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The global electric vehicle remote diagnostics market size is estimated to grow by USD 1,905.56 million between 2022 and 2027 accelerating at a CAGR of 28.11%.
This report extensively covers market segmentation by Application (passenger cars and commercial vehicles), Type (equipment and software), and Geography (APAC, Europe, North America, South America, and the Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
The battery pack prices for EV remote vehicles are decreasing which is a primary factor driving the market growth. Additionally, OEMs and Tier-I players are investing in the R and D of telematics applications and services. Automotive OEMs are working to standardize almost the entire gamut of telematics solutions to gain maximum control of the after-sales service value chain. Remote vehicle diagnostics has been underpinned as a key telematics application in tapping significant potential revenues from after-sales. This represents one of the best available means to boost returns on investment on several new technology offerings, such as telematics applications and services or connected car offerings.
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It is evident that COVID-19 had a drastic impact on the regional electric vehicle remote diagnostics market during the first half of 2020 in the APAC region. In China, the peak of the pandemic was reached in February 2020. In the same month, new EV sales dropped close to zero. Since then, the Chinese vehicle market has seen a strong recovery. The demand for EVs recovered in 2021, thus increasing the demand for remote diagnostics. Favorable government initiatives for producing EVs and the demand for remote diagnostics for EVs are expected to enhance the growth of the electric vehicle remote diagnostics market during the forecast period.
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 global market for electric vehicle remote diagnostics relies heavily on EV adoption, which is affected by factors such as battery costs. Improvements in battery technology have made Li-ion batteries more attractive to consumers due to their longer lifespan and lower weight compared to traditional lead-acid and VRLA batteries. However, upfront costs for EVs remain higher than traditional vehicles due to battery costs. Nonetheless, battery costs are decreasing as manufacturers leverage economies of scale and relocate to lower-cost areas, with the goal of achieving price parity with traditional vehicles. Lower costs may increase the adoption of advanced telematics services, as the high upfront cost of EVs is a barrier for customers to choose such services. Li-ion battery costs have decreased due to manufacturing base relocation from Japan to China, where Chinese manufacturers have developed Li-ion batteries for EVs that are cost-competitive with lead-acid batteries.
Electric buses are gaining momentum worldwide, especially in China, due to increased investments and initiatives to enhance the number of operational EVs and develop the necessary infrastructure. This is a common trend noticeable globally. To make electric buses more efficient, bus manufacturers and telematics service providers are developing solutions such as ViriCiti's packages for monitoring electric buses. These packages cater to a wide range of customers, with options for operational improvement, effective driving, and maintenance. By identifying technical failures and providing remote diagnostics, maintenance costs can be lowered. Manufacturers are also developing remote diagnosis solutions to improve maintenance, thereby fueling growth in the global electric vehicle remote diagnostics market.
Subscription cost associated with EV remote diagnostics services is hindering the market growth. Remote diagnostics are usually bundled with other connected car services, and low costs are crucial to the market as they use the same hardware components. OEMs can earn revenue through subscription pricing strategies, but price-sensitive markets pose a challenge as customers may be reluctant to pay for such services. To increase uptake, vendors are offering remote vehicle diagnostics as optional services and optimizing subscription packages' pricing. However, this may hinder growth as remote diagnostics add to subscription costs. For instance, OnStar's remote access costs USD 34.99 per month, while the base plan without remote access costs $24.99. This might deter price-sensitive customers from opting for remote diagnostics services and affect the electric vehicle remote diagnostics market's growth during the forecast period.
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The market share growth of the passenger cars segment will be significant during the forecast period.The passenger cars segment was valued at USD 245.49 million in 2017 and continued to grow until 2021. The increasing need to monitor vehicle health will give a boost to the passenger cars segment. The growing demand for electric cars has increased the need for remote diagnostics services for effective vehicular operations. Hence, the market growth in the passenger cars segment is characterized by the growing popularity of electric cars. Further, ride-hailing companies across the world are introducing electric cars in their fleets, which will boost the revenue of telematics services in EVs. This is another positive factor for the market.
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Due to the increasing production of EVs, increasing demand for equipment for EV remote diagnostics and software demand is skyrocketing as the software is installed in the equipment as first fit and is renewed based on subscriptions. Data security and complicated software risks are estimated to slightly limit the growth of the segment in the global electric vehicle remote diagnostics market during the forecast period. However, rapid changes in software technology in the global electric vehicle remote diagnostics market, such as the adoption of deep learning, AI, and cloud diagnostic, are estimated to propel the growth of the segment
APAC is estimated to contribute 60% 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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APAC is estimated to contribute 60% 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. China and Japan are boosting the contribution of APAC to the electric vehicle remote diagnostics market. Growing contributions from countries such as India and Indonesia during the forecast period are further expected to benefit the market under review. Hence, Technavio expects the APAC market to report the quickest growth rate going forward. China's high-volume adoption of EVs is the primary factor boosting the growth of the market in the country. High sales of EVs in China stem from government initiatives to go green and the consequent stringency in carbon emission norms, the availability of more EV charging stations, and increased participation of both foreign and domestic OEMs to make EV technology more efficient and effective. Hence, the growing adoption of EVs in China is boosting the revenue of the market in APAC.
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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 Electric Vehicle Remote Diagnostics Market.
Kia Motors Corp. - The company offers solutions for electric vehicle remote diagnostics which saves time and money in the workshop as dealers can prepare better for customer visits. This segment focuses on designing, developing, and manufacturing motor vehicles and associated parts.
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 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 Electric Vehicle Remote Diagnostics Market Customer Landscape
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.
Electric Vehicle Remote Diagnostics Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.11% |
Market growth 2023-2027 |
USD 1,905.56 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
25.78 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 60% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
BAIC Motor Corp. Ltd., Bayerische Motoren Werke AG, Chongqing Changan Automobile Co. Ltd., Ford Motor Co., General Motors Co, Hyundai Motor Co., Kia Motors Corp., Li Auto Inc., Mercedes Benz Group AG, Mitsubishi Motors Corp., Renault SA, Tata Motors Ltd., Tesla Inc., Toyota Motor Corp., Volkswagen AG, Volvo Car Corp., XPeng Inc., Honda Motor Co. Ltd., and Stellantis NV |
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, 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 Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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