Electronic Logging Device Market to Reach $16 Billion by 2025
The electronic logging device (ELD) market will grow at a compound annual growth rate of more than 4 percent between 2019 and 2025, according to a new report by Global Market Insights, a market research and strategy consulting firm.
The ELD market is anticipated to grow in the future due to stringent government regulations requiring integration of such devices in the US and in European countries. The US devised the ELD mandate rule, which went into effect in December 2017, while Europe made digital tachographs mandatory for commercial vehicles with gross vehicle weight rating of more than 3.5 tons since 2006. The growing need to increase operational efficiency in fleet management services is pushing the implementation of these devices in commercial vehicles.
ELDs are primarily used to measure driving hours or hours of service. The ELD market is becoming more inclined toward extra smart features, such as vehicle tracking and monitoring, measuring driver performance, location details, power, and fuel status. Owing to the regulations for the deployment of these devices across several regions, fleet management providers are partnering with manufacturers for the implementation of such systems. Such partnerships will influence ELD market growth.
Asia Pacific is witnessing rapid growth in terms of the use of commercial vehicles, particularly in light commercial vehicles, and is expected to have considerable potential for ELD market growth. Meanwhile, BRIC (Brazil, Russia, India, and China) countries are expected to positively influence industry growth also due to increased sales volume. For example, in China buyers are granted a truck scrappage subsidy that is contributing to the growth of the trucking industry in the region, which in turn leads to ELD market growth. Explosive developments in production and industrialization are expected to keep demand high.
Increased digitization and the use of telematics technology are also fueling growth in the ELD market. Challenges arising due to a driver shortage will require fewer commercial vehicles to transport a greater number of goods, according to the report. Developed countries, especially the United States, are typically early adopters of IT technology and software solutions in the transportation sector, leading to high demand for telematics in commercial vehicles. The capabilities to monitor driving style, component wear, fuel efficiency, and protect materials are increasing the overall useful life of commercial vehicles. The connected vehicle trends, especially in developed countries, can improve route and efficiency management for commercial vehicles, creating additional opportunities for ELD market growth.
Keeptruckin, Omnitracs, and AT&T are some of the major companies in the ELD market. The companies also provide software platforms and apps for fleet management. These platforms allow smartphones and other devices to be used as ELDs. New product and platform developments are among the growing trends in the ELD market; platforms provide features such as fuel tax reporting, fleet safety and coaching, vehicle diagnostic functions, driver workflow, and messaging.
The major factor challenging growth in the ELD market is device cost, especially with embedded systems. Additionally, limits on hours of service enforced by the ELD mandate law faces resistance from some facets of the trucking industry. The mandate allows a maximum of eleven hours of driving in a fourteen-hour consecutive block. However, most drivers spend time waiting at shipping docks, which reduces the time of the fourteen-hour block, the report from Global Market Insights says. Because some drivers are paid based on distance and not on an hourly basis, these limitations have become a point of contention for drivers. Additionally, switching from paper logs to electronic devices can be a difficult process for some fleet management companies, limiting the industry growth.
For more information: https://www.gminsights.com/industry-analysis/electronic-logging-device-market
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