Vehicle Diagnostics Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Vehicle Diagnostics Market is segmented By Connectivity (Wi-Fi, Bluetooth, 3G, 4G), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Vehicle Diagnostics Market Overview

Report on Global Vehicle Diagnostics analyses the market size, shares, recent trends, competitive intelligence, and future market outlook. Demand from Automotive in Asia Pacific is rising. Competitive rivalry intensifies with Hexcel Corporation, Continental AG, Robert Bosch GmbH and others operating in the market.

The increase in demand for safety concerns is anticipated to boost the demand for the global vehicle diagnostics market. The factors such as an increase in consumer awareness of vehicle safety features, growth in the automobile sector and competition among OEMs aids in the overall growth of the market. The market is also influenced by the rise in the number of fatal road accidents and the implementation of stringent safety regulations by the government to prevent the rise in road accidents.

Vehicle Diagnostics is the process of collecting, diagnosing, and managing data of a system and assessing car performance, and notifying if any problem arises. The increase in the need for luxury and comfort features in vehicles is boosting the demand for the global vehicle diagnostics market.

The report covers all the major trends and drivers playing a vital role in the growth of the global Vehicle Diagnostics market. The global Vehicle Diagnostics market has been segmented based on region and connectivity.

Vehicle Diagnostics Market Summary

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Vehicle Diagnostics Market Dynamics

The global Vehicle Diagnostics market growth is primarily driven by a rise in the production of vehicles in developing countries coupled with increasing awareness among consumers, vehicle manufacturers, as well as vehicle service providers regarding vehicle safety and security. Therefore, boosting growth in the global vehicle diagnostics market.

In addition, rising demand for the premium segment of passenger cars owing to the increasing consumer preference for luxury cars equipped with advanced high-tech features is anticipated to fuel the vehicle diagnostics system market during the forecast period. A vehicle diagnostic test can reveal a number of issues related to your vehicle's engine and transmission, oil and gas tanks, exhaust system, and other systems. They have the capability to produce a large variety of fault codes that get stored in the vehicle’s memory system. Several cars have some units which control engine management, brakes, suspension, and even windscreen wipers. With diagnostic equipment, it is possible to identify the correct cause of the fault or problem and rectify it before the problem escalates.

Moreover, due to stringent government rules and regulations for CO2 emissions coupled with rising in popularity and sales of electric vehicles globally; the global vehicle diagnostic market is expected to witness tremendous CAGR over the forecast period.

Vehicle Diagnostics Market Segmentation Analysis

Based on connectivity, the global vehicle diagnostics market can be classified into Wi-Fi, Bluetooth, 3G, and 4G. It is observed that OEMs are integrating built-in Wi-Fi in the vehicles. Wi-Fi-based connectivity and Bluetooth-based connectivity are expected to dominate the market. The key application of Bluetooth connectivity technology in remote vehicle diagnostics is connecting the vehicle to the internet via the cellular phone to transfer and receive data from the server. 3G connectivity technology is estimated to be the second-largest segment of the remote vehicle diagnostics market.

Vehicle Diagnostics Market Regional Share

By geography, the global Vehicle Diagnostics Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).

In 2018, China is one of the leading countries in the region as well as globally. Most of the product demand in Asia Pacific is fulfilled by China, India, South Korea, and Japan. China is the number one automotive market, with 300 million cars on the road (vs. 270 million in the US) and production of 24.8 million vehicles in 2017, compared to 11.2 million in the US, 8.4 million in Japan, almost 5.7 million in Germany, and 4 million and 3.7 million in India and South Korea, respectively.

In North America and Europe, North America and Europe are in forefront of the technology and are anticipated to occupy a larger share in the global vehicle diagnostics market. Advanced technological capabilities in the region are the key factor contributing to the growth of the market.

North America has strict regulations for emissions, vehicle safety, and fuel economy in the world which is the key factor that is expected to boost the market in the region. In the Asia Pacific, the vehicle diagnostics market is anticipated to grow at a higher CAGR due to an increase in demand for automobiles coupled with an increase in awareness regarding road safety. In the Asia Pacific, the market is expected to grow at a higher rate in countries such as China, Japan, and South Korea.

Vehicle Diagnostics Market Companies and Competitive Analysis

Global Vehicle Diagnostics Market is fragmented with the presence of global and regional players in the market. The market players in the Vehicle Diagnostics market are focusing on expanding through strategic interventions, such as acquisitions, collaborations, expansion, and launching advanced products in the Vehicle Diagnostics market.  To that end, besides expanding their presence, companies are expected to formulate effective distribution strategies to make their presence felt in the upcoming markets for Vehicle Diagnostics.

Intense rivalry among top players in the market has started the fierce competition at various levels for setting a low price, driving aggressive marketing strategies, and new and innovative product launches as per consumers’ preference.

Some major players in the market are Hexcel Corporation, Robert Bosch GmbH, Continental AG, OnStar LLC, Magneti Marelli S.p.A, Delphi Automotive PLC, Softing AG, Voxx International Corporation, Snap-On Inc., Vector Informatik GmbH, and among others.