Year
Source: Frost & Sullivan
41Buffalo City Municipality – Manhole Covers
• Buffalo City currently has 272,816 manhole covers,
which grew at 1.7%. Sewer : 46.1%
Manholes Split by
• The municipality is facing a financial challenge in Stormwater : 41.0%
Type
Telecoms : 12.9%
monitoring its manhole covers and its ability to replace
those stolen.
National Manhole Covers
Key Providers Fab Manufacturing
Total Base of Manhole Covers, 2016 – Cementile
2018, Buffalo City, CAGR = 1.7%
280
No. of Manholes (000)
273 Buffalo City continues to experience the
Market Highlights
268 theft of their manhole covers.
270 264
260 Despite the opportunity to offer track and
trace solutions for manhole covers, the
Implications for
municipality‟s budgetary constraints may
SqwidNET
250 limit the potential of deploying such
2016 2017 2018 solutions.
Year
Source: Frost & Sullivan
42City of Cape Town Municipality Overview
Metrics Measure
Geographic Size (sq km) 2 446
Population 4 232 276
Number of Households 1 360 860
• 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.
Source: Frost & Sullivan
43City of Cape Town Municipality – Water Meters
• In 2018, there were 650,000 municipal water meters in
the CoCT. Residential : 94.3%
• The municipality is exploring smart solutions in Meter Split by User Commercial : 4.7%
response to water shortages and the high and rising Industrial & Bulk: 1.0%
number of inaccurate water bills.
• Honeywell / Elster Kent
• Utility Meters
Key Providers
• Sensus (Industry & Bulk)
Water Meters Deployed, 2016 – 2018, Cape • Protea Meters
Town, CAGR = 2.1%
660
No. of Meters (000)
650
The CoCT has been installing smart
650 637 Market Highlights water meters (mainly Honeywell) to help
640 623 households manage their consumption.
630
There may be scope to partner with
620
providers such as Honeywell and Elster
Implications for
610 for municipal meters in the residential
SqwidNET
2016 2017 2018 segment and Kamstrup for gated
communities.
Year
Source: Frost & Sullivan
44City of Cape Town Municipality – Manhole Covers
• The number of manholes has grown by 2.8% since
2016, reaching 317,719 in 2018, most of which were Sewer : 52.0%
sewer covers. Manholes Split by
Stormwater : 30.2%
Type
• The CoCT is also deploying a number of non-metal Telecoms : 17.8%
manhole covers to minimize theft.
• Saint Gobain Pam
• National Manhole Covers
Key Providers
• Cape Concrete
Total Base of Manhole Covers, 2016 – • Maverick Trading
2018, City of Cape Town, CAGR = 2.8%
No. of Manholes (000)
154 318 The theft of water meters, manholes and
305 Market Highlights fire hydrants has cost the CoCT R40
152 million over the past two years.
301
150
148
There is scope to offer track and trace
146 Implications for solutions for both the municipality and
SqwidNET telecoms operators who have an
144
extensive fibre network.
2016 2017 2018
Year
Source: Frost & Sullivan
45City of Johannesburg Municipality Overview
Metrics Measure
Geographic Size (sq km) 1 645
Population 5 250 762
Number of Households 1 996 488
• 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.
Source: Frost & Sullivan
46City of Johannesburg Municipality – Water Meters
• The CoJ currently has 866,389 water meters across
residential, commercial and industrial segments. Residential : 93.4%
• There is a shift towards prepaid meters in order to Meter Split by User Commercial : 5.2%
minimize non-revenue. Industrial & Bulk: 1.4%
Elster Kent
Sensus
Key Providers
Precision Meters
Water Meters Deployed, 2016 – 2018, City Lesira Teq
of Johannesburg, CAGR = 0.6%
866 AMI meter solutions are expected to
No. of Meters (000)
0.9
minimize the need for meter readers
861 Market Highlights
0.9 resulting in retrenchments which the
municipality is looking to avoid.
0.9 856
The need for smart water solutions is
0.9 more prevalent in gated communities,
Implications for office parks and industrial properties. It
0.9 SqwidNET will require SqwidNET to partner with
2016 2017 2018 some of the leading providers to grow its
Year presence in the market.
Source: Frost & Sullivan
47City of Johannesburg Municipality – Manhole Covers
• There was an estimated 420 manhole covers in the
CoJ, a majority of which were sewer. Sewer : 52.3%
Manholes Split by
• Like the CoCT, the CoJ is has been deploying non- Stormwater : 32.0%
Type
metal manhole covers in response to the high and Telecoms : 15.7%
rising theft of covers in the city.
United Manhole Covers
Key Providers Aveng Manufacturing
GCT Fabricators
Total Base of Manholes, 2016 – 2018, City
of Johannesburg, CAGR = 3.0%
154 The city does not have a good record of
No. of Manholes (000)
423
the number of its manholes relying on a
152 411
399 physical count and estimate. It also does
Market Highlights
150 not have sight on damaged or tampered
manholes, relying on the public to report
148 faults.
146
The level of sewer and stormwater
144 Implications for infrastructure is an opportunity to offer
2016 2017 2018 SqwidNET smart solutions to reduce theft and
Year improve maintenance.
Source: Frost & Sullivan
48City of Tshwane Municipality Overview
Metrics Measure
Geographic Size (sq km) 6 298
Population 3 440 954
Number of Households 1 207 352
• 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.
Source: Frost & Sullivan
49City of Tshwane Municipality – Water Meters
• The number of meters in the municipality grew by
0.9% over 2016-2019. Residential : 95.0%
• The City of Tshwane has been struggling with Meter Split by User Commercial : 4.1%
accurate meter readings culminating in intense public Industrial & Bulk: 0.9%
discontent.
Elster Kent
Key Providers Lesira-Teq
WaterWatch
Water Meters Deployed, 2016 – 2018, City
of Tshwane, CAGR = 0.9%
The municipality has been moving
461
No. of Meters (000)
464 towards prepaid meters for both
Market Highlights
electricity and water to improve bill
460 457
accuracy.
456 453
Due to their relatively high cost, the shift
452 towards smart meters is expected to
Implications for
fairly gradual. A larger potential
448 SqwidNET
opportunity may lie in the gated
2016 2017 2018
communities and business parks.
Year
Source: Frost & Sullivan
50City of Tshwane Municipality – Manhole Covers
• There are currently 246,099 manhole covers in the
municipality growing by 2.5% over the period 2016- Sewer : 49.7%
2018. Manholes Split by
Stormwater : 37.6%
Type
• The municipality continues to experience theft and Telecoms : 12.7%
tampering of lamp poles, manholes and cables.
Fiberite
Salberg Concrete Products Pty Ltd
Key Providers
Total Base of Manhole Covers, 2016 – Wuzland Manhole Covers
2018, City of Tshwane, CAGR = 2.5% Aveng Manufacturing Infraset
248
No. of Manholes (000)
246
244 240 A majority of the providers are moving
234 Market Highlights away from cast iron covers in order to
240 minimize the risk of theft.
236
The city continues to experience high
232 incidence of theft and tamper to
Implications for manholes and other infrastructure but
228 SqwidNET does not have the manpower resources
2016 2017 2018 to monitor them. A smart solution could
Year help combat the theft.
Source: Frost & Sullivan
51Ekurhuleni Municipality Overview
Metrics Measure
Geographic Size (sq km) 1 975
Population 3 492 908
Number of Households 1 255 980
• 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.
Source: Frost & Sullivan
52Ekurhuleni Municipality – Water Meters
• With its large population, the municipality had 525,000
meters growing at 2.0% per year. Residential : 95.6%
• Despite upgrading its water billing system, the Meter Split by User Commercial : 3.9%
Industrial & Bulk: 0.5%
municipality has been struggling with non-revenue
water.
Elster Kent
Key Providers
Lesira Teq
Water Meters Deployed, 2016 – 2018,
Ekurhuleni, CAGR = 2.0% The municipality has embarked on a
No. of Meters (000)
528 525 project to replace ageing meters which it
Market Highlights
expects will improve billing accuracy and
520 514
minimize losses.
512
505
504
The municipality represents a big
496 opportunity for water meters, however
Implications for
budgetary constraints may limit the
488 SqwidNET
potential for smart meter solutions with
2016 2017 2018
respect to municipality meters.
Year
Source: Frost & Sullivan
53Ekurhuleni Municipality – Manhole Covers
• There were 272,016 manhole covers in the
municipality in 2018, growing at 1.7% per year. Sewer : 45.7%
Manholes Split by
• The municipality has been moving towards plastic Stormwater : 40.6%
Type
manhole covers in response to the theft of cast iron. Telecoms : 13.7%
GCT Fabricators
Key Providers Aveng Manufacturing Infraset
Total Base of Manhole Covers, 2016 – Wuzland Manhole Covers
2018, Ekurhuleni , CAGR = 1.7%
280
No. of Manholes (000)
273 A track and trace solution can aid the
268 Market Highlights municipality to crack down on nefarious
270 metal scrap yard owners.
264
260 There may be scope to partner with GCT
Implications for
Fabricators and Wuzland who have a
SqwidNET
250 large presence in the Gauteng area.
2016 2017 2018
Year
Source: Frost & Sullivan
54eThekwini Municipality Overview
Metrics Measure
Geographic Size (sq km) 2 556
Population 3 767 939
Number of Households 1 255 980
• 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.
Source: Frost & Sullivan
55eThekwini Municipality – Water Meters
• The number of meters in eThekwini grew by 0.2%
during 2016-2018 to reach 510,000. Residential : 94.5%
• The municipality is exploring opportunities to help Meter Split by User Commercial : 4.6%
minimize water wasted through inefficient metering. Industrial & Bulk: 0.9%
Elster Kent (may be losing some of its
market share in the municipality)
Key Providers
Sensus
Water Meters Deployed, 2016 – 2018,
Utility Systems
eThekwini, CAGR = 0.2%
510
No. of Meters (000)
512
In line with its aspirations to become a
504 500 Market Highlights smart city, the municipality has been
trialling AMI solutions.
496 490
488 As with the other major metros there is
scope to partner with providers serving
Implications for
480 gated communities and business parks,
SqwidNET
2016 2017 2018 but also the municipality is open smart
solutions.
Year
Source: Frost & Sullivan
56eThekwini Municipality – Manhole Covers
• There were 321,023 manhole covers in the
municipality which has grown 1.2% over the period Sewer : 45.5%
2016-2018. Manholes Split by
Stormwater : 40.2%
Type
• The municipality has experienced a spate of Telecoms : 14.3%
challenges due to the loss of manhole covers, with
Aveng Manufacturing Infraset
1,000 covers damaged or stolen a year.
KFC Engineering
Key Providers
Saint Gobain Pam
Total Base of Manhole Covers, 2016 – Manholes 4 Africa
2018, eThekwini, CAGR = 1.2%
324
No. of Manholes (000)
321 The municipality has struggled to monitor
317 the assets of the city such as manhole
320 Market Highlights
covers, and is relying on residents to
313 report damage to the infrastructure.
316
312 SqwidNET should consider partnering
with a leading provider such as KFC
308 Implications for
Engineering whose product portfolio is
2016 2017 2018 SqwidNET
mostly cast iron covers that are prone to
Year theft.
Source: Frost & Sullivan
57Mangaung Municipality Overview
Metrics Measure
Geographic Size (sq km) 9 886
Population 793 644
Number of Households 287 552
• 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.
Source: Frost & Sullivan
58Mangaung Metropolitan Municipality – Water Meters
• There were 139,469 water meters in 2018 for
Mangaung, 95.0% of which were residential. Residential : 95.1%
• Growth in the number of new meter connections Meter Split by User Commercial : 4.3%
averages 5.3% over the three year period, 2016-2018. Industrial & Bulk: 0.6%
Elster Kent – Has been the dominant
provider of water meters in the
Key Providers municipality, having won a majority of the
Water Meters Deployed, 2016 – 2018,
meter tends in the region over the last 20
Mangaung, CAGR = 5.3% years.
No. of Meters (000)
1.6 139
132
1.2 126
There is a strong drive to switch most of
Market Highlights the residential to prepaid waters to
0.8 minimize waste.
0.4
Smart water solutions is a longer-term
Implications for opportunity as the municipality is mostly
0
2016 2017 2018 SqwidNET prioritizing revenue protection from
curbing basic water waste.
Year
Source: Frost & Sullivan
59Mangaung Metropolitan Municipality – Manhole Covers
• There were over 150,000 manhole covers in the
municipality with a growth of 0.4% per year over the Sewer : 44.7%
period 2016-2018. Manholes Split by
Stormwater : 39.7%
Type
Telecoms : 15.6%
National Manhole Covers
Key Providers Astro Concrete
Incledon (Key Distributor)
Total Base of Manholes, 2016 – 2018,
Mangaung, CAGR = 0.4%
154 152
No. of Manholes (000)
The municipality has spent over R550
152 150 Market Highlights million on upgrading of streets and
stormwater.
150 148
148
The municipality does not have a digital
146 solution to monitor the status of manhole
Implications for
covers. The opportunity to offer track and
144 SqwidNET
trace solutions could be curtailed by
2016 2017 2018
budgetary constraints.
Year
Source: Frost & Sullivan
60Nelson Mandela Bay Municipality Overview
Metrics Measure
Geographic Size (sq km) 1 957
Population 1 290 470
Number of Households 403 272
• 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.
Source: Frost & Sullivan
61Nelson Mandela Bay Municipality – Water Meters
• There were 226,413 water meters in the NMB growing
by 3.8% during 2016-2018. Residential : 95.3%
• The municipality has mandated sub-metering which is Meter Split by User Commercial : 4.2%
expected to largely affect the residential segment. Industrial & Bulk: 0.5%
Elster Kent
Key Providers
Water Watch
Water Meters Deployed, 2016 – 2018,
Nelson Mandela Bay, CAGR = 3.8% Over the period 2016-2020 property
No. of Meters (000)
232 226 developers are expected to install water
Market Highlights
meters in all the individual units to enable
224 218
direct billing of their tenants.
216 210
There is an opportunity to partner with
208 key water meter providers in the NMB
Implications for
with the view to providing smart solutions
200 SqwidNET
to help the municipality effectively
2016 2017 2018 monitor consumption.
Year
Source: Frost & Sullivan
62Nelson Mandela Bay Municipality – Manhole Covers
• The number of manhole covers in NMB grew by 1.5%
during 2016-2018 to reach 152,472. Sewer : 46.1%
Manholes Split by
• The NMB is experiencing losses estimated at R21m a Stormwater : 41.3%
Type
year on its sewer system due to theft and vandalism. Telecoms : 12.6%
Saint Gobain Pam
Key Providers
Rocla
Total Base of Manhole Covers, 2016 –
2018, Nelson Mandela Bay , CAGR = 1.5%
156
No. of Manholes (000)
152 The municipality does not have the
150 manpower and resources to effectively
152 Market Highlights monitor its 3900 km of sewer system,
148 having had to replace close to a 1000
covers in 2014 alone.
148
There is an opportunity to the main
Implications for
144 providers such as Rocla to offer a smart
SqwidNET
2016 2017 2018 monitoring solution.
Year
Source: Frost & Sullivan
63List 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
64Contacts
Craig Parker Siyathemba Magobiane
Research Director Senior Consultant
+27 (0)21 680 3292 +27 (0)21 680 3564
+27 (0)72 878 0698 +27 (0)83 722 8805
Craig.Parker@frost.com Siyathemba.Magobiane@frost.com
Zaheera Ahmed Lehlohonolo Mokenela
Research Analyst: Mobility Consultant
+27 (0)21 680 3261 +27 (0)21 680 3567
+27 (0)76 292 8248 +27 (0)72 365 4600
Zaheera.Ahmed@frost.com Lehlohonolo.Mokenela@frost.com
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