Research conducted by Frost & Sullivan showed that the electronic logging device (ELD) mandate could bring about expansion to the ELD market over the next six years and growth opportunities to the trucking industry.
Their research, “Growth Opportunities and Implications of the Electronic Logging Device Mandate (ELD) Mandate in North America,” came at the right time considering how the ELD rule is just a little over two months away.
The study also revealed that the ELD market would likely help startups, original equipment manufacturers (OEMs), and even bring in potential investors. It can also result in substantive growth in technology-related ventures in the trucking industry.
In 2012, the US Congress enacted the “Moving Ahead for Progress in the 21st Century” bill.
Among other things, the bill required the Federal Motor Carrier Safety Administration (FMCSA) to put together a rule requiring the use of ELDs.
The bill has been opposed numerous times since its inception.
In 2016, the Owner-Operator Independent Drivers Association (OOIDA) challenged the ELD mandate. However, the U.S. Court of Appeals voted to uphold the mandate, prompting the OOIDA to forward their case to the Supreme Court.
In June 2016, the Supreme Court rejected OOIDA’s appeal, ending OOIDA’s legal battle against the mandate.
Now, the December 18, 2017, ELD implementation date remains unchanged.
The Frost & Sullivan study projected a 20.2 percent compound annual growth rate (CAGR) within the ELD market from 2016 to 2023. The projection was based on trends, opportunities, and regulations, among other factors.
These are some of the other points included in the research:
Frost & Sullivan’s Senior Researcher, Gokulnath Raghavan, said that small and medium fleets would likely feel the effects of adopting more technology after the ELD Mandate takes effect. He also added that many of the current fleets do not have a great deal of trucking-related technology.
Raghavan pointed out that “nearly 34 percent of North American fleets operate less than 50 vehicles relying on manual practices [e.g., paper logs]”.
“ELDs could prove to be a driving factor for telematics adoption. […] Furthermore, small and medium fleets hold 60 to 70 percent untapped potential for standalone ELD solutions.”
Here are some of the many ways North American fleets can benefit from using ELDs:
The Truck Rental and Leasing Association (TRALA), however, contended that implementing the ELD mandate may be too much of a burden. Another concern raised by the group is the lack of awareness and enthusiasm in adopting the ELDs and the existence of far too many ELD vendors that may confuse fleet owners.
Raghavan suggested that ELD vendors should come up with “inventive and intuitive” methods to reach out to truckers.
“To be successful, vendors will need to extend their product portfolios, develop competitive pricing, hold industry knowledge and expertise, build solid customer relations and form collaborative partnerships.”
Some truckers who were once resistant to the change are now slowly shifting towards having a positive outlook towards the use of ELDs. As more truckers begin their transition to ELDs, entities in the trucking space aiming to help carriers find the most suitable ELDs for their company are starting to appear.
One such entity is ELDRatings.com.
The platform is a free online service that drivers and carriers can use to research and rate ELDs that best fit their needs and requirements.
Ben Ramsay, Co-Founder of ELD Ratings, said: “Having a comprehensive system for people to research and log their reviews about ELDs seemed like a good fit for the industry when we began.”
“We launched the site at the end of last year and saw a great deal of users who were clearly trying to be proactive about becoming compliant and finding an ELD. Now that we’re in the eleventh hour of compliance, drivers and fleets are beginning to see the importance and time-sensitivity of finding the right ELD for them.”
The site serves drivers and fleets of all sizes.
It is a similar platform to Yelp in a lot of ways. For one, the site allows users to leave their ratings on ELDs based on a 5-star review system.
(If you’re looking for an ELD provider that offers the most affordable ELDs, use our free ELD price comparison tool.)
There is some truth to the challenge that the TRALA pointed out about the industry having far too many ELD vendors. If trucking companies do not have ample time to screen the vendors, then they will most likely end up confused about which one to partner with.
That is why it is crucial for carriers to start their ELD transition as early as possible. The more time they can dedicate to screening ELD providers, the more likely it is for them to find the best ELD provider.
Have you started your ELD transition yet?
If you’re still looking for an ELD vendor to partner with, use our ELD feature comparison tool to find the most value-packed ELD solution. Furthermore, only shortlist FMCSA-compliant electronic logging devices.