Accueil Technology Automotive On-board Diagnostics Market Segmentation, Opportunities, Trends & Future Scope

Automotive On-board Diagnostics Market Segmentation, Opportunities, Trends & Future Scope


The global automotive on-board diagnostics market is anticipated to expand at a CAGR of ~5% during the forecast period, owing to rapid expansion witnessed by the automotive industry worldwide. The automotive sector has become a major contributor to the GDP of various nations such as India, Saudi Arabia, and many others; consequently, governments of these nations have introduced multiple policies to boost automobile production in order to cater the local demand as well as for export in international markets. These instances have driven the demand for automotive components and sub-assemblies, thus fueling the automotive on-board diagnostics market growth.

Evolving mobility practices with growing acceptance of shared vehicles are having strong positive impact on the automotive sector. Rise in popularity of mobility-as-a-service has led to the emergence of novel applications of automotive on-board diagnostics devices, which is anticipated to propel the market during the forecast period.

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Drivers of Automotive On-board Diagnostics Market

Consistent rise in GDP of the global population has boosted disposable income, which, in turn, is driving the sales and production of vehicles. This rise in sales and production activities of vehicles across the globe has boosted the global automotive on-board diagnostics market.

Increase in awareness about safety, vehicular emissions, and other such concerns has prompted government agencies to mandate the integration of certain on-board devices in vehicles. This mandatory integration of various automotive components compliant with on-board diagnostics is propelling the automotive on-board diagnostics market across the globe.

Growing industrialization across continents has fueled trade activities, thus increasing the fleet of commercial vehicles on-road. Rise in the number of commercial vehicle fleet has augmented the demand for telematics solutions among fleet owners for effectively managing their vehicles’ health and reducing the downtime of vehicles. This increase in demand for telematics from commercial vehicle fleet owners is driving the global automotive on-board diagnostics market.

Challenges for Automotive On-board Diagnostics Market

The recent outbreak of COVID-19 pandemic has negatively impacted majority of businesses across the globe, owing to forced shutdown of companies and trade activities. This caused the global economy to contract to its lowest growth rate. Disruption in supply chains of the automotive sector hampered the production of vehicles. Moreover, the demand for new vehicles also reduced, as people are restraining themselves from spending money on non-essential products and services. These factors resulting from the COVID-19 pandemic hampered the demand for automotive on-board diagnostic devices.

Rise in popularity of electric vehicles render the conventional applications as well as on-board diagnostic devices obsolete, thus restraining the global automotive on-board diagnostic devices market

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Segmentation of Automotive On-board Diagnostics Market

The global automotive on-board diagnostics market has been segmented based on diagnostic device, vehicle propulsion, vehicle type, application, diagnostic type, and region

Based on diagnostic device, the mobile device segment is projected to expand at a prominent growth rate in the near future, followed by the PC/laptop based segment. These devices provide users the capability to remotely access the health of automobiles without having to plug-in scanner or code reader, thus creating more efficient predictive maintenance. Thus, benefits offered by technological advancements in automotive on-board diagnostics are expected to propel the mobile device segment.

Based on vehicle type, the passenger vehicle segment held a significant share of the global automotive on-board diagnostics market in 2020. It is expected to maintain its dominance in the near future. Stringent regulatory norms and complexity of electronic systems in passenger vehicles are contributing to the higher share held by the passenger vehicle segment of the automotive on-board diagnostics market.

Automotive On-board Diagnostics Market: Regional Analysis

Based on region, the global automotive on-board diagnostics market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa

Asia Pacific held a notable share of the global automotive on-board diagnostics market in 2020. It is projected to be a highly lucrative region during the forecast period. Countries in Asia Pacific, such as China, India, Japan, and South Korea account for more than 40% of the total automobile production worldwide. Moreover, these countries are amending their emission norms that mandate the use of OBD II devices for emission testing. These factors are contributing toward the high share held by Asia Pacific of the global automotive on-board diagnostics market.

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Automotive On-board Diagnostics Market: Competition Landscape

  • Key players operating in the global automotive on-board diagnostics market include
    • Vector Informatik GmbH
    • Continental AG
    • AUTEL Intelligent Technology Corp., Ltd.
    • Bosch Automotive Service Solutions Inc.
    • iWave Systems Technologies Pvt. Ltd.
    • OBD Solutions, LLC
    • AVL DiTEST GmbH
    • Azuga
    • CalAmp.
    • Danlaw, Inc.
    • ERM Electronic Systems LTD
    • Geotab Inc.
    • Intel Corporation
    • Marelli Holdings Co., Ltd
    • TomTom International BV.
    • Verizon
    • Xirgo Technologies, LLC.
    • Innova
  • Key players operating at the global level are continuously evolving their automotive on-board diagnostic product offerings. For instance, in October 2020, iWave launched an advanced automotive on-board diagnostics solution, which utilizes the Internet of Things (IoT) to offer quality real-time insights for better fleet management.

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