Overview
The automotive diagnostic tools market is valued at USD 36.25 billion in 2022, and it is expected to reach USD 58.27 billion in the year 2032 by registering a CAGR of 4.73% during the forecast period.
Unlock Infinite Advantages: Subscribe to Annual Membership
Key drivers of the global automotive diagnostics market include:
- The development of the automotive industry.
- Increasing demand for IoT-based technology.
- A growing emphasis on safety features.
Automotive diagnostics involves assessing vehicles' condition and components to ensure they function correctly. This process utilizes hardware components and software to analyze vehicle parts and systems such as the engine, transmission, and brakes. Diagnostic systems can quickly pinpoint issues and provide accurate information about faulty parts by employing specialized tools and technologies.
The pandemic initially impacted the automotive diagnostics market negatively due to lockdowns and reduced vehicle usage. However, the industry adapted by leveraging digitalization and remote technologies for tool designing and proposals. Favorable government policies mandating diagnostic tool utilization and integrating innovative features into vehicles are expected to drive market growth. Despite challenges like high costs and complexity, advancements in semi-autonomous and autonomous vehicles present lucrative opportunities for market expansion.
However, implementation costs, configuration complexities, and maintenance requirements challenge market growth. Nevertheless, advancements in autonomous vehicles and multifunctional systems are expected to create favorable opportunities in the market.
The market is segmented by type into on-board and off-board diagnostic systems, with devices categorized as hand-held tools, mobile-based tools, PC-based tools, and others. Applications cover passenger cars, light commercial vehicles, heavy commercial vehicles, and electric vehicles. Regionally, Asia-Pacific is poised to dominate the market due to rising vehicle production. At the same time, North America and Europe are expected to witness significant growth driven by supportive government policies and increasing awareness about vehicle safety and security features, including connected and autonomous cars.
Significant Growth Expected in the Passenger Cars Segment Over the Forecast Period
- The passenger vehicle segment of the automotive diagnostic equipment market has experienced growth due to increased global sales and stricter pollution and vehicle safety regulations. Despite the negative impact of the COVID-19 pandemic, consumers preferred private vehicles instead of public transportation services, leading to a crisis in international trade after the economic recession.
- The automotive industry has experienced tremendous growth thanks to introducing vehicles with fuel-efficient technology. Companies such as Robert Bosch GmbH, Continental AG, and Delphi Automotive AG are developing diagnostic tools to adapt to advances in automotive technology. For example, BMW received FlexRay cables for EPS rack diagnostics in April 2021, improving diagnostics for the BMW 5, 7, and 8 Series models.
- Global auto sales reached an estimated 67.2 million vehicles in 2022, up slightly from 2021, despite challenges such as COVID-19 and supply chain disruptions. Significant government regulations governing the use of OBD, especially in the US and Europe, and increased awareness of the benefits of diagnostic tools are driving market demand. However, scanning equipment's high cost and complexity may limit the market's growth.
- Manufacturers are developing reliable, advanced diagnostic tools to improve vehicle service and solve maintenance problems. OBD II has emerged as a tool for monitoring many aspects of vehicles, including catalytic converters, evaporator systems, and air conditioning systems. Mahle's announcement of aftermarket solutions in August 2022, including the MahleBattery PRO diagnostics and troubleshooting service, exemplifies this trend.
- As traffic accidents increase worldwide, safety features such as engine performance monitoring, tire pressure monitoring systems, and electronic safety controls must be included. Advanced Driver Assistance Systems (ADAS) reduce the risk of accidents by helping detect problems and malfunctions. The automotive diagnostic industry is driven by increasing demand for car safety features due to the high number of road deaths.
- In addition, with the development of today's automobiles, the fuel efficiency of diagnostic tools is expected to increase with the development of technology in hybrid cars, electric cars, and commercial vehicles. Cars need advanced analytics to solve complex problems.
Asia-Pacific Region Expected to Hold Dominant Share in the Market
- The Asia-Pacific region, which includes major automotive markets such as India, China, and Japan, will play a significant role in the automotive diagnostic tools market. The region hosts major manufacturers such as Hyundai, Toyota, Tata, and Honda. Although countries in the region have aligned OBD standards with international standards, there are still differences in implementation, especially in markets such as India.
- Automakers in China, Japan, and South Korea are accelerating research and development into high-tech technologies, including connected cars, driverless cars, and electric cars. Technological advances and a commitment to reduce vehicle emissions and improve vehicle performance and maintenance are expected to increase demand for vehicle diagnostic equipment in the region.
- China's 6 OBD regulations are based on California's OBD II regulations, with minor changes to ease automakers' compliance. The standard also includes provisions to address defects in OBD systems, allowing automakers to avoid the installation of some diagnostics.
- India faces a lot of pollution in its cities, mainly due to increased vehicle emissions. The adoption of Bharat VI emission regulations in April 2020 has led to the growth of automotive electronics, further highlighting the need for advanced diagnostic equipment.
- Also, utility companies have entered the market with the best testing equipment to increase sales. For example, Innova Electronics Corporation, a market leader in automotive aftermarket diagnostic tools, recently released a new firmware and software update for its OBD2 scanner devices in January 2023.
The automotive diagnostic tools market presents an environment of consolidation with several significant players and local organizations operating within it. Major companies in this field include Robert Bosch, Continental AG, Delphi Automotive, Snap-on, Softing, etc. is located. Other major players, such as KPIT, Carman, and General Technology, exist.
These entrepreneurs often pursue various growth strategies, including acquisitions, partnerships, and innovation. For example, in May 2022, KPIT Technologies Ltd announced the acquisition of cloud-based vehicle diagnostics specialist SOMIT Solutions. This strategic partnership aims to enhance KPIT's products and services by combining SOMIT's expertise in cloud-based vehicle inspection platforms and consulting service.
- ACTIA Group
- Delphi Automotive PLC
- Continental AG
- Robert Bosch GmbH
- Snap-On Incorporated
- Carman Scan
- Vector Informatik GmbH
- Softing AG
- KPIT Technologies Ltd
- Hella KGaA Hueck & Co.
- In May 2023, Opus IVS, a leader in vehicle inspection equipment and services, partnered with the CARS Co-Op Network in the auto accident and retail space. The collaboration aims to foster collaboration by leveraging the diagnostic capabilities of both companies.
- In October 2022, Reparify launched its new asTech all-in-one solution for local and remote vehicle diagnostics, calibration, and instrument detailing. This new solution is designed to simplify the vehicle maintenance and repair process.
Automotive diagnostic tools are utilized to identify faults in automobiles. As car designs advance with technology, these tools become increasingly valuable as they can swiftly pinpoint and rectify issues. They are effective at analyzing intricate data while conducting diagnostics on various components of the vehicle, including the engine, body, and chassis. This equipment is commonly employed in service centers catering to a wide range of vehicles, from consumer cars to heavy-duty ones.
Market Segmentation
By Offering
- Diagnostic Hardware
- Scanner
- Code Reader
- Tester
- Analyzer
- Others
- Diagnostic Software
- ECU Diagnosis Software
- Vehicle Tracking and Emissions Analysis Software
- Vehicle System Testing Software
- Others
- Diagnostic Services
- Vehicle Maintenance and Repair
- Custom, Training, Support and Integration
Based on Workshop Equipment
- Exhaust Gas Analyzer
- Wheel Alignment Equipment
- Paint Scan Equipment
- Dynamometer
- Headlight Tester
- Fuel Injection Diagnostic
- Pressure Leak Detection
- Engine Analyzer
Based on Connectivity
Based on Vehicle Type
- Passenger Cars
- Commercial Vehicles
Based on Handheld Scan Tools
- Scanners
- Code Readers
- TPMS Tools
- Digital Pressure Tester
- Battery Analyzer
Based on Type
- OEMs Diagnostic
- Professional Diagnostics
- DIY Diagnostics
By Geography
- North America
- United States
- Canada
- Rest of North America
- Europe
- Germany
- United Kingdom
- France
- Italy
- Rest of Europe
- Asia-Pacific
- India
- China
- Japan
- South Korea
- Rest of Asia-Pacific
- Latin America
- Brazil
- Rest of Latin America
- Middle East and Africa
- South Africa
- Rest of Middle-East and Africa
