Europe Automotive Diagnostics Tool Market Trends

Statistics for the 2023 & 2024 Europe Automotive Diagnostics Tool market trends, created by Mordor Intelligence™ Industry Reports. Europe Automotive Diagnostics Tool trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Market Trends of Europe Automotive Diagnostics Tool Industry

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 Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)