Transport monitoring and navigation (Russian market)

Market size

2019: Russian transport IT services market grows by 24% per year

According to estimates by NP GLONASS, the Russian IT services market for transport is growing by 24% per year, and by 2030 its volume may increase to $1.6 trillion. This was announced in mid-October 2020 as part of the Avtonet 2020 international forum by the president of the GLONASS NP, co-head of the Avtonet NTI working group Alexander Gurko.

According to him, by mid-October 2020, about 30% of cars in the country are connected to GLONASS and Plato systems, thanks to which segments such as transport monitoring systems and hardware solutions for satellite navigation are actively developing.

According to the calculations of NP GLONASS, the volume of the Russian market for services based on telematic transport and information systems in 2019 amounted to 140.9 billion rubles, and in the world - $50.4 billion. The cost of intellectual mobility services (people's logistics) reached 850 billion rubles (in the world - $90 billion).

Also, the non-profit partnership estimated that the Russian market for transport and logistics services in 2019 reached 3.6 trillion rubles (in the world - $5.6 trillion). This includes E-Logistics, warehouse logistics and autonomous freight.

Alexander Gurko called Russia one of the world leaders in the development of digital transport, and also set China as an example for the implementation of a project to collect information from vehicles. In China, a comprehensive 3S concept was successfully introduced: a smart car, a smart expensive, smart city. The Chinese manage to develop Big Data in this direction, the president of the GLONASS NP emphasized.

Deputy Head of Rosstandart Alexei Kuleshov said that all market participants need to be actively involved in the development of regulatory and technical regulation of unmanned vehicles within the UN, since international rules are the basis for all countries.^[1]

2018: Omnicomm Data

Main figures:

• At the end of 2018, the volume of the main market segments amounted to about 14.9 billion rubles. and increased by 8.5% compared to 2017 data (13.7 billion rubles);
• Market structure: RUB 10.5 bln from the subscriber base of transport monitoring platforms, RUB 2.1 bln each - for terminal and fuel level sensor segments;
• More than 2 million vehicles and fixed facilities are connected to transport monitoring systems, the volume of the accumulated subscriber base increased by 6.6% compared to 2017 (1.95 million facilities);
• The growth of the subscriber base of the main developers of transport monitoring software was: OMNICOMM - 27%, Gurtam - 14%, TechnoCom - 7%.

According to Avtostat^[2], At the beginning of 2019, the share of freight and light commercial vehicles in the structure of the Russian fleet, which mainly uses telematics, amounted to 14.4% or about 8.3 million vehicles. Experts at the Omnicomm analytical center note that in 2018 the transport monitoring market showed stable growth - within 8%. New connections amounted to 250,000 terminals and 190,000 fuel level sensors. According to Omnicomm, the total penetration rate of transport monitoring technologies reached 15-17%, but this indicator differs significantly in segments. The highest figure is up to 50% ‒ in long-distance transportation, and in light commercial transport the share is only 5%.

The share of revenues from the software subscriber base is more than 70% of the transport monitoring market. The leaders in terms of subscriber base growth were the Russian platform/ Omnicomm Online(Omnicomm + 27% compared to 2017) WialonGurtam ,/( + 14%) and Autograph/TehnoK ( + 7%). In the segment of terminals for monitoring transport (15% of the market), the leaders are OMNICOMM (25%), Navtelekom (19%), which offers equipment in the budget price segment, and TechnoCom (17%). In the segment of fuel sensors (also 15%), ONMICOMM (37%), TechnoCom (16%) and Escort (16%) hold the leading position.

Transport Monitoring Market Growth Drivers:

The transport telematics market in the fuel level control segment is close to saturation - the penetration rate reached 76% in 2018. At the same time, there remains a high market potential for further equipping vehicles with terminals integrated with online platforms for monitoring transport. According to the results of the study, corporate customers are interested in supporting the safe driving function (25% of respondents), in technologies for controlling the temperature regime during transportation (for example, IQFreeze) - 22%. The demand for terminals that support the data transfer protocol under the Decree of the Ministry of Transport No. 153 reaches 20%, 15% of respondents expressed interest in video terminals.

"An important driver of the transport monitoring market is the position of the state, which seeks to take control of freight flows, infrastructure management, as well as reduce road mortality. According to our assessment, the increase in the number of connections will primarily be implemented on the basis of the current commercial fleet. From July 1, 2019, tachographic control of freight and passenger transport comes into force, which can contribute to the growth of new connections by 40%. So far, most tachographs are used to collect data on the driver's work and rest conditions, but in the future they can be connected using special devices to an online platform for monitoring transport and transmit parameters such as: speed, weight of cargo, temperature, etc. For example, OMNICOMM together with the leading producer of tachographs developed the decision which will allow to conform at the same time to requirements of Ministry of Transport and to obtain data for monitoring of transport in real time", ‒ Alexander Selivanov, the executive director of OMNICOMM comments.

In general, without taking into account the contribution of market regulators, the transport telematics market can grow to 10% due to sales of commercial vehicles and existing telematics services.

2017

Data iKS-Consulting

45% of all M2M SIM cards are in the transport area.

The market is approaching saturation, primarily in the segment of solutions for heavy-duty commercial vehicles. An increasingly common phenomenon in the segment is the presence of several telematic connections on one long-haul road train at once - mandatory PLATON, as well as specialized monitoring and control services, branded telematic services from truck and semi-trailer manufacturers.

According to iKS-Consulting estimates, the number of trucks equipped with branded telematic services from the manufacturer in Russia exceeds 25,000 units. The leading connections are services from Volvo Truck (Dynafleet) and Scania (Fleet Management System). In 2018, it is planned to enter the Russian market of the RIO telematics system from MAN Truck & Bus. Flexible system for packaging the main functionality of branded telematics systems, as well as the absence of the need for additional installations of any third-party systems.

Already about a million heavy trucks are registered in the PLATO system, which in the near future may become the basis for the development of a single digital transport complex platform (ECPTC), which will be implemented in stages and will be aimed at reducing costs and unifying transport and logistics solutions on one platform.

The consumer segment of the connected car market is also undergoing rapid development, the concept of a connected car is already becoming a reality. In many ways, this is ensured by growing competition for access to data from connected car. New market players are starting to struggle for access - Internet companies, with their multimedia platforms, automakers with connected car modules built into the pipeline, as well as insurance companies and a number of other players who were not previously represented in the transport segment.

Government projects are becoming one of the potential drivers of the growth of the connected car market. The ERA GLONASS project, in addition to the most important functionality for ensuring safety and emergency response in case of accidents, is the basis for the development of commercial services based on already connected cars. By the end of April 2018, almost 1.9 million cars were connected to the system and about 150 thousand (~ 8% of all connections) are subscribers to the paid road assistance service. At the same time, by the end of 2018, the total number of connected cars will exceed 3.5 million.

In addition to government projects, many specialized suppliers of Connected Car applications and platforms appear on the market, on the basis of which new digital services are formed.

The Russian IoT market in the transport segment remains highly competitive and at the same time very fragmented. The main projects that stimulate the development of the IoT segment in transport:

• Unmanned transport projects tested by both car manufacturers (KAMAZ) and service providers (for example, Yandex)
• Car sharing projects implemented jointly with municipalities of Russian cities (more than 10 operators in 3 cities of the Russian Federation)
• Develop specialized concepts, such as Autonet 2.0, that help implement and adapt current regulatory standards (both technical and legal) to the new service ecosystem

Data Omnikomm-Service

According to Omnikomm-Service, the market in Russia is recovering: in 2017, it showed an increase of 14%. A large share in the total turnover remains behind the five leaders - Gurtam, Omnicomm, TechnoCom, SCOUT and Fort Telecom. At the same time, Gurtam made 43% of new connections in Russia in 2017. To determine this figure, the total number of new connections was taken into account, as well as the average cost of the subscriber fee.

According to Omnicomm, the total share of Gurtam in the number of facilities in the transport monitoring market in Russia is 29%. These are 568,000 connections from 1,950,000 objects that have been connected in 2010-2017 years.

New Fleet Cost Reduction Tools

According to the new report "Global Market for Commercial Telematics" from the research company Allied Market Research, presented in early July 2017, the volume of the global market for commercial telematics by 2020 will reach $49.1 billion. The average annual market growth rate from 2014 to 2020 is expected to be 18.4%. By automotive telematics, Allied Market Research analysts mean information and telecommunications products that combine computers and telecommunications services to transfer large amounts of data to vehicles online.

Among the solutions in the field of reducing costs on corporate cars, experts distinguish technologies for analyzing driving style and reconstructing accidents.

Scoring as a basis

The driving style analysis technology provides control over the behavior of the driver and the operation of the vehicle based on dozens of parameters obtained from the telematic device. This is a kind of intelligent dispatcher that tracks the driving manner of each driver connected to the system and sets up an objective (scoring) assessment based on the collected information.

The scoring ball is formed due to such parameters as: speeding, sharp braking, acceleration, turns, changing the direction of movement, changing lanes. Driving style indicators are based on the kinematics of the car: speed and acceleration in time.

Among the main reasons for the use of such systems on commercial vehicles are the following: control of driving discipline (compliance with speed limits, etc.); improving the safety of cargo, vehicles and personnel; reduction of accident rate; elimination of negligent operation of the car; additional assessment of personnel and filling of motivation system.

According to a study conducted by T-1 Group analysts based on the results of pilot projects for the introduction of driving style analysis systems in commercial transport, the number of accidents and fines to drivers for traffic violations is more than halved.

The following are examples of the implementation of the solution in the fleet of 1200 vehicles (TC):

On the first graph, it is obvious that due to the introduction of a driving style analysis system, the transport company reduced fuel costs per year by 15%, which in the overall standings exceeded 300 thousand rubles. An important role in this case was played by the system of intra-corporate stimulation of drivers to operate the car as carefully as possible.

The second scheme reflects the reduction of the company's loss by half due to the repair of the car during an accident and its downtime.

Road accident reconstruction

The accident reconstruction service is a relatively new tool for Russia, but has already established itself as a tool for objective assessment of the accident. Due to the precise gyroscope and accelerometer, the telematic device determines speed and acceleration. Based on these data, the system determines the degree and strength of the impact, the place of the impact (s), and also reconstructs the accident itself, which suggests the guilt of the participants in the accident. The analysis of the accident takes place in real time, which allows you to quickly contact the driver and indicate the damage received.

A detailed report on each accident makes it possible to individually analyze the facts of violations of the prescribed driving rules using their visualization on the map.

In general, the accident reconstruction service allows companies to:

• differentiate drivers;

• avoid insurance fraud;

• classify accidents, the most emergency areas and create less emergency routes for drivers.

According to preliminary estimates of experts, companies that introduced various tools for monitoring and stimulating fleet drivers reduced annual fuel and lubricants costs by 15-20%, depending on fleet volumes and life expectancy, halved accidents, and also optimized car use by about 10%. According to company executives, while maintaining such trends, they are ready to spend money on improving the comfort of drivers on corporate cars, introducing additional "smart" solutions.

2016: Allied Market Research Forecast

According to the Allied Market Research report, the market for LBS services (geolocation-based services) will grow to $61.897 million by 2022 from $11.994 million in 2015 (annual growth of 26.6%). And if in 2015 the favorites for revenue in the market were mapping and navigation applications, then, according to forecasts, the market will further develop due to the introduction of innovative technologies and services, on the basis of which new business models will be created. The main drivers of the global development of the navigation industry in the coming years will be the monetization of commercial information, payment and media services, ERA + services and insurance telematics; expansion of the capabilities of the Connected Car; development of V2X technologies, information exchange "car - car" V2V, "car - infrastructure V2I," "car - man" V2P; mobile and secure cities; development of robots, UAVs, ALS and robots; creation of a single navigation space for the consumer by integrating various technologies: satellite, inertial, indoor-navigation; high-precision navigation technologies and guaranteed reliability, as well as the transition to new generation navigation devices.

First of all, it is assumed that it will significantly change both the navigation and car market development of technologies and services in a smart car. In the next 2-3 years, the penetration of connectivity technologies into the Russian automotive market will be 70-80%. The main drivers of growth are large infrastructure projects: Plato, ERA-GLONASS, Safe City, System 112, ERA-GLONASS Emergency Response System, weight and size control system. The invehicleinfotainment segment is rapidly developing - automotive infotainment systems.

Experts are united in one thing: the navigation market is formed in Russia and is successfully developing, the time has come for the mass introduction of commercial services.

2015

Data from the European Space Agency and EricssonConsumerLab

Experts assess the potential of the navigation market as high. According to a report by the European Space Agency, the market for satellite navigation devices and related navigation services in 2015 amounted to 250 billion euros and is growing annually by 7%. The number of devices using navigation chips in 2016 exceeded 5 billion. At the same time, the main share is occupied by services based on geolocation, thanks to the wide penetration of smartphones and mobile applications. In Russia, more than half of mobile SIM cards are installed in smartphones, while navigation applications, according to a EricssonConsumerLab study conducted in 2015, are used by about 20% of smartphone owners on a daily basis and half at least once a week.

Data Omnikomm-Service

The company Omnikomm Service"" notes that they expect a further decrease in demand for monitoring systems. However, they immediately explain that the fuel control segment is likely to increase, since the cost of fuel is projected to increase from 10 to 20%, which will undoubtedly attract new buyers who reduce costs. Of course, tachographs will also be in demand on the market. Demand peaks will fall on April 1, 2015 and autumn, since on these dates there are extensions in the list of controlled vehicles, as well as an increase in the level of business activity.

According to Omnicomm, the volume of new connections in the monitoring market transport Russia and the CIS countries in 2015 amounted to 200 thousand units of transport. The volume of facilities in the transport monitoring market in this region amounted to 1.8 million units by the end of 2015.

According to a new study by Berg Insight, the number of active equipment of control systems in the commercial fleets of Russia (CIS) and Eastern Europe in the year 2015 amounted to 4.2 million units.

The total annual average growth rate of market volumes (GAGR) until 2020 will be 13.5%. The total number of active equipment of control systems in commercial fleets will exceed 7.9 million by 2020. Most will fall on the Russian market.

2014: Data Omnikomm-Service

According to the Omnikomm-Service study of the Russian transport telematics market, the market grew in quantitative terms by 340  thousand equipped vehicles (TS). The growth rate, compared to 2013, is negative.

The number of connections decreased by 15% - a 2013 study showed a zero growth rate in 2013 compared to 2012. Less noticeably, the decline affected the number of installed fuel level sensors - 5% growth - 210  thousand installations during 2014.

Dynamics of new connections of monitoring systems and fuel level sensors over 5 years, 2014

Market leaders among terminal manufacturers in 2014:

• TechnoCom - 54  thousand equipped vehicles,
• Galileo - 48  thousand CU
• Omnikomm - 32  thousand CU.

Market Shares, 2014

Sales dynamics of terminal manufacturers over 5 years, 2014

In the segment of fuel consumption control systems, including in addition to the navigation and telematic terminal, specialized fuel level sensors, the leaders were the companies:

• Omnikomm - 125  thousand equipped vehicles,
• Technoton - 22  thousand equipped vehicles,
• Escort - 16  thousand equipped vehicles.

The market share of each company increased accordingly compared to 2013. The penetration of fuel control into the transport monitoring market increased by 7% and amounted to 62%.

The tachograph market reached 100  thousand units per year. Sales Leaders:

• Stroke-M - 35 thousand,
• Incotex - 22  thousand,
• Atol - 19  thousand

Tachograph Sales Market Shares, 2014

Dmitry Zhuravlev, General Director of Omnikomm-Service: "The monitoring market in 2014 was declining amid the lack of state projects and the active promotion of tachographs. Integrators of navigation equipment began to rebuild for the sale of tachographs, some players completely left the market. Constant changes in legislation regarding the equipment of tachographs during the year led to uneven demand and dumping in this segment, at the same time the Federal State Budgetary Institution Rosavtotrans tightened the conditions for obtaining the stamp of the workshop. The confusion in the requirements was explained by all producers of tachographs at thematic conferences and by the end of the year it became clear that out of 900 declared workshops, no more than 200 can actually work, and they have the right to this - no more than 50. The scheme with sublicensing activation of tachographs was declared illegal. Some workshops received significant fines. No one can count how many customers now use incorrectly established tachographs, and the fines imposed in November will put a burden on carriers. "

2013: Berg Insight and Omnicomm Data

Berg Insight expectations in the field of Russian transport telematics have decreased. In particular, the agency predicts a slowdown in the average annual growth rate of vehicles equipped with monitoring systems in Russia and the CIS to 15.7%. However, the forecast of the long-term capacity of the Russian transport telematics market remained almost unchanged. The 2013 estimate of 6.1 million equipped vehicles by 2017 decreased to 5.9 million by 2018, which means that despite the zero market growth rate during 2013, Berg Insight expects the market to continue to grow fairly dynamically in the next 3-4 years.

Data from the Omnicomm Analytical Center, included in the Berg Insight report, indicate that in 2013 the Russian transport telematics market in quantitative terms increased by 400,000 equipped vehicles, while the growth rate compared to 2012 was zero. In total, in Russia, according to the Omnicomm Analytical Center, at least 1.5 million units of transport and special equipment were equipped with transport telematics systems at the end of 2013.

Omnicomm Analytical Center published in February 2014 the results of a study of the Russian market for transport monitoring systems in 2013. The study was attended by 1370 companies - manufacturers, distributors and integrators of transport telematics systems from Russia and the CIS countries.

The study showed that in 2013, the Russian market for transport telematics in quantitative terms increased by 400,000 equipped vehicles, while the growth rate compared to 2012 was zero. The slowdown in market growth was also confirmed by participants of the Shark M2M Business conference held at the end of January 2014. In total, in Russia, according to the Omnicomm Analytical Center, at least 1.5 million units of transport and special equipment were equipped with transport telematics systems at the end of 2013.

The market leaders among manufacturers of transport monitoring systems in 2013 were companies

• Gurtam (135,000 connected vehicles),
• Technocom (56,000 connected vehicles) and
• Omnicomm (25,000 connected vehicles).

In the segment of fuel consumption control systems, including in addition to the navigation and telematic terminal, specialized fuel level sensors, the leaders were companies

• Omnicomm (130,000 vehicles equipped with sensors),
• Technoton (Technoton Trade) (15,000 equipped vehicles),
• PCC (10,000 equipped vehicles).

The total growth of this segment in 2013 amounted to 220,000 equipment, and the growth rate compared to last year decreased and amounted to 10%.

At the same time, the study showed that most participants in the transport telematics market, despite the results of 2013, expect growth this year. The growth driver should be, first of all, the action of order No. 236 of the Ministry of Transport of the Russian Federation on equipping transport with new tachographs, which can perform the main functions of monitoring transport and controlling fuel consumption.

2012

Data of Omnicomm

The transport monitoring market is one of the most dynamically developing and promising. According to Omnicomm, in 2012, more than 3200 companies worked in the Russian and CIS markets, and the volume of this market amounted to 400,000 terminals. The market leaders in terms of turnover in 2012 were: M2M-NIS Group of Companies - 6300 million rubles. (data from M2M-NIS Group of Companies) and Omnicomm - 765 million rubles. (data from Omnicomm). By the number of terminals produced, companies are leading: Technocom (76,000 pcs.), "M2M telematics" (30,000 pcs.) and "Russian navigation technologies" (28,000 pcs.). In terms of the number of connected vehicles to the software, the first places were taken by Gurtam (85,000 pcs.), Technocom (68,000 pcs.) And M2M telematics (30,000 pcs.). The volume of the segment of fuel sensors in 2012 amounted to 200,000 pcs, which is 30% more than 2011 years. The undisputed market leader is Omnicomm, which occupies 57% of the market, followed by Technoton (9%) and Sapsan (7%).

According to the Omnicomm analytical center, the global market for M2M equipment in commercial transport is about $2.7 billion, and the Russian market for transport monitoring equipment in 2012 reached $150 million. Thus, the share of the Russian market is about 6%, but its annual growth rate is at 20-30%. Domestic transport monitoring systems are becoming more complex and complex, the number of additional services being introduced is growing. The conference participants agreed with the forecast that by 2020 the penetration rate of transport monitoring systems will reach 20-25%.

GLONASS NP forecast for 2010-2012 years

The market for navigation systems in Russia will grow almost 10 times in 3 years. According to the forecast of experts (2011), by 2015 the turnover of funds will reach 100 billion rubles. Record market growth will provide state order. In 2012 alone, thousands of vehicles of the Ministry of Emergencies, the Ministry of Internal Affairs, the Russian Post and other departmental structures will be equipped with GLONASS navigation equipment. The largest projects, such as ERA-GLONASS, will scale the market and ensure the demand for tens of millions of chipsets with GLONASS support. Expansion into foreign markets will begin with the countries of the CIS and India, to which it is planned to supply professional high-tech systems - transport management complexes, facilities monitoring systems, etc.

According to the head of NP GLONASS Alexander Gurko (April 2013), the volume of the Russian navigation market by 2020 will increase by 20 times compared to 2012 and amount to 300 billion rubles. The main drivers of its growth will be the ERA-GLONASS system, the implementation of large projects, GLONASS implementation programs in the regions and the introduction of insurance telematics services to the market.

2011: GLONASS NIS data

The largest players in the navigation market in Russia are the company Navigation Information Systems (NIS), which has received the status of a federal operator in the field of satellite navigation, and M2M Telematics.

Another notable player is Russian Navigation Technology. The company, according to its own estimates, occupies 24% of the Russian market for motor vehicle monitoring systems, entering together with M2M Telematics and Navigator Technology (the developer of the Unified National Dispatch System) into the Big Three suppliers.

It is interesting to note that there are GPSGLONASS no generally accepted standards for on-board equipment for land transport control systems. Neither at us, nor abroad. There is no standard software for supporting such systems. All this leads to a zoo of appropriate decisions. Which will be liquidated sooner or later. In the meantime, in our country, the situation in this market looks like this: according to OJSC "(Russian navigation technologies RNT), about 15% of this market is occupied by about a thousand small suppliers. And the rest falls on several large players. RNT (system developer) Autotracker estimates its share in this market (by the number of vehicles equipped with specialized on-board GPS/GLONASS devices) at 28%.

According to the company, by the end of 2011, 143 thousand vehicles were equipped with its on-board units. And not only in Russia, but also in more than two dozen other countries (Ukraine, Belarus, Uzbekistan, Tajikistan, Kazakhstan, Azerbaijan, Kyrgyzstan, Egypt, Mongolia, Brazil, etc.).

2010: GLONASS NIS data

In June 2010, the general director of NISalexander Gurko estimated the entire navigation services market in Russia at $550 million, taking into account subscriber receivers.

As of July 2010, out of 8.1 million transport units in Russia, 250 thousand are equipped with a monitoring system, the penetration rate is 3%. By 2014, RNT expects an increase of 16.6%.

This information does not correspond to reality - according to data today, about 41 million vehicles are located in Russia, of which 33.51 million cars, 3.56 million light commercial (including minibuses), 3.53 million medium and heavy trucks, as well as 374 thousand buses. Experts say that in Russia over the past 3 years, the fleet has increased by more than 5 million, and in 5 years it will number up to 50 million vehicles.

You look also

• Transport Telematics (Global Market)
• Satellite communications and navigation
• Vehicle Safety and Control Systems
• TMS - Transport Management
• GLONASS
• Autopilot (unmanned vehicle)