Electronic Logging Device Market Market Trends

Growth Drivers

• Rising Preference for Road Transportation – There will be more heavy, medium, and light-duty vehicles on the road as a result of the increased preference for road transportation in developing nations like China and India, particularly for last-mile deliveries. Road transportation is favored for delivering cargo in these nations due to poor connectivity and high rail freight expenses. Similar to this, due to insufficient freight services in wealthy nations like the US, a sizable amount of freight tonnage is handled by trucks. ELDs are becoming more and more popular as a result of the need to effectively manage growing fleets.
• Penetration of Mobile Devices – there has been a noticeable increase in the use of mobile devices, such as smartphones and tablets, especially in developing regions like APAC, MEA, and South America. The demand for smartphone-based Electronic Logging Devices (ELDs) is expected to increase as the global smartphone market expands during the forecast period. As per our analysis, in 2023, 270 million people, or 81.6% of Americans, will have smartphones in their possession by the end of 2023.
• Increasing Product Innovation - Major players in the electronic logging device industry are concentrating on creating cutting-edge products to improve their market share. For instance, Trucker Path, a US-based transportation network provider that specializes in online and mobile services for the trucking sector, introduced Geotab ELD and telematics technologies as an addition to its expanding product range in November 2022.
• Rising Demand in automotive safety- The usage of electronic logging devices (ELDs) is one of the most efficient ways to assure road safety, which is a major priority for commercial vehicle operators. Driver weariness has been significantly reduced because of ELDs, which also help to enforce Hours of Service (HOS) laws. This has a major positive impact on the market for electronic logging devices.

Challenges

• Privacy being compromised by its use – electronic logging devices use GPS tracking; these trackers record and monitor every move of a driver. The gadgets track within a one-mile radius while on duty and within a 10-mile radius when off duty. The user is constantly monitored and thus invades its privacy. Moreover, there is no perfect ELD product on the market. If any hardware, software, or connectivity malfunctions, or if a hacker interferes with the ELDs, it jeopardizes the safety of drivers and passengers.
• High Cost of embedded systems
• Difficulty in switching from paper logs to electronic systems.