Gothenburg, Sweden—July 8, 2014—According to a new research report from the analyst firm Berg Insight, the number of active fleet management (FM) systems deployed in commercial vehicle fleets in Russia/Commonwealth of Independent States (CIS) and eastern Europe was 2.9 million in Q4 2013. Growing at a compound annual growth rate (CAGR) of 15.7 percent, this number is expected to reach 5.9 million by 2018. The Russian market accounts for a significant share of the region’s total installed base. The top 10 providers of fleet management solutions for commercial vehicles across Russia, the CIS and eastern Europe together have an installed base of well over 1 million active units today.
The leading fleet management 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 active across most countries in the region with over 300,000 commercial vehicles under management. Other top providers with more than 100,000 active FM units for commercial vehicles in the region include ENDS, NIS group, Arvento Mobile Systems and TechnoKom, which are all telematics players in their respective domestic markets. Additional key vendors include SCOUT, Mobiliz, Omnicomm and Fort-Telecom.
The Russian fleet management vendor landscape are seeing some significant shifts. Both M2M Telematics and Russian Navigation Technologies lost many employees, and the latter even filed for bankruptcy in 2014. “There has been an inflow of new start-ups gaining market share at the expense of struggling Russian top telematics players,” said Rickard Andersson, senior analyst, Berg Insight. A key example is the Russian newcomer SpaceTeam, which was founded one year ago and now already holds a significant market share on the domestic market.
“None of the major international solution providers based in western Europe, the U.S. or South Africa have, however, so far managed to capture any leading positions in this region,” said Andersson. He added that Berg Insight anticipates increased merger and acquisition (M&A) activities in the region in the upcoming years as the ongoing consolidation wave in Europe and North America reaches the Russian telematics market.