Fleet Management in Russia/CIS and Eastern Europe – 4th Edition

Fleet Management in Russia/CIS and Eastern Europe is thefourth strategy report from Berg Insight analysing the latestdevelopments on the fleet management market in this region.This strategic research report from Berg Insight provides youwith 220 pages of unique business intelligence, including 5-yearindustry forecasts, expert commentary and real-life case studies onwhich to base your business decisions.

Highlights from this report:

Insights from 30 new executive interviews with market-leadingcompanies.
New data on vehicle populations and commercial fleets in the CISand Eastern Europe.
Comprehensive overview of the fleet management value chainand key applications.
In-depth analysis of market trends and key developments.
Profiles of 83 aftermarket fleet management solution providers.
Summary of OEM propositions from truck manufacturers.
Revised market forecasts lasting until 2021.

This report answers the following questions:

How do the FMS markets in the CIS and Eastern Europecompare with Western markets?
Will the FM industry consolidate further during 2018–2019?
What is the geographical and ownership structure ofcommercial vehicle fleets in the CIS and Eastern Europe?
Which are the leading international, regional and local providersof aftermarket fleet management solutions in the CIS andEastern Europe?
What offerings are available from truck OEMs?
How will the regulatory developments in this region affect thefleet management industry?
How will the commercial vehicle telematics industry evolve inthe future?

Executive summary

Fleet management (FM) is an ambiguous term used in reference to a wide range of solutionsfor different vehicle-related applications. Berg Insight’s definition of a fleet managementsolution is a vehicle-based system that incorporates data logging, satellite positioning anddata communications to a backoffice application. The history of fleet management solutionsgoes back several decades. On-board vehicle computers first emerged in the 1980s and weresoon connected to various satellite and terrestrial wireless networks. Today, mobile networkscan provide ubiquitous online connectivity in many regions at a reasonable cost and mobilecomputing technology delivers very high performance, as well as excellent usability. All ofthese components combined enable the delivery of vehicle management, transportmanagement, driver management and mobile workforce management applications linkingvehicles and enterprise IT systems.

Commercial vehicle fleets play an essential role in the economy in the CIS and EasternEurope, where several countries are part of important Pan-European transport corridors. Thetotal of around 10 million heavy commercial vehicles in the region account for a major shareof the inland transports. Motor vehicles are for example involved in about 70 percent of thetotal inland transportation in Russia. In Europe, medium and heavy trucks account for over 75percent of all inland transports, forming a € 250 billion industry. Moreover, the greater part ofthe total 15 million light commercial vehicles in the CIS and Eastern Europe are used bymobile workers and for activities such as distribution of goods and parcels.

Berg Insight is of the opinion that the fleet management industry is in a long-term growthphase. Key drivers in Eastern Europe and the CIS include cost reductions related to fuelsavings and regulatory developments such as ERA-GLONASS and the Platon electronic tollcollection system which increase the awareness of telematics. The number of fleetmanagement systems in active use in the region is forecasted to grow at a compound annualgrowth rate of 13.5 percent from 4.8 million units at the end of 2016 to 9.1 million by 2021.

The penetration rate in the total population of non-privately owned commercial vehicles isestimated to increase from 14.2 percent in 2016 to 24.2 percent in 2021. The Russian marketaccounts for a significant share of the region’s total installed base and is forecasted to growfrom 2.1 million active FM units at the end of 2016 to 3.5 million units by 2021.The leading FM solution providers in terms of installed base in the CIS and Eastern Europeinclude diverse players from a number of countries. Belarus-based Gurtam is the leading FMsoftware provider, having surpassed the milestone of 500,000 vehicles under management inthe region. Arvento Mobile Systems from Turkey and TechnoKom based in Russia are the firstand second runners-up, followed by Turkish Mobiliz and the Russian players NIS (MTS),SCOUT and Navigator Group. Additional top-15 players include Russia-based Omnicommwhich has around 100,000 active FM units, as well as Infotech in Turkey, Fort Telecom andSpaceTeam in Russia, the European market leader TomTom Telematics, Princip in the CzechRepublic, the major truck OEM Scania and Secret Control which is based in Hungary. Withthe exception of TomTom Telematics and Scania, the major international solution providersbased in Western Europe, North America or South Africa are yet to reach the top-15 list forthis region.

The expectations for the future fleet management market in Eastern Europe and the CISinclude a gradual convergence with the developments in Western Europe. Eastern Europe isalready tracing the most developed European markets closely in terms of system functionalityand service models. The major Russian solution providers have historically mainly servedlarge corporations with standalone software systems which are paid upfront and hosted inhouse,whereas subscription services traditionally mainly have been adopted by SMBs. Cloudservices based on recurring service fees have however now become a greater focus also formajor enterprise fleets on the Russian market and the domestic FM solution providers areincreasingly pushing for a transition towards SaaS-based models. Another key trend on theEuropean market is factory-fitment of OEM telematics, which is offered by most of the majortruck manufacturers. The local manufacturers in Russia/CIS have however not yet fullyembraced this development and the OEM fleet telematics activities remain comparablylimited in the region. The local commercial vehicle manufacturers in the CIS market are alsoexpected to gradually introduce proprietary telematics systems including vehicle tracking,remote diagnostics and other fleet management functionality, driven by regulatorydevelopments and increasing competition from Western truck OEMs.

Executive summary
1 Commercial vehicle fleets in the CIS and Eastern Europe
1.1 The commercial vehicle market in Russia and the CIS
1.1.1 Manufacturer market shares
1.1.2 Ownership structure
1.2 The commercial vehicle market in Eastern Europe
1.2.1 Manufacturer market shares
1.2.2 Ownership structure
2 Fleet management solutions
2.1 Fleet management infrastructure
2.1.1 Vehicle segment
2.1.2 GNSS segment
2.1.3 Network segment
2.1.4 Backoffice segment
2.2 Vehicle management
2.2.1 Vehicle diagnostics and maintenance planning
2.2.2 Security tracking
2.3 Driver management
2.3.1 Driving data registration and analysis
2.3.2 Video-based driver monitoring
2.3.3 Eco-driving schemes
2.3.4 Insurance risk management
2.4 Operations management
2.4.1 Routing and navigation
2.4.2 Transport management
2.4.3 Mobile workforce management
2.5 Regulatory compliance and reporting
2.5.1 Drivers’ working hours
2.5.2 Digital tachograph data download
2.5.3 Electronic toll collection
2.5.4 ERA-GLONASS and eCall
2.5.5 Other applications
2.6 Business models
3 Market forecasts and trends
3.1 Market analysis
3.1.1 Installed base and unit shipments – Eastern Europe and CIS including Russia 41
3.1.2 Installed base and unit shipments – Russia
3.1.3 Regional markets and players
3.1.4 Vendor market shares
3.2 Market drivers and barriers
3.2.1 Macroeconomic environment
3.2.2 Regulatory environment
3.2.3 Competitive environment
3.2.4 Technology environment
3.3 Value chain analysis
3.3.1 Telematics industry players
3.3.2 Automotive industry players
3.3.3 Telecom industry players
3.3.4 IT industry players
3.4 Future industry trends
4 OEM products and strategies
4.1 European truck manufacturers
4.1.1 DAF Trucks
4.1.2 Daimler Group
4.1.3 Iveco
4.1.4 MAN Truck & Bus
4.1.5 Scania
4.1.6 Volvo Group
4.2 Local truck manufacturers in the CIS
4.2.1 GAZ Group
4.2.2 Kamaz
4.2.3 UAZ
4.2.4 MAZ
5 International aftermarket solution providers
5.1 Astrata Europe
5.2 Garmin and partners
5.3 Masternaut
5.4 MiX Telematics
5.5 Telogis (Verizon)
5.6 TomTom Telematics
5.7 Transics – a WABCO company
5.8 Trimble
5.9 Viasat Group
6 Regional aftermarket solution providers
6.1 Arvento Mobile Systems
6.2 CVS Mobile
6.3 Ecofleet
6.4 Fort Telecom
6.5 Frotcom International
6.6 Gurtam
6.7 Mobiliz
6.8 Omnicomm
6.9 Ruptela
6.10 TechnoKom
6.11 Teltonika
6.12 WebEye International
7 Local aftermarket solution providers
7.1 Russia and the CIS
7.1.1 ANTOR Business Solutions
7.1.2 Arkan
7.1.3 Autoconnex and Vodafone Automotive
7.1.4 Autolocator (Megapage)
7.1.5 AutoTracker
7.1.6 BelTransSputnik
7.1.7 Benish GPS Ukraine
7.1.8 Cesar Satellite
7.1.9 Galileosky
7.1.10 Garage GPS
7.1.11 GlobalSat
7.1.12 GLONASSSoft
7.1.13 Glosav
7.1.14 ITOB
7.1.15 Live GPS Tracking
7.1.16 Locarus
7.1.17 Matrix
7.1.18 Micro Line
7.1.19 Moldcell
7.1.20 Navigator Group (ENDS)
7.1.21 Navis group
7.1.22 Navtelecom
7.1.23 NIS (MTS)
7.1.24 RCS
7.1.25 Ritm
7.1.26 RusLink (GdeMoi)
7.1.27 SCOUT
7.1.28 SpaceTeam
7.1.29 T-One Group
7.1.30 Vektor GPS
7.2 Eastern Europe
7.2.1 Aldobec Technologies (Dispecer)
7.2.2 AROBS Transilvania Software (TrackGPS)
7.2.3 Artronic
7.2.4 Business Lease Romania
7.2.5 EasyTRACK
7.2.6 ETA Automatizari Industriale (SafeFleet)
7.2.7 Evotracking (EVO GPS)
7.2.8 FALCOM
7.2.9 Framelogic
7.2.10 GPS Bulgaria
7.2.11 GSMvalve
7.2.12 GX Solutions
7.2.13 i-Cell
7.2.14 iData
7.2.15 Infocar
7.2.16 Infotech
7.2.17 iSYS Professional
7.2.18 Locator BG
7.2.20 Mireo
7.2.21 Mobilisis
7.2.22 MOVYS
7.2.23 Princip
7.2.24 SAS Grup
7.2.25 Satko
7.2.26 Secar Bohemia
7.2.27 Skyguard (Secret Control)
7.2.28 Sledenje
7.2.29 Tahograf
7.2.30 TrackNav
7.2.31 Viasat Technology (ICOM)
7.2.32 Webbase (Secret Control)
List of Figures
Figure 1.1: Commercial vehicles in use in Russia and the CIS (2013)
Figure 1.2: Structure of the Russian truck fleet by brand (2016)
Figure 1.3: Sales of trucks by brand in Russia (2016)
Figure 1.4: Sales of LCVs by brand in Russia (2016)
Figure 1.5: Commercial vehicle fleet structure in Russia (2017)
Figure 1.6: Commercial vehicles in use in Eastern Europe (2013)
Figure 1.7: Trucks (>3.5t) market shares, by group and brand (EU28+2 2016)
Figure 1.8: LCV manufacturer market shares (EU28+2 2016)
Figure 1.9: Examples of typical organisations for different LCV fleet sizes
Figure 1.10: Examples of typical organisations for different HCV fleet sizes
Figure 2.1: Fleet management infrastructure overview
Figure 2.2: Examples of FM device form factors
Figure 2.3: Data interfaces used by FM devices
Figure 2.4: Examples of peripherals connected to FM devices
Figure 2.5: Mobile network operators in Eastern Europe (2017)
Figure 2.6: Mobile network operators in Russia and the CIS region (2017)
Figure 2.7: Example of FM backoffice segment
Figure 2.8: On-board unit options for the Russian electronic toll collection system Platon
Figure 3.1: FM shipments and penetration rate (Russia/CIS/Eastern Europe 2016–2021)
Figure 3.2: FM shipments and penetration rate (Russia 2016–2021)
Figure 3.3: Top-15 FM providers, by installed base (CIS and Eastern Europe Q4-2016)
Figure 3.4: Financial data for telematics industry players (2016)
Figure 3.5: FM mergers and acquisitions in Europe and the CIS (2014–2017)
Figure 3.6: Examples of fleet management offerings by mobile operators (2017)
Figure 4.1: Fleetboard DispoPilot.guide powered by TomTom
Figure 4.2: Scania Fleet Management app interface
Figure 5.1: Masternaut Connect overview
Figure 5.2: TomTom WEBFLEET, LINK 510 and PRO 8275 TRUCK
Figure 5.3: TomTom PRO 2020 driver terminal
Figure 5.4: Overview of the Trimble PULSE connected field service solution
Figure 5.5: Viasat WebConsole app
Figure 6.1: Arvento’s imt.11, imt.14, imt.24 and imt.53 tracking devices
Figure 6.2: FORT TCU vehicle device from Fort Telecom
Figure 6.3: Fort Telecom’s Fort Monitor Hosting backoffice interface
Figure 6.4: Wialon Hosting web interface
Figure 6.5: Profi, Optim and LLS sensor from Omnicomm
Figure 6.6: AutoGRAPH hardware device family from TechnoKom
Figure 6.7: Teltonika’s FMB001, FMA110 and FM6320 fleet management products
Figure 7.1: BelTransSputnik’s BTSMobile Android interface
Figure 7.2: Transport monitoring system interface from Cesar Satellite
Figure 7.3: Galileosky Base Block and Galileosky 7.0 devices
Figure 7.4: GLONASSSoft’s web-based backoffice interface
Figure 7.5: Moldcell Transport Manager web-based vehicle monitoring interface
Figure 7.6: Navtelecom’s Cybermonitor web-based monitoring system interface
Figure 7.7: Scout MT-700 PRO 285 and MT-700 OBD-Dongle tracking devices
Figure 7.8: TELL Software Hungary’s EasyTRACK vehicle tracking system
Figure 7.9: SafeFleet X9 and fliGo app interface
Figure 7.10: Infocar web-based GPS fleet management interface
Figure 7.11: Locator BG Android app

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