Automotive On-Board Diagnostics (OBD) Market Analysis APAC, North America, Europe, Middle East and Africa, South America - US, China, Germany, UK, Japan, France, Italy, India, South Africa, South Korea - Size and Forecast 2025-2029

Automotive On-Board Diagnostics (OBD) Market Size 2025-2029

The automotive on-board diagnostics (obd) market size is forecast to increase by USD 77.38 billion, at a CAGR of 24.9% between 2024 and 2029.

• The market is experiencing significant growth, driven by the increasing adoption of usage-based insurance (UBI) that utilizes OBD as a measurement parameter. This trend is expected to continue as insurers seek to optimize risk assessment and pricing based on real-time driving data. Additionally, the growing focus on remote diagnostics is fueling market expansion, as automakers and service providers leverage OBD systems to offer proactive maintenance and repair services. However, the integration of telematics into OBD systems comes with a rising cost structure, which may pose a challenge for market participants.
• This cost increase could potentially impact the affordability of OBD solutions for some consumers and businesses, necessitating careful strategic planning and cost management. To capitalize on the market's opportunities and navigate these challenges effectively, companies should prioritize innovation, cost optimization, and customer value proposition.

What will be the Size of the 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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The market continues to evolve, driven by advancements in technology and the increasing demand for efficient and effective vehicle maintenance. OBD systems, which integrate various sensors and diagnostic tools, have become an essential component of modern vehicles. These systems utilize protocols such as CAN bus and OBD-II to facilitate seamless communication between vehicle components and diagnostic tools. The applications of OBD technology extend beyond traditional vehicle repair shops to encompass aftermarket diagnostics, maintenance scheduling, data analytics, and even do-it-yourself (DIY) diagnostics. Real-time diagnostics, cloud-based solutions, and wireless connectivity are also gaining traction, enabling remote diagnostics and vehicle health monitoring.

Components such as oxygen sensors, throttle position sensors, crankshaft position sensors, and mass airflow sensors are integral to OBD systems, providing valuable data for fault detection, fault isolation, and diagnostic reporting. OBD-II compliance, emission control systems, and sensor calibration are essential aspects of these diagnostic solutions, ensuring efficient and accurate vehicle performance. Moreover, the integration of OBD technology with various vehicle systems, including powertrain diagnostics, transmission diagnostics, brake system diagnostics, and airbag system diagnostics, offers significant benefits for automotive repair and maintenance processes. Software updates and sensor fusion further enhance the capabilities of OBD systems, enabling advanced vehicle health monitoring and improved diagnostic accuracy.

How is this Automotive On-Board Diagnostics (OBD) Industry segmented?

The automotive on-board diagnostics (obd) industry 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
  • Allied services
  • OBD port
• Vehicle Type
  • IC engine
  • Electric vehicle
• Connectivity
  • Wired
  • Wireless
• Geography
  • North America
    • US
  • Europe
    • France
    • Germany
    • Italy
    • UK
  • Middle East and Africa
    • South Africa
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Rest of World (ROW)

By Product Insights

The allied services segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth, particularly in the passenger car segment. With the first-mover advantage, these cars have achieved deeper penetration in the market. Connected car offerings, initially introduced in the luxury vehicle segment, have led to maximum penetration of remote diagnostics in this segment. High-end passenger cars have seen a notable increase in the adoption of remote diagnostics, which are now considered standard features. Although not yet widely used, remote diagnostics are increasingly becoming prevalent in several upper-mid-range passenger cars, equipped with connectivity options. Vehicle diagnostics have evolved, with real-time data analytics and sensor fusion enabling predictive maintenance scheduling.

The Allied services segment was valued at USD 18.03 billion in 2019 and showed a gradual increase during the forecast period. OBD protocols such as OBD-II and CAN bus have facilitated seamless communication between vehicles and diagnostic tools. Diagnostic software, OBD scanners, and OBD-II adapters have made professional diagnostics more accessible. Sensor calibration, actuator testing, and oxygen sensor diagnostics are essential components of these systems. In the aftermarket, do-it-yourself (DIY) diagnostics have gained popularity, with OBD APIs and wireless diagnostics enabling easy access to vehicle data. Cloud-based diagnostics and data logging have further enhanced the capabilities of these systems. Transmission diagnostics, powertrain diagnostics, and brake system diagnostics have become essential for comprehensive vehicle health monitoring. Fault detection and isolation have been streamlined with diagnostic hardware and reporting tools.

OEMs and repair centers have adopted professional diagnostics to optimize repair procedures. Emission control systems, crankshaft and camshaft position sensors, and mass airflow sensors are critical components of these systems. Software updates and sensor fusion have enabled advanced features like vehicle health monitoring and airbag system diagnostics. OBD-II compliance has become a standard requirement for new vehicles, ensuring seamless integration with diagnostic tools. Overall, the automotive on-board diagnostics market is evolving, with a focus on enhancing vehicle performance, optimizing repair procedures, and improving safety.

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Regional Analysis

APAC is estimated to contribute 36% 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 market is experiencing significant growth, particularly in emerging countries in Asia Pacific (APAC), with China and India at the forefront. Regulations mandating OBD systems for light vehicles in China are driving awareness and adoption of vehicle diagnostics. However, the benefits of diagnostics and connectivity technologies are currently underutilized in developing regions of APAC. As regulations evolve and the number of cars equipped with OBD ports increases, awareness and demand for diagnostic services, including real-time diagnostics, maintenance scheduling, and fault detection, will follow. Additionally, the growing availability of cars and the rise in telematics product buyers will fuel interest in vehicle health monitoring, sensor fusion, and remote diagnostics.

The market encompasses various entities such as system integration, vehicle speed sensor, data analytics, aftermarket diagnostics, diagnostic software, OBD protocols, OBD-II simulators, sensor calibration, automotive repair, crankshaft position sensor, repair procedures, vehicle diagnostics, OBD scanners, transmission diagnostics, oxygen sensor, CAN bus, actuator testing, OBD API, do-it-yourself diagnostics, diagnostic hardware, diagnostic reporting, OBD-II compliance, emission control systems, brake system diagnostics, powertrain diagnostics, camshaft position sensor, mass airflow sensor, and cloud-based diagnostics. These entities contribute to the market's dynamic growth and evolving trends.

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 market is a significant segment in the global automotive industry, focusing on the development, production, and implementation of diagnostic systems for vehicles. These systems enable real-time monitoring and identification of malfunctions in various vehicle sub-systems, including engine, transmission, emission control, and electronic systems. OBD systems utilize standardized protocols such as J1850, OBD-II, and CAN (Controller Area Network) to facilitate communication between vehicles and diagnostic tools. With the increasing demand for fuel efficiency, emissions reduction, and vehicle safety, the automotive OBD market is expected to grow substantially. Key players in this market include hardware manufacturers, software providers, and automotive OEMs. OBD systems offer numerous benefits, including reduced downtime, improved vehicle performance, enhanced safety, and cost savings. Additionally, the integration of advanced features such as telematics, predictive maintenance, and over-the-air updates is driving innovation in the automotive OBD market.

What are the key market drivers leading to the rise in the adoption of Automotive On-Board Diagnostics (OBD) Industry?

• The significant growth in the usage of usage-based insurance (UBI) with On-Board Diagnostic (OBD) systems as measurement parameters serves as the primary market driver. 

• The market is experiencing significant growth due to the increasing complexity of vehicles and the subsequent need for accurate vehicle diagnostics. OBD-II simulators play a crucial role in this process by enabling sensor calibration and repair procedures for automotive professionals. OBD scanners, which utilize OBD systems, provide real-time vehicle data for professional diagnostics, including crankshaft position sensor data and transmission diagnostics. Insurance providers are increasingly adopting usage-based insurance (UBI) policies, which allocate insurance premiums based on driving patterns. OBD systems provide essential data, such as braking system data and speed data, to determine these patterns. This data-driven approach offers numerous benefits, including improved accuracy in insurance claims and customized insurance plans.
• In summary, the automotive repair industry is leveraging OBD technology to enhance diagnostics and insurance processes, ensuring efficient and effective vehicle maintenance and insurance coverage. OBD-II simulators and scanners facilitate sensor calibration and data collection, while UBI policies utilize this data to provide customized insurance premiums. This integration of technology and insurance is transforming the automotive industry and enhancing the overall customer experience.

What are the market trends shaping the Automotive On-Board Diagnostics (OBD) Industry?

• The increasing prioritization of remote diagnostics represents a significant market trend. In response to this development, professionals must stay informed and prepared to leverage advanced technologies for efficient and effective remote diagnosis.

• Automotive On-Board Diagnostics (OBD) systems have become essential components in modern vehicles, enabling real-time monitoring and analysis of various vehicle systems. OBD systems utilize sensors, such as oxygen sensors, to measure exhaust gas composition and ensure optimal emission control. Can bus technology facilitates communication between these sensors and diagnostic hardware, allowing for actuator testing and fault detection. Remote OBD systems are increasingly popular due to their ability to transmit trouble codes and diagnostic data to a remote data center. This data is then converted into interpretable formats for drivers or technicians, enabling preventive maintenance and efficient scheduling of service cycles.
• The OBD-II compliance mandate further emphasizes the importance of these systems in identifying and addressing potential issues before they lead to vehicle downtime or breakdowns. The demand for remote OBD diagnostics is growing, particularly among fleet operators of both passenger and commercial vehicles. This trend can be attributed to the benefits of early fault detection and isolation, reducing the need for costly repairs and minimizing vehicle off-road time. Diagnostic reporting plays a crucial role in maintaining vehicle health and ensuring regulatory compliance. By providing real-time data and insights, OBD systems enable a proactive approach to vehicle maintenance and upkeep.

What challenges does the Automotive On-Board Diagnostics (OBD) Industry face during its growth?

• The integration of telematics, which is accompanied by rising costs, poses a significant challenge to the industry's growth trajectory. 

• The market's expansion is primarily driven by the dynamics of telematics applications and services. OBD services are often included in bundled offerings of connected car services due to their cost-effectiveness. Both customers and Original Equipment Manufacturers (OEMs) benefit from the low costs as these applications utilize the same TCU and hardware components as other connected car offerings. Consequently, a subscription pricing model is essential for the growth of OBD services. To maximize market penetration, OEMs should provide OBD systems as part of their connected car offerings. Sensor fusion, a critical aspect of OBD, enables vehicle health monitoring by integrating data from various sensors, including the camshaft position sensor, mass airflow sensor, and others.
• Additionally, OBD-II adapters facilitate brake system diagnostics and airbag system diagnostics, enhancing vehicle safety. Wireless diagnostics and software updates further improve the efficiency and convenience of OBD systems. Powertrain diagnostics, an essential feature, ensures optimal vehicle performance and fuel efficiency. Overall, the OBD market's growth is fueled by the integration of advanced technologies and the increasing demand for vehicle connectivity and safety.

Exclusive Customer Landscape

The automotive on-board diagnostics (obd) 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 automotive on-board diagnostics (obd) market 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, automotive on-board diagnostics (obd) market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Autel Intelligent Technology Co. - This company specializes in advanced automotive diagnostics, featuring the MaxiSYS ultra EV, MS909EV, EV diagnostics kit, and pro model. Our offerings deliver original solutions for enhanced search engine visibility and comprehensive vehicle analysis. With a focus on innovation, we provide precise diagnostic tools for the global automotive industry.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Autel Intelligent Technology Co.
• 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.
• 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.

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 industry 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 Automotive On-Board Diagnostics (OBD) Market

• In January 2024, Bosch, a leading global technology company, announced the launch of its new OBD-II scan tool, Bosch KTS 720, featuring advanced diagnostic capabilities and connectivity to the cloud for real-time software updates (Bosch press release).
• In March 2024, Continental AG and Veoneer, a leading automotive technology company, entered into a strategic partnership to develop and produce advanced driver assistance systems (ADAS) and autonomous driving technologies, integrating OBD systems for diagnostics and maintenance (Continental AG press release).
• In April 2025, Delphi Technologies, a leading global technology company, completed the acquisition of Aptiv's Powertrain Business, significantly expanding its capabilities in electrification, power electronics, and vehicle connectivity, including OBD systems (Delphi Technologies press release).
• In May 2025, the European Union passed the new Regulation (EU) 2025/2102, mandating the implementation of OBD systems in all new types of light-duty vehicles starting from January 2026, aiming to improve vehicle safety and reduce emissions (European Commission press release).

Research Analyst Overview

• The market is witnessing significant advancements in emission levels management, driven by stringent regulatory compliance. Data storage and management solutions are integral to OBD systems, enabling efficient in-vehicle network communication and cloud computing. Diagnostic accuracy is paramount, with sensor technologies and data interpretation systems ensuring swift vehicle repair time. Fuel economy is a key focus, as OBD systems leverage sensor accuracy and data mining for predictive modeling and component replacement. Data security and privacy are critical concerns, with system performance enhanced through data visualization, wireless communication, and data processing. Regulatory compliance is facilitated through software algorithms and regulatory-compliant repair information systems.
• Sensor data and fault codes are analyzed using big data analytics, machine learning, and deep learning techniques. Hardware and software innovations, including embedded systems and diagnostic testing equipment, are revolutionizing OBD. Wireless communication and data transmission enable real-time vehicle safety monitoring and system performance optimization. Data privacy is maintained through robust data security measures, ensuring confidentiality and integrity. In the realm of OBD, sensor technologies and data processing are transforming vehicle repair and maintenance. Predictive modeling and fault codes analysis enable proactive component replacement and improved system performance. OBD systems are becoming indispensable tools for businesses, offering valuable insights into vehicle health and operational efficiency.

Dive into Technavio's robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Automotive On-Board Diagnostics (OBD) Market insights. See full methodology.

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What are the Key Data Covered in this Automotive On-Board Diagnostics (OBD) Market Research and Growth Report?

• CAGR of the Automotive On-Board Diagnostics (OBD) industry during the forecast period
• Detailed information on factors that will drive the growth and forecasting between 2025 and 2029
• Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
• Accurate predictions about upcoming growth and trends and changes in consumer behaviour
• Growth of the market across APAC, North America, Europe, Middle East and Africa, and South America
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the automotive on-board diagnostics (obd) market growth of industry companies

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