ELD and digital tachograph mandate to drive revenue streams for vendors

The US Federal Motor Carrier Safety Administration (FMCSA) mandated the use of ELD for commercial vehicles from December 18, 2017. A 2-year window, till December 16, 2019, has been provided for vehicles that already have ELDs in place to update these devices as per FMCSA’s ELD technical specifications. Electronic logging device, also known as digital tachograph in Europe, is designed to record data related to the operation of the vehicle and driver activity. The driver information mainly concerns the hours of service (HOS), breaks, and driving behavior. The fleet operators are restricted to a maximum number of hours they can drive between rest periods. According to FMCSA, the ELD mandate will result in a USD 2.44 billion savings, most of which will be attributed to the amount of time drivers will save by not having to complete and submit time logs. In 2006, a similar mandate was implemented in European countries. As per the rule, from May 2006, all new vehicles over 3.5 ton in Europe had to be equipped with a tachograph. Later, in 2016, the European Commission adopted legislation defining new technical specifications for smart tachographs.

Driver’s Convenience and ELD

When the ELD mandate went into effect in 2017 with the required transition from paper logbooks to electronic logging devices, there was some resistance from the drivers. The technology was new to many drivers, and they were reluctant to accept this change as ELD will limit their earnings. However, this mandate helps in improving the operational efficiency of fleets and also helps to curb any possible exploitation of drivers.

In emerging countries such as China and India, limited infrastructure and lack of awareness among drivers and fleet owners are the major challenges for the mandatory implementation of ELD and its related technology. The GPS tracking device is expected to be mandated in every public transport in India from April 2019. The large amount of capital required to build the necessary infrastructure for ELD, data analytics, and cloud platforms will remain a key concern in these countries. However, because of the efforts of the governments and fleet operators in these countries to improve the transport sector, these challenges are expected to be effectively addressed. Also, the usage of 4G technology is growing at a rapid pace and is a major driver for the acceptance of ELD and the consequent market growth in the future. These factors, along with the rapid development in the economy, will make the Asia Pacific region a promising market for ELD in the near future.

MarketsandMarkets™ View Point:

The global electronic logging device market is projected to reach USD 16.6 billion by 2025 from USD 12.5 billion in 2018. Europe is projected to lead the electronic logging device market during the forecast period because of the strictly implemented mandate on digital tachograph in all the 27 countries in Europe. As of now, all commercial vehicles in Europe are equipped with an electronic logging device. According to MarketsandMarkets™ analysis, North America is expected to be the second largest market for electronic logging devices during 2018–2025.

Electronic Logging Device
e- Estimated; p- Projected     |     Source: MarketsandMarkets™ Analysis

Note: This market represents the ELD service market for new vehicle and aftermarket combined.

Some of the major technology vendors include Trimble (US), Omnitracs (US), Teletrac Navaman (US), Geotab (US), and Donlen (US). The companies are adopting various strategies such as mergers & acquisitions, partnerships and collaborations, and product developments to increase their share in the market. These activities have also been tracked and mentioned in the report. For example, Trimble acquired PocketMobile, a privately-held mobility solutions provider, headquartered in Stockholm, Sweden. PocketMobile is one of the leading European providers of enterprise mobile workforce solutions for international customers in the areas of postal service and logistics, security, and field services. The acquisition would accelerate Trimble’s development in the high growth field-to-office mobility market.


The global electronic logging device market is expected to grow in the near future because of the ELD mandate for fleet management in North America and the expected regulations in some Asian countries.  Geotab and Omnitracs are the leaders in the electronic logging device market. GeoTab and Omnitracs adopted the strategies of new product developments, supply contracts, and partnerships to sustain their market positions.  In 2016, Omnitracs launched the Omnitracs ELD Driver Retention Model, a predictive modeling solution that enables companies to identify and retain truck drivers who are most likely to leave their jobs voluntarily. In 2017, Geotab launched Driver DataSense, a service that helps fleets manage the HOS based on the data received from the Geotab device, paper log books, and driver time records. The growing awareness among the end users and the increasing need for operational efficiency in fleet owning organizations will play a crucial role in the growth of the electronic logging device market.

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