Reports - Automotive On-Board Diagnostics (OBD) Market
Automotive On-Board Diagnostics (OBD) Market Size, Share & Trends Analysis Report by Diagnostic Device (Handheld, PC/Laptop Based, Mobile Device, Others) by Application (Driver Behavior Monitoring, Emission Testing, Supplementary Instrumentation, Consumer Telematics, Usage Based Insurance, Fleet Management, Car Sharing, Others) by Vehicle Type (Passenger Vehicle, Light Commercial Vehicle, Heavy Commercial Vehicle) by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Industry Assessment (2018 - 2023) & Forecast (2024 - 2032)
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2035
10.80%
North America
Asia Pacific
2019 - 2023
2023 - 2035
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The global Automotive On-Board Diagnostics (OBD) Market is valued at USD 55.8 Billion in 2023 and is projected to reach a value of USD 172.9 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 10.80% between 2024 and 2032.
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North America accounted to have largest revenue share of 34.2% in 2023. The growing focus on pollution control and government requirements related to car safety and emissions are the crucial factors responsible in driving the growth of the Automotive On-Board Diagnostics (OBD) market in North America. For instance, The U.S. Department of Transportations (DOT) National Highway Traffic Safety Administration (NHTSA) mandates vehicle fuel economy related regulations, while the U.S. Environmental Protection Agency (EPA) augmented greenhouse gas (GHG) emission regulations. These regulations enforced by various governments enables the development of advanced Automotive On-Board Diagnostics (OBD) systems which offer sophisticated diagnostic capabilities. This helps in monitoring real-time engine performance, emission levels, and exhaust system functionality that enables timely detection and resolution of emission-related issues.
United States holds a substantial market share due to the presence of well-known automakers and the rapid adoption of autonomous vehicles, which increases the demand for Automotive On-Board Diagnostics (OBD) equipment like the OBD2 scanner. With emission standards becoming stricter, Automotive On-Board Diagnostics (OBD) systems are evolving to offer precise emission measurements, detect diagnostic trouble codes (DTCs), and monitor emission-related systems effectively. For instance, guidelines issued by organizations like the California Air Resources Board (CARB) provide manufacturers with detailed templates for reporting testing outcomes required by Automotive On-Board Diagnostics (OBD) regulations. These advancements in Automotive On-Board Diagnostics (OBD) technology contribute significantly to environmental sustainability by helping vehicles meet emission standards more effectively.
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The global Automotive On-Board Diagnostics (OBD) market can be categorized as Diagnostic Device, Application, Vehicle Type, and Region.
In 2023, Handheld segment generated a significant revenue of 41.3%. The Diagnostic Device segment is divided into Handheld, PC/Laptop Based, Mobile Device, and Others. These devices have simple navigation menus and user-friendly interfaces since they were designed with user-centric design concepts in mind. They are designed to serve a wide range of users, from experienced technicians to first-time car owners with little technical knowledge, and they require very little training. Furthermore, incorporating wireless communication features like Bluetooth or Wi-Fi into sophisticated handheld diagnostic instruments completely changes the diagnostics industry. This invention enables smooth connectivity with smartphones, tablets, or other gadgets, enabling users to view diagnostic data remotely, update software, and request technical assistance from suppliers or manufacturers. One prime example of this is the BlueDriver OBD II Scan Tool, which perfectly combines cutting-edge technology with simple user interface.
The Fleet Management segment accounted to mention the largest market growth in 2023. The Application segment covers Driver Behavior Monitoring, Emission Testing, Supplementary Instrumentation, Consumer Telematics, Usage Based Insurance, Fleet Management, Car Sharing, and Others. Fleet management organizations are embracing cutting-edge OBD and telematics technologies to oversee their vehicle fleets. With various capabilities, such as location tracking, fuel consumption monitoring, and service scheduling, it can be remotely access real-time vehicle diagnostic and location data. With the help of these automotive advancements, fleet managers are enhancing their analytical capabilities. They can now monitor various vehicle metrics, including idle status, fuel levels, occupancy, and overall health. This transformation in technology empowers fleet managers to take informed decisions and optimize their operations for greater efficiency and performance.
The Passenger Vehicle segment led the Automotive On-Board Diagnostics (OBD) market with revenue share of 46.7% in 2023. The Vehicle Type segment covers Passenger Vehicle, Light Commercial Vehicle, and Heavy Commercial Vehicle. The markets growth is attributed to the need for effective diagnostics due to the growing popularity of electric vehicles, data security, privacy concerns, and the increasing use of advanced driver assistance systems like lane departure warnings and automated emergency braking. According to IEA, from 2017 to 2022, EV sales jumped from around 1 million to more than 10 million. EV sales took five years, from 2012 to 2017, to grow from around 100,000 to 1 million. This surge in demand for EVs created various opportunities for developing onboard diagnostics software in the coming years.
Integrating the ADAS calibration solution helps enhance diagnostic capabilities and enable proactive maintenance. For instance, Autel’s new ADAS calibration system, MA600 MaxiSYS, helps shops affordably target a new revenue stream. This solution provides accurate calibration procedures for camera-based systems with accessories and oversized AVM patterns available to purchase separately. Thus, the introduction of advanced technologies is augmenting the growth of the onboard diagnostics solution in the automotive sector.
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The Automotive On-Board Diagnostics (OBD) market is driven by the growing automobile industry
The growing automotive industry is expected to propel market growth during the forecast period. An expanding automotive sector results in an increased number of automobiles on the road, hence expanding the market for onboard diagnostics products and services. As more automobiles are produced and sold, there is a larger potential market for OBD-related solutions. For instance, the National Automobile Dealers Association (NADA) reported that 15.46 million new light-vehicle units were sold in 2023, a 12.4% increase from 2022.
Increasing demand for telematics from commercial vehicle fleet drives the market
The rapid industrialization across continents has resulted in an increase in trade activities, leading to a higher number of commercial vehicles on the roads. As the commercial vehicle fleet continues to expand, the demand for telematics solutions among fleet owners has grown significantly. Telematics solutions are being used to manage vehicle health and minimize downtime efficiently. This increased interest in telematics among commercial vehicle fleet owners is driving the growth of the global Automotive On-Board Diagnostics (OBD) market.
In the competitive landscape of the Automotive On-Board Diagnostics (OBD) Market, Boschs latest offering, the Bosch KTS 250 diagnostic tester, stands out as a versatile solution tailored for mobile and straightforward workshop use. This compact and robust device caters to small automotive workshops, offering flexibility for use at vehicle reception areas or as an additional tool in more extensive workshops. Competing against Bosch is Innova Electronics Corporation, a leading supplier of test equipment and diagnostics, with its launch of the Innova 7111 Smart Diagnostic System (SDS) diagnostic tablet. Innovas innovative approach aims to streamline diagnostic processes and facilitate efficient problem identification and resolution for todays vehicles.
The key players in the global Automotive On-Board Diagnostics (OBD) market include - AVL DiTEST GmbH among others.
Source: www.vantagemarketresearch.com
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Report Coverage | Market growth drivers, restraints, opportunities, Porter’s five forces analysis, PEST analysis, value chain analysis, regulatory landscape, technology landscape, patent analysis, market attractiveness analysis by segments and North America, company market share analysis, and COVID-19 impact analysis | |
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