Automotive Diagnostic Tool Market Overview:
Automotive Diagnostic Tool Market Size was valued at USD 31.3 Billion in 2023. The automotive diagnostic tool market industry is projected to grow from USD 32.865 Billion in 2024 to USD 46.3 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.37% during the forecast period (2024 - 2032). Increasing the complexity and electrification of the system, as well as reducing carbon footprints by enforcing stricter emission standards are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Diagnostic Auto Tool Market Trends
Vehicle technological advancement propels market growth.
The technological advancement of vehicles is driving the market CAGR for Diagnostic Auto Tool. Vehicle architecture has become more sophisticated as technology such as electronic control modules and advanced driver aid systems have become more widely used. Fault diagnosis for such systems is technically difficult for typical end-users. As a result, with the supply of standard fault codes and other services, these scan tools give an easy interface for consumers to determine the difficulties with the automobile and prevent costly workshop repair for small problems. As a result, the increased complexity of automotive electronics is expected to propel market expansion.
Furthermore, rising vehicle demand in developing countries, spurred by urbanisation, is predicted to raise the demand for automotive diagnostic scan instruments. Customers are more inclined to purchase vehicles outfitted with in-vehicle diagnostic scanning systems. As customers become more aware of such solutions, demand for them is projected to rise in these countries.
For instance, in the U.S., the Environmental Protection Agency (EPA) implements the Clean Air Act (amended in 2001), under which it is mandatory for 33 state and local regions to administer and direct vehicle inspection and maintenance programs to address the growing issue of vehicular emissions and meet the air quality standards through the use of on-board diagnostics (OBD) technology. Thus, stringent government regulations continue to drive the growth of the automotive diagnostic scan tools market
Automotive Diagnostic Tool Market Segment Insights:
Automotive Diagnostic Tool Type Insights
The Automotive Diagnostic Tool market segmentation, based on type includes diagnostic equipment (hardware), diagnostic software, automotive diagnostic scan tool technology, repair & diagnostic data. The diagnostic equipment (hardware) category is likely to dominate the Market. This segment's growth can be ascribed to the growing vehicle population in both developed and developing countries, as well as the increasing complexity of car electronics. Automobile diagnostic equipment (hardware) tools are generally physical instruments used to determine the condition of various automobile hardware components. The increasing complexity of automobiles has boosted the demand for automotive diagnostic equipment/hardware in automobile workshops, resulting in the expansion of the automotive diagnostics equipment/hardware market.
Figure1: Automotive Diagnostic Tool Market, by Type, 2022 & 2032(USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Automotive Diagnostic Tool Vehicle Type Insights
The Automotive Diagnostic Tool market segmentation, based on vehicle type, includes passenger car, commercial vehicle. Passenger cars are expected to have the largest market share. Diagnostic scan tools continuously monitor and detect issues in the emission control system. When a fault is assigned, the dashboard light illuminates, signaling a check engine. Previously, skilled technicians accredited with the ASE A6, A8, and L1 standards identified car issues.
Automotive Diagnostic Tool Equipment Type Insights
The Automotive Diagnostic Tool market segmentation, based on equipment type, includes a wheel alignment tester, digital battery analyzer, vehicle emission test system and others. Digital battery tester had a substantial market share. A digital battery tester is an electronic device that measures how much charge is left in a battery. It is mostly used to inspect the battery's state and any defects or problems with how it operates in order to assure the device's safety and security. Because batteries are at the heart of many machines, power tools, and other devices, it is critical to record and monitor the crucial battery operating characteristics. To determine the remaining capacity of a battery, both electronic and digital methods are utilised. This is generally displayed as bars or a graph, depending on the model, allowing for easy reading and interpretation of the test results via a user-friendly interface.
Automotive Diagnostic Tool Regional Insights
By region, the study provides the market insights into North America, Europe, Asia-Pacific and the Rest of the World. North America dominates the market and is expected to develop at a CAGR of 4.8% in the next years. This is owing to the fact that North America is the hub for a number of technology firms and strives for greater infrastructure, has no budget limits due to the region's high revenue, and favourable government laws and regulations for an effective transportation system.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure2: Automotive Diagnostic Tool Market Share By Region 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s automotive diagnostic tool market accounts for the second-largest market share due to increased demands and developments. Further, the German automotive diagnostic tool market held the largest market share, and the UK automotive diagnostic tool market was the fastest-growing market in the European region
The Asia-Pacific Automotive Diagnostic Tool Market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the deployment of new technologies, the installation of more manufacturing units, and the formation of value-added supply chains between manufacturers and material providers. Moreover, China’s automotive diagnostic tool market held the largest market share, and the Indian automotive diagnostic tool market was the fastest-growing market in the Asia-Pacific region.
Automotive Diagnostic Tool Key Market Players & Competitive Insights
Leading market players are extensively spending in research and development to extend their product lines, which will help the automotive diagnostic tool market grow even more. Market participants are also engaging in a number of strategic initiatives to grow their worldwide footprint, with significant market developments including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organisations. To expand and survive in a more competitive and expanding market climate, the automobile diagnostic tool industry must provide cost-effective products.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Diagnostic Auto Tool industry to benefit clients and increase the market sector. In recent years, the automotive diagnostic tool industry has offered some of the most significant advantages to medicine. Major players in the automotive diagnostic tool market, including Delphi Technologies (London, U.K.), Denso Corporation (Aichi, Japan), SPX Corporation (North Carolina, U.S.), Continental AG (Hanover, Germany), SGS SA (Geneva, Switzerland) and others, are attempting to increase market demand by investing in research and development operations.
ARGO SpA is a Morra family-owned Italian holding company that manufactures agricultural machinery. Valerio Morra founded the company in 1980 in Fabbrico, Emilia-Romagna, Italy. The primary products of ARGO are tractors and combine harvesters. Valerio Morra launched it in 1980 with the purchase of MBS Spa. ARGO purchased Vicenza's Pegoraro Spa in 1987. Sixty-six percent of Landini was purchased from Massey Ferguson in 1989, with additional shares added in 1994. The tractor business was expanded in 1995 with the purchase of Valpadana Spa, followed by S.E.P. Spa and Laverda from CNH Global in 2000. In March 2021, ARGO Tractors and the ACTIA organisation announced their partnership and began working together to deploy remote diagnostics and telematics in tractors. They have created techniques and technology content to help farmers be more inventive and sustainable.
Continental AG, also known as Continental or Conti, is a German multinational automotive parts manufacturing company that specialises in tyres, brake systems, interior electronics, automotive safety, powertrain and chassis components, tachographs, and other automotive and transportation parts. Continental is divided into six business units: Chassis and Safety, Powertrain, Interior, Tyres, ContiTech, and ADAS (Advanced Driver Assistance Systems). Its headquarters are located in Hanover, Lower Saxony. Continental is the fourth-largest tyre producer in the world. In June of 2020, Continental unveiled a new diagnostic tool aimed at increasing technician efficiency by expediting car diagnosis. Continental claims that the Continental Autodiagnos Pro Automotive Diagnostic System is specifically developed to help automotive technicians analyse, diagnose, and repair automobiles more quickly. The new scan tool can service all makes and models and is constantly updated as vehicles evolve.
Key Companies in the automotive diagnostic tool market include
- ACTIA Group (Toulouse, France)
- Snap-on Incorporated (Wisconsin, U.S.)
- Softing AG (Haar, Germany)
- Robert Bosch GmbH (Gerlingen, Germany)
- Delphi Technologies (London, U.K.)
- Denso Corporation (Aichi, Japan)
- SPX Corporation (North Carolina, U.S.)
- Continental AG (Hanover, Germany)
- SGS SA (Geneva, Switzerland)
- Horiba, Ltd. (Kyoto, Japan)
Automotive Diagnostic Tool Industry Developments
In April 2020, Bosch has released a new app called Visual Connect. It assists technical support by displaying faults using the app and a smartphone camera. The app Visual Connect can be used in the workshop without the need for any additional gear.
In February 2020, Hella Gutmann Solutions (HGS) created two diagnostic kits to make workshops more affordable. The Mega macs PC has complete access to HGS technical data, which includes wiring schematics, symptom-based diagnosis, and step-by-step repair procedures for over 40,000 car models.
In September 2020, Auto Crib, Inc., a major marketer, producer, and creator of tool and asset control solutions, was bought by Snap-on Incorporated. With this acquisition, Snap-on Incorporated aims to broaden its tool control and productivity solutions for essential industries.
Diagnostic Auto Tool Market Segmentation:
Automotive Diagnostic Tool Market By Type Outlook
Automotive Diagnostic Tool Market By Vehicle Type Outlook
- Passenger Car
- Commercial Vehicle
Automotive Diagnostic Tool Market By Equipment Type Outlook
- Wheel Alignment Tester
- Digital battery tester
- Vehicle Emission Test System
- Others
Automotive Diagnostic Tool Regional Outlook
-
North America
-
Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
-
Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
-
Rest of the World
- Middle East
- Africa
- Latin America
| Report Attribute/Metric |
Details |
| Market Size 2023 |
USD 31.3 Billion |
| Market Size 2024 |
USD 32.865 Billion |
| Market Size 2032 |
USD 46.3 Billion |
| Compound Annual Growth Rate (CAGR) |
4.37% (2024-2032) |
| Base Year |
2023 |
| Market Forecast Period |
2024-2032 |
| Historical Data |
2018- 2022 |
| Market Forecast Units |
Value (USD Billion) |
| Report Coverage |
Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered |
Type, Vehicle Type, Equipment Type, and Region |
| Geographies Covered |
North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered |
The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled |
 ACTIA Group (Toulouse, France), Snap-on Incorporated (Wisconsin, U.S.), Softing AG (Haar, Germany), Robert Bosch GmbH (Gerlingen, Germany), Delphi Technologies (London, U.K.), Denso Corporation (Aichi, Japan), SPX Corporation (North Carolina, U.S.), Continental AG (Hanover, Germany), SGS SA (Geneva, Switzerland). |
| Key Market Opportunities |
Consumers' Demand for High-End Automobiles is growing. |
| Key Market Dynamics |
Vehicle Production and Use are Growing Around the World. |
Automotive Diagnostic Tool Market Highlights:
Frequently Asked Questions (FAQ) :
The Automotive Diagnostic Tool market size was valued at USD 31.3 Billion in 2023.
The global market is projected to grow at a CAGR of 4.37% during the forecast period, 2024-2032.
North America had the largest share of the global market
The key players in the market are Delphi Technologies (London, U.K.), Denso Corporation (Aichi, Japan), SPX Corporation (North Carolina, U.S.), Continental AG (Hanover, Germany), SGS SA (Geneva, Switzerland).
The diagnostic equipment (hardware) category dominated the market in 2022.
Passenger cars category had the largest share of the global market.
