The installed base of fleet management systems in Eastern Europe and the CIS to reach 13.8 million units by 2023 Fleet management (FM) is an ambiguous term used in reference to a wide range of solutions for different vehicle-related applications.The Number of Fleet Management Systems in Active Use in the Region is Forecasted to Grow at a Compound Annual Growth Rate of 13.5 Percent From 7.3 Million Units at the End of 2018 to 13.8 Million by 2023
The publisher’s definition of a fleet management solution is a vehiclebased system that incorporates data logging, satellite positioning and data communications to a backoffice application. The history of fleet management solutions goes back several decades. On-board vehicle computers first emerged in the 1980s and were soon connected to various satellite and terrestrial wireless networks. Today, mobile networks can provide ubiquitous online connectivity in many regions at a reasonable cost and mobile computing technology delivers very high performance, as well as excellent usability. All of these components combined enable the delivery of vehicle management, transport management, driver management and mobile workforce management applications linking vehicles and enterprise IT systems.
Commercial vehicle fleets play an essential role in the economy in the CIS and Eastern Europe, where several countries are part of important Pan-European transport corridors.
The total of around 10 million heavy commercial vehicles in the region account for a major share of the inland transports. Motor vehicles are for example involved in about 70 percent of the total in land transportation in Russia. In Europe, medium and heavy trucks account for over 75 percent of all inland transports, forming a € 250 billion industry. Moreover, the greater part of the total 16 million light commercial vehicles in the CIS and Eastern Europe are used by mobile workers and for activities such as distribution of goods and parcels.
The publisher is of the opinion that the fleet management industry isin a long-term growth phase.
Key drivers in Eastern Europe and the CIS include cost reductions related to fuel savings and regulatory developments such as ERA-GLONASS and the Platon electronic tollcollection system which increase the awareness of telematics. The number of fleet management systems in active use in the region is forecasted to grow at a compound annual growth rate of 13.5 percent from 7.3 million units at the end of 2018 to 13.8 million by 2023. The penetration rate in the total population of non-privately owned commercial vehicles and passenger cars used in commercial and government fleets is estimated to increase from 17.5 percent in 2018 to 29.8 percent in 2023. The Russian market accounts for a significant share of the region’s total installed base and is forecasted to grow from 3.3 million active FM units at the end of 2018 to 5.6 million units by 2023.
The leading FM solution providers in terms of installed base in the CIS and Eastern Europe include diverse players from a number of countries.
Belarus-based Gurtam is the leading FM software provider, having surpassed the milestone of 1 million vehicles under management in theregion. Russia-based TechnoKom and Turkey-based Arvento MobileSystems are the first and second runners-up, followed by Mobiliz from Turkey and the Russian players SCOUT, Navigator Group and NIS (MTS). Additional top-15 players with at least 100,000 active unitsin Russia/CIS and Eastern Europe include GeliosSoft, Fort Telecom, Omnicomm, SquareGPS, Live GPS Tracking (SkyNavis), EurowagTelematics, Infotech and SpaceTeam. The major international solution providers based in Western Europe, North America or South Africa areyet to reach the top-15 list in this region.
The expectations for the future fleet management market in Eastern Europe and the CIS include a gradual convergence with the developments in Western Europe.
Eastern Europe is already tracingthe most developed European markets closely in terms of systemfunctionality and service models. The major Russian solution providershave historically mainly served large corporations with standalonesoftware systems which are paid upfront and hosted in-house, whereas subscription services traditionally mainly have been adopted by SMBs.Cloud services based on recurring service fees have however now become a greater focus also for major enterprise fleets on the Russian market and the domestic FM solution providers are increasingly pushing for a transition towards SaaS-based models. Another key trend on the European market is factory-fitment of OEM telematics,which is offered by most of the major truck manufacturers. The Russian vehicle manufacturers did not initially embrace the concept of OEM fleet telematics in the same way as its Western European counterparts, but the activities have increased in the last few years. GAZ became the first local manufacturer to offer factory installation of telematicsunits as standard in 2018. Kamaz and UAZ have also in 2018–2019 launched initiatives related to integration of telematics technology in collaboration with partners.
This report answers the following questions:
- How do the FMS markets in the CIS and Eastern Europe compare with Western markets?
- Will the FM industry consolidate further during 2020–2021?
- What is the geographical and ownership structure of commercial vehicle fleets in the CIS and Eastern Europe?
- Which are the leading international, regional and local providers of aftermarket fleet management solutions in the CIS and Eastern Europe?
- What offerings are available from truck OEMs?
- How will the regulatory developments in this region affect the fleet management industry?
- How will the commercial vehicle telematics industry evolve in the future?
Table of Contents
Executive summary
Executive Summary
Fleet management (FM) is an ambiguous term used in reference to a wide range of solutions for different vehicle-related applications. The publisher’s definition of a fleet management solution is a vehicle-based system that incorporates data logging, satellite positioning and data communications to a backoffice application. The history of fleet management solutions goes back several decades. On-board vehicle computers first emerged in the 1980s and were soon connected to various satellite and terrestrial wireless networks. Today, mobile networks can provide ubiquitous online connectivity in many regions at a reasonable cost and mobile computing technology delivers very high performance, as well as excellent usability. All of these components combined enable the delivery of vehicle management, transport management, driver management and mobile workforce management applications linking vehicles and enterprise IT systems.
Commercial vehicle fleets play an essential role in the economy in the CIS and Eastern Europe, where several countries are part of important Pan-European transport corridors. The total of around 10 million heavy commercial vehicles in the region account for a major share of the inland transports. Motor vehicles are for example involved in about 70 percent of the total inland transportation in Russia. In Europe, medium and heavy trucks account for over 75 percent of all inland transports, forming a € 250 billion industry. Moreover, the greater part of the total 16 million light commercial vehicles in the CIS and Eastern Europe are used by mobile workers and for activities such as distribution of goods and parcels.
The publisher is of the opinion that the fleet management industry is in a long-term growth phase. Key drivers in Eastern Europe and the CIS include cost reductions related to fuel savings and regulatory developments such as ERA-GLONASS and the Platon electronic toll collection system which increase the awareness of telematics. The number of fleet management systems in active use in the region is forecasted to grow at a compound annual growth rate of 13.5 percent from 7.3 million units at the end of 2018 to 13.8 million by 2023. The penetration rate in the total population of non-privately owned commercial vehicles and passenger cars used in commercial and government fleets is estimated to increase from 17.5 percent in 2018 to 29.8 percent in 2023. The Russian market accounts for a significant share of the region’s total installed base and is forecasted to grow from 3.3 million active FM units at the end of 2018 to 5.6 million units by 2023.
The leading FM solution providers in terms of installed base in the CIS and Eastern Europe include diverse players from a number of countries. Belarus-based Gurtam is the leading FM software provider, having surpassed the milestone of 1 million vehicles under management in the region. Russia-based TechnoKom and Turkey-based Arvento Mobile Systems are the first and second runners-up, followed by Mobiliz from Turkey and the Russian players SCOUT, Navigator Group and NIS (MTS). Additional top-15 players with at least 100,000 active units in Russia/CIS and Eastern Europe include GeliosSoft, Fort Telecom, Omnicomm, SquareGPS, Live GPS Tracking (SkyNavis), Eurowag Telematics, Infotech and SpaceTeam. The major international solution providers based in Western Europe, North America or South Africa are yet to reach the top-15 list in this region.
The expectations for the future fleet management market in Eastern Europe and the CIS include a gradual convergence with the developments in Western Europe. Eastern Europe is already tracing the most developed European markets closely in terms of system functionality and service models. The major Russian solution providers have historically mainly served large corporations with standalone software systems which are paid upfront and hosted inhouse, whereas subscription services traditionally mainly have been adopted by SMBs. Cloud services based on recurring service fees have however now become a greater focus also for major enterprise fleets on the Russian market and the domestic FM solution providers are increasingly pushing for a transition towards SaaS-based models. Another key trend on the European market is factory-fitment of OEM telematics, which is offered by most of the major truck manufacturers. The Russian vehicle manufacturers did not initially embrace the concept of OEM fleet telematics in the same way as its Western European counterparts, but the activities have increased in the last few years. GAZ became the first local manufacturer to offer factory installation of telematics units as standard in 2018. Kamaz and UAZ have also in 2018–2019 launched initiatives related to integration of telematics technology in collaboration with partners.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- DAF Trucks
- Daimler Group
- Iveco
- MAN Truck & Bus
- Scania
- Volvo Group
- Astrata Europe
- Fleet Complete
- Garmin and partners
- MiX Telematics
- Transics
- Viasat Group
- Webfleet Solutions (Bridgestone)
- Arvento Mobile Systems
- CVS Mobile
- Fort Telecom
- Frotcom International
- Gurtam
- Mobiliz
- Omnicomm
- Ruptela
- TechnoKom
- Teltonika
- WebEye Telematics Group
- ANTOR
- Arkan
- Autoconnex and Vodafone Automotive
- Autolocator (Megapage)
- AutoTracker
- BelTransSputnik
- Benish GPS
- Cesar Satellite
- Galileosky
- Garage GPS
- GeliosSoft
- GlobalSat
- GLONASSSoft
- Glosav
- Gurtam
- ITOB
- Live GPS Tracking (SkyNavis)
- Locarus
- Matrix
- Micro Line
- Navigator Group (ENDS)
- Navtelecom
- NIS (MTS)
- RCS
- Ritm
- SCOUT
- SpaceTeam
- SquareGPS
- T-One Group
- Vektor GPS
- Eastern Europe
- Aldobec Technologies (W.A.G. payment solutions)
- AROBS Transilvania Software
- Artronic
- Auto3P (MultiFleet)
- Business Lease Romania
- CCS (Fleetcor)
- EasyTRACK
- ETA Automatizari Industriale (SafeFleet)
- Eurowag Telematics (W.A.G. payment solutions)
- Evotracking (Vodafone)
- Framelogic (Vehco)
- GPS Bulgaria
- GPS-server.net
- GSMvalve
- GX Solutions
- i-Cell
- iData
- Infocar
- Infotech
- iSYS Professional
- Locator BG
- Mapon
- Mireo
- Mobilisis
- MOVYS
- Satko
- SCOUT
- Seyir Mobil
- SHERLOG Technology
- Skyguard (Secret Control)
- Sledenje
- Tahograf
- TrackNav
- Webbase (Secret Control)
- Navigator Group
- NIS (MTS)
Daimler Group
Iveco
MAN Truck & Bus
Scania
Volvo Group
Astrata Europe
Fleet Complete
Garmin and partners
MiX Telematics
Transics
Viasat Group
Webfleet Solutions (Bridgestone)
Arvento Mobile Systems
CVS Mobile
Fort Telecom
Frotcom International
Gurtam
Mobiliz
Omnicomm
Ruptela
TechnoKom
Teltonika
WebEye Telematics Group
ANTOR
Arkan
Autoconnex and Vodafone Automotive
Autolocator (Megapage)
AutoTracker
BelTransSputnik
Benish GPS
Cesar Satellite
Galileosky
Garage GPS
GeliosSoft
GlobalSat
GLONASSSoft
Glosav
Gurtam
ITOB
Live GPS Tracking (SkyNavis)
Locarus
Matrix
Micro Line
Navigator Group (ENDS)
Navtelecom
NIS (MTS)
RCS
Ritm
SCOUT
SpaceTeam
SquareGPS
T-One Group
Vektor GPS
Eastern Europe
Aldobec Technologies (W.A.G. payment solutions)
AROBS Transilvania Software
Artronic
Auto3P (MultiFleet)
Business Lease Romania
CCS (Fleetcor)
EasyTRACK
ETA Automatizari Industriale (SafeFleet)
Eurowag Telematics (W.A.G. payment solutions)
Evotracking (Vodafone)
Framelogic (Vehco)
GPS Bulgaria
GPS-server.net
GSMvalve
GX Solutions
i-Cell
iData
Infocar
Infotech
iSYS Professional
Locator BG
Mapon
Mireo
Mobilisis
MOVYS
Satko
SCOUT
Seyir Mobil
SHERLOG Technology
Skyguard (Secret Control)
Sledenje
Tahograf
TrackNav
Webbase (Secret Control)
Navigator Group
NIS (MTS)
Methodology
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