Europe Automotive Diagnostic Tools Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Europe Automotive Diagnostics Tools market has been segmented by Vehicle Type (Passenger Cars and Commercial Vehicles), Type (OBD, Electric System Analyzer, and Scan Tool), and Geography (Germany, United Kingdom, France, Spain, and Rest of Europe). The report offers market size and forecasts for all the above segments in value (in USD).

Europe Automotive Diagnostics Tool Market Size

Europe Automotive Diagnostics Tool Market Summary
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Study Period 2018 - 2028
Market Size (2023) USD 5.98 Billion
Market Size (2028) USD 7.80 Billion
CAGR (2023 - 2028) 5.45 %
Fastest Growing Market Europe
Largest Market Europe

Major Players

Europe Automotive Diagnostic Tools Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Europe Automotive Diagnostics Tool Market Analysis

The Europe Automotive Diagnostic Tools Market size is expected to grow from USD 5.98 billion in 2023 to USD 7.80 billion by 2028, at a CAGR of 5.45% during the forecast period (2023-2028).

  • The COVID-19 pandemic initially hurt 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.
  • Over the medium term, Favorable government policies across regions 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.
  • On-board diagnostics (OBD) were used to monitor the initial electronic systems in the vehicle, like electronic fuel injection and ignition. With a rise in the dependency and usage of 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 European Union (EU) Regulation 566/2011, dated June 19, 2011, states that manufacturers are obligated to release electronic data, enabling the precise identification of replacement parts for vehicles. The European automobile industry is subject to further regulatory amendments, such as 1400/2002, 715/2007, and 64/2012, to create a competitive landscape in which independent operators and authorized shops compete to serve different customer segments and needs. Original equipment manufacturers (OEMs) are following the trend toward automobiles that are electronically equipped for remote diagnostics. With the support of manufacturers and favorable regulations, the automotive diagnostic tools market is surging ahead.
  • The shift of the automotive industry from internal combustion (IC) engine vehicles to electric vehicles would also have an impact on the diagnostics market, as the parameters and components in both types of vehicles differ, which in turn is likely to witness major growth for the market during the forecast period.

Europe Automotive Diagnostics Tool Market Trends

Increasing Adoption in Passenger and Commercial Vehicles

  • As the number of electrical components in an automobile increases, the requirement for a computerized diagnostic system to monitor the complex electrical architecture in vehicles is also growing. The European Union has mandated the use of onboard diagnostic (OBD) 2 in light-duty vehicles during the implementation of Euro 6 emission standards.
  • Components, such as catalyst, catalyst heater, evaporative system, air conditioning system, fuel system, oxygen sensor and heater, exhaust gas recirculation (EGR), thermostat, fuel filler cap, particulate filter, positive crankcase ventilating, and parameters, like engine misfire frequency, secondary air flow, etc., are monitored by the OBD 2, along with comprehensive component monitoring of some more components.
  • Owing to a severe shortage of drivers, light commercial vehicles (LCV) and medium commercial vehicle (MCV) manufacturers all over Europe are working to improve safety functionalities. With the increase in restrictions from government and environmental agencies, the scope for electrically powered steering is expected to become a standard feature in LCVs and MCVs. Steering electrification will be considered as a springboard for the provision of a whole array of safety and driver assistance functionalities, such as lane keeping assist, lane centering assist, and active cruise control.
  • By 2023, one in two LCVs and MCVs is expected to be fitted with either a fully or partially electrified system. In vehicles that are still using standard hydraulic systems, fleet managers are likely to retrofit plug-and-play electrified steering add-on modules in large numbers.
  • Rising awareness regarding automotive diagnostic scan tools' efficiency and growing demand for sophisticated diagnostic software due to the notable adoption of these tools by car manufacturers is expected to boost the scanning tools adoption in passenger cars. So, in the wake of such benefits, key players operating in the market have started launching new products and are focusing on upgrading their portfolio to strengthen their customer base. 
  • For instance, in March 2021, Bosch expanded its next generation of advanced automotive diagnostic scan tool portfolio with the new ADS 625X. The ADS 625X includes a multipurpose docking station that charges the tablet and powers the VCI, providing seamless wireless updates and access to repair information without needing to be connected to the vehicle.
  • In addition to the original equipment manufacturer (OEM) vehicle health monitoring services, aftermarket vehicle health diagnostic tools are also increasingly available now. For instance, the Integrated Vehicle Management System by Honeywell and Hum by Verizon are some of the aftermarket vehicle health diagnosing tools. The safety feature is expected to drive diagnostic features, thereby increasing the market for automotive diagnostics.
Europe Automotive Diagnostics Tool Market: Monthly passenger car sales in Europe between March 2020 and April 2023 (in 1,000 units)

Germany is Expected to Dominate the Market

  • Germany has the largest market share and is one of the key contributors to the growth of the automotive diagnostic tools market in the EU region. The two largest market players operating in Germany are Robert Bosch GmbH and Continental AG, which also have the largest market share.
  • With about 30% of the total revenues in Europe during the forecasted period, Germany is anticipated to remain the largest market for diagnostic equipment in Europe. However, the increasing influx of cost-competitive Chinese products is posing a challenge to German manufacturers.
  • Vehicle component malfunction accounts for a considerable portion of crashes and accidents that happen on the road. According to the Association of Advancement of Automotive Medicine, about 6% of car accidents in Europe are due to malfunctioning vehicles or other vehicle-related equipment. The malfunctioning of vehicle components can be identified by proper vehicle health diagnostics.
  • Over the years, players operating in the segment are constructively creating alliances with utility partners to meet the growing demand across the segments. For instance, in January 2023, Automotive supplier ZF Friedrichshafen AG announced the acquisition of Intellic Germany GmbH (Berlin). In addition, Intellic's smart tachograph products complement ZF's existing portfolio in the digital fleet management segment. Further, this also strengthens ZF's market position as a partner to the commercial vehicle industry along the entire value chain and for Transportation as a Service (TaaS).
  • In mid-2023, European manufacturers installed the next generation of smart tachographs in newly registered trucks. As a result, ZF strategists believed that the smart tachograph would become the digital linchpin for effectively managing commercial vehicles by 2024, with the technology completely replacing its analog predecessors.
  • Remote vehicle health diagnostic systems, such as SYNC by Ford and Blue Link by Hyundai, have remote vehicle diagnostics features. The remote vehicle diagnostic features provide the health status of vehicle components, like engine oil level and the optimum time to change oil and other fluids, suspension system and engine evaluation, time for maintenance of the vehicle, and the optimum time to change the thinning brake pads, etc.
  • With the above-mentioned development across the region, the market is witnessing major growth during the forecast period.
Europe Automotive Diagnostics Tool Market: Germany Vehicle Sales (Million Units), 2019-2022

Europe Automotive Diagnostics Tool Industry Overview

The Europe automotive diagnostics tool market is dominated by several key players such as Robert Bosch GmbH, Continental AG, Delphi Technologies Inc., Snap-on, and Others. Growing technological advancement in diagnostic tools is likely to witness major growth for the market during the forecast period. 

In April 2022, MAHLE collaborated with political diagnostics, a software developer based in Dresden, to use the charging plug-in in addition to the existing OBD port for battery diagnostics of electric vehicles in the future. It evaluates the measured data in the cloud and provides valuable information about the state of the electric vehicle battery.

In November 2021, Continental launched Autodiagnos Drive, a remote vehicle data solution designed to deliver advanced diagnostic information that service providers, fleet managers, and repair facilities can use to maximize their data-driven services.

In July 2021, Hella Gutmann developed a Cyber Security Management (CSM) function in its diagnostic devices to provide authentication with gateways, enabling rapid diagnostic checks for a variety of vehicles.

In April 2021, Snap-on released a software upgrade for its diagnostic tools that allows professional technicians to get the full potential of their diagnostic platform to increase their productivity and overcome even the toughest obstacles more quickly. The new update allows a 2 percent increase in hybrid electronics component tests and a 13 percent increase in additional driver aids/ADAS component tests.

Europe Automotive Diagnostics Tool Market Leaders

  1. Robert Bosch GmbH

  2. Snap-On Inc.

  3. Delphi Automotive PLC

  4. Continental AG

  5. Denso Corporation

*Disclaimer: Major Players sorted in no particular order

Europe Automotive Diagnostics Tool Market Concentration

Europe Automotive Diagnostics Tool Market News

  • May 2023: MAHLE GmbH and Midtronics Inc. jointly developed service devices for EVs from all manufacturers. The partnership aimed to offer safe, simple, and effective service for Li-ion battery diagnostics and maintenance, regardless of brand, over the entire life cycle of the batteries and vehicles.
  • December 2022: Otonomo Technologies Ltd. announced a multi-year partnership with Groupe Renault to provide Otonomo's fleet customers with easier and cost-effective access to rich, actionable vehicle data insights across multiple vehicle brands.
  • September 202: Saietta Group PLC of the United Kingdom presented heavy-duty electric drives at IAA Transportation in Germany. They also demonstrated an advanced in-house-developed Saietta Electric Drive Diagnostics (SEDD) software application featuring full diagnostic and calibration eDrive system capabilities. The system is used as a comprehensive diagnostic and calibration system for electric vehicles.

Europe Automotive Diagnostics Tool Market Report - 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

      1. 4.1.1 Technological Advancements In Vehicles Driving Demand

      2. 4.1.2 Others

    2. 4.2 Market Restraints

      1. 4.2.1 High Scan Tool Costs to Limit Growth

      2. 4.2.2 Others

    3. 4.3 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 (Market Size in Value - USD Billion)

    1. 5.1 By Type

      1. 5.1.1 OBD

      2. 5.1.2 Electric System Analyzer

      3. 5.1.3 Scan Tool

    2. 5.2 By Vehicle Type

      1. 5.2.1 Passenger Cars

      2. 5.2.2 Commercial Vehicles

    3. 5.3 By Geography

      1. 5.3.1 Germany

      2. 5.3.2 United Kingdom

      3. 5.3.3 France

      4. 5.3.4 Spain

      5. 5.3.5 Rest of Europe

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Hella KGaA Hueck & Co

      2. 6.2.2 Actia Group

      3. 6.2.3 Softing AG

      4. 6.2.4 Vector Informatik

      5. 6.2.5 Robert Bosch GmbH

      6. 6.2.6 Continental Automotive AG

      7. 6.2.7 Delphi Automotive PLC

      8. 6.2.8 Snap-On Inc.

      9. 6.2.9 General Technology Group

      10. 6.2.10 Carman International

      11. 6.2.11 Denso Corporation

      12. 6.2.12 KPIT Technologies Ltd

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

Europe Automotive Diagnostics Tool Industry Segmentation

An automotive diagnostic tool can detect and diagnose problems in a car's engine, transmission, brakes, and other systems. It can read error codes, perform system tests, and reset warning lights, as well as provide detailed information about the vehicle's performance.

The Europe automotive diagnostics tools market has been segmented by vehicle type, type, and country. By vehicle type, the market has been segmented as passenger cars and commercial vehicles. By type, the market has been segmented as OBD, electric system analyzer, and scan tool. And by country, the market has been segmented into Germany, the United Kingdom, France, Spain, and the Rest of Europe.

For each segment, the market sizing and forecast have been done based on the value (USD).

By Type
OBD
Electric System Analyzer
Scan Tool
By Vehicle Type
Passenger Cars
Commercial Vehicles
By Geography
Germany
United Kingdom
France
Spain
Rest of Europe

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Europe Automotive Diagnostics Tool Market Research FAQs

The Europe Automotive Diagnostics Tool Market size is expected to reach USD 5.98 billion in 2023 and grow at a CAGR of 5.45% to reach USD 7.80 billion by 2028.

In 2023, the Europe Automotive Diagnostics Tool Market size is expected to reach USD 5.98 billion.

Robert Bosch GmbH, Snap-On Inc., Delphi Automotive PLC, Continental AG and Denso Corporation are the major companies operating in the Europe Automotive Diagnostics Tool Market.

Europe is estimated to grow at the highest CAGR over the forecast period (2023-2028).

In 2023, the Europe accounts for the largest market share in Europe Automotive Diagnostics Tool Market.

Europe Automotive Diagnostics Tool Industry Report

Statistics for the 2023 Europe Automotive Diagnostics Tool market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Automotive Diagnostics Tool analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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