Electronic Logging Device Market Analysis by Form Factor (Embedded, and Integrated); by Component (Engine Module, Display, and Telematics); and by Vehicle Type (Light Commercial Vehicle, Truck, and Bus)– Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4817 | Published Date: Apr 12, 2023
The global electronic logging device market size is estimated to reach ~USD 35.9 Billion by the end of 2035 by growing at a CAGR of ~7.14% over the forecast period, i.e., 2023 – 2035. In addition to this, in the year 2022, the market size of electronic logging device was USD ~15.69 Billion. The growth of the market can be attributed to the increasing number of people inclined toward online shopping. With the help of electronic logging devices on the driver’s vehicle, people can actually get the estimated time of delivery, trip distance, and others on the application. By 2027, around 3 billion people worldwide are expected to order a meal online. Moreover, in 2021, around 2 billion people globally shopped online.
In addition to these, factors that are believed to fuel the market growth of electronic logging devices include the rise in the number of the fleet management platform. For instance, Omnitracs, LLC, introduced Omnitracs One, a revolutionary modular, hardware-agnostic solution that offers a comprehensive offering for fleets of all sizes. Fleet owners can choose the proper devices based on their needs at any service level with hardware flexibility. Customers can expect ongoing assistance from the industry leader for service quality, as well as rapid access to the most robust network of technology partners. Besides this, the rising incidences of road accidents are also expected to augment the growth of the electronic logging device market.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~7.14% |
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Base Year Market Size (2022) |
~USD 15.69 Billion |
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Forecast Year Market Size (2035) |
~USD 35.9 Billion |
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Regional Scope |
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Growth Drivers
Challenges
The global electronic logging device market is segmented and analyzed for demand and supply by vehicle type into light commercial vehicle, truck, and bus. Out of the three types of vehicles using electronic logging device, the truck segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be attributed to the rising use of electronic logging devices in trucks and the growing need to lower the inspection time of trucks. As of May 2019, more than half of the 4 million trucks required to install ELDs had not done so in the United States. Moreover, truck driver inspections that resulted in at least one hours-of-service violation fell considerably from over 1% to less than a 1 percent between December 2017 and June 2019. On the other hand, government mandates for truck drivers to use electronic logging devices is also expected to augment the segment growth. Trucking businesses and independent truckers operating Class 8 commercial vehicles were forced by the United States Department of Transportation (DOT) to begin utilizing ELDs. It is done to ensure trucking companies follow existing driver hours-of-service requirements. To increase truck driver safety and minimize crashes, the laws limit drivers to 14 hours of labor every day, including 11 hours of driving.
The global electronic logging device market is also segmented and analyzed for demand and supply by form factor into embedded, and integrated. Amongst these two segments, the integrated segment is expected to garner a significant share in the year 2035. The growth of the segment is attributed to the integrated system having higher security and being more reliable. Moreover, the development cost of the integrated one is much lower than the embedded one. A general-purpose operating system and standard hardware are used to build an integrated system. The components, such as apps and operating systems have been designed to create a single operating system with specific capabilities. These functions can also be altered as per the need of the user.
Our in-depth analysis of the global electronic logging device market includes the following segments:
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By Form Factor |
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By Component |
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By Vehicle Type |
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The market share of electronic logging device in North America, amongst the market in all the other regions, is projected to be the largest with a share of about ~32% by the end of 2035. The growth of the market can be attributed majorly to the rising demand for online shopping and home deliveries of various items, such as clothes, electronics, food, and even services. As of March 2020, approximately 38% of American consumers had used a food delivery app to order food. By March 2021, around 47% of Americans will have used a food delivery app. Furthermore, almost everyone in America orders food online, with about 86% ordering at least once a month. On the other hand, market growth in the region is also anticipated on the account of rising use of smartphones and laptops to access the function of automobiles.
The European electronic logging device market is estimated to be the second largest, registering a share of about ~28% by the end of 2035. The growth of the market can be attributed majorly to the increasing penetration of the internet and the growing trend of online retail shopping. According to Eurostat, in 2022, 93% of EU households would have internet access, up from 72% in 2011. Furthermore, 68% of EU citizens ordered or acquired personal products or services via the internet in 2022, up from 54% in 2017. On the other hand, the rise in the number of automobiles connected to the internet of things (IoT) and the higher adoption of electronic logging devices is also expected to boost the market growth in the region.
Further, the market in the Asia Pacific, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the increasing cases of vehicle crashes and road accidents. According to the Accidental Deaths and Suicides in India 2021 figures, road accidents in India reached 422,659 in 2021 from a year earlier which is about 368,828. On the other hand, a rise in the number of people employed in delivery services is anticipated to boost the growth of the market in Asia Pacific. There are around 7 million food delivery drivers in China. In addition to this, Meituan, one of the country's second-largest delivery firms of China, announced in early 2019 that it had engaged over 3 million drivers in the previous year alone.
Truck Path, Inc. announced the launch of Geotab ELD and telematics technology to its increasing array of goods and services. The goal is to provide an extensive range of solutions that encompasses all of the necessary technologies and services for trucking companies to run effective, lucrative businesses.
AirIQ, Inc. announces the launch of the new design of their pre-existed electronic logging devices in partnership with VisTracks. The new ELD is registered with the FMCSA, and abide by the rules of both the United States, and Canada.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: Increasing incidences of vehicle crashes, rising number of online shoppers, and growing facilities of cab services are the major factors driving the market growth.
Ans: The market size of electronic logging device is anticipated to attain a CAGR of ~7.14% over the forecast period, i.e., 2023 – 2035.
Ans: High cost of these devices, fake sellers of ELD, and risk to the privacy of the driver and vehicle are estimated to be the growth hindering factors for the market expansion.
Ans: The market in the North American region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Pedigree Technologies, LLC, EROAD, Inc., Intrepid Control Systems Inc, Gorilla Safety Fleet Management., Omnitracs, LLC, Trimble Inc., Blue Ink Technology, Inc., WorkWave, LLC, Trucker Path, Inc., and AirIQ, Inc.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by form factor, component, vehicle type, and by region.
Ans: The truck segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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