Automotive Diagnostic Tools Market Size

Automotive Diagnostic Tools Market Analysis

The automotive diagnostic tools market is valued at USD 34.50 billion, and it is expected to reach USD 46.69 billion by registering a CAGR of 5.48% during the forecast period.

• The COVID-19 pandemic initially had a negative impact on the market as continuous lockdowns and shutdowns of manufacturing units resulted in reduced vehicle usage and a decline in transportation activities, reducing diagnostic tool usage. However, growing digitalization and the latest technologies encouraged initial tool designing and proposals to be 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.
• Favorable government policies across major economies, the United States and Europe mandating the utilization of OBD and growing awareness of the benefits offered by the diagnostic tools are expected to drive demand in the market. Moreover, the trend of integrating innovative features into vehicles due to rising security concerns among end-users and growing complexity in connected cars is expected to further augment market growth during the forecast period. However, the high cost and complexity of scan tools are likely to act as restraints to the growth of the market.
• Asia-Pacific is expected to hold the largest market share during the forecast period owing to rising vehicle production and usage coupled with rising service stations and automotive workshops. North America and Europe are also likely to witness significant growth owing to the supportive environment created by governments across the region and rising awareness about safety and security in the wake of the latest technologies like connected and autonomous cars.