Automotive Diagnostics Tool Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Automotive Diagnostics Market has been segmented by Type (OBD, Electric System Analyzer, and Scan Tool), Vehicle Type (Passenger Cars and Commercial Vehicles), and Geography. The report offers market size and forecast for Automotive Diagnostics Market in Value (USD billion) for all the above-mentioned segmentations.

Market Snapshot

Automotive Diagnostics Tool Market Overview
Study Period:

2018 - 2026

Base Year:

2020

Fastest Growing Market:

Asia Pacific

Largest Market:

North America

CAGR:

>5.8 %

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Market Overview

The automotive diagnostics market studied was valued at around USD 27 billion in 2020, and it is expected to reach a value of around USD 38 million by 2026 while registering a CAGR of over 5.8% during the forecast period

Covid-19 pandemic, although affected the global economy, The Automotive Diagnostics Tool market was considered immune to the crisis. With the digital technology being developed and used today, the initial tool designing and proposals were all carried out remotely with the tools available currently because of the shutdown of actual fabrication stations due to the social distancing norms, stringent lockdown, and travel restrictions. The important aspects of tool/software design for a certain purpose were successfully carried out and the only setback the industry observed was the delay of fabrication in terms of physical equipment.

With the preference for personal transport and consequently, indications of increased vehicle sales, the industry looks secured from any economic crisis post-Covi-19.

Though vehicle diagnostics were a part of vehicles for a long time in countries, like the United States and EU, other countries have not been a part of the list, until recently. Many countries, such as Mexico, Argentina, Brazil, China, Israel, Japan, and India, have mandated the diagnostic systems in automobiles between 2000 and 2010.

Scope of the Report

On-board diagnostics (OBD) refers to the self-diagnostic and reporting capability of the vehicle. This gives the vehicle owner, information regarding the subsystems of the vehicle. With a rise in the dependency on electronics in automobiles, the need for a computerized malfunction detection system has been increasing, which has led to the development of a better onboard diagnostics system.

The automotive diagnostics market has been segmented by type, vehicle type, and geography. The report offers market size and forecast for Automotive Diagnostics Market in Value (USD billion) for all the above-mentioned segmentations. 

Type
OBD
Electric System Analyzer
Scan Tool
Vehicle Type
Passenger Cars
Commercial Vehicles
Geography
North America
United States
Canada
Rest of North America
Europe
Germany
United Kingdom
France
Rest of Europe
Asia-Pacific
China
Japan
India
South Korea
Rest of Asia-Pacific
Rest of the World
Brazil
South Africa
Other Countries

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Key Market Trends

Increasing Demand for Electric System Analyzer Tool

The increase in the demand for electric system analyzers (during the forecast period) is due to the recent rise in the popularity of electric vehicles, which is expected to continue at a significantly high pace in the coming years.

Bosch supplies BAT 151 Electrical system Diagnostic analyzer kit, which combines direct temperature measurement with deep scan technology. Over 225,000 KTS diagnostic testers have been sold by Bosch, worldwide, since its introduction in 1988. Additionally, as the automotive industry is continually moving toward the use of electronic systems, control unit diagnosis testers are becoming an essential part of the modern testing toolkit.

A study suggests that one-third of the independent workshops of Europe use Bosch electric system diagnostic testers, while in Germany, half of all independent workshops use these devices.

VDO, a trademark of Continental Corporation, supplies diagnostic tools, like electric system analyzers to major automakers, and accounts for a significant share in the automotive diagnostic tools market, globally.

A consistent rise in technological advancements in electric vehicles is leading to an increase in the complicated functioning of different electrical systems, which requires electric system analyzers. Suppliers, like Bosch, Continental, etc., are expected to capitalize on this opportunity in the near future.

Automotive Diagnostics Tool Market Share

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Asia-Pacific Fast Growing Market

The Asia-Pacific region is expected to be the fastest-growing automotive market in the world, led by China, and also with the presence of large markets, such as India. The region is also home to manufacturing giants, such as Hyundai, Toyota, and Honda.

All the countries in the region have harmonized their OBD standards with global standards, yet gaps remain in markets, such as India, in implementing these standards.

As automakers in China, Japan, and South Korea have stepped up their R&D programs to develop advanced automotive technologies, such as connected cars, autonomous vehicles, and electric vehicles, the demand for automotive diagnostic tools is expected to increase.

Additionally, the countries in the region have vowed to lower vehicular emissions and adopt automotive technologies for better performance and maintenance, giving rise to the demand for automotive diagnostic tools.

  • In China, the China 6 OBD provisions are similar to that of California OBD II regulations, but with minor changes that exempt few monitoring requirements to ease compliance burdens for auto manufacturers.The China 6 standards also have provisions for deficiencies in the OBD systems, exempting automakers from installing all the monitoring systems.
  • Japan adopted regulations requiring the installation of basic OBD systems in 2002. Starting from 2008, Japan introduced its version of OBD regulations JOBD for vehicles manufactured in Japan, and later in 2010, making these regulations mandatory for all the vehicles that are sold in Japan, including vehicles that were imported.
  • India has been experiencing high levels of pollution in its cities, and a significant part of that problem is the rise in vehicle exhaust emissions.The government adopted Bharat IV emission norms, which were based on Euro IV norms, and the country is planning to directly adopt BS VI norms, by 2020.
Automotive Diagnostics Tool Market Growth By Region

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Competitive Landscape

Major players in the automotive diagnostics tools market are Robert Bosch, Continental AG, Delphi Automotive, Snap-on, etc. Other companies in the industry include KPIT, Carman, General Technologies Corporation, Pico technology, and etc.

Robert Bosch occupied a significant share in the automotive diagnostic tools market, with its popular VCI scan tools, supplied to the aftermarket channels (automotive service centers and automotive dealers), as well as several OEM level diagnostic tools, manufactured for various vehicle manufacturers, especially GM vehicles. Europe and Asia were the major regions for Bosch to gain top shares in the market.

Continental AG catered to both OEM and aftermarket channels, not only in Europe, but also across the world, after the acquisition of Siemens VDO, in 2007.

There exist several aftermarket channels, such as Autozone and OEM Tools, in the market, which supplies automotive diagnostics tools at both local and international locations.

Recent Developments

With the increasing remote diagnostics and vehicle automation, OEMs are inclined towards providing remote support. For instance, Tesla rolls out major updates to the vehicles through The Air update method and other OEMs are following the same considering the better economic profiits around this method for both consumer and the OEM.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 OBD

      2. 5.1.2 Electric System Analyzer

      3. 5.1.3 Scan Tool

    2. 5.2 Vehicle Type

      1. 5.2.1 Passenger Cars

      2. 5.2.2 Commercial Vehicles

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 France

        4. 5.3.2.4 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 South Korea

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 South Africa

        3. 5.3.4.3 Other Countries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 ACTIA Group

      2. 6.2.2 Delphi Automotive PLC

      3. 6.2.3 Continental AG

      4. 6.2.4 Robert Bosch GmbH

      5. 6.2.5 Snap-On

      6. 6.2.6 Carman Scan

      7. 6.2.7 Vector Informatik Gmbh

      8. 6.2.8 Softing AG

      9. 6.2.9 KPIT Technologies Ltd

      10. 6.2.10 Hella KGaA Hueck & Co.

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

**Subject to Availability
Disclaimer

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Frequently Asked Questions

The Automotive Diagnostic Tools Market market is studied from 2018 - 2026.

The Automotive Diagnostic Tools Market is growing at a CAGR of >5.8% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

  • Delphi Automotive PLC
  • Robert Bosch GmbH
  • Continental AG
  • Snap-on Incorporated
  • ACTIA Group

Are the major companies operating in Automotive Diagnostic Tools Market.

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