Electronic Logging Devices (ELDs) Market Analysis Europe, North America, APAC, Middle East and Africa, South America - US, Canada, Japan, Germany, UK - Size and Forecast 2023-2027

Electronic Logging Devices Market Forecast 2023-2027

The Global Electronic Logging Devices (ELDS) market size is forecast to increase by USD 3.17 billion at a CAGR of 4.69% between 2022 and 2027. The growth of the market depends on several factors, including the use of ELDs to enhance the quality of driving, the rising preference for road transportation, and the need to comply with regulatory requirements. The US, Germany, Canada, Japan, UK are the top countries contributing to the market growth. The market research report of the US held the largest market share in 2021 and generated an outstanding revenue of USD 2.6 billion. Hos247 is one of the key market players in ELDs market and the company offers namely ELD Logbook. Besides analyzing the current market scenario, our market research and growth report examines historic data from 2017 to 2021.

What will be the Size of the Electronic Logging Devices (ELDs) Market During the Forecast Period?

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The market is witnessing rapid growth driven by the integration of advanced systems and the need for validation and triangulation of data. Industry players rely on fact books, investor presentations, and online resources for insights into market trends. Electronic logbooks installed in driver's vehicles facilitate efficient performance monitoring and ensure compliance with regulations. Moreover, its equipped with features like breakdown assistance and vehicle theft tracking, which provide enhanced security and innovation in fleet management. The market is characterized by continuous validation efforts, triangulation of data, and the production of white papers, patents, and value chain analysis to drive qualitative and quantitative insights. Additionally, customization options, diverse component types, and competitive benchmarking contribute to a robust product portfolio and extensive geographical reach. Despite challenges such as poor connectivity and high rail freight expenses, the ELD market thrives on hardware flexibility, superior service quality, and strategic partnerships for efficient last-mile deliveries.

Market Segmentation

This market report extensively covers market segmentation by component (telematics unit, engine module, and external display), vehicle type (light commercial vehicle, truck, and bus), and geography (Europe, North America, APAC, Middle East and Africa, and South America). 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 Component Analysis

The market share growth by the telematics unit segment will be significant during the forecast period. Telematics units are used to monitor assets in vehicles such as cars and trucks as well as heavy equipment using a global positioning system (GPS) and onboard diagnostics (OBD). They also support the recording of movements on maps. In addition, such devices report data related to low tire pressure, fuel use, and speed and idling. The generated data can help vehicle owners reduce the cost of maintenance by ensuring the adequate monitoring of vehicles and improve fuel efficiency by learning about the driving habits of drivers. Such factors will increase segment growth during the forecast period.

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The telematics unit segment, valued at USD 4.82 billion in 2017, has been steadily growing and is projected to continue this trend until 2021. Telematics units, used in conjunction, are essential in recording the Hours of Service (HOS) for commercial vehicles. These units transmit GPS and vehicle location data to a server, which generates a driver duty status log, continuously updating critical driving and HOS information. The adoption of telematics units yields significant benefits for enterprises, including cost savings, improved fleet productivity, enhanced safety, and adherence to regulations. As a result, vendors like Teletrac Navman and Geotab are offering telematics fostering the market's growth during the forecast period. Enterprises are embracing ELDs with telematics units to enhance services, reduce administrative costs, and ensure safety.

By Vehicle Type Analysis 

Based on vehicle type, the market is segmented into light commercial vehicle, truck, and bus. 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. 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.

Region Analysis

Europe is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers 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 ELDs 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 2022 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 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 costs 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.

Market Companies

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.

The market trends and analysis report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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 Ltd., Samsung Electronics Co. Ltd., Teletrac Navman US Ltd, TomTom International BV, 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.

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.

Electronic Logging Devices (ELDs) Market Scope
Report Coverage	Details
Page number	163
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.69%
Market growth 2023-2027	USD 3.17 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	4.57
Regional analysis	Europe, North America, APAC, Middle East and Africa, and South America
Performing market contribution	Europe at 54%
Key countries	US, Canada, Japan, Germany, and UK
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	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 Ltd., Samsung Electronics Co. Ltd., Teletrac Navman US Ltd, TomTom International BV, Trimble Inc., and Verizon Communications Inc.
Market dynamics	Parent market analysis,Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this  Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the size of the market  size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of electronic logging devices (ELDs) market companies

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