The global automotive diagnostics tools market was valued at $31.3 billion in 2021 and it is expected to reach $71.2 billion at a CAGR of 7.6% between 2022 and 2032. The global automotive diagnostics tools market is primarily driven by the growth of the automotive sector, the rising need for IoT-based technology, and the growing demand for safety features in automobiles.
As the name implies, a car diagnostic tool, often known as an OBD scanner, is a diagnostic scanner for your car. On-Board Diagnostics is referred to as OBD. The so-called OBD port and an OBD cable are used to connect the gadget to the vehicle. Additionally, diagnostic tools refer to a class of measurement instruments that provide information about the efficacy of training, materials, or approaches that meet students' academic needs in terms of their performance of anticipated levels of learning targets. Moreover, several benefits of the automotive diagnostic tool are anticipated to accelerate market growth during the forecast period. For instance, typically, a warning light on the dashboard of the car signals the necessity for a diagnostic test. People can perform quick diagnostic tests on their own as often as they like to stop small issues from escalating into major catastrophes if they learn how to do them. By taking care of minor problems when they arise rather than waiting for the car to break down, car owners can reduce the expense of repairs. However, whether you buy a new or used car in the UAE, make sure that a regular diagnostic test is done to ensure its performance.
Source: SAI Research
Moreover, the diagnostic aids in revealing information from the recorded codes from numerous locations on the car, such as ignition timing, whether ignition coils are firing precisely, engine RPMs, the amount of buildup in the combustion chamber, and fuel injector function. However, the global automotive diagnostics tools market is primarily driven by the growth of the automotive sector, the rising need for IoT-based technology, and the growing demand for safety features in automobiles. However, problems like high implementation costs, complex configurations, frequent troubleshooting needs, and high maintenance costs of automotive software have a negative effect and restrain market expansion globally. On the other hand, it is anticipated that over the forecast period, factors such as advancements in autonomous and semi-autonomous vehicles and the introduction of multifunctional systems would generate lucrative prospects for the growth of the worldwide automotive diagnostic market. These major drivers are estimated to create more growth opportunities for the market during the forecast period.
The market for automotive diagnostic tools is anticipated to grow as a result of the increase in vehicle production and sales. Based on data retrieved from sensors, microchips, and built-in processors, automotive scan tools are used to rapidly and correctly detect the problem regions in specific locations. The demand for automotive diagnostics tools is anticipated to rise as the number of vehicles rises, as repair and maintenance businesses hunt for cutting-edge diagnostics tools to speed up and streamline vehicle diagnostics processes. However, the ongoing Russian-Ukrainian situation has caused neon gas prices to increase tenfold, which might have an effect on automotive production, all around the world. Additionally, the supply of palladium used in automobile assembly will be hampered by the sanctions placed on Russia. Auto production, sales, and delivery are hence anticipated to increase. The ongoing Russian invasion of Ukraine has also blocked exports of automotive aftermarket goods from Ukraine, which has had a detrimental impact on the growth of the automotive diagnostic tools market globally.
Based on type, the global automotive diagnostic tools market is segmented into OBD, scan tools, and electric system analyzers. The OBD segment has dominated the market and is anticipated to accelerate market growth during the forecast period. The aim of OBD systems is continuously evolving. Vehicle diagnostics are performed using onboard diagnostics, as the name implies. It is used to keep track of different engine-related parameters. It connects with all the other electronic parts of the car because it is an electronic part. The onboard diagnostic is an intelligent system that integrates several types of sensors into the critical parts of the car to monitor performance and inform the system as to whether those areas are operating under the car's planned specifications or not. These benefits are estimated to boost market growth in the future.
In terms of offering type, the market is categorized into diagnostic hardware and diagnostic software. The diagnostic hardware category accounted for the largest share of the market and is projected to boost market growth over the forecast period. The rising number of vehicles in both developed and developing nations as well as the complexity of car electronics is both factors contributing to the growth of this market sector. Automobile diagnostic tools are typically physical instruments created to assess the health of various automotive hardware components. The market for automotive diagnostics equipment and hardware is expanding as a result of the need for more automotive diagnostic hardware in auto shops growing along with the complexity of automobiles. Over time, there has been a notable increase in vehicle production and sales as well as a constant rise in the number of auto repair shops, all of which have boosted the global market for automotive diagnostic scan equipment.
By connectivity type, the USB segment accounted for the largest share of the market. All vehicles with OBD-II are frequently fitted with USB connectivity. An onboard computer called OBD-II keeps track of a vehicle's speed, mileage, emissions, and other information. It is associated with the Check Engine light, which turns on when a problem is found by the computer. USB is affordable and simple to use. It's an adaptor that transforms a tablet, laptop, or netbook into an advanced diagnostic scan tool and a real-time performance monitor. These factors are anticipated to drive the segment in the future.
Based on vehicle type, the passenger vehicle category holds the largest share of the market and is estimated to accelerate during the upcoming years. The majority of the pollution produced by vehicle emissions is created by passenger cars. The emission control system is monitored and defects are found using the diagnostic scan tools. In the past, qualified technicians certified to ASE A6, A8, and L1 standards were responsible for diagnosing car problems. However, the advent of portable diagnostic instruments, DIY for small problems has become more popular in passenger cars. Due to the rapid economic growth of rising nations like Brazil, Mexico, and India as well as globalization, consumer standards of living have increased over the past ten years.
Geographically, the Asia-Pacific region has dominated the market over the past few years and is anticipated to hold its dominant position during the forecast period. Emerging economies' industrialization efforts and infrastructure improvements have opened up new markets and prospects for car OEMs. The demand for cars has also been sparked by the population's rising purchasing power. Global OEMs that have joint ventures with domestic producers, like Volkswagen and General Motors, serve this market. The Asia Pacific is now a market with significant growth potential thanks to the adoption of new technologies, the construction of additional manufacturing facilities, and the development of value-added supply chains between producers and suppliers of raw materials. The demand and sales for luxury vehicles are growing significantly in Asia Pacific's largest market, China. Given the country's growing disposable income, China is a significant market for luxury vehicles.
According to the study, key players such as Actia Group (France), Autel Intelligent (China), BorgWarner (U.S), BMW AG (Germany), Continental AG (Germany), DSA Daten (Germany), DG Technologies (U.S), Denso (Japan), Fortiv (U.S), List Privatstiftung (Austria), Mercedes-Benz Group (Germany), Robert Bosch (Germany), Snap-On (U.S), Softing (Germany), SPX Corporation (U.S), among others are leading the global automotive diagnostics tools market.
|Market Size in 2021||US$ 31.3 Billion|
|Market Volume Projection by 2032||US$ 71.2 Billion|
|Forecast Period 2022 to 2032 CAGR||7.6%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Type: OBD, Scan Tool, Electric System Analyzer
By Offering Type: Diagnostic Hardware ,Diagnostic Software
By Connectivity Type: Wi-Fi ,USB, Bluetooth
By Vehicle Type: Commercial Vehicle, Passenger Vehicle
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||Actia Group (France), Autel Intelligent (China), BorgWarner (U.S), BMW AG (Germany), Continental AG (Germany), DSA Daten (Germany), DG Technologies (U.S), Denso (Japan), Fortiv (U.S), List Privatstiftung (Austria), Mercedes-Benz Group (Germany), Robert Bosch (Germany), Snap-On (U.S), Softing (Germany), SPX Corporation (U.S) & Others|
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