Russia, Eastern Europe Fleet Solutions Market Expected to Grow 13.5%

The number of active fleet management systems utilized in Eastern Europe, Russia, and other member states of the Commonwealth of Independent States (CIS) is expected to grow 13.5% over the next four years.

Fleet management systems actively used in these regions are forecasted to grow from 7.3 million units at the end of 2018 to 13.8 million by 2023, according to the latest Fleet Management in Russia/CIS and Eastern Europe - 5th Edition report. The definition of a fleet management solution according to the report is a vehicle-based system that incorporates data logging, satellite positioning and data communications to a back-office application.

Commercial vehicle fleets play an essential role in the economy for CIS (which includes Russia) and Eastern Europe, where several countries are part of important Pan-European transport corridors, according to the report. 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.

Meanwhile, around 10 million heavy commercial vehicles in the region account for a major share of the inland transports, the report said. In Europe, medium and heavy trucks account for over 75% of all inland transports, forming a $250 billion industry.

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% in 2018 to 29.8% 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 fleet management units at the end of 2018 to 5.6 million units by 2023.

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.