Electronic Logging Devices (ELDs) Market Analysis Europe, North America, APAC, Middle East and Africa, South America - US, Germany, UK, Canada, Japan - Size and Forecast 2024-2028

Electronic Logging Devices Market Size 2024-2028

The global electronic logging devices (ELDS) market size is estimated to grow by USD 3.59 billion at a CAGR of 5.05% between 2023 and 2028. The growth of the market is driven by several key factors. The adoption of electronic logging devices (ELDs) is crucial for enhancing driving quality by ensuring accurate tracking of driving hours and improving overall road safety. Additionally, the rising preference for road transportation as a primary mode of freight and passenger transit further boosts the demand for ELDs. Compliance with stringent regulatory requirements aimed at promoting safer driving practices and reducing driver fatigue is another significant driver of market expansion. These factors collectively foster market growth by emphasizing safety, efficiency, and regulatory adherence, making ELDs an essential tool in modern transportation.

What will be the Size of the Market During the Forecast Period?

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Market Segmentation

The ELDs market is witnessing significant growth driven by regulatory initiatives like the LD mandate, especially in developed regions. These devices enhance operational efficiency for fleet-owning organizations by integrating embedded electronic logging devices. Their installation not only ensures compliance but also improves performance monitoring based on the driver's behavior and the vehicle's condition. Additionally, they facilitate tax reporting, CO2 emission tracking, and vehicle inspection. Leading players like Teletrac Navaman are innovating with features like fuel tracking and temperature monitoring, offering aftermarket services to both OEMs and end-users. Industry analysis encompasses SWOT analysis, company profiles, and recent developments, supported by authenticated secondary sources and industry experts for strategic decision-making. 

By Vehicle Type 

The light commercial vehicle holds the largest market share. The market will be dominated by light commercial vehicles in 2022 and will continue to do so in the forecast period. The automatically log driving time and hours of service for commercial drivers, ensuring compliance with regulations and aiding in schedule planning.

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The light commercial vehicle was valued at USD 7.08 billion in 2018. Furthermore, It is mandatory for many commercial vehicles produced after 2000. Non-compliance results in fines and penalties. The increasing sales and use of LCVs will drive the growth of this segment in the market during the forecast period.

By Region 

Europe is estimated to contribute 53% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market growth and trends that shape the market during the forecast period.

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Europe is expected to have steady growth in the market during the forecast period. Some major revenue-contributing countries in the market in the region include the Russian Federation, Germany, Poland, the UK, the Netherlands, and Italy. As the region is witnessing a high level of manufacturing activities, there will be a rise in the need for the delivery of goods. Some vendors are opening new logistics hubs to improve the logistics infrastructure in Europe. 

Moreover, vendors in the region are experiencing growth in their operations. For instance, on June 09, 2021, Masternaut Ltd., a leading fleet management services and solutions supplier, announced the launch of its new MoveElectric solution to support the management of company fleets as they transition from internal combustion engines (ICE) to electric vehicles (EVs). Such factors are expected to drive the growth of the market during the forecast period. 

Market Dynamics

The market is witnessing significant growth driven by regulatory changes such as the ELD mandate in regions like Europe and developed regions. These devices, often integrated into fleet management platforms like Omnitracs One, enhance operational efficiency for fleet-owning organizations by automating tasks like route distance tracking and delivery time monitoring. Despite initial concerns about installation cost, industry stakeholders are validating the benefits through internal databases and statistical tools, ensuring compliance with government regulations. ELDs, functioning as embedded electronic logging devices, are becoming essential tools for managing fleets, streamlining processes, and ensuring authenticated data through authenticated secondary sources like press releases and journals. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Drivers

Rising preference for road transportation and logistics is a key factor driving the market growth. The growing preference for road transportation in emerging countries like China and India, particularly for last-mile delivery, will lead to an increase in heavy, medium, and light-duty vehicles on the roads. Limited connectivity and high rail freight expenses in these countries make road transportation the preferred mode for cargo transport. Similarly, in developed countries like the US, trucks handle a significant portion of freight tonnage due to inadequate freight services. As a result, there is a rising demand to efficiently manage expanding fleets.

ELDs offer fleet managers real-time information on truck location, driver status, and fuel consumption, helping to reduce fuel costs and optimize fleet operations. This increasing preference for road transportation will drive the demand in the forecast period.

Significant Market Trends

Integration of mobile devices with ELDs is a key trend shaping the market. The use of mobile devices, such as smartphones and tablets, has increased significantly in recent years, particularly in developing regions like APAC, MEA, and South America. The global smartphone market is projected to grow substantially during the forecast period, leading to a higher demand for smartphone based  (ELDs).

Smartphone allows drivers easy access to their driving data through dedicated apps, enabling them to monitor their hours of service and stay within legal limits. Several vendors, including Geotab, offer smartphone-based ELD solutions that sync data between the ELD, the Geotab GO device, and the driver's mobile device, providing violation alerts, automatic duty status changes, and inspection workflows. This integration of mobile devices is expected to drive the adoption of ELDs in the forecast period.

Major Market Challenges

The availability of counterfeit and non-standard is a key challenge hindering market growth. The usage of counterfeit and non-standard can lead to numerous issues, including software glitches and loss of Bluetooth connectivity. These problems hinder the accurate tracking of mileage, location, and driving hours. Counterfeit and non-standard are manufactured with substandard materials in unauthorized factories, resulting in low-quality products prone to malfunctioning. They may lack adherence to quality standards and can even pose safety risks, such as flammability or providing inaccurate speed readings, leading to fines for drivers. The proliferation, often indistinguishable from genuine products, poses challenges for differentiation.

Major counterfeiters find the aftermarket supply of these through service providers a profitable and low-risk venture. Unscrupulous mechanics may also replace original parts with counterfeit, causing customer distrust and affecting the market's growth in the forecast period.

Key Companies & Market Insights

Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.

HOS247 LLC - The company offers namely ELD Logbook.

The report also includes detailed analyses of the competitive landscape of the market and information about key companies, including: 

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.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Component Outlook 
  • Telematics unit
  • Engine module
  • External display
• Vehicle Type Outlook 
  • Light commercial vehicle
  • Truck
  • Bus
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

Operating within a framework set by government regulations, ELDs accurately record and report hours of service (HOS) data for commercial vehicle drivers. The emphasis on compliance with HOS regulations is crucial for preventing fatigue-related accidents, promoting driver safety, and facilitating easier enforcement. The robust ELD solutions, driven by technological advancements, cater to various vehicle types, including long-haul trucks and delivery vehicles. The standardization of specific requirements and international efforts to harmonize regulations contribute to a favorable environment for widespread ELD adoption, particularly in logistics companies. The industry trends reflect a continuous focus on regulatory developments, technological advancements, and the adoption of ELDs to foster road safety and efficiency in the commercial transportation sector.

Moreover, the market is expanding rapidly, driven by the rising demand in automotive safety and the penetration of mobile devices. Embedded electronic logging device systems and integrated systems enhance the performance of the driver, ensuring compliance with Hours of Service (HOS) laws. Key players like Trucker Path and Geotab ELD are incorporating telematics technologies and GPS tracking to monitor the driver’s vehicle within a one-mile radius and a 10-mile radius. Despite the high cost of embedded systems, the market is growing due to aftermarket service offerings and partnerships with technology partners. Electronic logs help with tax reports and internal database management, while features like GSM module connectivity and protection against hackers ensure reliability. This is particularly beneficial for commercial vehicle operators to combat driver weariness and maintain efficiency.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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