Russian Market Overview

Infinite possibilities, infinite opportunities as IoT grows in Russia.


By Evgeny Suvorov

The Russian market has turned towards the Internet of Things (IoT), with several projects underway, particularly in the areas of agriculture and mining. The largest of these projects have been initiated and backed by the state.  The most striking example is probably the introduction of the “Platon” system, an IoT-based road levy collection system comprised of on-board units and data processing centers that collect, process, store and automatically upload data on the movements of heavy goods vehicles.

The total number of IoT devices in Russia was over 16 million by the end of 2015, according to analytic company J’son & Partners Consulting. This means Russia’s share in the total number of worldwide installed systems (which Ericsson estimates as 4.6 billion) is about 0.35%. If development continues at the same pace, experts predict that the number of connected devices in the country by 2018 will have doubled to over 32.5 million, so it is clear that Russia will also experience market growth driven by the IoT.

In response to this growth, many Russian and foreign companies have opened laboratories and corporate centers to develop IoT-related devices and services.  For example, Intel has opened the Ignition Lab laboratory in Moscow. This laboratory provides solutions based on Intel processors to Russian companies for transport, energy, and “smart” security, with remote management through a global network.

SAP, one of the largest European manufacturers of software for the enterprise market, announced its intention to open a Russian center for IoT in 2016, with the premise of having a collaborative innovation laboratory. SAP expects this to be the world’s fourth largest center for the Internet of Things after Germany, France, and Japan. The platform will provide customers and partners with the opportunity to learn about the company’s IoT technologies and how to implement these in different sectors: mechanical engineering, energy, transport, mining and processing industries, and others.

Telecommunications operator Rostelecom and Russian Space Systems (RSS) have signed a memorandum for the establishment of the Association for the Development of the Industrial Internet, to encourage the adoption of IoT technology in various sectors of the Russian economy: mechanical engineering, power engineering, transport, mining and processing industries, etc. According to the organizers, the Association will be an open platform for multilateral cooperation in the field of IoT for industrial enterprises, software and hardware solutions providers, integrators, operators, scientific organizations and other participants.

SEMICON Russia 2016, taking place 7-9 June in Moscow, will address IoT and smart technology through various programs.  The 1st Russian Hi-tech Strategy Symposium on 7 June at Renaissance Moscow Monarch Hotel will be the highlight of the show. The Symposium will present a range of exciting topics, including state programs to develop IoT, venture investments, the role and prospects of industrial internet (Industry 4.0) in Russia, smart cities and unmanned systems technology, as well as flexible electronics.

The TechARENA sessions on the show floor will zoom in on specific themes, including Industry 4.0, MEMS for IoT, smart cities and unmanned transport. The the organizers of these sessions include: Agstrem (Russia), infrastructure and educational programs of ROSNANO (Russia), TRONIC Group (Singapore), memsfab (Germany), GLONASS (Russia), and Russian Venture Company (Russia) to list a few.

Evgeny Suvorov is the Regional Director for Russia and CIS at SEMI.