Global Electronic Logging Device (ELD) Market Research Report: Forecast (2022-2027)

Market Definition

An Electronic Logging Device (ELD) is a hardware system deployed in commercial vehicles to record real-time data such as fuel efficiency, driver behavior, Hours of Service (HOS), etc., that allows fleet owners to automatically track all driving activities throughout the day. The increasing adoption of ELDs in commercial vehicles to measure & record driver hours behind the wheel is for public safety primarily, as it relates to drivers falling asleep at the wheel or other such conditions, which could cause any mishap.

Market Insights

The Global Electronic Logging Device (ELD) Market is expected to grow at a CAGR of around 3.85% during the forecast period, i.e., 2022-27. With the increasing consumer reliance on IT integrated mobility and the burgeoning demand for e-commerce, automotive rentals, & ride-sharing services across the globe, there exists a persistent call for commercial vehicles to integrate ELD technology in fleet management.

In the recent past, the Federal Motor Carrier Safety Administration (FMCSA) estimated that implementing the ELD mandate in the US would result in an annual net benefit of more than USD1 billion, mainly by decreasing the amount of required industry paperwork. In addition, e-commerce platforms like Amazon use ELD for their logistics fleet, and products are offered to members of the Amazon Freight Partners Program with a plan to have ELD’s installed in hundreds of tractors & trucks by 2021. Significant investments are witnessed in the ELD’s expansion. For instance:

• Earlier in October 2019, Volvo Trucks announced its investment in connected vehicle technology and introduced a fully integrated ELD for its trucks through a partnership with a Telematics firm Geotab.
• In June 2021, Keep Truckin announced that it has raised a USD 190 million funding to expand its business and help its customers with video-based driver safety, GPS tracking, Electronic Logging Device (ELD) compliance, fuel spend management, etc.

Key Trend in the Global Electronic Logging Device (ELD) Market

Thriving E-Commerce Platforms to Boost the Market

The growing customer spending on healthcare & household products and the mounting inclination of consumers toward safe doorstep deliveries of groceries & essentials through E-Commerce platforms due to the Covid-19 pandemic has resulted in the incessant use of E-commerce companies like Amazon, Bazzar.ae, Bashara Care, etc., which, in turn, has devised significant investments in freight expansions of light commercial vehicles.

As a result, the heightening demand for commercial vehicles for travel & logistical services across the globe and rising data falsification among fleet drivers through conventional tracking practices have enabled governments to mandate the use of Electronic Logging Devices (ELDs). Additionally, stringent government regulations such as FMSCA in North America have come into effect, due to which the installation of ELDs in commercial vehicles has been made mandatory. Hence, this shall further fuel the overall market growth of ELDs in the coming years.

Covid-19 had a Dual Impact on the Global Electronic Logging Device (ELD) Market

• The Covid-19 pandemic in 2020 negatively affected the Electronic Logging Devices Market, principally due to a shortfall in tourism activities & commercial vehicles globally.
• The decline in the growth of the vital sectors negatively influenced the market forces (demand & supply), which resulted in significant revenue losses of Electronic Logging Device (ELD) manufacturers.
• However, the continuous need for FMCG products entwined with the ease of delivery options for consumers provided by E-commerce platforms saw an increasing trend, which surged the production & sales of commercial vehicles.
• Moreover, the ELD mandates for commercial vehicles by the government of North America and the European region also resulted in the surging demand for ELDs.

Market Segmentation

Based on the Vehicle Type:

• Light Commercial Vehicle
  • Light Trucks
  • Light Bus
• Medium & Heavy Commercial Vehicle
  • Trucks
  • Bus
  • Trailers
  • Others
• Passenger Cars
• Others

Of them all, the Light Commercial Vehicles segment is expected to gain significant momentum in the Global Electronic Logging Device Market during 2022-27, owing to the increasing demand for digitally integrated solutions in the automotive sector and expanding logistics chains. Operational expenses are a crucial part of any business strategy, and fleet managers always intend to minimize the running & maintenance costs of vehicles without impacting the outcomes.

Hence, to minimize operational losses & expenses, fleet managers are opting for advanced fleet tracking & preventive technologies to achieve cost efficiency. Additionally, advancements in automotive electronics and stringent government regulations for passengers & vehicle drivers shall also contribute to the overall market growth during 2022-2027.

Based on Installation:

• Embedded
• Externally Integrated

Here, the Embedded segment is expected to acquire a significant market share owing to the burgeoning demand for digitally integrated commercial vehicles due to the increase in tourism activities & logistics services globally.

• In June 2021, BlackBerry Limited announced its software QNX, a safety-certified embedded software in automobiles, deployed in over 195 million vehicles, i.e., a 20 million increase recorded than 2020.

Automotive units like Aptiv, BMW, Bosch, Ford, GM, Honda, Mercedes-Benz, Toyota, Volkswagen, etc., rely heavily on Blackberry QNX software technology to enable smart tracking in automobiles. The continuous development of Artificial intelligence(AI), Machine learning, etc., would help boost the demand for embedded ELDs during 2022-27.

Regional Landscape

Based on the Geography, the Global Electronic Logging Device (ELD) market expands across:

• North America
• South America
• Europe
• Asia-Pacific
• Middle East & Africa

Of them all, North America has been portraying a noticeable market growth since 2017. The United States completely dominated the regional market, with the share exceeding 80% in 2021. The ELD mandate for commercial vehicles was passed & implemented in the country in December 2017, followed by Canada, which came in effect from June 2021. The prime purpose of the ELD mandate is to create a safe environment for commercial drivers, reduce driver fatigue, enforce Hours of Service (HOS) rules, and minimize road accidents.

According to the Federal Motor Carrier Safety Administration (FMCSA), the ELD mandate is estimated to save 26 lives over 1,800 Commercial Motor Vehicle (CMV) accidents annually in the US. In December 2018, Daimler Trucks North America (DTNA) delivered the first Freightliner eM2 medium-duty electric truck to Penske Truck Leasing, which announced plans to put additional eM2 units into targeted service in its logistics, truck leasing, and truck rental fleets. With the increasing government regulations in North America regarding the safety of passengers & vehicle drivers, the demand for ELD’s is expected to significantly boom during 2022-27 and drive the regional market.

Recent Developments by Leading Companies:

• In March 2018, Samsara raised USD 50 million from General Catalyst & Andreessen Horowitz to promote expansion in its logistics management, coupled with the transportation business, i.e., adding over 1700 new customers each quarter. This funding intends to scale customer support while innovating new technologies to serve thousands of new customers by expanding the platform with new sensors, software, and AI-driven data analytics.
• Moreover, in July 2021, Samsara partnered with EVgo, the largest public Electric Vehicle (EV) fast-charging network in the US, to help consumers augment their transition to EVs.

Market Dynamics:

Key Driver: Increasing Government Regulations Regarding the Safety of Drivers & Vehicles

ELDs accurately record their driving times, making it more comfortable and faster to track, manage, share and improve the accuracy of a driver’s hours of service record, thereby helping drivers be less tired and stay within legally allowed driving hours.

Considering these advantages for the safety of drivers & vehicles, governments are moving towards enforcing the ELD mandate. For instance:

• In 2017, the US passed & implemented the ELD mandate for all commercial vehicles running in the country.
• On the other hand, the Canadian ELD regulations are likely to be implemented from 2022 onwards.

Hence, these significant initiatives would also encourage other countries to shift toward ELDs, which would drive the global market in the coming years.

Growth Restraint: High Initial Costs of Vehicles with Pre-Installed ELDs

Embedded ELDs used in commercial vehicles are costlier than the externally integrated ones since they consist of a touchscreen display to offer the required information and are highly accurate & reliable. The companies operating in the commercial vehicle sector would take some more time to opt for vehicles with pre-installed ELDs and shift to a fully-digital mode of operations, owing to their high costs. Hence, the cost associated with ELDs is the prime challenge to the overall market growth.

Key Questions Answered in the Market Research Report:

1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the Global Electronic Logging Device (ELD) Market?
2. What are the region-wise industry size, growth drivers, and challenges?
3. What are the key innovations, opportunities, current & future trends, and regulations in the Global Electronic Logging Device (ELD) Market?
4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the Global Electronic Logging Device (ELD) Market based on the competitive benchmarking matrix?
5. What are the key results derived from surveys conducted during the Electronic Logging Device (ELD) Market study?