Automotive Logging Device Market to Reach $17.46 Billion By 2027

According to a recent report published by Allied Market Research, titled, “Automotive Logging Device Market By Service Type, Vehicle Type, Component and Form Factor: Global Opportunity Analysis and Industry Forecast, 2020–2027”, the global automotive logging device market share was valued at $12.73 billion in 2019, and is projected to reach $17.46 billion by 2027, registering a CAGR of 4.1% from 2020 to 2027. 

The automotive ELDs market holds a substantial scope for growth in the global market. Currently, it is in its growing stage; however, its contribution to the global market is expected to witness significant growth within the next few years. High maintenance cost associated with electronic logging device is a major limitation for the market growth. 

However, recent innovations, which implant high efficiency and innovative features in ELDs, have enabled the technology to reach a wider audience base. Numerous players are entering the automotive logging devices market with innovative products. Emerging development in IoT and growth of autonomous products are expected to drive the automotive logging device market growth in the future. 

The automotive logging device market forecast holds high potential in the automotive sector. The current business scenario is experiencing rapid development in smart vehicle technology, leading to the readiness to adopt this technology, particularly in the developed and developing regions such as North America, Asia-Pacific, and Europe. Companies in this industry adopt various innovative techniques to provide customers with advanced and innovative features.

ELD devices features enhanced functionality & accuracy and facilitates quick and cost-effective monitoring and reporting procedure. It is incorporated for different challenges aimed to improve quality and productivity in the process.

Asia-Pacific and North America are expected to offer lucrative market growth opportunities during the forecast period. North America and Asia-Pacific are anticipated to grow at a rapid pace at a CAGR of 6.7% and 3.3%, respectively.

COVID-19 has caused the overall semiconductor industry to mobilize quickly and make short-term decisions with long-term implications. Semiconductor companies operate in a complex ecosystem, working across the value chain with numerous raw materials, assembly, test, package, and equipment suppliers & partners, globally. 

Demand from the wireless communication segment is expected to increase, owing to factors such as rise in broadband usage, higher demand for cloud services, and video streaming. In addition, in the medium to long term, COVID-19 is expected to further push the need for digital transformation and technologies such as 5G, the IoT, AI, and intelligent edge computing, for future optimization.

According to the automotive logging device market trends, governments in key markets have prioritized safety and security technologies pertaining to current threat environment experienced globally. Thus, there is a strong demand for automotive logging devices in the automobile sector. However, the manufacturing sector witnessed severe loss, and thereby no new orders have been placed during the pandemic. In addition, this impact is estimated to continue till 2021. 

Moreover, international consumer electronics markets are in a very weak state, owing to lockdowns imposed to tackle the pandemic. Although the markets in the U.S. and Europe witnessed mild recovery in the second half of 2020, they are still significantly down on pre-crisis levels. Hence, the market is facing major obstacles from the emergence of COVID-19 pandemic. 

The overall impact of the pandemic is impacting the production process of several industries including semiconductor and electronics. Trade barriers are further constraining demand and supply outlook. As governments of different countries have already announced total lockdown and temporary shutdown of industries, overall production process is adversely affected.

Key Findings of the Study

• By service type, the intermediate segment generated the highest revenue in the automotive logging device market analysis in 2019.
• By vehicle type, the trucks segment generated the highest revenue in the market in 2019.
• By component, the telematics unit segment generated the highest revenue in the industry in 2019.
• By form factor, the embedded segment generated the highest revenue in the market in 2019.
• By region, Asia-Pacific generated the highest revenue in the automotive logging device market in 2019.

The key players profiled in this report include AT&T Business, Blue Tree System, Coretex, DriverTech, ELD Solutions, Garmin International, Geotab Inc, Omnitracs LLC, Teletrac Navman and Zonar Systems. These key players have adopted several strategies such as new product launch & development, acquisition, partnership & collaboration, and business expansion, to increase their footprint in the automotive ELDs market during the forecast period.