The market for Electronic Logging Device is expected to reach US$ 12.04 Bn in 2028.
The growing need to improve commercial vehicles' operation efficiency is driving the world's electronic logging device market. Electronic logging device (ELD) technology is used in commercial vehicles, trucks, and buses to record driving time, hours of service (HoS), capture data on vehicle engine, movement & miles driven, and driver I.D. By using ELDs in their vehicles, drivers benefit from a reduced fuel cost reduction, increased driver productivity, and vehicle diagnostics in real time.
Moreover, with the advancement in technology, market players have developed a cloud-based ELD that is further easing the market demand. However, unskilled drivers and ELD's high initial cost obstruct market growth. Overall, the global electronic logging device market accounted for US$ 12.04 Bn in 2018 and was estimated to grow with a CAGR of 5.1% during the forecast period.
Among the vehicle types divided into the truck, bus, and LCV, the truck segment contributes a major share in the market due to the higher number of trucks equipped with ELD devices. However, the lack of skilled drivers and their smooth transition from AOBRDS to ELD is a major concern for the slow adoption rate expected to hamper this segment's growth in the long run. In addition, growth in the global middle-class population and their increasing disposable income are expected to drive the LCV segment towards a significant growth rate during the forecast period.
Moreover, in July 2019, Federal Motor Carrier Safety Administration (FMCSA) denied the request to exempt small carriers from the ELD mandate. This has further added the growth opportunity in the adoption rate in the LCV segment. This has further expected to drive the segment growth during the forecast period.
On the basis of geography, the global electronic logging device market is further segmented into North America, Europe, Asia Pacific, and the Rest of the World. In 2018, Europe captured the largest share of the global market. Mandatory ELD installation rule in Europe dates back to 2006, helping the market grow. In addition, digital tachographs were made compulsory in 27 European countries for commercial vehicles. Further, the well-established automotive industry and strict transportation laws are helping the region to capture a major share of the market.
Further, with the passage of the ELD-compliance law by the U.S. federal government, U.S. commercial vehicle drivers must use ELD mandatorily by 16th December 2019. This strict federal government law is driving the high demand for ELD devices in the region. Moreover, major players in the market, such as Donlen, Geotab, Inc., Garmin Ltd., Trimble Inc., and AT&T, are situated in the region. This has further added advantages to growing the region at the fastest rate.
The overall electronic logging device market is slightly fragmented, and market players are focusing on the partnership and acquisition of other small and medium players to increase their market share. Omnitracs (U.S.), Trimble Inc. (U.S.), Geotab Inc. (Canada), and Teletrac Navman U.S. Ltd are some of the leading players in the markets. Following is the list of major companies covered in this report.
The research report presents the analysis of each segment from 2017 to 2027, considering 2018 as the base year for the research. Compounded annual growth rate (CAGR) for each respective segment calculated for the forecast period from 2019 to 2027.
The current report also comprehends qualitative market valuation factors such as key market drivers, market trends, restraints, and opportunities to understand the global electronic logging device market better. In addition, the global report also comprises a graphical representation of a competitive landscape based on market initiatives and strategies, product portfolio, and business strengths.
The market for Electronic Logging Device is expected to reach US$ 12.04 Bn in 2028.
The Electronic Logging Device market is expected to see significant CAGR growth over the coming years, at 5.1%.
The report is forcasted from 2019-2027.
The base year of this report is 2018.
AT&T, Samsara Networks Inc., Omnitracs, Trimble Inc., Teletrac Navman US Ltd, ORBCOMM, Garmin Ltd. are some of the major players in the global market.