Fleet Management Business Set for Growth in CIS/Eastern Europe

Swedish analyst firm Berg Insight predicts a bright future for commercial vehicle fleet management systems in Eastern Europe, Russia and surrounding CIS countries.

According to a new research report from the firm, the number of actively monitored vehicles in the region was 2.2 million in the last quarter of 2012. This number is expected to reach 6.1 million by 2017, crowing at a compound annual growth rate (CAGR) of 22.6 percent over the period.

According to Berg Insight, the key drivers for this growth include cost reductions related to fuel savings and regulatory developments such as ERA-GLONASS.“

The penetration rate in the total population of non-privately owned commercial vehicles is estimated to increase from 10 percent in 2012 to 23.8 percent in 2017.

The Russian market accounts for a significant share of the region’s total installed base and is forecasted to grow from 850,000 active FM units at the end of 2012 to 2.5 million by 2017.

Fragmented market

Belarus-based Gurtam is established as the leading fleet management software provider active across most countries in the region with more than 220,000 vehicles managed through its Wialon platform.

Arvento Mobile Systems from Turkey and TechnoKom from Russia are moreover top-ranking telematics players on their respective domestic markets. Other major Russian solution providers include M2M Telematics, ENDS and Russian Navigation Technologies. These have all estimated installed bases in the range of 60,000—85,000 active units. Additional significant players include Mobiliz, Fort-Telecom, Scout and Omnicomm.

Just like in Western Europe the market remains fragmented with the biggest player not weighting much more than 10% of the entire market.

In addition, “notable is the fact that none of the major international solution providers have managed to capture any significant market shares in this region,“ wrote Berg Insight.

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