North America Automotive On-board Diagnostics (OBD) Market Size 2025-2029
The North America automotive on-board diagnostics (OBD) market size is forecast to increase by USD 15.8 billion, at a CAGR of 18.3% between 2024 and 2029.
The automotive on-board diagnostics (OBD) market in North America is shaped by a robust regulatory framework and advocacy for open repair access. These governmental and legislative actions establish a consistent demand for diagnostic equipment and related services by mandating emissions compliance and supporting access to vehicle data for independent service providers. This foundation fosters a competitive setting for the development of aftermarket solutions within the on-board diagnostics telematics market. A corresponding development is the pronounced shift toward remote and cloud-based diagnostic platforms. This evolution utilizes wireless connectivity to facilitate proactive, real-time monitoring of vehicle condition, which is particularly beneficial for commercial fleet operators. Such entities can leverage the data from commercial vehicle remote diagnostics to schedule maintenance predictively, thereby enhancing operational efficiency and lowering overall costs through preventative action and optimized scheduling, transforming maintenance from a reactive to a predictive model.Increasing control by original equipment manufacturers (OEMS) over vehicle data through the implementation of secure gateways creates significant barriers for the aftermarket service industry. These systems act as firewalls, restricting open access to a vehicle's diagnostic port and presenting considerable hurdles for independent shops to perform functions beyond elementary code reading. These facilities have traditionally depended on unrestricted data access for comprehensive diagnostics, including the use of advanced automotive diagnostic scan tools. The move by OEMs to develop closed diagnostic ecosystems complicates the practice of automotive remote diagnostics for non-affiliated service providers. This implementation of proprietary security measures by vehicle manufacturers defines a central conflict shaping the market's future trajectory, creating tension with open data access principles advocated by repair rights movements.
What will be the size of the North America Automotive On-board Diagnostics (OBD) Market during the forecast period?
Explore in-depth regional segment analysis with market size data - historical 2019 - 2023 and forecasts 2025-2029 - in the full report.
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How is this market segmented?
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019 - 2023 for the following segments.
- Product
- Vehicle type
- IC engine
- Electric vehicle
- Connectivity
- Geography
By Product Insights
The allied services segment is estimated to witness significant growth during the forecast period.
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The Allied services segment was valued at USD 5.4 billion in 2019 and showed a gradual increase during the forecast period.
Market Dynamics
Our researchers analyzed the data with 2024 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.
The North American Automotive On-Board Diagnostics (OBD) market is experiencing robust growth, primarily driven by stringent governmental regulations aimed at controlling vehicle emissions and enhancing safety standards. The mandatory implementation of OBD systems in all new vehicles has created a foundational demand. Furthermore, the increasing complexity of modern vehicle architecture, featuring a multitude of electronic control units, necessitates sophisticated diagnostic capabilities for effective maintenance and repair. Original Equipment Manufacturers (OEMS) are continuously integrating more advanced features, and the consumer appetite for connected car services and telematics is expanding the utility of the OBD port beyond simple diagnostics. This trend is fostering innovation, pushing the market towards more integrated and data-rich diagnostic solutions that provide deeper insights into vehicle health and performance for both service technicians and vehicle owners.Looking forward, the evolution of the market is closely tied to the automotive industry's megatrends, including vehicle electrification and autonomous driving. These shifts necessitate new diagnostic protocols and hardware capable of monitoring battery management systems and advanced driver-assistance systems. The aftermarket segment presents a significant opportunity, with a growing demand for advanced, multi-brand diagnostic tools and telematics devices for applications like fleet management and usage-based insurance. However, the market faces challenges related to cybersecurity threats targeting connected vehicles and the lack of standardization across different OEM diagnostic interfaces. Overcoming these hurdles by developing secure, interoperable, and cost-effective OBD solutions will be crucial for stakeholders to capitalize on future growth prospects.
What are the North America Automotive On-board Diagnostics (OBD) Market drivers leading to the rise in adoption of the Industry?
What are the North America Automotive On-board Diagnostics (OBD) Market trends shaping the Industry?
How does North America Automotive On-board Diagnostics (OBD) Market faces challenges face during its growth?
Exclusive North America Automotive On-board Diagnostics (OBD) Market Customer Landscape
The market forecasting 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 market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, market forecast partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Autel Intelligent Technology Corp. Ltd.
- AVL DiTEST GmbH
- Bridgestone Corp.
- Continental AG
- Dashboard Labs Corps.
- DENSO Corp.
- General Motors Co.
- Hearst Communications Inc.
- HELLA GmbH and Co. KGaA
- Innova Electronics Corp.
- iWave Systems Technologies Pvt. Ltd.
- Marelli Holdings Co. Ltd.
- Mercedes Benz Group AG
- Moj.io Inc.
- OBD Solutions LLC
- Opus IVS
- Snap On Inc.
- Vector Informatik GmbH
- Verizon Communications Inc.
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.
Recent Development and News in North America Automotive On-Board Diagnostics (OBD) Market
Research Analyst Overview
The automotive on-board diagnostics (OBD) market in North America is undergoing a continuous evolution, largely influenced by shifting regulatory mandates. The function of these systems is expanding beyond the simple retrieval of diagnostic trouble codes (DTCS). OEMs are progressively integrating more sophisticated capabilities into their platforms for both passenger cars and light commercial vehicles. This development includes the widespread adoption of comprehensive data logging features, which capture a wider array of operational parameters. These adaptations reflect a dynamic response to the increasing complexity of modern vehicle architectures and a move toward more proactive vehicle health monitoring strategies across the automotive industry.This trend is further advanced by the convergence of on-board diagnostics with advanced vehicle telematics. The synthesis of these technologies is enabling new service models, particularly in the domain of remote diagnostics, altering traditional approaches to vehicle maintenance and fleet operations. The market is experiencing a significant operational shift, with an anticipated expansion of nearly 7% in the coming year. This ongoing integration is redefining the relationship between vehicles, service providers, and end-users, creating a more interconnected automotive ecosystem. The process reflects an industry-wide adjustment to data-centric operational paradigms.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled North America Automotive On-board Diagnostics (OBD) Market insights. See full methodology.
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Market Scope
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Report Coverage
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Details
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Page number
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192
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Base year
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2024
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Historic period
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2019 - 2023 |
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Forecast period
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2025-2029
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Growth momentum & CAGR
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Accelerating at a CAGR of 18.3%
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Market growth 2024-2029
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USD 15.8 billion
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Market structure
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Fragmented
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YoY growth 2024-2029(%)
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17.6%
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Competitive landscape
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Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
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What are the Key Data Covered in this Market Research Report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the market growth and forecasting between 2024 and 2029
- Precise estimation of the size of the market and its contribution of the market in focus to the parent market
- Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
- Growth of the market across US, Mexico, Canada
- Thorough analysis of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the growth of market companies
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1 Executive Summary
- 1 Executive Summary
- 1.1 Market overview
- Executive Summary - Chart on Market Overview
- Executive Summary - Data Table on Market Overview
- Executive Summary - Chart on Country Market Characteristics
- Executive Summary - Chart on Market by Geography
- Executive Summary - Chart on Market Segmentation by Product
- Executive Summary - Chart on Market Segmentation by Vehicle Type
- Executive Summary - Chart on Market Segmentation by Connectivity
- Executive Summary - Chart on Incremental Growth
- Executive Summary - Data Table on Incremental Growth
- Executive Summary - Chart on Company Market Positioning
2 Technavio Analysis
- 2 Technavio Analysis
- 2.1 Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
- Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
- 2.2 Criticality of inputs and Factors of differentiation
- Overview on criticality of inputs and factors of differentiation
- 2.3 Factors of disruption
- Overview on factors of disruption
- 2.4 Impact of drivers and challenges
- Impact of drivers and challenges in 2024 and 2029
3 Market Landscape
- 3 Market Landscape
- 3.1 Market ecosystem
- Chart on Parent Market
- Data Table on - Parent Market
- 3.2 Market characteristics
- Chart on Market characteristics analysis
- 3.3 Value chain analysis
- Chart on Value chain analysis
4 Market Sizing
- 4 Market Sizing
- 4.1 Market definition
- Data Table on Offerings of companies included in the market definition
- 4.2 Market segment analysis
- 4.3 Market size 2024
- 4.4 Market outlook: Forecast for 2024-2029
- Chart on North America - Market size and forecast 2024-2029 ($ billion)
- Data Table on Regional - Market size and forecast 2024-2029 ($ billion)
- Chart on North America: Year-over-year growth 2024-2029 (%)
- Data Table on Regional - Market size and forecast 2024-2029 ($ billion)
5 Historic Market Size
- 5 Historic Market Size
- 5.1 Automotive On-Board Diagnostics (OBD) Market in North America 2019 - 2023
- Historic Market Size - Data Table on Automotive On-Board Diagnostics (OBD) Market in North America 2019 - 2023 ($ billion)
- 5.2 Product segment analysis 2019 - 2023
- Historic Market Size - Product Segment 2019 - 2023 ($ billion)
- 5.3 Vehicle Type segment analysis 2019 - 2023
- Historic Market Size - Vehicle Type Segment 2019 - 2023 ($ billion)
- 5.4 Connectivity segment analysis 2019 - 2023
- Historic Market Size - Connectivity Segment 2019 - 2023 ($ billion)
- 5.5 Geography segment analysis 2019 - 2023
- Historic Market Size - Geography Segment 2019 - 2023 ($ billion)
6 Qualitative Analysis
- 6 Qualitative Analysis
- 6.1 Impact of AI on Automotive On-Board Diagnostics (OBD) Market in North America
7 Five Forces Analysis
- 7 Five Forces Analysis
- 7.1 Five forces summary
- Five forces analysis - Comparison between 2024 and 2029
- 7.2 Bargaining power of buyers
- Bargaining power of buyers - Impact of key factors 2024 and 2029
- 7.3 Bargaining power of suppliers
- Bargaining power of suppliers - Impact of key factors in 2024 and 2029
- 7.4 Threat of new entrants
- Threat of new entrants - Impact of key factors in 2024 and 2029
- 7.5 Threat of substitutes
- Threat of substitutes - Impact of key factors in 2024 and 2029
- 7.6 Threat of rivalry
- Threat of rivalry - Impact of key factors in 2024 and 2029
- 7.7 Market condition
- Chart on Market condition - Five forces 2024 and 2029
8 Market Segmentation by Product
- 8 Market Segmentation by Product
- 8.1 Market segments
- Chart on Product - Market share 2024-2029 (%)
- Data Table on Product - Market share 2024-2029 (%)
- 8.2 Comparison by Product
- Chart on Comparison by Product
- Data Table on Comparison by Product
- 8.3 Allied services - Market size and forecast 2024-2029
- Chart on Allied services - Market size and forecast 2024-2029 ($ billion)
- Data Table on Allied services - Market size and forecast 2024-2029 ($ billion)
- Chart on Allied services - Year-over-year growth 2024-2029 (%)
- Data Table on Allied services - Year-over-year growth 2024-2029 (%)
- 8.4 OBD port - Market size and forecast 2024-2029
- Chart on OBD port - Market size and forecast 2024-2029 ($ billion)
- Data Table on OBD port - Market size and forecast 2024-2029 ($ billion)
- Chart on OBD port - Year-over-year growth 2024-2029 (%)
- Data Table on OBD port - Year-over-year growth 2024-2029 (%)
- 8.5 Market opportunity by Product
- Market opportunity by Product ($ billion)
- Data Table on Market opportunity by Product ($ billion)
9 Market Segmentation by Vehicle Type
- 9 Market Segmentation by Vehicle Type
- 9.1 Market segments
- Chart on Vehicle Type - Market share 2024-2029 (%)
- Data Table on Vehicle Type - Market share 2024-2029 (%)
- 9.2 Comparison by Vehicle Type
- Chart on Comparison by Vehicle Type
- Data Table on Comparison by Vehicle Type
- 9.3 IC engine - Market size and forecast 2024-2029
- Chart on IC engine - Market size and forecast 2024-2029 ($ billion)
- Data Table on IC engine - Market size and forecast 2024-2029 ($ billion)
- Chart on IC engine - Year-over-year growth 2024-2029 (%)
- Data Table on IC engine - Year-over-year growth 2024-2029 (%)
- 9.4 Electric vehicle - Market size and forecast 2024-2029
- Chart on Electric vehicle - Market size and forecast 2024-2029 ($ billion)
- Data Table on Electric vehicle - Market size and forecast 2024-2029 ($ billion)
- Chart on Electric vehicle - Year-over-year growth 2024-2029 (%)
- Data Table on Electric vehicle - Year-over-year growth 2024-2029 (%)
- 9.5 Market opportunity by Vehicle Type
- Market opportunity by Vehicle Type ($ billion)
- Data Table on Market opportunity by Vehicle Type ($ billion)
10 Market Segmentation by Connectivity
- 10 Market Segmentation by Connectivity
- 10.1 Market segments
- Chart on Connectivity - Market share 2024-2029 (%)
- Data Table on Connectivity - Market share 2024-2029 (%)
- 10.2 Comparison by Connectivity
- Chart on Comparison by Connectivity
- Data Table on Comparison by Connectivity
- 10.3 Wireless - Market size and forecast 2024-2029
- Chart on Wireless - Market size and forecast 2024-2029 ($ billion)
- Data Table on Wireless - Market size and forecast 2024-2029 ($ billion)
- Chart on Wireless - Year-over-year growth 2024-2029 (%)
- Data Table on Wireless - Year-over-year growth 2024-2029 (%)
- 10.4 Wired - Market size and forecast 2024-2029
- Chart on Wired - Market size and forecast 2024-2029 ($ billion)
- Data Table on Wired - Market size and forecast 2024-2029 ($ billion)
- Chart on Wired - Year-over-year growth 2024-2029 (%)
- Data Table on Wired - Year-over-year growth 2024-2029 (%)
- 10.5 Market opportunity by Connectivity
- Market opportunity by Connectivity ($ billion)
- Data Table on Market opportunity by Connectivity ($ billion)
11 Customer Landscape
- 11 Customer Landscape
- 11.1 Customer landscape overview
- Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria
12 Geographic Landscape
- 12 Geographic Landscape
- 12.1 Geographic segmentation
- Chart on Market share by geography - 2024-2029 (%)
- Data Table on Market share by geography - 2024-2029 (%)
- 12.2 Geographic comparison
- Chart on Geographic comparison
- Data Table on Geographic comparison
- 12.3 US - Market size and forecast 2024-2029
- Chart on US - Market size and forecast 2024-2029 ($ billion)
- Data Table on US - Market size and forecast 2024-2029 ($ billion)
- Chart on US - Year-over-year growth 2024-2029 (%)
- Data Table on US - Year-over-year growth 2024-2029 (%)
- 12.4 Mexico - Market size and forecast 2024-2029
- Chart on Mexico - Market size and forecast 2024-2029 ($ billion)
- Data Table on Mexico - Market size and forecast 2024-2029 ($ billion)
- Chart on Mexico - Year-over-year growth 2024-2029 (%)
- Data Table on Mexico - Year-over-year growth 2024-2029 (%)
- 12.5 Canada - Market size and forecast 2024-2029
- Chart on Canada - Market size and forecast 2024-2029 ($ billion)
- Data Table on Canada - Market size and forecast 2024-2029 ($ billion)
- Chart on Canada - Year-over-year growth 2024-2029 (%)
- Data Table on Canada - Year-over-year growth 2024-2029 (%)
- 12.6 Market opportunity by geography
- Market opportunity by geography ($ billion)
- Data Table on Market opportunity by geography ($ billion)
13 Drivers, Challenges, and Opportunity
- 13 Drivers, Challenges, and Opportunity
- 13.1 Market drivers
- Stringent regulatory mandates and right to repair movement
- Expansion of connected car ecosystem and data monetization
- Rising vehicle complexity and powertrain electrification
- 13.2 Market challenges
- Increasing OEM control over vehicle data and secure gateways
- Cybersecurity vulnerabilities and data privacy concerns
- Lack of standardization in electric vehicle diagnostics
- 13.3 Impact of drivers and challenges
- Impact of drivers and challenges in 2024 and 2029
- 13.4 Market opportunities
- Shift toward remote and cloud-based diagnostic platforms
- Integration of AI and machine learning for predictive analytics
- Development of specialized tools for EV and ADAS diagnostics
14 Competitive Landscape
- 14 Competitive Landscape
- 14.1 Overview
- 14.2 Competitive Landscape
- Overview on criticality of inputs and factors of differentiation
- 14.3 Landscape disruption
- Overview on factors of disruption
- 14.4 Industry risks
- Impact of key risks on business
15 Competitive Analysis
- 15 Competitive Analysis
- 15.1 Companies profiled
- 15.2 Company ranking index
- 15.3 Market positioning of companies
- Matrix on companies position and classification
- 15.4 Autel Intelligent Technology Corp. Ltd.
- Autel Intelligent Technology Corp. Ltd. - Overview
- Autel Intelligent Technology Corp. Ltd. - Product / Service
- Autel Intelligent Technology Corp. Ltd. - Key offerings
- SWOT
- 15.5 AVL DiTEST GmbH
- AVL DiTEST GmbH - Overview
- AVL DiTEST GmbH - Product / Service
- AVL DiTEST GmbH - Key offerings
- SWOT
- 15.6 Continental AG
- Continental AG - Overview
- Continental AG - Business segments
- Continental AG - Key news
- Continental AG - Key offerings
- Continental AG - Segment focus
- SWOT
- 15.7 DENSO Corp.
- DENSO Corp. - Overview
- DENSO Corp. - Business segments
- DENSO Corp. - Key news
- DENSO Corp. - Key offerings
- DENSO Corp. - Segment focus
- SWOT
- 15.8 General Motors Co.
- General Motors Co. - Overview
- General Motors Co. - Business segments
- General Motors Co. - Key news
- General Motors Co. - Key offerings
- General Motors Co. - Segment focus
- SWOT
- 15.9 Hearst Communications Inc.
- Hearst Communications Inc. - Overview
- Hearst Communications Inc. - Product / Service
- Hearst Communications Inc. - Key news
- Hearst Communications Inc. - Key offerings
- SWOT
- 15.10 HELLA GmbH and Co. KGaA
- HELLA GmbH and Co. KGaA - Overview
- HELLA GmbH and Co. KGaA - Business segments
- HELLA GmbH and Co. KGaA - Key news
- HELLA GmbH and Co. KGaA - Key offerings
- HELLA GmbH and Co. KGaA - Segment focus
- SWOT
- 15.11 Innova Electronics Corp.
- Innova Electronics Corp. - Overview
- Innova Electronics Corp. - Product / Service
- Innova Electronics Corp. - Key offerings
- SWOT
- 15.12 Marelli Holdings Co. Ltd.
- Marelli Holdings Co. Ltd. - Overview
- Marelli Holdings Co. Ltd. - Product / Service
- Marelli Holdings Co. Ltd. - Key news
- Marelli Holdings Co. Ltd. - Key offerings
- SWOT
- 15.13 Mercedes Benz Group AG
- Mercedes Benz Group AG - Overview
- Mercedes Benz Group AG - Product / Service
- Mercedes Benz Group AG - Key offerings
- SWOT
- 15.14 Moj.io Inc.
- Moj.io Inc. - Overview
- Moj.io Inc. - Product / Service
- Moj.io Inc. - Key offerings
- SWOT
- 15.15 Opus IVS
- Opus IVS - Overview
- Opus IVS - Product / Service
- Opus IVS - Key offerings
- SWOT
- 15.16 Snap On Inc.
- Snap On Inc. - Overview
- Snap On Inc. - Business segments
- Snap On Inc. - Key offerings
- Snap On Inc. - Segment focus
- SWOT
- 15.17 Vector Informatik GmbH
- Vector Informatik GmbH - Overview
- Vector Informatik GmbH - Product / Service
- Vector Informatik GmbH - Key offerings
- SWOT
- 15.18 Verizon Communications Inc.
- Verizon Communications Inc. - Overview
- Verizon Communications Inc. - Business segments
- Verizon Communications Inc. - Key news
- Verizon Communications Inc. - Key offerings
- Verizon Communications Inc. - Segment focus
- SWOT
16 Appendix
- 16 Appendix
- 16.1 Scope of the report
- Market definition
- Objectives
- Notes and caveats
- 16.2 Inclusions and exclusions checklist
- Inclusions checklist
- Exclusions checklist
- 16.3 Currency conversion rates for US$
- Currency conversion rates for US$
- 16.4 Research methodology
- 16.5 Data procurement
- 16.6 Data validation
- 16.7 Validation techniques employed for market sizing
- Validation techniques employed for market sizing
- 16.8 Data synthesis
- 16.9 360 degree market analysis
- 360 degree market analysis
- 16.10 List of abbreviations
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
- Manufacturers and suppliers
- Channel partners
- Industry experts
- Strategic decision makers
Secondary sources
- Industry journals and periodicals
- Government data
- Financial reports of key industry players
- Historical data
- Press releases
DATA ANALYSIS
Data Synthesis
- Collation of data
- Estimation of key figures
- Analysis of derived insights
Data Validation
- Triangulation with data models
- Reference against proprietary databases
- Corroboration with industry experts
REPORT WRITING
Qualitative
- Market drivers
- Market challenges
- Market trends
- Five forces analysis
Quantitative
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape
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