Market Size of Europe Automotive Diagnostics Tool Industry
|2019 - 2029
|Market Size (2024)
|USD 6.31 Billion
|Market Size (2029)
|USD 8.23 Billion
|CAGR (2024 - 2029)
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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Europe Automotive Diagnostics Tool Market Analysis
The Europe Automotive Diagnostics Tool Market size is estimated at USD 6.31 billion in 2024, and is expected to reach USD 8.23 billion by 2029, growing at a CAGR of 5.45% during the forecast period (2024-2029).
- 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.