The number of fleet management systems deployed in Russia and Eastern Europe is expected to reach 7.9 million by 2020, according to a new report from Berg Insight.

The market research firm found that the growing at a compound annual growth rate of 13.5% with its most recent amount at 4.2 million at the end of 2015.

"Eastern Europe is already tracing the most developed European markets closely in terms of system functionality and service models," said Rickard Andersson, senior analyst at Berg Insight.

Major Russian solution providers generally serve standalone software systems that are paid upfront and hosted in-house. However, many small and mid-size businesses have adopted subscription services.

"Cloud services based on monthly service fees have however now become a greater focus also for major enterprise fleets on the Russian market and the domestic solution providers are increasingly pushing for a transition towards Software as a Service (SaaS)-based models," Andersson said.

Andersson also notes a shift in customer demand, with an increased interest in time- and money-saving automation tools as well as eco-friendly driving components.