Remote Vehicle Diagnostics & Management Market - Forecast (2022 - 2027)

The Global Remote Vehicle Diagnostics and Management Market size is forecasted to reach $37.57 billion by 2027, growing at a CAGR of 14.06% during the forecast period 2022-2027. The growing demand for electric, hybrid and connected vehicles to ensure safe driving is set to be one of the major factors that will drive the Remote vehicle diagnostic and management market during the forecast period. Remote vehicle diagnostics and management system uses real time vehicle data to monitor, track the vehicle and inform about the vehicle condition. Moreover technological advancement in the automotive sector such as the incorporation of the internet of things, Artificial Intelligence and cloud based software is set to be another factor that will assist the market growth during the forecast period.

Remote Vehicle Diagnostics and Management Market Report Coverage

The report based on: “Remote Vehicle Diagnostics and Management Market Forecast (2022-2027)” covers an in-depth analysis of the following segments of the Remote Vehicle Diagnostics and Management Market industry outlook.

• By Vehicle Types: Heavy Commercial Vehicles, Light Commercial Vehicles, Passenger Car, Sports Car.
• By Hardware Support: On-Board Diagnostic Systems (Electronic Components/Systems (Automotive Parameter Measuring Sensors, Data Link Connector (DLC), Power train Control Module (PCM), Malfunction Indicator Lamp (MIL), Microprocessors/Microcontrollers, Solenoids/Relays, Printed Circuit Boards (PCBs), Voltage Regulators, Others); Continuous Monitoring Systems (Comprehensive Component Monitor (for emission control), Fuel System Monitor, Ignition System or Misfire Monitor); Non-Continuous Monitoring Systems (Catalyst Monitor, Evaporative Emission (EVAP) Control System, Exhaustive Gas Recirculation (EGR) System, Oxygen Sensor Monitor, Secondary Air Injection System); Scanning Equipments - By Data Logging (Data Loggers, Electronic Control Module (ECM), Mobile Devices (like mobile phones, tablets), Personal Computer/Laptop)); Off-Board Diagnostic System (Electronic Components/System (Adaptors, Batteries, Data Cable, LCD Screens, Test Leads, Probes & Clips, Thermocouple Module, Microprocessors/Microcontrollers, Printed Circuit Boards (PCBs), Pressure Module, Others); Scanning Equipments ( Breakout Boxes, Calibrating Test Instruments, Diagnostic Tool/Scanners (directly connected to ECM), Digital Multi-meter, Exhaust Gas Analyzer, Portable Flat Screen Oscilloscopes, Power Graphing Meter (for ABS, Engine & Transmission Systems), Pressure Gauges, Starting & Charging Diagnostic Equipment)); Vehicle Telematics Control Unit ( Communication Modules (such as GSM, GPRS), Global Positioning System (GPS)Unit, Visual Display Unit, Wireless Control Units (like Bluetooth, Wi-Fi).
• By Communication/Network Support: Network Protocols (FlexRay, ISO 15765-4 (CAN Bus), ISO 14230-4 (KWP 2000), ISO 9141-2, Local Interconnected Network (LIN), SAE J1850 (VPW), SAE J1850 (PWM)); On-Board Service Providers/Data Centers.
• By Software Support: Diagnostic Trouble Code (DTC) or Fault Codes - By Subsystems (Auxiliary Emission Controls, Computer Output Circuit, Fuel & Air Metering, Ignition System or Misfire, Fuel & Air Metering, Ignition System or Misfire, Vehicle Speed Control & Idle Control Systems); Remote Diagnostic Services, Repair Services.
• By Application Domains: Body Control, Chassis Management, Emission Management, Engine Management, Fleet Services, Powertrain/ Transmission Management, Vehicle Tracking.
• By End Use Industry: Fleet Management Service Providers, Original Equipment Manufacturers (OEMs) R&D Facilities.
• By Geography: North America (the USA, Canada and Mexico); Europe (U.K., Germany, Italy, France, Netherlands, Belgium, Spain, Denmar & Rest of Europe); APAC (China, Japan, India, South Korea, Australia, Taiwan, Malayasia); South America (Brazil, Venezuela, Argentina, Eucador, Peru, Colombia, Costa Rica & Rest of South America); RoW (the Middle East & Africa)

Key Takeaways

Powertrain/ Transmission Management is anticipated to grow with the highest CAGR of 16.08 % in the global Remote Vehicle Diagnostics and Management Market, owing to increasing demand for electric vehicles and hybrid vehicles to reduce pollution.

Fleet Management Service Providers is analyzed to witness the highest growth rate in the Remote Vehicle Diagnostics and Management Market during the forecast period 2022-2027, owing to technological advancement like the development of IoT Fleet Management.

North America dominated the Remote Vehicle Diagnostics and Management Market in 2020 with a share in excess of 37.63%, owing to government vehicle safety regulations.

Growing demand for Electrification of vehicles is one of the major drivers which will boost the market growth over the forecast period.

Remote Vehicle Diagnostics and Management Market Segment Analysis- By Application Domains

Based on Application Domains, Powertrain/ Transmission Management is analyzed to grow with the highest CAGR of around 16.08% in the global Remote Vehicle Diagnostics and Management Market during the forecast period 2022-2027. The powertrain/ Transmission system provide an alert as well as control the air-fuel ratio and ignition timing in vehicles. Increasing stringency in government regulations to reduce vehicular emissions leads to the implementation of a power train management system in vehicles. Furthermore, the growing demand for electric vehicles and hybrid vehicles is anticipated to increase the demand for the power train system. In July 2021, LG Electronics and Magna International Inc., signed a transaction agreement to establish a new company i.e. LG Magna e-Powertrain to manufacture powertrains components that provide automobile manufacturing companies to integrate electrification and functionality solutions into intelligent operating software and manage in new electric drive systems.

Remote Vehicle Diagnostics and Management Market Segment Analysis- By End Use Industry

Fleet Management Service Providers are analyzed to account for the highest CAGR of 15.16% in the global Remote Vehicle Diagnostics and Management Market during the forecast period. Fleet management service providers offer an extensive portfolio of networked and data-based services, such as Connected Parking, firmware updates Over-the-Air, e-Call, b-Call, Concierge Call, Fleet Management, and Smartphone Integration along with condition management. Fleet management service providers analyse logistics data to monitor and diagnose remote vehicle which reduces unexpected breakdown. Diagnostics lowers total vehicle running expenses while also increasing availability. The factors such as increased public awareness of car safety and health, government regulations and technological advancement like the development of IoT Fleet Management will further fuel the Remote Vehicle Diagnostics and Management Market over the forecast period. In July 2021, GPS Trackit, a key provider of video, fleet, and asset tracking systems, launched GPS Trackit Marketplace, a one-stop fleet management platform, designed for business owners and managers to manage fleet and asset with GPS Trackit's all-in-one Cloud platform.

Remote Vehicle Diagnostics and Management Market Segment Analysis- By Geography

North America dominated the Remote Vehicle Diagnostics and Management Market share by contributing a share of more than 37.63% in 2020. The increasing adoption of smart technologies in the automotive sector such as Ford, Waymo, Tesla and so on is analyzed to expand Remote Vehicle Diagnostics and Management Market. USA, Canada and Mexico are top contributors to the rising automotive industry. Many automobile manufacturing companies such as Ford, General Motors, OnStar Corporation, Snap-On Inc, Voxx International Corporation and so on are present in the U.S. In July 2020, Voxx International Corporation acquired the majority of Directed automotive aftermarket business, to enhance telemetric offering by providing remote start and security system for automotives. Mexico has witnessed a rising demand for automated cars in 2019. General Motors has invested heavily to increase its production in this region. Similarly, Ford has committed to expand its presence in Mexico for the manufacturing of autonomous cars. Moreover, the increasing disposable income in this country is resulting in users spending heavily on new premium cars with advanced security and safety features to meet the requirements of the expected lifestyle. According to World Bank Data 2019, the US has the highest disposable income with 55419 per capita incomes; thereby influencing the market growth. Furthermore, government vehicle safety regulations also increases the demand for Remote Vehicle Diagnostics and Management solutions. For instance, all vehicles in Canada must meet the Government of Canada Motor Vehicle Safety Standards, thus influencing the growth of the market in this region. APAC region is anticipated to witness the highest growth at a CAGR of 15.52% during the forecast period 2022-2027. China, India, Japan and South Korea are the top countries in the APAC region that contributes for the growth of the automotive sector. Many global automobile manufacturers have partnerships with domestic manufacturers in this region. For instance, In July 2019, BMW China Automotive Trading Ltd. and Tencent signed an agreement in Beijing to work together on building the BMW Group China High Performance D³ platform to develop automated driving technologies and products which suit the complex local traffic conditions and meet local customer demands. Furthermore, increasing demand for telemetric solutions for intelligent vehicle tracking, engine health status, car finder, panic button alert and over speeding alerts also influences the market growth. In January 2020, Trak N Tell, an Indian based start-up company, introduced a new IntelliPlay range, an innovative infotainment-cum-tracking device for automobiles. The user can track the car via a smart phone app that provides alerts about service intervals, tow alert and can remotely immobilize the vehicle through the app. Such developments can further influence the market growth in the long run.

Remote Vehicle Diagnostics and Management Market Drivers

Electrification of vehicles is analyzed to drive the market growth

The rise in the trend for Electrification of vehicles is set to be one of the major factors analyzed to drive the market forward during the forecast period 2022-2027, owing to an increase in the number of electronic components in vehicles to collect real time data. As the need for interconnectedness rises, there is an increase in the level of automation in cars. Moreover, automobile manufacturing companies are rapidly incorporating advanced technology in vehicles such as advanced driver assistance systems, vehicle infotainment systems and vehicle networking systems, thus creating opportunities for growth of the market. By using Remote vehicle diagnostics and management system in vehicles, owners can discover issues in engine efficiency and vehicle condition long before they arise. In January 2020, TriEye partnered with Porsche on SWIR sensors to optimise the performance of the advanced driver assistance systems (ADAS) and self-driving system of the German sports car maker. The firms hope to improve the ability of these systems to identify objects on the road reliably in conditions of minimal visibility. Thus increasing adoption of digitalization and vehicle electrification are set to drive the demand for remote vehicle diagnostics and management solutions.

Technologies such as cloud and AI are set to drive the market growth.

Emerging technologies such as cloud, deep learning and AI are set to be one of the major factors analyzed to drive the market during the forecast period 2022-2027. Cloud-based technology enables to collect and analyse of large amounts of vehicle data remotely through online services, thereby conveying the information on vehicle condition directly to the client. Additionally, Cloud-based technology helps to manage campaigns for a variety of fleets and vehicle models. These campaigns can be tailored to specific vehicles in order to allow for precise vehicle programming and the identification of specific vehicle flaws. For instance, cyclical scanning of the fault memory throughout a fleet allows for automated troubleshooting and general status checks, as well as real-time anomaly detection. Presently, AI is being used to process and analyze large volumes of real time vehicle data. Based on the data supplied by vehicle sensors, AI algorithms are being used to classify abnormalities and discover patterns in autonomous test vehicles. Furthermore, AI will play a major role in the fleet management in the future. In January 2019, Delphi Automotive System PLC (Now Aptive PLC) announced that it signed a commercial partnership agreement with Affectiva, to accelerate the implementation of automotive grade in-cabin sensing AI that will enhance capabilities in advanced road safety solutions. It will also work on commercializing advanced sensing solutions for OEM and fleet customers. Hence these factors positively impact the market growth.

Remote Vehicle Diagnostics and Management Market Challenges

Growing concerns for privacy and data security

As Connected vehicle repairs depends on remote and cloud diagnostic technologies, privacy and data security is a major concern that can impede the market growth during the forecast period 2022-2027. Though connected cars connect to online connectivity to provide a safe and convenient driving experience but they are more prone to cyber attacks. Due to the growing number of electronic components in vehicles, data are being diagnosed in real time which possesses a threat to data security and thus has an unfavorable impact on the growth of the market. Furthermore, even a small interference by third parties can hamper the Confidentiality, integrity and authenticity of the vehicle data while travelling, thereby can cause human injury and collisions, which is analyzed to be another factor that is set to impede the market growth during 2022-2027.

Remote Vehicle Diagnostics and Management Market Landscape

Partnership, Acquisitions, Collaboration, technology launches and R&D activities are key strategies adopted by players in the Remote Vehicle Diagnostics and Management Market. The Remote Vehicle Diagnostics and Management Market top 10 companies includes BMW, Continental AG, Delphi Automotive System PLC ( Now Aptive PLC), Fluke Corporation, Magnetic Marelli S.p.A, Mercedes Benz, OnStar Corporation (General Motors), Bosch Automotive Service Solutions Ltd, Snap-On Inc and Softing AG.

Acquisitions/Technology Launches

In August 2020, Mercedes Benz announced the next-generation of Mercedes me Apps which includes Mercedes "me App", "Store App" and "Service App" which allow drivers to stay connected to their Mercedes Benz vehicles and get information on vehicle's status remotely, activate certain controls, schedule service, or summon roadside assistance.

In November 2019, General Motors announced a new fleet telemetric solution, OnStar Vehicle Insights, to offer fleet managers and drivers with real-time vehicle data like vehicle location, driver performance information, vehicle health, remote commands and so to make the daily task easy.


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