Global Remote Diagnostic Market: Snapshot
The global remote diagnostic market is rising at an impressive pace and going forward too it is expected to continue doing so. Rising awareness among consumers for vehicles to comply with road safety directives and emission standards are among the prominent factors fuelling growth of remote diagnostics market.
Amongst a few, a notable trend observed in the remote diagnostic market is the increasing demand for Real Driving Emission (RDE) Test. Today, consumers are informed about the importance of RDE to complement lab tests for vehicles to discharge particulate matter in permissible limits. This is because equipment installed on the vehicle for RDE testing collects data to verify that legislative limits for pollutants such as NoX are not crossed.
Acting as a hindrance to the market, on the other hand is security concerns of remote diagnostic systems.
A report by Transparency Market Research (TMR) forecasts the global remote diagnostics market to register an impressive 14.8% CAGR for the forecast period between 2017 and 2025. Expanding at this pace, the market will become worth US$42.04 bn by 2025 increasing from US$12.88 bn in 2016.
Rising Demand for On-road Vehicular Safety Spikes Roadside Assistance Segment
The remote diagnostics market is classified into roadside assistance, vehicle tracking, vehicle state alert, crash notification, training assistance, training assistance, and other based upon application. Among them, the segment of roadside assistance led the market in 2016 revenue-wise. The growth of the segment is account of increasing demand for vehicular safety and security on the roads.
In terms of vehicle type, the segments into which the remote diagnostic market is divided are commercial vehicles and passenger vehicles. The segment of passenger vehicles dominated the market in 2016 in terms of revenue contribution. The key factor behind the lead position of the segment is the increasing demand for fuel efficiency and regulations in place to monitor vehicle emissions.
On the basis of connectivity, Bluetooth, 3G/4G, and Wi-Fi are the segments of the market. Bluetooth is expected to account for the leading revenue contribution in the global remote diagnostic market over the forecast period between 2017 and 2025. Increasing demand for electronic and electrical system are the factors bolstering the demand for Bluetooth technology in the remote diagnostic market.
Early Adoption of Technology Makes North America Leading Segment
The key segmnets into which the global remote diagnostics market is classified based upon geography are North America, Asia Pacific, Europe, Middle East and Africa, and Latin America. According to the TMR report, North America is the most promising market amongst other key regions for remote diagnostics. The region led the overall market in terms of revenue contribution in 2016. The growth of the region is underpinned by early adoption of technology, stringent regulations for vehicle safety, emissions, and fuel economy. The U.S. powers the growth of North America remote diagnostic market. Early adoption of technology and increasing demand for telematics are primarily driving the growth of the market in the U.S.
In 2016, Europe stood as the second-leading market for remote diagnostic globally. Increasing aftermarket spending on vehicular maintenance and rising trend of equipping vehicles with hi-tech devices are factors boosting the demand for remote diagnostic in Europe. Germany stood as the leading revenue contributor to the Europe remote diagnostic market in 2016.
Key players opertating in the global remote diagnostic market mentioned in the report are Robert Bosch GmbH, Continental AG, OnStar LLC, Mercedes-Benz, Magneti Marelli S.p.A., Delphi Automotive plc, Softing AG, Voxx International Corporation, Vector Informatik GmbH, and Vidiwave Ltd.
Global Remote Diagnostic Market: Overview
Remote vehicle diagnostics solutions help in determining the root source of the vehicle problem, monitoring the health of the vehicle, and provides real time information of vehicle limitations to evaluate its performance against benchmarks. The solution monitors the health of commercial vehicles, electric vehicles, and utility vehicles and delivers insights to field support staff to define the root source of the vehicle problem. It also allows customers to access information about the vehicle.
Global Remote Diagnostic Market: Market Dynamics
Increasing demand for Real Driving Emission Test is one of the important key trends in the global remote diagnostic market. Real Drive Emission test is not likely to replace laboratory tests; however, it will be complementary to lab tests. This system is likely to be used to reconfirm the results of the tests conducted in laboratories and is expected to ensure that the vehicles deliver low pollutant emissions both on the road as well as in laboratory. Definite equipment installed on the vehicle accumulate data to verify that legislative caps for pollutants like NoX does not surpass.
Increasing OEM pressure for better vehicle performance is bolstering the demand of remote diagnostic market during the forecast period. Remote diagnostics is an important factor in the automotive industry today. Majority of vehicle manufacturers (OEM’s) have a system in place which permits fleets to monitor the health of vehicles in real time. Although the details of the systems differ, they all let the fleet to identify which vehicles are operating as they are supposed to, those that are in the workshop for repair, along with information about the problem, and which vehicles are on the road and have problems. Remote diagnostic features enables the corporate maintenance team to work with their in-house shops and drivers, to proactively address and assess issues. This radically decreases downtime and delivers better performance of the vehicles. Moreover, it contributes to customer and driver satisfaction, as well as decreases costs associated with towing and road breakdowns.
Advancement in the existing technology is likely to create opportunities in the remote diagnostic market globally. In terms of advancement, the transportation industry has been certainly sluggish. With the development of wireless communication and telematics that are not only easily available but are also lower in price, the remote diagnostic market is expanding substantially. On-board diagnostics in cars is not a new concept. However, with new technologies, the on-board diagnostics installed is likely to find other uses. As the years go by, it is expected that more functionality takes advantage of on-board diagnostics right from the dashboard.
Global Remote Diagnostic Market: Market Segmentation
In terms of application, the remote diagnostic market has been bifurcated into roadside assistance, vehicle tracking, vehicle state alert, crash notification, training assistance, training assistance and others. On the basis of vehicle type, the market is bifurcated into commercial vehicles and passenger vehicles. On the basis of connectivity, the market bifurcation comprises Bluetooth, 3G/4G and Wi-Fi. The geographical bifurcation includes North America, Asia Pacific, Middle East and Africa, Europe and Latin America. North America accounted for the highest market revenue in 2016 due to the increasing adoption of innovation, advanced technology and stringent regulations for vehicle safety, emissions, and fuel economy. Asia Pacific is the fastest growing region globally during the forecast period. Increasing penetration of hybrid vehicles is driving the demand of remote diagnostics market in the Asia Pacific region. China accounted for the highest market revenue in 2016. Increasing import of vehicles is boosting the demand of remote diagnostics in China.
Global Remote Diagnostic Market: Competitive Landscape
The major key players in the remote diagnostic market encompasses Robert Bosch GmbH, Continental AG, OnStar LLC, Mercedes-Benz, Magneti Marelli S.p.A., Delphi Automotive PLC, Softing AG, Voxx International Corporation, Vector Informatik GmbH and Vidiwave Ltd. among others.
The market has been segmented as follows:
Remote Diagnostic Market, by Application:
- Roadside Assistance
- Vehicle Tracking
- Vehicle State Alert
- Crash Notification
- Training Assistance
Remote Diagnostic Market, by Vehicle Type:
- Commercial Vehicles
- Passenger Vehicles
Remote Diagnostic Market, by Connectivity:
Remote Diagnostic Market, by Geography:
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East & Africa
- South Africa
- Rest of Middle East and Africa
- Latin America
- Rest of Latin America