Electronic Logging Devices (ELDs) Market to grow by USD 3.59 Billion from 2024-2028, driven by improved driving quality and AI-powered market evolution - Technavio

NEW YORK, Nov. 27, 2024 /PRNewswire/ -- Report on how AI is driving market transformation - 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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Market Driver

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 providing real-time data on vehicle location, fuel consumption, and driver behavior. Developed regions lead the market, with integrated systems becoming increasingly popular. Installation cost is a concern, but the benefits of ELDs, including tax reports, vehicle condition monitoring, and CO2 emission tracking, outweigh the expense. Telematics units, GSM modules, and electronic logs are essential components. Fleet management platforms like Omnitracs One offer hardware flexibility and service quality, while aftermarket services and technology partners ensure seamless integration. ELDs facilitate strategic decision-making through statistical tools and online access to delivery time, route distance, and electronic logbooks. Trucks equipped with tablets and apps like Trucker Path and Geotab ELD offer additional benefits, such as fuel tracking, temperature monitoring, breakdown assistance, and vehicle theft tracking. Despite challenges like poor connectivity and hacking concerns, the market continues to grow, with OEMs and commercial vehicle operators embracing ELDs for improved safety and regulatory compliance. 

ELDs, or Electronic Logging Devices, offer enterprises valuable insights into their fleet operations through data analysis. Analytical tools and techniques, such as forecast analytics, charts, percentage change analytics, and numerical analytics, can be employed with ELDs to uncover meaningful patterns. Vendors like Omnitracs provide integrated ELD solutions that collect continuous data from drivers and vehicles. Customizable dashboards and templates enable enterprises to monitor productivity and location-specific information, allowing for informed decision-making. 

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Market Challenges

• 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 driving hours, vehicle location, and other important data. However, challenges exist, such as installation cost, poor connectivity in remote areas, and potential hacking risks. Developed regions are leading the market, with integrated systems, telematics units, and GSM modules becoming essential components. Fleet management platforms, like Omnitracs One and Geotab ELD, offer fleet management solutions, including fuel tracking, temperature monitoring, vehicle inspection, and breakdown assistance. Fleet management platforms also provide strategic decision-making tools, such as online delivery time and route distance analysis, using electronic logbooks and statistical tools. Commercial vehicle operators can benefit from these solutions to optimize fuel efficiency, reduce CO2 emissions, and ensure vehicle condition and driver weariness compliance. Additionally, OEMs and technology partners offer aftermarket services and hardware flexibility to cater to various fleet needs. The use of ELDs also facilitates tax reporting and road transportation, including last-mile deliveries and truck operations. However, challenges such as poor connectivity, driver weariness, and hacking risks persist, requiring continuous improvement in technology and safety measures.
• The trucking industry is facing a significant challenge due to a shortage of drivers. In 2017, there was a shortfall of over 50,000 truck drivers in the US, and this number is projected to reach 175,000 by 2026. The main reasons for this shortage include low wages, long working hours, and the implementation of Electronic Logging Devices (ELDs). The issue is particularly acute in urban and semi-urban markets, where truck drivers earn an average of USD21 per hour according to the US Bureau of Labor Statistics. The trucking industry needs to address this issue to ensure the timely delivery of goods and maintain efficiency in the supply chain.

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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. These devices automatically record driving time and hours of service (HOS) for commercial drivers, as well as track engine data, motion, and mileage. Compliance with industry regulations is a key benefit, allowing for real-time monitoring of drivers' statuses for fleet managers and dispatchers. The use of ELDs is mandatory for commercial vehicles produced in model years 2000 or later, as per the Federal Motor Carrier Safety Administration (FMCSA) and the MAP-21 Act. The increasing sales and use of light commercial vehicles will fuel the growth of the ELDs market during the forecast period. ELDs ensure adherence to necessary inspections, help with schedule planning, and prevent fines and penalties for non-compliance with federal regulations.

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Research Analysis

The Electronic Logging Devices (ELD) market has experienced significant growth due to the ELD mandate implemented by regulatory bodies worldwide. These devices, used for recording hours of service (HOS) of commercial motor vehicles (CMVs), have become essential for fleet management in developed regions. Integrated systems offer operational efficiency for fleet-owning organizations by providing real-time data on fuel efficiency, CO2 emission, fuel tracking, temperature monitoring, breakdown assistance, and vehicle theft tracking. Installation cost, delivery time, and online access to internal databases are key considerations for fleet managers. Statistical tools and fleet management platforms enable strategic decision-making through the analysis of data on route distance, driver's vehicle, and delivery time. OEMs and aftermarket service providers offer validation, triangulation, and authenticated secondary sources for enhanced service quality. Technology partners play a crucial role in the development and implementation of ELD systems.

Market Research Overview

The Electronic Logging Devices (ELD) market refers to the growing demand for technology solutions that help fleet-owning organizations comply with the ELD mandate and enhance operational efficiency. Developed regions are leading the adoption of ELD systems due to the advanced fleet management practices and the need for integrated systems that offer real-time vehicle data. ELDs consist of various components, including telematics units, GSM modules, and electronic logs, which help fleet managers monitor vehicle condition, fuel efficiency, CO2 emission, vehicle inspection, fuel tracking, temperature monitoring, breakdown assistance, and vehicle theft tracking. These systems also provide online access to tax reports, driver's vehicle information, and real-time data on delivery time, route distance, and electronic logbooks. OEMs and aftermarket service providers offer various hardware and software solutions, while fleet management platforms like Omnitracs One, Geotab ELD, and Trucker Path provide hardware flexibility, service quality, and strategic decision-making tools. However, challenges such as installation cost, poor connectivity, hackers, and driver weariness persist, and fleet managers must navigate these issues to fully leverage the benefits of ELDs. The market for ELDs is expected to grow significantly in the coming years, driven by the increasing demand for technology solutions in road transportation and last-mile deliveries.

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

About Technavio

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With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio