Electronic Logging Device Market Analysis

Electronic Logging Device Market Analysis

The telematics segment is projected to contribute significantly to the electronic logging device market over the forecast period. Increasing developments in telematics services are enabling enhanced connectivity within the value chain requiring a smaller number of trucks to handle a greater transport volume, driving the industry demand for improved operational efficiency. The technology is also used to measure the performance of drivers and vehicles and is a core component in the industry.

The telematics software services can provide information regarding fuel efficiency, temperature monitoring, vehicle tracking, vehicle condition monitoring, tax report, and data transmission through a GSM module. The market is expected to witness a significant increase in the use of telematics units due to a wide range of features and ease of operation. The growth in electronics and computer technologies has pushed the capabilities of telematics units to collect & transmit the information for the high productivity of vehicles.

The integrated electronic logging device market will grow significantly in the future due to its low cost compared to the embedded system. Embedded systems consist of a display implemented in the device itself for providing information and other operations such as vehicle monitoring & diagnostics. Omnitracs, one of the leading players in the market, provides such display embedded ELDs. The Intelligent Vehicle Gateway (IVG) introduced by Omnitracs comprises a touchscreen to operate the electronic logging device. Such embedded devices offer comparatively more features and are also secure & reliable, witnessing wide adoption in the industry.

Many commercial vehicles are factory implemented with such devices, especially in the developed countries. However, the embedded systems incur high vehicle costs, which are not preferred by fleet owners. On the other hand, the integrated systems, which use mobile devices, such as smartphones, are much cheaper and do not require high installation cost.

The trucking industry dominates the global market and is expected to grow at a CAGR of over 4% from 2019 to 2025. There has been a high demand for the transportation of varied goods globally while challenges, such as a shortage of drivers and truck capacity, have made it crucial to manage the available resources with high efficiency. This has given a considerable lift to the use of advanced fleet management systems and technology in trucks. The global industry is expected to benefit from the growth of the commercial vehicle industry driven by countries including India and China. The LCV has been in demand, especially in the countries in Asia Pacific, due to growth in the middle-class population. The sensor technology developments, artificial intelligence, and advanced computing capabilities are pushing forward the implementation of these advanced devices in light commercial vehicles.

The European region has a mandatory regulation for implementing a type of electronic logging device known as digital tachograph. This device has been made mandatory in Europe since 2006 on all commercial vehicles having GVWR more than 3.5 tons. As a result, the region has most of its commercial vehicles embedded with these devices, driving the electronic logging device market growth. The growing demand for operational efficiency and considerably large sales of commercial vehicles are the key factors for the industry growth in Europe. 
 

The enforcement of several stringent regulations for the deployment of ELDs in the U.S. will be a major driver for the market in the region. The U.S. trucking industry has flourished over the years. According to the American Trucking Association (ATA), the U.S. freight transport will increase to 20.73 billion tons by 2028.