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The Automotive OBD Dongle market size is forecast to increase by USD 87.87 billion, at a CAGR of 18.52% between 2023 and 2028. The market's growth relies on several key elements. Firstly, there's a notable surge in the acceptance and popularity of electric vehicles (EVs), driven by increasing environmental awareness and government incentives. Secondly, consumers are significantly investing in advanced vehicle features, including safety systems and connectivity options, further propelling market demand. Thirdly, continuous advancements in automotive actuator technologies are enhancing vehicle performance and efficiency, crucial for both conventional and electric vehicles. These technological strides are fostering innovation in areas such as autonomous driving and electric propulsion systems. As these factors converge, they create a dynamic landscape where automotive manufacturers and technology suppliers are poised to capitalize on evolving consumer preferences and regulatory shifts, shaping the future of the automotive industry.
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The market share growth by the passenger cars segment will be significant during the forecast period. Due to the strong demand from emerging countries and the revival of developed economies, there is a significant increase in the growth of the passenger car segment.
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The passenger cars segment was valued at USD 26.49 billion in 2018. Factors such as telematics offerings becoming standard fitments in most cars. E-hailing market growth is also contributing to the wider adoption of OBD dongles through aftermarket offerings is also significantly contributing to the market growth of this segment. Furthermore, due to the improvement in the economic conditions of the middle-class population, it is expected to have an increase in demand for passenger cars in the coming years. Also, there is a growing adoption of the market due to the introduction of the passenger car segment with innovative and new features which is expected to drive the market growth during the forecast period.
Based on vehicle type, the automotive market is segmented into Bluetooth and Wifi. The Bluetooth segment holds the largest market share. Factors such as the rising demand for vehicle diagnostics, the increasing use of wireless connectivity, advancements in mobile technology, and the necessity for real-time data access significantly influence the development of Bluetooth technology. Within the market, various manufacturers offer Bluetooth-enabled dongles with diverse features, pricing options, and compatibility with different vehicle models. The Bluetooth segment of this market offers users a wireless and convenient solution to access and analyze vehicle data, leading to improved vehicle maintenance, performance monitoring, and diagnostics. Consequently, this segment is poised for substantial growth during the forecast period.
APAC is estimated to contribute 29% 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.
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Another region that contributes significanlty to the market growth is North America, especially in the United States. The region's growth is bolstered by feature upgrades and innovative business models, catering to OEMs' revenue streams. With road and freight transportation on the rise, the demand for OBD dongles is increasing among fleet operators and managers. OBD systems primarily target emission reduction and fuel efficiency, leading to the development of OBD-III by the California Air Resources Board (CARB). Additionally, the US NCAP's emphasis on safety features in vehicles drives the market for telematics applications and services, fueling further advancements in OBD technologies.
Since the US government made OBD requirements mandatory in 1996, the country has become the world's largest market for OBD systems. The OBD systems market in the US has witnessed significant advancements and witnessed the emergence of various innovations and start-ups introducing new technologies in the fields of OBD connectivity, embedded display systems, and telematics. These factors are boosting the growth of the market.
The market is witnessing significant growth due to the increasing demand for vehicle diagnostics and connectivity solutions. OBD dongles are devices that connect to the OBD port in passenger cars and enable real-time monitoring of engine performance, fuel consumption, and diagnostic trouble codes. These devices are increasingly being adopted by both personal vehicle owners and commercial fleets for preventive maintenance and insurance models. OBD dongles come with various connectivity technologies such as Bluetooth and Wi-Fi, enabling data transmission to mobile applications and web-based applications. Telematics services, vehicle connectivity, and vehicle diagnostics solutions are some of the key applications of OBD dongles. The market is driven by the growing demand for vehicle health monitoring, fuel efficiency, and driving experiences. OBD dongles provide real-time data on vehicle performance, enabling early identification and resolution of issues, and reducing downtime and maintenance costs. The market is expected to grow at a steady pace due to the increasing adoption of telematics solutions and the growing demand for vehicle diagnostics and connectivity.
Fleet operators focusing on reducing the total cost of ownership (TCO) of vehicles is a primary factor driving the market growth. Fleet operators face challenges from fuel price fluctuations and inefficiencies in fleet operations. To combat rising costs, they are adopting cost optimization strategies, such as optimizing fuel consumption and enhancing fleet management through vehicle engine innovations. Utilizing OBD for remote monitoring of vehicle components provides valuable data to improve component design parameters and monitor driving history, aiding in better driver training.
OBD also helps in optimized replacement cycles by estimating the ideal time for part replacements and maintenance checks, reducing maintenance frequency. This drives the growth of the market during the forecast period, as fleet managers benefit from reduced maintenance costs and improved fuel efficiency.
Penetration of 5G technology is a key trend shaping the market. Internet access is crucial for connected cars, enabling the smooth functioning of safety systems like ADAS and entertainment features. The adoption of 4G LTE by OEMs has fueled the demand for aftermarket telematics. Several automakers, including GM and Audi, introduced 4G LTE connectivity in their vehicles, further boosting its popularity. Telecom operators, like AT&T, have also entered the 4G LTE segment, offering drivers the option to add LTE through their mobile sharing plans.
Moreover, the success of 4G LTE has paved the way for the emergence of 5G technology in automotive telematics. With 5G, data transmission becomes 33 times faster, and software updates can occur at faster speeds through OTA networks. Additionally, 5G enables V2X communications, promoting safer driving and accident prevention. As a result, the increasing penetration of 5G is expected to positively impact the market growth and forecasting period.
The limitation of onboard diagnostics systems is a major challenge hindering market growth. OBD systems effectively check and report issues related to specific vehicle components. However, their limited coverage of certain components affects their overall effectiveness. Currently, OBD systems can only diagnose problems related to emissions, engine oil levels, air and fuel ratio, and transmission operations. They lack access to body control, seat belt status, and airbag data.
Further, as vehicle design becomes more complex, there is a growing need for end-to-end diagnostics. Manufacturers are working on adding additional component diagnostics to OBD systems, but this may only be viable in the future. The limited scope of OBD systems poses a challenge to market growth, which may continue to hinder their potential during the forecast period.
Companies are implementing various strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Intel Corp.- The company offers the automotive OBD dongle called the Intel OBDII dongle for advanced vehicle telematics.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including AutoPi.io ApS, BAFX Products, BorgWarner Inc., Continental AG, Danlaw Inc., Geotab Inc., Huawei Technologies Co. Ltd., Intel Corp., iWave Systems Technologies Pvt. Ltd., Legion Autodata JSC, Moj.io Inc., OBD Solutions LLC, Prizmos Ltd., Robert Bosch GmbH, ShenZhen CheBoTong Technology Co. Ltd., TomTom NV, Veepeak, Verizon Communications Inc., Zubie Inc., and Zymbia Interactive Technologies Pvt. Ltd.
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
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The market is witnessing significant growth due to the increasing adoption of connected car technologies and the rising demand for real-time monitoring of engine performance, fuel consumption, and diagnostic trouble codes in both personal vehicles and commercial fleets. OBD dongles use wireless communication technology, such as Bluetooth, Wi-Fi, and cellular networks, to transmit vehicle performance data to smartphones, tablets, computers, and telematics services. OBD dongles come in various forms, including Bluetooth, Wi-Fi, and cellular OBD dongles. Bluetooth OBD dongles offer convenience and ease of use, while Wi-Fi dongles provide faster data transfer rates. Cellular OBD dongles enable remote monitoring and fleet management operations through cellular data plans. Automotive manufacturers are integrating OBD dongles into their vehicles to offer preventive maintenance services, insurance models, and telematics services.
Moreover, the use of artificial intelligence and machine learning algorithms in OBD dongles enables predictive maintenance and real-time analysis of vehicle data. The adoption of OBD dongles is also driving the growth of vehicle-to-everything communications, road safety, traffic management, smart mobility, autonomous vehicles, and vehicle electrification. OBD dongles play a crucial role in automotive IoT technologies, enabling seamless communication between vehicles and the external world. In conclusion, the market is expected to grow significantly due to the increasing demand for real-time vehicle monitoring, preventive maintenance, and connected car technologies. The integration of advanced technologies such as artificial intelligence, machine learning, and vehicle-to-everything communications is further driving the growth of the market.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.52% |
Market Growth 2024-2028 |
USD 87.87 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.18 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 29% |
Key countries |
China, US, Germany, Japan, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AutoPi.io ApS, BAFX Products, BorgWarner Inc., Continental AG, Danlaw Inc., Geotab Inc., Huawei Technologies Co. Ltd., Intel Corp., iWave Systems Technologies Pvt. Ltd., Legion Autodata JSC, Moj.io Inc., OBD Solutions LLC, Prizmos Ltd., Robert Bosch GmbH, ShenZhen CheBoTong Technology Co. Ltd., TomTom NV, Veepeak, Verizon Communications Inc., Zubie Inc., and Zymbia Interactive Technologies Pvt. Ltd. |
Market dynamics |
Parent market growth analysis, Market Forecasting, 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 market forecast period. |
Customization purview |
If our market research report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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