Study Shows that ELD Mandate May Lead To Market Expansionby Jake Tully - Published: 9/29/2017
With the December compliance date for electronic logging devices (ELD) drawing near, some sources within the trucking industry are turning away from resistance to and turning towards a more positive viewpoint for the inevitable industry standard.
Market research firm Frost & Sullivan announced earlier today that their latest research entry, “Growth Opportunities and Implications of the Electronic Logging Device (ELD) Mandate in North America” has found that the ELD market may be responsible for a great deal of industry growth over the next 6 years.
According to Frost & Sullivan, the ELD market will likely support start-up companies, original equipment manufacturers and potential investors as factors to fuel substantial growth in trucking technology related ventures.
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Within the ELD market, Frost & Sullivan’s study projects a 20.2 percent compound annual growth rate from 2016 to 2023, with data collected from trends, opportunities, regulations and other tendencies that support the metrics.
Frost & Sullivan’s Senior Research Analyst Gokulnath Raghavan reports that small and medium fleets are likely to feel the impact of adopting more technology after the ELD mandate goes in to place, as many of the current fleets are without a great deal of technology.
"Nearly 34 percent of North American fleets operate as small fleets with less than 50 vehicles, relying on manual practices. ELDs could prove to be a driving factor for telematics adoption in this space," said Raghavan. "Furthermore, small and medium fleets hold 60 to 70 percent untapped potential for standalone ELD solutions."
Despite what could be a great deal of industry growth, sources such as the Truck Rental and Leasing Association (TRALA) argue that the ELD mandate may be burdensome in implementing, citing problems such as finding a system in which to switch over to ELD devices from existing ABORD devices with minimal effort.
Other concerns raised by TRALA are a perceived lack of awareness and enthusiasm in the adoption process as well as a wide swath of market options which may confuse fleet operators in finding the correct ELD provider for their needs beyond compliance.
Due to the reported concerns, Raghavan reports that the current ELD market would do well to see vendors extend themselves to customers through inventive and intuitive ways.
"The ELD market is fragmented with more than 50 vendors currently offering application-based, AOBRD- and ELD-like solutions,” said Raghavan. “To be successful, vendors will need to extend their product portfolios, develop competitive pricing, hold industry knowledge and expertise, build solid customer relationships and form collaborative partnerships."