How Automotive Logging Devices Help Logistics Companies Manage Their Fleet Effectively?

Highlights:

• Introduction
• Various benefits of automotive logging devices
• Product launches by major companies

An automotive logging device or electronic logging device is a hardware tool that helps professional drivers of commercial vehicles record their driving time, duty status, and other important data. To track all the parameters correctly, the device is connected to the vehicle engine’s electronic module and GPS to accurately track key parameters, including engine activity, location, total distance traveled, and overall engine operation duration. Moreover, the engine power status and identification details of the driver are also stored in this electronic logbook. The growing demand for commercial vehicles from logistics and supply chain management companies has played an important role in the expansion of the automotive logging device industry.

Increasing demand for automotive logging devices helping the industry flourish

Professional commercial vehicle and truck drivers generally travel huge distances covering various states and cities to deliver goods and passengers, or for service provisioning. Traditionally, drivers were required to manually record all the journey details after each trip. This is a cumbersome task prone to many human errors, manipulations, and inaccuracies which ultimately cause problems while billing. To deal with this problem, trucking companies have started deploying automotive logging devices for automated and digital recordkeeping, thus reducing any chances of fraud and data misinterpretation. In many jurisdictions, the fuel consumption reports for taxation purposes are prepared based on the distance covered by the driver weekly, monthly, or quarterly. Using digital solutions such as electronic logging devices helps automate these internal fuel tax agreements, thereby simplifying business operations.

Along with this, countries such as the US, Canada, Brazil, and Australia have enacted laws that mandate the use of automotive logging devices for commercial vehicles and truck drivers. Furthermore, these countries have dedicated governmental agencies that oversee and supervise whether private entities comply with all the regulations. For example, the Federal Motor Carrier Safety Administration is the central body that is responsible for checking whether commercial vehicles and trucking companies adhere to the norms legislated by the US Government. The deployment of automotive logging devices by logistics companies in the country, thus, helps them avoid the risk of penalties and fines.

Another important reason behind the increasing demand for automotive logging devices is that they help logistics and supply chain management companies track the movement of their vehicles and consignments remotely. The real-time monitoring capabilities offered by these solutions aid operators in coordinating with the drivers to take the best and shortest possible route to avoid vehicle traffic. In the long run, this helps businesses manage their commercial vehicle fleets effectively and enhance their service delivery efficiency significantly.

Additionally, these electronic logbooks also collect data regarding vehicle health, inspection reports, and other parameters which aid companies in forecasting problems and issues that may arise in the near future leading to vehicle breakdown. These predictive maintenance functionalities enable companies to reduce downtime and bring down repair costs significantly, thereby increasing profitability in the long run.

Approvals granted to new ELD technologies by different countries expanding the scope of the industry

The automotive logging device industry accounted for $12.73 billion in 2019. The market is expected to gather a revenue of $17.46 billion by 2027, rising at a CAGR of 4.1% during 2020-2027. In the last few years, governments in the US and Canada have given approvals to new electronic logging devices, thereby increasing the footprint of the sector in these regions. For instance, in January 2020, GeoSpace Labs, a transportation solutions developer, launched the official FMCSA-registered automotive logging device for the state of Florida. The company released a statement that the product was launched keeping in mind the adoption of FCMA regulation by the Florida government.

On the other hand, in December 2021, Samsara Inc., a software company, announced that its electronic logging device (ELD) received approval from the Canadian government. This approval allowed the company to market its product in the country, thereby helping the company to expand its customer base. In February 2022, KeepTruckin, a leading fleet management technology provider, released a press statement announcing that its automotive logging system had received similar approval from Canadian authorities.

Winding up, the automotive logging device industry is predicted to maximize its revenue share in the coming period due to the increasing adoption of this innovative solution by various commercial vehicle companies. The digital recordkeeping and vehicle tracking capabilities offered by this gadget have increased its popularity in different end-use industries, thereby impacting the sector positively.

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