ELD Market Size
The global electronic logging device market share is forecast to grow appreciably in the years to come, owing to mounting need to increase the operational efficiency in fleet management services. The devices are used mainly to record driving hours of commercial vehicles.
Due to the presence of a stringent regulatory framework, countries in North America and Europe have witnessed rapid growth in electronic logging device market. The United States imposed an ELD mandate back in 2017 for motor carriers to use electronic logging devices on all trucks and commercial vehicles.
U.S. electronic logging device market size, by component, 2018 & 2025 (USD Million)
The DoT (Department of Transportation) in the U.S. passed a new legislation that makes it mandatory for all driving hours to be recorded electronically using an ELD instead of the maintaining the traditional paper logbook. The new system came into existence due to ever-increasing accidents and fatalities that occurs on U.S. roads. As per DoT, 15% of the drivers claim that driver fatigue is the main reason for accidents. Mandating ELD in commercial vehicles has lent a massive boost to electronic logging device market outlook.
ELD system eliminates the need for drivers and carriers to maintain paper-based logs for their hour of service. It includes a mobile device within the vehicle which displays useful information such as available drive time and indicates when the driver needs to take a break. The ELD system is equally useful in managing fleet services. It increases driver safety, as it can report driver behavior, such as idling, speeding, harsh operations and utilization of vehicle. Monitoring driving habits is expected to encourage good driving habits.
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The U.S. Federal Motor Carrier Safety Administration (FMCSA) mandates that drivers record the roadworthiness of their vehicles before each trip, which requires drivers to go through a checklist of inspection points, such as-widescreen, tires etc. The ELD system allows drivers to fill in this inspection checklist through the in-cab tablet, which makes sure that nothing gets missed and is then uploaded to the cloud. FMCSA approved ELDs are therefore in demand, impelling ELD industry trends.
Vehicle diagnostics become easier to manage with an ELD system as it offers real-time reporting on fuel, carbon, odometer and fault codes, which allows organizations to actively set up maintenance plans and help avoid costly repairs due to unforeseen vehicle problems.
Since inspections by federal & state Department of Transportation officials are made easier with the implementation of ELD systems, government agencies are in support for rapid compliance with the mandate, a trend that is expected to augment ELD market size. Data shows that hours of service violations have dropped by more than half of the levels recorded on December 2017 and are continuing to fall.
As the new ELD regulation gets implemented, hundreds of fleets that use AOBRDs (Automatic on-board Recording Devices) will be compelled to phase them out and switch to technologically advanced ELDs by the end of 2019. The regulation will result in approximately 2 to 2.5 million trucks upgrading from AOBRDs to the ELDs.
Telecommunications giant AT&T is among one of the leaders in the ELD industry and is extending help to transportation companies to become ELD-compliant by providing hardware as well as with getting drivers up to speed on operating the device.
Omnitracs, a US-based software company and electronic logging device industry player had suggested that training all truck drivers in ELD usage is necessary. Careful documentation of what ELDs can track, what data is being collected and who is overviewing the collected data can help ensure a successful transition for drivers.
Asia Pacific, a region that is witnessing rapid growth in the use of commercial vehicles, is expected to create considerable scope for the ELD market expansion. There has been a considerable growth in the trucking industry in the region. For instance, in China, ELD buyers became eligible for a truck scrappage subsidy which is helping the trucking industry flourish in the region and is contributing to the ELD market share as well. Emerging economies like India will witness a growing demand for commercial vehicles owing to a surging middle-class population and increasing economic developments, which will in turn lead to electronic logging device industry growth.
Electronic logging devices are predicted to be integrated in commercial vehicles at a rapid pace due to increasing demand as well as mandate for consistent vehicle data monitoring and efficient management of fleet. The ELD market size is estimated to surpass USD 16 billion by 2025.
Author Name : Aakriti Kakkar
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