Automotive Diagnostic Tools Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Automotive Diagnostic Tools Market is Segmented by Type (OBD, Electric System Analyzer, and Scan Tool), Vehicle Type (Passenger Cars and Commercial Vehicles), and Geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers the market sizes and forecasts in value (USD billion) for all the above-mentioned segments.

Market Snapshot

Automotive Diagnostic Tools Market Overview
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia-Pacific
CAGR: >5 %

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Market Overview

The automotive diagnostics tools market 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, 2021-2026.

Although the COVID-19 pandemic affected the global economy, the automotive diagnostic tools 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-COVID-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, mandated the diagnostic systems in automobiles between 2000 and 2010.

Scope of the Report

Onboard diagnostics (OBD) refers to the self-diagnostic and reporting capabilities 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 diagnostic tools market is segmented by type (OBD, electric system analyzer, and scan tool), vehicle type (passenger cars and commercial vehicles), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The report offers the market sizes and forecasts in value (USD billion) for all the above-mentioned segments.

Electric System Analyzer
Scan Tool
Vehicle Type
Passenger Cars
Commercial Vehicles
North America
United States
Rest of North America
United Kingdom
Rest of Europe
South Korea
Rest of Asia-Pacific
Rest of the World
South Africa
Other Countries

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Key Market Trends

Increasing Demand for Electric System Analyzer Tools

The demand for electric system analyzers is likely to increase during the forecast period 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 it 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 require electric system analyzers. Suppliers, like Bosch, Continental, etc., are expected to capitalize on this opportunity in the near future.

Automotive Diagnostic Tools Market_trend1

Asia-Pacific is Expected to be the Fastest-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 and Japan. 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, made these regulations mandatory for all vehicles 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 VI emission norms since April 2020, which in turn has increased the number of electronic components in vehicles. Thus, the sakes of new passenger cars is expected to have a direct impact on the market during the forecast period.


Competitive Landscape

The Automotive Diagnostics Tools Market is a moderately consolidated one and major players in the automotive diagnostic tools market are Robert Bosch, Continental AG, Delphi Automotive, Snap-on, Softing, etc. Other companies in the industry include KPIT, Carman, General Technologies Corporation, Pico Technology, etc.

Robert Bosch occupied a significant share in the market, with its popular VCI scan tools supplied to the aftermarket channels (automotive service centers and automotive dealers) and 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.

The market has presence of several aftermarket players, such as Autozone and OEM Tools, which supply automotive diagnostic tools at local and international locations.

Recent Developments

  • In June 2020, Continental has introduced a new diagnostic tool designed to help improve technician’s productivity by streamlining vehicle diagnosis. The Continental Autodiagnos Pro Automotive Diagnostic System has been specially designed to help automotive technicians to analyze, diagnose, and repair vehicles faster, according to Continental. The new scan tool can be used to service all makes and is being updated continuously as vehicles evolve.
  • In February 2020, Hella Gutmann Solutions (HGS) designed two diagnostic packages to improve affordability for workshops. The Mega macs PC has full access to HGS technical data, with wiring diagrams, symptom-based troubleshooting, and step-by-step repair guides for more than 40,000 vehicle models.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    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


    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. United States

        2. Canada

        3. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. South Korea

        5. Rest of Asia-Pacific

      4. 5.3.4 Rest of the World

        1. Brazil

        2. South Africa

        3. Other Countries


    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.



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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% over the next 5 years.

The Automotive Diagnostic Tools Market is valued at 27 Billion USD in 2018.

The Automotive Diagnostic Tools Market is valued at 38 Billion USD in 2026.

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

Asia-Pacific holds highest share in 2020.

Delphi Automotive PLC, Robert Bosch GmbH, Continental AG, Snap-on Incorporated, Softing are the major companies operating in Automotive Diagnostic Tools Market.

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