J'son & Partners Consulting has completed a study of the global and Russian markets for Connected Car systems. The study aimed to determine the prospects and opportunities for the Russian Connected Car market development.
In Russia, the market for Connected Cars is developing in accordance with the global trends, lagging behind developed countries by 2-3 years. The largest by a number of connections is the project on creation of the state automated information system "ERA-GLONASS" – as of July 15, 2019, more than 4 million vehicles were registered in it. Other major segments are telematics systems for monitoring commercial vehicles (Fleet Management) and monitoring heavy vehicles using on-Board devices ("Plato project"), security systems connected via a cellular network and infotainment media systems. The Big Three Russian mobile operators are among the main participants in the M2M/IoT transport market. The growth rate of the market is relatively low — about 15-20% per year, which is due to its closeness (in particular, the use of proprietary platforms and solutions), peculiarities of the operators’ tariff policy and a clear bias towards the corporate market.
Major Russian automakers and IT companies are following global trends in the Connected and, in the future, Driverless Car concepts. Examples are the creation of the LADA Connect telematics system for managing many functions of the car and the “Yandex.Auto” infotainment platform, testing of unmanned vehicles on public roads and other projects. Development of the ERA-GLONASS automatic emergency response system and additional services based on IT is one of the main factors for the growth of the Russian M2M/IoT transport market in the next few years. Another significant factor is the creation of unmanned transport systems – this project has received significant state support and funding.
The growth of the M2M/IoT market in Russian transport is constrained by the difficult economic and political situation, a significant decrease in demand for new cars, an increase in the share of used cars in sales, and an imperfect regulatory framework. The main drivers of growth in the Russian market are:
The market for Connected Cars in Russia will grow from 7.1 million in 2018 to 16.5 million in 2022 and the most capacious segments by the end of the forecast period will be: