J'son & Partners Consulting has completed a study of the Russian transport M2M/IoT market. M2M/IoT systems are most widely used in cars and road infrastructure, while their use in rail, water, and air transport is lagging behind.

Key findings: 

• By the end of 2019, there were about 8.4 million connected commercial and non-commercial vehicles in Russia (15-16% of the existing fleet) and this figure is projected to approach 20 million by 2025.

• In the B2C segment, the main market driver is still the ERA-GLONASS project, (Emergency Response for Accident) thanks to which the share of connected non-commercial vehicles that are in personal use will continue to grow rapidly (this trend has been observed since 2017). By the beginning of June 2020, the number of vehicles registered in the system exceeded 5.3 million. ERA-GLONASS gives a significant impetus to the development of navigation technologies and intelligent transportation systems (ITS), creates an environment for the formation of new products and services, including monitoring of mobile objects, cargo safety control, high-precision positioning, and trusted execution environments.

• In the segment of commercial and non-commercial vehicles (fleets of state authorities, municipal services, etc.), the market for satellite monitoring of transport and fuel level still has the largest share. The total penetration rate of fleet management technologies by the end of 2019 did not exceed 20%, which indicates the still high potential of this market segment. A separate niche in this segment is occupied by platform vendors that allow to integrate hardware from different vendors. One of the largest players in this direction is the satellite monitoring platform Wialon, which is connected to more than 2.4 million cars worldwide. In Russia, about 1.1 million cars are connected to all versions of the platform (local and cloud), i.e. about half of all cars tracked via satellite.

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