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The automotive prognostics market is estimated to grow at a CAGR of 21.58% and the size of the market is forecast to increase by USD 5,269.12 million between 2022 and 2027. The growth of the market depends on several factors, including maintenance cost-saving benefits of automotive prognostics systems, increased focus of prominent automotive OEMs for improving vehicle diagnostics services, and growing popularity of electric vehicles creating demand for prognostics solutions.
This report extensively covers market segmentation by application (passenger cars and commercial vehicles), end-user (aftermarket and OEMs), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The maintenance cost-saving benefits of automotive prognostics systems are notably driving the market growth, although factors such as high costs associated with telematics services exert pressure on the adoption of prognostics systems and may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Automotive Prognostics Market Driver
The automotive prognostics systems are driving market growth due to their ability to reduce maintenance costs. These systems use advanced diagnostic technologies to predict the remaining useful life of components, allowing fleet operators to schedule preventive maintenance in a timely and cost-effective manner. This helps to avoid unexpected vehicle downtime and the high cost of labor and parts, especially in the context of a shortage of skilled technicians. Overall, the prognostics system is a powerful tool for managing the maintenance expenses of fleet operations.
Advanced diagnostic technologies such as the prognostics system are enabling fleet operators to curb delays in preventive maintenance owing to its ability to predict component RUL, which reduces unexpected vehicle downtime and cost. The prognostics system estimates the optimum time for the replacement or repair of automotive parts by monitoring real-time data. As a result, the replacement of certain automotive parts before their actual economic life or the cost of periodic maintenance checks can all be avoided by adopting the system.
Significant Automotive Prognostics Market Trend
The development of autonomous vehicles is expected to benefit the market for prognostics, or predictive maintenance. Automotive manufacturers, tier 1 suppliers, and technology providers are investing heavily in the development of fully functioning autonomous vehicles. This significant funding will be crucial for the market as prognostics is a critical component in understanding the functionality of the components in autonomous vehicles, as there is no driver to provide feedback on how the vehicle performs over time. As automotive OEMs increase their efforts to test autonomous vehicles across different locations, the demand for automotive prognostics is expected to increase during the forecast period.
Major Automotive Prognostics Market Challenge
High costs associated with telematics services exert pressure on the adoption of prognostics systems is the major challenge impeding market growth. The initial cost incurred in the setting up of the telematics system in a vehicle includes license as well as setup and installation fee apart from the payment for customization and integration with current systems in the vehicle. Furthermore, the subscription fee must be renewed periodically, which adds to the overall cost. In addition, hidden costs, such as roaming charges, are posing a challenge to market growth.
Automotive manufacturers are also opting for low-cost solutions that help keep their profit margins high. They achieve this by undertaking cost reduction measures either by launching low-cost or no-frills products, which is affecting the adoption of embedded telematics. As the automotive prognostics system comes as a feature in the embedded telematics system, the development of low-cost or alternative solutions, such as smartphone-integrated telematics systems, is expected to be a challenge for the market during the forecast period.
Key Automotive Prognostics Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Automotive Prognostics Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
VMware Inc. - The company offers automotive prognostics with advanced driver assistance systems ADAS, semiconductor solutions, and safety automotive solutions. This segment focuses on offering the breadth of digital solutions that powers apps, services, and experiences which enable organizations to deliver the best customer service and empower employees.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the passenger cars segment will be significant during the forecast period. The passenger cars segment is at the nascent stage of the adoption of the prognostics system. The passenger cars segment of the market is expected to grow with the increase in demand for telematics services from users. Consumers are demanding new and innovative features and services that plug seamlessly into their digitized and mobile lifestyles.
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This segment is expected to remain the largest, backed by strong demand from emerging countries and the revival of developed economies during the forecast period. The growing adoption is expected to enhance the share of the passenger cars segment in the market as telematics offering is becoming a standard in the passenger cars adopted across the world.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
In 2022, the US was a major contributor to the market in North America. The demand for prognostics systems is increasing in the US owing to the high adoption of advanced telematics systems in passenger cars and commercial vehicles. North America is the hub for prominent automotive manufacturers such as General Motors, which are frontrunners in the adoption of advanced telematics services. The market in North America will be increasingly driven by feature upgrades and newer business models that are aimed at generating additional revenue for OEMs.
Moreover, the primary mode of transportation of goods is by road in North America; therefore, freight transportation is increasing every day. The emergence of Mexico as the manufacturing hub for industrial goods has increased the demand for freight transportation in North America. Freight transportation in North America is generally carried out by fleet operators who use vehicle diagnostics technologies for the higher efficiency of their vehicle fleets. Hence, advanced diagnostic solutions such as prognostics systems are also expected to grow positively in North America during the forecast period.
The outbreak of COVID-19 forced the governments of different North American countries to impose restrictions on business activities and transportation operations. However, the benefits of adopting a digital strategy will positively impact the sales of new vehicles. The adoption of such strategies is anticipated to promote automotive sales in the region. Thus, the sales of vehicles will drive the demand for automotive prognostics in the region during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automotive Prognostics Market Scope |
|
Report Coverage |
Details |
Page number |
168 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.58% |
Market growth 2023-2027 |
USD 5,269.12 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
20.52 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
ANSYS Inc., Bridgestone Corp., Cloudera Inc., Continental AG, Dell Technologies Inc., Digital Management LLC, Fleet Complete, Garrett Motion Inc., International Business Machines Corp., Magna International Inc., Open Text Corp., Pioneer Corp., Predii Inc., Preteckt Inc., Ridgetop Group Inc., Samsung Electronics Co. Ltd., Solera Holdings LLC, VMware Inc., Progress Software Corp., and Robert Bosch GmbH |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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