How Has the Vehicle Diagnostics Market Size Evolved in Recent Years?
The vehicle diagnostics market has seen considerable growth due to a variety of factors.
• The market size for vehicle diagnostics has experienced swift expansion in the last few years. The market is projected to increase from $38.09 billion in 2024 to $44.26 billion in 2025, boasting a compound annual growth rate (CAGR) of 16.2%.
The advancement in the previous period can be associated with regulatory adherence, consumer preference for dependability, cost constraints on vehicle upkeep, the globalization of vehicle production, the surge in vehicle ownership, and fleet administration.
What Are The Predictions for The Vehicle Diagnostics Market in the Coming Years?
The vehicle diagnostics market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the vehicle diagnostics market is projected to witness a fast-paced expansion. By 2029, the market is speculated to increase to $79.77 billion at a compound annual growth rate (CAGR) of 15.9%.
This accelerated growth during the projected period can be attributed to the rise in vehicle intricacy, emphasis on predictive analytics, transformation towards subscription-oriented services, advancements in mobility-as-a-service (MaaS), and an increasing focus on environmental sustainability. Further, key trends for this forecast period include the growing adoption of connected diagnostic systems, the broadening of predictive maintenance solutions, the implementation of cutting-edge sensor technologies, a shift towards software-centric diagnostics, as well as the emergence of augmented reality (AR) based diagnostic tools.
Which Drivers Are Accelerating Growth In The Vehicle Diagnostics Market?
The vehicle diagnostics market is anticipated to expand due to the increasing trend of vehicle leasing. Vehicle leasing involves a contractual agreement wherein an entity or an individual rents a vehicle from a leasing firm or bank for a predetermined duration, usually spanning months to years. The popularity of vehicle leasing is rising because of factors such as availability of newer cars, lower maintenance expenses, versatility, and business tax incentives. Vehicle diagnostics plays a crucial role in vehicle leasing as it guarantees the upkeep and efficacy of leased cars, allows leasing companies to scrutinize vehicle health, identify problems, and enhance fleet management for smooth and dependable service throughout the lease term. For example, as reported by Verdict Media Limited's MotorFinanceOnline, a UK-based online news and analytics portal, in the first half of 2022, 20% or 1 out of 5 new leasing customers were inclined towards leasing a purely battery-operated vehicle (BEV). This indicates a massive 1575% increase in demand for BEVs compared to previous years. Hence, the growing trend of vehicle leasing is fueling the expansion of the vehicle diagnostics market.
What Are The Core Segments Of The Global Vehicle Diagnostics Market?
The vehicle diagnostics market covered in this report is segmented –
1) By Product Type: OBD2 Scanner, Multi-System Auto Diagnostic Tool, OBDII Scanner Bluetooth Automotive ECU Coding Diagnostic Tool, OBD2 Car Code Reader Or scan Tool, OBD2 Adapter Check Engine Diagnostic Tool, Smartphone Diagnostic Tool, Other Products
2) By Vehicle Type: Light-Duty Vehicle, Commercial Vehicle, Heavy Commercial Vehicle
3) By Equipment Type: Exhaust Gas Analyzer, Wheel Alignment Equipment, Headlight Tester, Paint Scan Equipment, Dynamometer
4) By Application: Automatic Crash Notification, Vehicle Tracking, Vehicle Health Alert, Roadside Assistance
Subsegments:
1) By OBD2 Scanner: Standard OBD2 Scanner, Advanced OBD2 Scanner
2) By Multi-System Auto Diagnostic Tool: OEM Multi-System Diagnostic Tool, After market Multi-System Diagnostic Tool
3) By OBDII Scanner Bluetooth Automotive ECU Coding Diagnostic Tool: Wireless OBDII Scanner with Bluetooth Connectivity, ECU Coding And Reprogramming OBDII Diagnostic Tools
4) By OBD2 Car Code Reader Or Scan Tool: Basic OBD2 Code Reader, Professional OBD2 Scan Tool
5) By OBD2 Adapter Check Engine Diagnostic Tool: OBD2 Bluetooth Adapter, OBD2 USB Adapter
6) By Smartphone Diagnostic Tool: Mobile App-Based Diagnostic Tools, Smartphone OBD2 Adapter Kits
7) By Other Products: Vehicle Battery Diagnostic Tools, TPMS Diagnostic Tools, Hybrid Or Electric Vehicle Diagnostic Tools, Automotive Performance Diagnostic Tools
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Which Emerging Market Trends Are Altering The Vehicle Diagnostics Industry?
Prominent entities in the vehicle diagnostics sector are prioritizing the advancement of vehicle battery diagnostic tools like MDX-AI to secure an industry advantage. MDX-AI is a unique battery diagnostic instrument designed to evaluate the condition, performance, and longevity of batteries used across diverse examinations and research. More specifically, in July 2024, Midtronics Inc., an American firm specializing in battery management systems, unveiled its innovative MDX-AI battery diagnostic technology for automotive service devices. Utilizing the cutting-edge applications of artificial intelligence, this technology promises swift and precise assessments of battery health and performance. The aim is to abolish 'Charge and Retest' decisions and ensure dependable backup for essential functions in electric cars, while also providing instant and accurate evaluations of battery health. MDX-AI is addressing technician's challenges with diagnosing battery issues by allowing them to swiftly and accurately decide on battery conditions, thereby improving efficacy and productivity in vehicle upkeeping. Furthermore, MDX-AI boasts superior features like precise testing of the 12V batteries utilized in electric cars, a critical facet for guaranteeing the dependability of safety mechanisms.
Who Are the Key Players In The Vehicle Diagnostics Market?
Major companies operating in the vehicle diagnostics market are:
• DENSO Corporation
• Continental AG
• BorgWarner Inc.
• Snap-on Incorporated
• ACTIA Group
• AVL List GmbH
• OnStar LLC
• SPX Corporation
• VOXX International Corporation
• KPIT Technologies
• Launch Tech Co. Ltd.
• Telemotive AG
• Repairify Inc.
• ETAS GmbH
• Magneti Marelli S.P.A.
• Softing AG
• General Technologies Corporation
• DSA Daten- und Systemtechnik GmbH
• Autologic Diagnostics Ltd.
• Hickok Incorporated
• AVL DiTEST GmbH
• Vector Informatik GmbH
• Vidiwave Limited
• Autel Intelligent Technology Corp. Ltd.
• Robert Bosch GmbH
What Are The Regional Insights Into The Vehicle Diagnostics Market?
North America was the largest region in the vehicle diagnostics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vehicle diagnostics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
