Enjoy complimentary customisation on priority with our Enterprise License!
The Global Automotive On-Board Diagnostics (OBD) Market size is estimated to grow by USD 35.64 million between 2022 and 2027 accelerating at a CAGR of 18.29%.
The automotive electronics market has experienced remarkable growth driven by an expanding array of consumer demands and original equipment manufacturer (OEM) offerings. These demands encompass safety, performance, stability, and comfort, compelling the market to outpace the growth of the traditional automotive sector. Conventional mechanical components alone are inadequate to address the evolving challenges in the automotive industry. Electronic components play a pivotal role in meeting these demands, offering specialized features that distinguish products. With the inevitability of automotive electrification, there's a projected surge in software implementation within vehicular systems, indicating a future trajectory towards enhanced electronic integration.
To learn more about this report, View Sample PDF
The automotive insurance industry is set to expand with the growth in global vehicle production, while providers are exploring usage-based insurance (UBI) as a means of achieving more precise insurance claims. UBI involves defining an insurance premium based on the driving pattern of the driver measured by data points from the OBD system. UBI is popular in Europe and the US and has helped insurers achieve more accurate data based on usage, leading to more accurate market pricing. This not only benefits insurers but also enables users to save on their insurance premiums. The adoption of UBI is expected to increase rapidly in Brazil from 2022 onwards, with the country selling approximately 24% more commercial vehicles in 2021 than in 2020. Key vendors that offer telematics services include Telogis, Trimble Navigation, Omnitracs, Traxroot Telematics, TomTom, and Mix Telematics.
Our researchers analyzed the data with 2022 as the base year and the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The automobile becomes inevitable, the intensity of software implementation in vehicular systems will increase. This will widen the scope of applications and services of telematics. The increasing adoption of technologies by end-users will increase electronic content in cars and commercial vehicles. Regulations are forcing the deployment of advanced driver-assistance systems and safety systems in entry-level cars, as well as unprecedented growth in green technology. The software implementation of vehicular systems is conducive to technologies such as remote vehicle diagnostics, enabling the viability of connected car services.
To diagnose vehicle malfunctions, remote OBD systems transmit relevant trouble codes to a remote data center in incompatible formats. The center interprets the data and forwards it to drivers or technicians. Remote diagnostics are increasingly popular among OBD system makers due to the benefits of preventive maintenance, scheduling service cycles, and reducing downtime and breakdowns. Fleet operators for both passenger and commercial vehicles are driving demand for these systems, a trend that is expected to continue in the forecast period.
The growth of the market is hindered due to telematics applications and services. OBD services are often bundled with other connected car offerings to keep costs low. Offering OBD systems with other connected car offerings is crucial for OEMs, but customers' reluctance to pay for the service is a challenge. Customized pricing strategies may increase uptake, especially in mid-level and mass vehicle segments, where remote vehicle diagnostics are offered as an optional service. This means buyers may choose only the connectivity application they would mainly use, like navigation systems and GPS. OEMs must formulate effective business models to promote user uptake but face challenges in incorporating cultural and business changes within the complex value chain.
Get a detailed analysis of drivers, trends, and challenges View the Sample PDF now!
This market research report extensively covers market segmentation by Product (allied services and OBD port) and Geography (North America, APAC, Europe, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
Passenger cars dominated the global automotive OBD market in 2022 as these cars have the first-mover advantage, which resulted in deeper penetration. As connected car offerings were introduced initially in the luxury vehicle segment, remote diagnostics achieved maximum penetration in this segment in the form of bundled offerings. During the late 2000s, high-end passenger cars saw a significant increase in the uptake of remote diagnostics; these are now considered standard features.
Get a glance at the market contribution of various segments View Sample PDF
The allied services segment showed a gradual increase in market share with USD 13159.09 million in 2017 and continued to grow by 2021. The industry's need to manage breakdowns with minimum downtime is the key to sustaining competition in the fleet business. This can be significantly achieved by using remote diagnostics solutions. In addition, the need to comply with vehicle emission standards is crucial as these are subject to regular verifications by regulatory and pollution control authorities. Remote vehicle diagnostics can inform fleet managers of any deviations in emissions from the fleet, which makes it possible to schedule maintenance only when and as required. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027.
North America is estimated to contribute 32% to the growth of the global automotive on-board diagnostics (OBD) market share during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
For more insights on the market share of various regions View the Sample PDF now!
North America was the largest market for automotive OBD solutions globally. We note that the evolution of the vehicle diagnostics market in this region dated to the 1990s when the US government mandated the implementation of OBD systems. Currently, the automotive OBD market has come a long way since its inception in the US, with innovations and many new companies. These companies are innovating in terms of automotive OBD connectivity, embedded display systems, and telematics. Therefore, remote vehicle diagnostics have gained traction due to the extension of the traditional OBD to becoming a crucial part of connected car offerings, which comprise various telematics applications and services. The market in this region will be driven by feature upgrades and newer business models aimed at developing additional revenue streams for OEMs.
Take a quick look at various segments. View the Sample PDF now!
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the Automotive OBD Market. One of the major players in the market include:
Autel Intelligent Technology Co. - The company offers automotive OBD such as MaxiSYS ultra EV, MaxiSYS MS909EV, EV diagnostics kit, and MaxiSYS pro model. Also, through this segment, the company offers automotive intelligent diagnostics, detection, and analysis systems and automotive electronic components such as Professional Tool, TMPS, ADAS, Special Tool, and IMMO Tool.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, 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. Furthermore, it is also quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the market growth and trends opportunities from 2017 to 2027.
OBD Device is a crucial component in modern vehicles, enabling connectivity and data collection for monitoring vehicle performance and maintenance. Through IoT technology, OBD systems facilitate remote diagnostics and transmission of data to aftermarket industry service centers. This connectivity allows for predictive maintenance and personalized services, enhancing vehicle management capabilities. With OBD and IoT technology, vehicles can be tracked in real-time, and data analysis enables proactive maintenance, accidents, and driver safety to prevent breakdowns. The aftermarket industry leverages this data collection for diagnostics and personalized services tailored to individual vehicle needs. Through continuous monitoring and analysis, issues can be identified early, optimizing vehicle performance and extending maintenance intervals.
The market is driven by the widespread use of OBD connectors, which facilitate the retrieval of essential vehicle data such as vehicle speed, engine performance, and emission data. These connectors enable the monitoring of engine health through diagnostic trouble codes and provide insights into sensor and actuator functionality. The presence of malfunction indicator lights, also known as check engine lights, alerts drivers to potential issues, contributing to drivers' and passengers' safety. Additionally, OBD systems play a crucial role in fleet management software, enhancing vehicle life and promoting driver safety. With advancements in connected technologies and the emergence of 5G technology, the market is poised for further growth, particularly with the increasing adoption of electric vehicles. Overall, OBD and IoT technology revolutionize vehicle management, offering seamless connectivity, remote diagnostics, and predictive maintenance for enhanced safety and efficiency on the road.
Automotive On-board Diagnostics (OBD) Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 18.29% |
Market growth 2023-2027 |
USD 35,638.36 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
17.52 |
Regional analysis |
North America, APAC, Europe, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Autel Intelligent Technology Co., AVL DiTEST GmbH, Bridgestone Corp, Continental AG, General Motors Co, Hearst Communications Inc., Innova Electronics Corp., Intel Corp., iWave Systems Technologies Pvt. Ltd., Marelli Holdings Co. Ltd., Mercedes Benz Group AG, Moj.io Inc., OBD Solutions LLC, Robert Bosch GmbH, Vector Informatik GmbH, Verizon Communications Inc., Zubie Inc., Dashboard Labs Corps., Denso Corp., and HELLA GmbH and Co. KG |
Market dynamics |
Parent market 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, Market condition analysis for 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 Product
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.