The expansion of the logistics industry worldwide has had an undeniable impact on the revenue graph of electronic logging device (ELD) market. Indeed, with countries across the European Union and North America making integration of ELD mandatory in commercial vehicles, the global ELD market is now looked upon as a highly lucrative investment avenue.
U.S. electronic logging device market size, by component, 2018 & 2025 (USD Million)
While the initial purpose of ELDs was to monitor & record the time a trucker spends behind the steering wheel, presently, these products are equipped with substantial capabilities other than just tracking Hours of Service (HOS). According to ELDFacts.com, a standard ELD today is connected to the vehicle’s engine to monitor whether the vehicle is off, on, or in motion. Apart from recording the driver’s shift & the total miles driven, the device also monitors the vehicle’s location. Moreover, the ELD is also capable of transferring collected data over the internet or through a storage device.
These abilities make the ELD a considerably sophisticated & well-equipped device, readily adaptable to changes should they come up in the future. As technological advancements pertaining to these devices surge, ELD market is certain to chart out a successful growth path in the future.
Impact of the expanding logistics sector on the ELD market
The Significance: The biggest growth facilitator of ELD market is the global logistics industry. While the dynamics of the logistics industry are quite diverse as on today, encompassing everything ranging from container shipping to air freight, a commercial truck is still the most widely used means of transport. Consequentially, this trend is boosting the growth of the trucking industry which would, in turn, fuel the ELD industry expansion over the coming years.
The Numbers: According to the World Economic Forum, global population is growing at an exponential rate & is slated to reach 9 billion by 2050. Moreover, it has been estimated that by 2030, there would be more than 41 megacities across the globe, with a population of more than 10 million people each.
The Projections: With a growing middle class populace worldwide, the proliferation of internet services and the expanding demand for e-commerce, the logistics sector is slated to witness substantial growth in the years to come. This growth will undoubtedly have an impact on the ELD market as the demand for land-based logistics solutions keeps on increasing.
Impact of the advent of driverless trucks on the ELD market
According to the International Transport Forum, driverless trucks are slated to become a regular presence across a number of roadways within the next decade. Autonomous trucks are already operating across controlled environments such as mines & ports and public road trials are already underway in several regions including the European Union & the United States.
The Impetus: While autonomous trucks enable significant cost savings, safer roads and lower emissions, the most prominent factor that is promoting the commercial launch of driverless trucks is the fact that trucking as a profession is likely to soon reach culmination.
The Numbers: The International Transport Forum found that an estimated 6.4 million truckers would be required throughout the EU and the U.S. by 2030. However, less than 5.6 million are slated to be available & willing to fill those positions.
The Need: This aforementioned gap, along with the projected expansion of the logistics sector, have put immense pressure on the driverless trucking industry to hit mass commercialization. This is where ELDs have made their presence felt – while they were initially developed with the sole purpose of monitoring the truck drivers to increase their efficiency, the device, helped by its flexibility, could easily be used to monitor driverless trucks through a centralized fleet management system.
The ready availability of a sophisticated monitoring system, which would be essential for bringing driverless trucks on the roads, would be opening up a new avenue of growth for ELD industry players in the forthcoming years.
Fueled by these developments, the ELD market revenue graph is slated to depict significant gains over 2019-2025. In fact, according to a research report by Global Market Insights, Inc., the ELD market size is estimated to surpass the remuneration figure of $16 billion by 2025.