Global Automotive Diagnostics Market Report and Forecast 2024-2032

According to this report, the global automotive diagnostics market size reached a value of USD 45.46 billion in 2023. Aided by technological advancements and an increased focus on vehicle maintenance and safety, the market is projected to further grow at a CAGR of 8.3% between 2024 and 2032 to reach a value of USD 93.76 billion by 2032.

As per the automotive diagnostics market analysis, modern vehicles are equipped with complex electronic systems, including advanced driver-assistance systems (ADAS), infotainment systems, and hybrid propulsion systems. The sophistication of these electronics requires precise diagnostics to maintain operational efficiency and ensure safety. As vehicles incorporate more technological components, the demand for advanced diagnostics solutions that can accurately decode and troubleshoot these complex systems grows.

As per the automotive diagnostics market outlook, the expanding used car market contributes significantly to the demand for automotive diagnostics. Used vehicles often require thorough diagnostics to assess their condition and functionality. Diagnostic tools enable dealers and buyers to evaluate the operational status and maintenance needs of pre-owned vehicles, facilitating transparent and informed purchasing decisions.

The integration of connectivity and telematics in vehicles is becoming increasingly prevalent, allowing for remote diagnostics and real-time monitoring which can fuel the automotive diagnostics market growth. This trend involves vehicles equipped with communication technologies that send data directly to manufacturers or service centres, enabling proactive maintenance and immediate response to issues as they arise. This connectivity not only enhances vehicle safety and reliability but also improves customer service by providing manufacturers and service providers with instant access to vehicle diagnostics.

As the automotive sector moves towards autonomous driving, the role of diagnostics is evolving to support these advanced technologies which can propel the automotive diagnostics market expansion. Autonomous vehicles require constant monitoring and diagnostics to ensure all systems function correctly, including sensors, cameras, and software systems. This need accelerates the development of sophisticated diagnostic tools capable of handling the complex data and algorithms used in self-driving vehicles.

The automotive diagnostics sector is leveraging big data and analytics to transform diagnostics from a reactive to a predictive practice. By analysing vast amounts of data collected from vehicle sensors and systems, diagnostics can predict potential failures and offer maintenance recommendations before problems occur. This trend in the automotive diagnostics market not only improves vehicle safety and reliability but also optimizes maintenance schedules and reduces costs for vehicle owners.

Cloud-based platforms are becoming popular in automotive diagnostics, offering scalable and flexible solutions that allow data storage and analytics on a large scale. These platforms enable the aggregation of data from multiple sources, providing deeper insights into vehicle performance and maintenance needs. Cloud-based diagnostics can significantly enhance predictive maintenance strategies, reducing downtime and extending vehicle lifespans.

Stringent regulations concerning vehicle emissions and safety across the globe play a crucial role in boosting the automotive diagnostics market share. Governments are imposing strict guidelines to reduce environmental impact and enhance road safety, which necessitates regular vehicle checks and compliance with emission standards. This regulatory environment is prompting vehicle owners and manufacturers to adopt advanced diagnostics tools to ensure regulatory compliance.

Market Segmentation

The market can be divided based on offering, type, vehicle type, and region.

Market Breakup by Offering

• Software
• Hardware
• Services

Market Breakup by Type

• On-board
• Electric System Analyser
• Scan Tools

Market Breakup by Vehicle Type

• Passenger Cars
• Commercial Vehicles

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Competitive Landscape

The report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the global automotive diagnostics market. Some of the major players explored in the report are as follows:

• Robert Bosch GmbH
• Continental AG
• Delphi Automotive PLC
• Magna International Inc.
• HELLA GmbH & Co. KGaA
• DENSO Corp.
• KPIT Technologies Ltd.
• AVL DiTEST GmbH
• Hickok Waekon LLC
• Vector Informatik GmbH
• Vidiwave Limited
• Softing Automotive Electronics GmbH
• Others