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The Global Automotive OBD Dongle Market size is estimated to grow at a CAGR of 16.49% between 2023 and 2027. The Automotive OBD Dongle share is forecast to increase by USD 65,636.28 million. The market's expansion hinges on various elements, such as the rising acceptance and popularity of electric vehicles (EVs), consumers' substantial expenditure on advanced vehicle features, and the ongoing advancements in automotive actuator technologies. In the automotive OBD market, leading countries include the USA, China, Germany, Japan, and Canada. As of 2021, the USA dominated with the largest market share, projecting an impressive revenue of USD 6,047.62 million.
Huawei is one of the key market players in the automotive OBD Dongle market. The company offers an automotive OBD dongle called HUAWEI HiCar smart connection tracker. The company also offers a series of products, services, and business solutions encompassing wireless networks, fixed networks, cloud core networks, carrier software, IT infrastructure, network energy, professional services, and network rollout services for global telecom carriers. Our reports examine historic data from 2017 to 2021, besides analyzing the current market scenario.
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This automotive OBD dongle market report extensively covers market segmentation by vehicle type (passenger cars and commercial vehicles), type (Bluetooth and WiFi), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
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 car segment was valued at USD 23,979.98 million in 2017 and continued to grow until 2021. 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 global automotive OBD dongle market due to the introduction of the passenger car segment with innovative and new features which is expected to drive the global automotive OBD dongle market growth during the forecast period.
Based on vehicle type, the automotive OBD dongle 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 global automotive OBD dongle 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.
North America is estimated to contribute 30% 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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The automotive OBD dongle market is thriving in 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 automotive industry faced setbacks due to COVID-19, especially in North America. Sales declined significantly in 2021, but with rising vaccination rates and factory reopenings, they are slowly recovering. This indicates potential growth for the regional automotive OBD dongle market in the forecast period.
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.
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 global automotive OBD dongle 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.
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 automotive OBD dongle market in the forecast 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.
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 automotive OBD dongle called Intel OBDII dongle for advanced vehicle telematics.
The 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.
Automotive OBD Dongle 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 16.49% |
Market growth 2023-2027 |
USD 65,636.28 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
14.5 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 30% |
Key countries |
US, Canada, China, Japan, and Germany |
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 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 Vehicle Type
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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