Automotive On-board Diagnostics Market
Automotive On-board Diagnostics Market (Diagnostic Device: Handheld, PC/Laptop Based, Mobile Device, and Others; Vehicle Propulsion: IC Engine and Electric Vehicle; Vehicle Type: Two Wheeler Vehicles, Passenger Vehicles, Light Commercial Vehicles, Trucks, and Buses & Coaches; Application: Driver Behavior Monitoring, Emission Testing, Supplementary Instrumentation, Consumer Telematics, Usage Based Insurance, Fleet Management, Car Sharing, and Others; and Diagnostic Type: Remote Diagnostic and Cloud Diagnostic) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2021-2031
Press Release :
OEMs, Insurance Carriers to Benefit from Telematics Post COVID-19 Pandemic
Even though the coronavirus pandemic has caused a major impact on the automotive industry, the pandemic is pushing stakeholders into the information age. Companies in the automotive on-board diagnostics market are anticipating future revenue opportunities in wireless communications, in-vehicle electronics, and location technology involving insurance and OEMs (Original Equipment Manufacturers). Such trends are paving the way for telematics.
With the help of telematics, drivers are predicted to enjoy discounted insurance premium rates based on the distance they drive as per the traditional pay-per-mile program. Even insurance carriers can better manage their risk portfolios using mileage and driver behavior data, which is leading the way for accurate risk prediction. OEMs being an integral part of the automotive on-board diagnostics market are using telematics to leverage connected car data to offer value-added experience to vehicle owners.
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Awareness of Real-time Insurance Pricing to Help Overcome Slow Telematics Adoption
Despite all the clear benefits of telematics-based insurance policies, vehicle owners have been historically slow in its adoption. This explains why the automotive on-board diagnostics market is slated to register a modest CAGR of ~5% during the forecast period.
As more number of individuals gain knowledge about the advantages of electric vehicles, it is anticipated that stakeholders will create awareness about telematics-based insurance policies to be more profitable, have longer retentions, and high customer satisfaction as compared to traditional methods. Telematics is enabling real-time insurance pricing based on both miles driven and driver behavior.
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New OBD Devices Enable Vehicle Tracking, Reduce Downtime
The automotive on-board diagnostics market is expected to reach the value of US$ 22 Bn by 2031. Vehicle tracking, geo fencing, and real-time automotive diagnostics are estimated to become increasingly commonplace after a decade. indie Semiconductor - a provider of SoCs (System-on-Chips) for the automotive industry is capitalizing on this opportunity by launching its new on-board diagnostics (OBD) device in March 2021.
Companies in the automotive on-board diagnostics market are entering into mergers to strengthen supply chains for comprehensive hardware and software of OBD. OBD devices include black box event data recorders, geo fencing, and vehicle tracking. Remote diagnostic solutions play a key role in establishing preventive maintenance and scheduling vehicle service cycles in order to reduce downtime and risks of breakdowns.
5G Implementation, EV Adoption Bolster Innovations in Sensor Technology
Remote diagnostic solutions are estimated to dictate a higher revenue share of the market. However, demand for cloud-based diagnostics is projected to grow at an exponential rate during the forecast period. While the adoption of electric vehicles is still in its early stages, connected technologies through on-board diagnostics are gaining prominence in new vehicle models across all fueling modes. Growing 5G implementation and new electronic components are acting as key drivers for the automotive on-board diagnostics market.
Advancements in the automotive on-board diagnostics market have fueled innovations in the sensor technology. The Power & Signal Group - a global distributor of interconnection systems and components for the transportation industry is gaining popularity for supplying transmission temperature sensors by Merit Automotive Electronics Systems.
Cloud Diagnostic Managers Enable Over-the-Air Software Updates to Vehicles
Over-the-air (OTA) software updates are storming the automotive on-board diagnostics market. Sibros - a provider of automotive cloud solutions, including OTA software updates, is unlocking growth opportunities in OBD to offer new connected services, and run analysis of deeply buried meta data in real-time at vehicle and fleet level. Cloud diagnostic managers are generating revenue opportunities for companies in the automotive on-board diagnostics market in order to collect, stream, and interpret fault codes into usable and actionable insights.
Cloud diagnostic managers are helping OEMs to optimize vehicle health across R&D, after sale, and warranty scenarios by facilitating preventive measures, advanced failure detection, and by offering ECU (Electronic Control Unit) calibrations down to the vehicle.
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Telematics is helping automakers, OEMs, and insurance carriers to rethink wireless communication after the COVID-19 crisis. As such, the automotive industry is anticipated to advance in a staggered manner over five years, which includes EVs as an integral part of their expansion plan. However, many OBD solutions only provide read access to emission-related data. Hence, companies in the automotive on-board diagnostics market should boost their R&D muscle to integrate both read and write access to vehicle owners for reprogramming the OBD device in order to efficiently rectify malfunctions. Cloud diagnostic managers facilitate over-the-air software updates to vehicles, and are anticipated to grab the attention of vehicle owners after Tesla gains popularity in the driverless cars sector.
Automotive On-board Diagnostics Market: Overview
- 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.
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
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.
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
- Danlaw, Inc.
- ERM Electronic Systems LTD
- Geotab Inc.
- Intel Corporation
- Marelli Holdings Co., Ltd
- TomTom International BV.
- Xirgo Technologies, LLC.
- 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.
Automotive On-board Diagnostics Market – Scope of the Report
Transparency Market Research’s recent report on the automotive on-board diagnostics market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the automotive on-board diagnostics market analyzes the scenario for the period of 2021 to 2031, wherein, 2020 is the base year and 2019 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the automotive on-board diagnostics market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the automotive on-board diagnostics market gives readers an individual understanding of the market.
Key Questions Answered in This Report on Automotive On-board Diagnostics Market
- How much value will the automotive on-board diagnostics market generate by the end of the forecast period?
- Which segment of the market is likely to have the maximum market share by 2031?
- What are the impact factors and their effects on the market for automotive on-board diagnostics market?
- What regions currently account for the maximum share of the overall automotive on-board diagnostics market?
- What are the indicators expected to drive the automotive on-board diagnostics market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies by key stakeholders in the automotive on-board diagnostics market to expand their geographic presence?
- What are the major advancements witnessed in the automotive on-board diagnostics market?
- How regulatory norms affected the market for automotive on-board diagnostics?
This report answers these questions and more about the automotive on-board diagnostics market, aiding major stakeholders and key players in making right decisions and strategizing for the advancement of their business.
Automotive On-board Diagnostics Market – Research Methodology
This TMR report on the automotive on-board diagnostics market is based on a complete and comprehensive evaluation of the market backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the automotive on-board diagnostics market is supported by the assessment of the different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by key players, researchers of the automotive on-board diagnostics market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the automotive on-board diagnostics market, with both bottom-up and top-down approach.
This detailed assessment of the automotive on-board diagnostics market, along with an overview of the landscape is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the automotive on-board diagnostics market is estimated to expand are based on carefully vetted primary and secondary sources.
Automotive On-board Diagnostics Market – Segmentation
This report on the automotive on-board diagnostics market provides information on the basis of diagnostic device, vehicle propulsion, vehicle type, application, diagnostic type, and region.
This study also discusses the underlying trends and impact of various factors that are driving the automotive on-board diagnostics market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the automotive on-board diagnostics market in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.