USD 40.6 billion
Automotive Diagnostics Market Size, Share, and Growth Analysis
Automotive Diagnostics Market By Type (On-board, Off-board), By Device (Hand-held Tools, Mobile-based Tools), By Vehicle Type (Passenger Cars, Light Commercial Vehicles), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG25A2315 |
Region:
Global |
Published Date: January, 2025
Pages:
223
|Tables:
60
|Figures:
75
Format -
Automotive Diagnostics Market Insights
Global Automotive Diagnostics Market size was valued at USD 40.6 billion in 2023 and is poised to grow from USD 46.57 billion in 2024 to USD 139.51 billion by 2032, growing at a CAGR of 14.7% during the forecast period (2025-2032).
The global automotive diagnostics market is undergoing significant changes as the vehicle industry moves towards electric and hybrid cars which require advanced diagnostic instruments because of their complex electrical systems. One of the primary reasons of revenue growth in this market is the increasing need for reliable and efficient diagnostic equipment in the vehicle sector.
The vehicle electronics systems are very complex and needs sophisticated diagnostic tools to efficiently identify and correct the errors. Additionally, growing consumer demand for connected automobiles equipped with technologies like GPS navigation, entertainment systems, and driver support systems is also contributing to market revenue growth.
Another important factor for revenue growth in the automotive diagnostics market is the rising adoption of cutting-edge technologies such as AI, ML, and the IoT in the automotive industry. These technologies are being utilized to develop increasingly intricate diagnostic tools that can swiftly and reliably detect and diagnose issues by analysing vast amounts of real-time data. Integration of these technologies with diagnostic equipment is expected to continue driving revenue growth in the coming years.
Furthermore, the expansion of revenue in the aftermarket diagnostic tools market is playing a significant role in driving overall growth in the automobile diagnostics sector. The aftermarket sector's revenue growth is expected to be fuelled by the growing demand for affordable diagnostic instruments used for car maintenance and repairs. Additionally, the increasing number of automobiles on the roads and the need for regular maintenance and repairs are contributing to the revenue surge in the aftermarket segment.
Also, the adoption of electric and hybrid vehicles is anticipated to be a substantial driver of revenue growth in the automotive diagnostics market. As the complexity of electronic systems in these vehicles continues to evolve, there will be increased demand for sophisticated diagnostic tools capable of identifying and resolving intricate problems related to these systems. The upcoming years are expected to witness a surge in revenue growth driven by the rising demand for electric and hybrid automobiles in the market.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Daignostic Equipment
Fastest Growth
Daignostic Software
Growth Rate
14.7% CAGR
Global Automotive Daignostics Market ($ Bn)
Country Share for North America Region (%)
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Automotive Diagnostics Market Segments Analysis
Global Automotive Diagnostics Market is segmented by Type, Device, Vehicle Type and region. Based on Type, the market is segmented into On-board and Off-board. Based on Device, the market is segmented into Hand-held Tools, Mobile-based Tools, PC-based Tools and Others. Based on Vehicle Type, the market is segmented into Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles and Electric Vehicles. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Product Type
Based on product type, the global automotive diagnostics market is segmented into diagnostic equipment and diagnostic software. The diagnostic equipment is the leading the global automotive diagnostic market. This segment has the significant growth in the demand for automotive diagnostics catering to the growing requirement for equipment in automotive diagnostics systems. The demand for diagnostic equipment is increasing due to the need for different diagnostic capabilities. It is observed that modern diagnostic tools can handle a broad spectrum of problems, ranging from sophisticated features like ADAS (Driver Assistance Systems) calibration and electric vehicle-specific remote diagnostics to engine and transmission diagnostics. This adaptability is fuelling the demand for advanced equipment that can meet a range of diagnostic needs.
The diagnostic software has emerged as the fastest growing segment in recent years. Due to their flexibility and scalability options which allows seamless updates and customization to suit the specific needs of automotive professionals and vehicle manufacturers. Additionally, diagnostic software enables remote diagnostics and real-time monitoring, empowering technicians to diagnose and address issues immediately, which reduces the downtime and enhances the overall operational efficiency. Furthermore, the increasing complexity of modern vehicles, including advanced electronic systems and connectivity features, has also supported the demand for sophisticated software solutions with the capabilities of handling various diagnostic activities effectively.
Analysis by Vehicle Type
Based on vehicle type, the global automotive diagnostics market is segmented into passenger cars and commercial vehicles. The passenger car is dominating the global automotive diagnostics market. The passenger cars represent the largest segment of the automotive industry which accounts for a significant portion of vehicle sales across the worldwide. As a result, there is a huge demand for diagnostics solutions made specifically to the requirements of passenger car owners and service providers. Also, the passenger cars are often used for personal transportation purposes, making it more reliable. The demand for the passenger car segment is also due to the increased use of such systems to meet the demand for convenience and safety features in passenger cars. The demand for passenger safety from individual users and government norms is driving the growth of this segment.
The commercial vehicles segment is experiencing rapid growth in the global automotive diagnostics market. Commercial vehicles are essential for various industries such as logistics, transportation, and construction specially where reliability and uptime are important for business operations due to growing focus on maintenance and diagnostics to ensure smooth performance and lowering downtime. Moreover, regulatory requirements and industry standards mandate the use of diagnostic tools and systems to ensure compliance with safety and emissions regulations, further driving the demand for automotive diagnostics in the commercial vehicles segment.
Global Automotive Daignostics Market By Product Type
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Automotive Diagnostics Market Regional Insights
Based on the geography, the global automotive diagnostics market is segmented into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa.
North America holds the major market share due to the increasing adoption and implementation of connected services like connected car health monitoring, remote troubleshooting, and remote maintenance services, across vehicle applications. The demand for automotive diagnostics in the US is projected to rise at a 17.00% CAGR through 2034. North America is home to a large automotive industry characterized by a diverse range of vehicle manufacturers, suppliers, and aftermarket service providers. Moreover, the stringent regulations in the region governed by the Commercial Vehicle Safety Alliance (CVSA) are expected to play an important role in the demand for automotive remote diagnostics. Furthermore, the presence of established market players and leading technology innovators in North America enhances competition and stimulates continuous product development and innovation, reinforcing the region's dominance in the global automotive diagnostics market.
Europe held the second-largest market share in the global automotive remote diagnostics market. Europe is home to some of the world's leading automotive manufacturers renowned for their emphasis on technological innovation and quality standards. The strict regulatory requirements in Europe, particularly due to increasing concerns regarding vehicle emissions and safety standards, drives the adoption of advanced diagnostic tools and systems by both automotive manufacturers and service providers. Additionally, the manufacturers are investing in the European market due to concerns regarding vehicle performance in the region. For instance, in September 2016, at Automechanika Frankfurt, WABCO revealed a remote diagnostics pilot for commercial vehicles aimed to enhance safety, efficiency, and connectivity in the vehicles. This increased investment and growing development in the product are further expected to increase the adoption of automotive remote diagnostics across the regional countries during the forecast period 2023 to 2032.
Global Automotive Daignostics Market By Region
- Largest
- Fastest
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Automotive Diagnostics Market Dynamics
Automotive Diagnostics Market Drivers
Demand for Connected Car Solutions
- The rapid increase in the number of connected car technologies helps in remote diagnostics and real-time monitoring is driving the demand for advanced diagnostic solutions capable of harnessing the benefits of connectivity to enhance vehicle diagnostics and maintenance processes.
Growing Demand for Predictive Maintenance
- The growing global vehicle ownerships along with increasing miles driven, leads to higher demand for diagnostic services to maintain vehicle health and performance, driving the growth of the automotive diagnostics market. Therefore, the automotive manufacturers and fleet operators are increasingly adopting predictive maintenance strategies, using diagnostic data to anticipate and address potential issues before they escalate, thereby reducing downtime and optimizing vehicle uptime.
Increasing demand for Aftermarket Services
- The aftermarket segment plays a crucial role in the automotive diagnostics market and with a growing focus on aftermarket services such as repair and maintenance will drive the demand for diagnostic tools and solutions among independent repair shops and service centres.
Automotive Diagnostics Market Restraints
Lack of Standardization
- The absence of standardized diagnostic protocols and interfaces across different vehicle makes and models makes the diagnostic process complex. This lack of standardization can lead to compatibility issues and interoperability challenges which hinders the effectiveness of diagnostic tools and systems.
Steady Adoption of EVs
- While the adoption of electric vehicles is on the rise, the diagnostic requirements for EVs differ significantly from traditional internal combustion engine vehicles. The slower adoption rate of EVs in certain regions may impact the demand for EV-specific diagnostic solutions, posing a restraint on market growth in this segment.
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Automotive Diagnostics Market Competitive Landscape
The global automotive diagnostics market is characterized by intense competition among a various range of players, including MNCs, niche players and emerging startups. Major automotive diagnostics companies such as Bosch, Delphi Technologies, and Continental AG dominate the market with their extensive product portfolios, global presence and strong brand recognition. These industry leaders use their technological expertise, R&D investments and strategic partnerships to maintain their competitive edge and control market share. Additionally, this market features many smaller players focusing on niche segments, offering specialized diagnostic solutions tailored to specific vehicle types, applications, or regions. At the same time, new emerging startups and technology firms further contribute to the competitive landscape by introducing innovative diagnostic technologies, disruptive business models and novel approaches to address evolving customer demands. Overall, the competitive landscape in the automotive diagnostics market is dynamic and full of continuous innovation, strategic alliances, and efforts to differentiate products and services to gain a competitive advantage in a rapidly evolving industry.
Top Players in Automotive Diagnostics Market
- Robert Bosch GmbH (Germany)
- Continental AG (Germany)
- Denso Corporation (Japan)
- ZF Friedrichshafen AG (Germany)
- Delphi Technologies (UK)
- Valeo (France)
- Magneti Marelli S.p.A. (Italy)
- Snap-on Incorporated (USA)
- Actia Group (France)
- Launch Tech Co., Ltd (China)
- Autel Intelligent Technology Corp., Ltd. (China)
- SPX Corporation (USA)
- AVL List GmbH (Austria)
- Softing AG (Germany)
- Vector Informatik GmbH (Germany)
- Siemens AG (Germany)
- KPIT Technologies Ltd. (India)
- Excelfore Corporation (USA)
- Intrepid Control Systems, Inc. (USA)
- Opus Group AB (Sweden)
Recent Developments
- In February 2024, THINKCAR, a renowned provider of automobile diagnostic solutions, announced its latest invention, the ThinkTool Master X2. This cutting-edge 10.1-inch touchscreen tablet, based on the Android platform, is the successor of the Master X. With powerful features and sophisticated capabilities, the Master X2 is intended to suit the diversified demands of automotive professionals worldwide.
- In October 2023, Reliance Jio launched JioMotive, a pocket-sized onboard diagnostics (OBD) gadget that can transform an ordinary automobile into a 'smart car'.
- In May 2023, Bosch, a leading provider of automotive technology, introduced the Bosch Car Doctor, a compact diagnostic tool equipped with advanced scanning capabilities and real-time data analysis features. The Car Doctor aims to provide car owners with convenient access to vehicle health information, enabling them to identify and address issues promptly.
- In September 2023, Snap-on, a renowned manufacturer of professional tools and equipment, unveiled the Snap-on Verus Pro, the latest iteration of its flagship diagnostic scanner series. The Verus Pro boasts enhanced connectivity options and an intuitive user interface, empowering automotive technicians to diagnose and repair vehicles with unparalleled efficiency.
- In December 2023, Launch Tech, a prominent player in the automotive diagnostic industry, launched the Launch X-431 Pro V4. This state-of-the-art diagnostic tool combines extensive vehicle coverage with advanced bi-directional control capabilities, enabling technicians to perform a wide range of diagnostic and maintenance tasks with precision.
Automotive Diagnostics Key Market Trends
- Integration of AI and ML: Artificial Intelligence and Machine Learning technologies offer immense potential for enhancing automotive diagnostics by enabling predictive maintenance, anomaly detection, and automated fault diagnosis. With the help of AI-powered algorithms, companies can develop intelligent diagnostic systems capable of analysing vast amounts of data in real-time to anticipate and address potential issues immediately, which will improve reliability and reducing downtime of the vehicle.
- Focus on Aftermarket Services: The aftermarket segment presents significant opportunities for automotive diagnostics companies, particularly in the independent repair and maintenance sector. By offering comprehensive diagnostic solutions catered to the needs of aftermarket service providers and companies can tap into a large and diverse customer base seeking cost-effective diagnostic tools and software for servicing a wide range of vehicle makes and models.
Automotive Diagnostics Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Co-relates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global automotive diagnostics market analysis, the growth of this market is driven by many advancements laid by the top manufacturers of the automotive diagnostics industry. The introduction of smart diagnostics systems and technological advancements in vehicle safety and security components are expected to drive the automotive diagnostics market growth. Developments in automotive industry such as increasing demand for AI & IoT-based technology, and high demand for safety features in vehicles contribute to the growth of the market worldwide. The companies in the automotive diagnostics industry are concentrating on the development of products used in vehicle diagnostics, which is expected to create many new opportunities for the growth of the market. However, the factors like the absence of standardized diagnostic protocols and interfaces across different vehicle can affect the market growth negatively.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 40.6 billion |
| Market size value in 2032 | USD 139.51 billion |
| Growth Rate | 14.7% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Automotive Diagnostics Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Automotive Diagnostics Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Automotive Diagnostics Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Diagnostics Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Diagnostics Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Automotive Diagnostics Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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