from PHYLLIS BIRORI in Kigali, Rwanda
Rwanda Bureau
KIGALI, (CAJ News) –THE vehicle tracking system market in Africa is projected to reach US$26,53 million by 2027, largely driven by an upsurge in adoption of smart transport solutions.
This represents a compound annual growth rate of 14,9 percent from 2020.
This is according to a report by Allied Market Research.
It reports that the sector generated $8,99 million in 2019. The passenger vehicles segment accounted for the largest share in 2019, holding more than four-fifths of the total share.
Based on country, Ivory Coast contributed the highest share, accounting for nearly one-fifth of the total market share in 2019. The West African country is forecast to maintain its dominance throughout the forecast period.
However, Rwanda is expected to grow at the highest growth rate of 26,5 percent from 2020 to 2027.
In addition to an upsurge in adoption of smart transport solutions, a rise in fleet operations especially in emerging markets is expected to boost the revenue growth of the vehicle tracking system market during the forecast period.
Growing adoption of intelligent transport systems and rise in security and safety concerns within transportation services meanwhile drive the growth of the market.
However, according to Allied Market Research, threats associated with hacking of data and low usage of the internet in developing economies restrain the market growth.
“Furthermore, the surge in adoption of 5G technology into vehicle connectivity is expected to provide new opportunities for the market players in near future,” it stated.
– CAJ News