Electronic Logging Devices (ELDS) Market size is set to grow by USD 3.59 billion from 2024-2028, Use of ELDs enhances quality of driving to boost the market growth, Technavio

NEW YORK, Aug. 7, 2024 /PRNewswire/ -- The global electronic logging devices (ELDs) market  size is estimated to grow by USD 3.59 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 5.05%  during the forecast period. Use of ELDs enhances quality of driving is driving market growth, with a trend towards use of analytics with ELDs. However, shortage of drivers due to use of elds  poses a challenge. Key market players include AT and T Inc., Danlaw Technologies India Ltd., Donlen Corp., EROAD Inc., Garmin Ltd., Geotab Inc., HOS247 LLC, InTouchGPS, Intrepid Control Systems Inc., Masternaut Ltd., Merchants Fleet, Omnitracs LLC, ORBCOMM Inc., Pedigree Technologies LLC, Racelogic, Samsung Electronics Co. Ltd., Teletrac Navman US Ltd., TomTom NV, Trimble Inc., and Verizon Communications Inc..

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Key Market Trends Fueling Growth

ELDs, or Electronic Logging Devices, are essential tools for enterprises managing fleets. Vendors like Omnitracs offer integrated ELD solutions with analytical capabilities. These solutions collect and analyze data from drivers and vehicles, providing valuable insights through various analytical tools. Fleet managers can segment data based on regions, business units, vehicles, and drivers, enabling them to identify underperforming assets and drivers. Custom KPIs and dashboards offer a holistic view, ensuring optimal vehicle and driver performance. Reports highlight potential issues, such as poor driving behavior or vehicle maintenance needs. By preventing accidents and improving productivity, the use of analytics with ELDs is a significant growth driver for the market. 

The Electronic Logging Devices (ELD) market is experiencing significant growth due to the ELD mandate, which requires fleet-owning organizations to install and use ELDs in their commercial vehicles. These devices help improve operational efficiency by automatically recording electronic logs, including vehicle's condition, fuel efficiency, CO2 emission, and vehicle inspection records. Integrated systems with telematics units, GSM modules, and internal databases offer fleet management platforms features like real-time fuel tracking, temperature monitoring, breakdown assistance, and vehicle theft tracking. Developed regions lead the market, with OEMs and aftermarket service providers offering various hardware flexibility and service quality. Installation costs are a concern for some fleet-owning organizations, but the benefits of ELDs, such as tax reports, delivery time optimization, and route distance analysis, outweigh the initial investment. Fleet management platforms like Omnitracs One, Geotab ELD, and Trucker Path are popular choices for online fleet management, offering strategic decision-making tools and integration with food delivery apps and road transportation services. However, poor connectivity remains a challenge in some areas, limiting the effectiveness of ELDs for last-mile deliveries. In summary, ELDs are essential for fleet management, offering numerous benefits like operational efficiency, regulatory compliance, and improved vehicle performance. The market is expected to grow further as more fleet-owning organizations adopt these technologies and technology partners collaborate to offer integrated solutions. 

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Market Challenges

• The trucking industry is facing a significant challenge due to a shortage of drivers. With an increasing number of retirees and a low influx of new drivers, the shortfall is projected to reach 175,000 by 2026. Low wages, long working hours, and the implementation of Electronic Logging Devices (ELDs) are contributing factors to this issue. ELDs limit drivers to work for a maximum of 55 hours a week, reducing their weekly earnings. Since many drivers are paid based on miles driven and hours spent behind the wheel, which includes waiting time at loading docks, their earnings can decrease, and flexibility can be compromised. Consequently, drivers who adhere to ELD mandates may be left idle for 8 hours, further decreasing their earnings. The presence of ELD regulations may exacerbate the driver shortage, posing a significant challenge for the growth of the global ELD market.
• The Electronic Logging Devices (ELD) market is growing rapidly in the road transportation industry. ELDs help commercial vehicle operators comply with regulations by automatically recording vehicle inspection data, fuel consumption, temperature monitoring, and more. However, challenges persist. Vehicle inspections, fuel tracking, and temperature monitoring require reliable connectivity. Breakdown assistance and vehicle theft tracking necessitate real-time data access. Aftermarket services and OEMs must ensure hardware flexibility and service quality. Internal databases and statistical tools aid strategic decision-making, but poor connectivity can hinder delivery time and route distance. Telematics technologies like GPS tracking, Geotab ELD, Omnitracs One, and Trucker Path offer solutions. Driver weariness and hacking are concerns, but ELDs can improve safety and efficiency. Online fleet management platforms and tablets facilitate food delivery and last-mile services. Despite challenges, the future of ELDs in road transportation looks bright.

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Segment Overview 

This electronic logging devices (elds) market report extensively covers market segmentation by

1. Vehicle Type
• 1.1 Light commercial vehicle
• 1.2 Truck
• 1.3 Bus
2. Component 
• 2.1 Telematics unit
• 2.2 Engine module
• 2.3 External display
3. Geography 
• 3.1 Europe
• 3.2 North America
• 3.3 APAC
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Light commercial vehicle-  The Electronic Logging Devices (ELDs) market is primarily driven by the use of ELDs in light commercial vehicles (LCVs). These devices automatically record driving time, hours of service (HOS), engine data, motion, and mileage for commercial drivers. Compliance with industry regulations is a significant factor, as ELDs help ensure adherence to necessary inspections, schedule planning, and real-time driver status monitoring. The MAP-21 Act of the Federal Highway Administration mandates the use of ELDs for commercial drivers, and vehicles with engines produced in or after 2000 are subject to this requirement. Failure to comply with the federal ELD mandate can result in fines and penalties. With the increasing sales and use of LCVs, the ELDs market for this segment is expected to grow during the forecast period.

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Research Analysis

The Electronic Logging Devices (ELD) market has experienced significant growth due to the ELD mandate, which requires fleet-owning organizations to install and use ELDs in their commercial vehicles. These devices help improve operational efficiency by automatically recording driving hours, reducing paperwork, and providing real-time fleet management. Developed regions have shown a high adoption rate for ELDs, with integrated systems becoming increasingly popular. The installation cost of ELDs can vary, but the benefits of improved fuel efficiency, reduced CO2 emissions, and enhanced fleet management outweigh the initial investment. ELDs offer various features such as fuel tracking, temperature monitoring, breakdown assistance, and vehicle theft tracking. Online fleet management platforms like Omnitracs One provide access to internal databases and statistical tools for strategic decision-making. ELDs can also integrate with telematics units, providing real-time data on delivery time, route distance, and electronic logbooks. Service quality and technology partners play a crucial role in ensuring the success of ELD implementations. Authenticated secondary sources and validation through triangulation are essential for ensuring the accuracy and reliability of ELD data. Strategic alliances between OEMs and aftermarket service providers can help streamline the installation process and provide ongoing support. The future of the ELD market looks promising, with continued innovation and integration with other technologies such as food delivery apps and the internet.

Market Research Overview

The Electronic Logging Devices (ELD) market refers to the growing trend of implementing electronic systems to record and manage vehicle data in compliance with the ELD mandate. These devices enable fleet management for fleet-owning organizations by providing operational efficiency, real-time vehicle monitoring, and regulatory compliance. Developed regions are leading the market adoption, with integrated systems offering features like fuel efficiency, vehicle inspection, temperature monitoring, and breakdown assistance. ELDs consist of a telematics unit, GSM module, and electronic logs, which help in tax reporting, CO2 emission tracking, and driver weariness monitoring. The installation cost varies depending on the hardware and connectivity requirements. OEMs and aftermarket service providers offer ELD solutions, with fleet management platforms like Omnitracs One, Geotab ELD, and Trucker Path providing hardware flexibility, service quality, and strategic decision-making tools. The market also includes telematics technologies for commercial vehicle operators, with features like GPS tracking, one-mile radius, and 10-mile radius reporting. However, challenges like poor connectivity, hackers, and safety concerns persist, making it essential for technology partners to ensure robust security and reliability. The market continues to evolve, with last-mile deliveries and road transportation becoming increasingly reliant on ELDs and fleet management platforms.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Vehicle Type
• Light Commercial Vehicle
• Truck
• Bus
• Component
• Telematics Unit
• Engine Module
• External Display
• Geography
• Europe
• North America
• APAC
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

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SOURCE Technavio