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Demand Analysis for Handheld Diagnostic Tools in North America, Forecast to 2026

  • Report
  • 61 Pages
  • March 2020
  • Region: North America
  • Frost & Sullivan
  • ID: 5007763

Vehicle Complexity Driving Migration to More Advanced Diagnostics Devices

The proliferation of new car features, including advanced driver assistance systems, telematics/infotainment modules, and alternative powertrains, requires automotive repair shops to continually invest in new handheld diagnostic tools that can read the latest vehicle fault codes. Without up-to-date tools, service providers in the automotive aftermarket are at a competitive disadvantage.

The total handheld scan tools market will grow from approximately $365.0 million in 2019 to an estimated $409.2 million by 2026; however, growth rates will be higher for more advanced tools.

Research Scope

The research presents the current market size for two product segments:


  • Handheld scan tools
  • Multifunctional diagnostics

Unit shipment and revenue are presented where the product enters one of the tracked distribution channels, which include manufacturers, warehouse distributors, auto parts retailers, and online sellers. The study also estimates market shares for the top suppliers: Snap-on, Bosch Automotive Service Solutions, Launch Tech USA, and Autel Intelligent Technologies.

It also identifies the major growth opportunities and trends, including private labeling, brand licensing, direct importing, and joint ventures.

A handheld scan tool is a device that reads multiple systems and performs bi-directional controls. It performs functional tests and connects through OBD or proprietary connectors. Multifunctional diagnostics can do full-function scans as well as higher-level readings. It may come equipped with a lab scope and is Internet-capable.

Research Highlights

This research covers handheld scan tools and multifunctional diagnostics sold by manufacturers/suppliers in the United States and Canada. The methodology includes primary research with diagnostic tool manufacturers/distributors and customer surveys with automotive mechanics, as well as secondary data sources. It includes unit shipment and revenue forecasts at the end-user level, pricing measurements, percent of dollars by distribution channel, and market share analyses. The base year is 2019. Historical data covers the 2016 to 2018 period, and the forecast extends to 2026. The vehicle scope includes passenger cars and light trucks. Code readers and app-based scan tools are excluded from this analysis.

Key Issues Addressed


  • What are the market size by units shipped and revenue? By how much will the market growth over the forecast period?
  • Which product segments will drive growth and offer new opportunities to suppliers?
  • Which distribution channels account for the most sales? How is changing customer behavior affecting the growth outlook of various distributors?
  • How is the pricing for handheld scan tools changing? What are the factors that influence pricing?
  • Which suppliers are poised for market share growth over the short term?

Table of Contents

1. Executive Summary
  • Key Findings
  • Market Engineering Measurements
  • Unit Shipment and Revenue Forecast


2. Research Scope
3. Definitions and Segmentation
  • Vehicle Segmentation
  • Product Segmentation and Definitions
  • Market Definitions


4. Demand Analysis
  • Economic Outlook for Canada and the US
  • Vehicles in Operation Forecast by Age
  • Annual Vehicle Miles Travelled Forecast


5. Total Market Forecasts and Trends
  • Unit Shipment Forecast by Product Type
  • Revenue Forecast by Product Type
  • Percent of Revenue Forecast by Distribution Channel
  • Competitive Analysis - Market Share


6. Handheld Scan Tools Market
  • Unit Shipment and Revenue Forecast
  • Unit Shipment Forecast by Country
  • Retail Price Comparison by Brand
  • Competitive Analysis - Market Share


7. Multifunctional Diagnostics Market
  • Unit Shipment and Revenue Forecast
  • Unit Shipment Forecast by Country
  • Retail Price Comparison by Brand


8. Competitive Analysis - Market Share
  • Competitive Analysis
  • Supplier Benchmarking
  • Competitor Profile - Autel Intelligent Technology Corp., Ltd.
  • Competitor Profile - Bosch Automotive Service Solutions Inc.
  • Competitor Profile - Launch Tech USA
  • Competitor Profile - Matco Tools Corporation
  • Competitor Profile - Mac Tools
  • Competitor Profile - Snap-on Incorporated


9. Market and Technology Trends
  • Automotive Market Trends - Impact on Diagnostic Tools
  • Over-the-Air Updates
  • Mobile Scan Apps
  • Telematics and Data Access
  • Connectivity - Prognostics and Remote Diagnostics
  • Electric Vehicles
  • Vehicle Complexity


10. Growth Opportunities
  • Growth Opportunity - Private Labeling
  • Strategic Imperatives for Automotive Handheld Diagnostic Tool Suppliers


11. The Last Word
  • 3 Big Predictions
  • Legal Disclaimer


12. Appendix
  • Market Engineering Methodology
  • Table of Acronyms Used
  • List of Exhibits

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Autel Intelligent Technology Corp., Ltd.
  • Bosch Automotive Service Solutions Inc.
  • Launch Tech USA
  • Mac Tools
  • Matco Tools Corporation
  • Snap-on Incorporated