If you are based in North America and in the commercial transport industry, you’ve already heard about the ELD (Electronic Logging Device) mandate. It’s been in effect in the U.S. since 2017 and Canada in 2021. For Canada, penalty enforcement will be exempted until June 12, 2022. This is to provide education and awareness to carriers and drivers alike. The other reason for the delay in enforcement is related to the unprecedented challenge ELD providers have getting their solutions and hardware certified by Transport Canada-approved third-party certification bodies.
If you have not implemented a Canadian compliant solution yet (there are not many that are certified at the time of writing this article), it’s important to fully understand the ELD Market, which is certified in Canada and the US, to help you make an educated decision on which solution to leverage for your business.
In this article, we explain the size of the ELD market, the process of how ELD service providers get accredited, and what you should look for in an ELD before making a purchase.
Global Electronic Logging Devices (ELDs) Market Outlook
Electronic Logging Device (ELD) Market was valued at USD 13.1 Billion in 2020 and is projected to reach USD 17.839 Billion by 2028, growing at a CAGR of 3.94% from 2021 to 2028 according to the report from Verified market research.
The global ELD market is influenced by the development of advanced telematics and fleet management solutions, and increasing investment by carriers in the driver safety system.
Future growth is attributed to stringent government regulations to improve road safety and address road accident concerns by implementing an ELD rule in North America and European countries. The ELD mandate rule came into effect in December 2017 in the US and 2021 in Canada, while Europe made digital tachographs mandatory for commercial vehicles with GVWR of more than 3.5 tons since 2006.
Due to the increased demands of digitalization and the use of telematics technology to improve road safety, operation costs, and stay compliant with government regulations, ELD growth is expected to increase by about 4% per year between now and 2028.
ELD Mandate in the USA and Canada
Only 7% of ELD providers will end up being certified by Transport Canada.
The process of ELD certification and regulations are different in each country. It’s important to understand how various ELD verification and regulations between U.S. and Canada differ, as it’s not as simple as just registering an ELD product as certified. ELD manufacturers have to go through stringent certification processes. Let’s dig in to discover why we believe only 7% of ELD providers will gain Canadian certification.
In the U.S., the Federal Motor Carrier Safety Administration (FMCSA) maintains a list of approved products. The FMCSA requires ELD manufacturers to register their own ELD devices, and ELD manufacturers must certify that they have tested their device and that it meets all technical specifications detailed in the ELD Rule. Assuming the ELD provider has built their app, along with a compatible ELD device, they can simply claim that it is fully compliant when they register the service.
The following are checklists that ELD manufacturers must verify;
- Meet extensive technical specifications
- Self-certify their ELD as compliant
- Register their ELD with the FMCSA
There are 727 providers and devices registered with the FMCSA today. The FMCSA will remove an ELD from the listing if the ELD doesn’t meet the technical specifications, which helps carriers avoid purchasing non-compliant ELDs.
In Canada, Transport Canada approves devices, service providers, and mobile OS. The Canadian ELD Mandate came into effect on June 12, 2021, but with a “progressive” enforcement period.
Jurisdictions confirmed that they would delay implementing penalties until June 12, 2022, to elevate education and awareness of the implementation of ELD, considering the unprecedented challenges caused by the COVID-19 pandemic, and the complexity of obtaining certification in Canada. Read the Full Article about the Canada ELD Mandate Update.
In Canada, ELDs can only be third-party certified and they cannot be self-certified like the U.S.
In order to become a certified ELD service provider there are 2 steps, and two institutions are involved.
Firstly, they need to apply and meet the Technical standard for Electronic Logging Devices published by the Canadian Council of Motor Transport Administrators (CCMTA).
Once the application review and assessment are completed, the Standards Council of Canada will provide the certification body with an Accreditation Report which will be required to apply for an application to Transport Canada. This process will take 7 to 9 months to complete the accreditation.
Next, accredited ELD manufacturers need to send a completed application form and the standards Council Canada Accreditation Report. It takes up to six weeks to complete the certification.
In addition to this, it takes a minimum of 30 days for an accredited certification body to approve an ELD provider. Currently, there are only 3 approved accrediting bodies today. Each of them can only approve 1-3 ELD providers per month. At the time of writing this article, there are only 6 Transport Canada approved ELD service providers since June 2021.
If you do the math, by next June when enforcement and fines will start taking place, of the 727 FMCSA approved ELD providers, a maximum of 78 providers will gain certification in Canada. A more realistic number is approximately 30-40 providers.
According to trucknews.com, ELD providers can submit only three models at a time, the certification fee is approximately $50,000 USD per device. This only includes 1 mobile OS (like Android or iOS). If an ELD provider wants to get both mobile operating systems approved for each device, then the cost doubles. Each year, 25% of the ELDs will have to be retested for which ELD providers will have to pay $12,000 to $25,000 per device model.
Looking at the cost, the lengthy process, and lack of accreditation resources to certify providers, you can clearly see why so few providers are certified today, 4 months after the mandate has been implemented.
On top of this, most or all ELD providers are expected to raise their rates by up to 40%. Essentially these high costs of certification and upkeep are being passed on to the consumer. If you already have an ELD today, there is a good chance it won’t get certified in Canada. If it does, expect a cost increase of your services along with it.
How to choose the best ELD wisely
If you are in the commercial transport industry in Canada, you need to prepare now. According to trucknews, federally regulated trucks that lack certified electronic logging devices (ELDs) could receive formal warnings as early as this December (if they travel through Alberta or Manitoba). The penalties for non-compliance will be enforced on June 12, 2022. You need to choose the best ELD for your company, however, picking an ELD provider is not easy. There are many options out there and it is difficult to filter which one is actually certified in your country.
Here is a checklist to help you out when choosing the best ELD solution provider.
- Check if an ELD is certified
Before you type “ELD in (your country/city)” or “best ELD” in the search bar, the first thing you need to do is visit Transport Canada’s official website to see the list of registered ELDs. This is a critical step so don’t skip this part.
- Background check your ELD provider
- Years of business
- Company location (local or not)
- of clients and their references
- of employees
- of partnerships
Make sure the ELD meets your requirements as well as your local regulations.
LVM Track’s certified ELDs
LVM Track has partnerships with fully certified ELD service providers in Canada and the USA, such as Apollo ELD (outlined in the link above), brought to you by LVM Track, as well as Vistracks (in partnership with Omnitracs). These are industry-leading ELD products that are driver-friendly and well recognized in the USA and Canada.
In addition to certification, leverage our ELD solutions to provide continuity and risk mitigation for your business with HOS, IFTA reports, Driver Vehicle Inspection Reports, Engine Diagnostics, and many more powerful features.
Check our ELD pages to learn more.