ID: MRFR/AM/3807-CR | 100 Pages | Published By Swapnil Palwe on July 2022
Automotive diagnostic tool market has seen remarkable growth in the global market and it has been observed that, its demand in the future is expected to grow with the CAGR of 5%.
The automotive diagnostic tool market size is projected to be worth USD 43,312.2 million by 2030, registering a CAGR of 5.0% during the forecast period (2022–2030).
The automotive diagnostic tools are utilized to analyze any issue in a vehicle by connecting the cable to the vehicle's diagnostic connector and running a full scan. The significant benefit of diagnostic scan tools is that it is not difficult to recognize the fault and repair it quickly. Auto diagnostic scan tools are a mix of software and electronic devices software, which are utilized as a connection point with diagnostics systems in vehicles.
The significance of diagnostics scan tools in vehicles is expanding quickly because of the shift of buyers' inclination from manual to modern robotized diagnostics frameworks. Automated diagnostics scan tools are utilized to identify and dissect the glitches of electronic frameworks in vehicle.
The outbreak of COVID-19 has significantly impacted many industries across the globe which include the automotive sector as well, as it has frequent lockdown measures has shut the industry operation which has impacted the production of new vehicles especially in the emerging countries, such as China. The disturbance in supply chain of many vehicles which has significant impact on the growth of market.
Additionally, many automotive manufacturers have witnessed a decline in the revenue and production of automotive diagnostic tools is lowered in comparison to previous years on the account of unavailability of raw materials due to supply chain issue, lack of labor and increases in taxation amount which has a negative impact on the growth of automotive diagnostic tool market.
The global automotive diagnostic tool market is expected to grow with the increase in production and usage of vehicles across the globe. The increased demand for vehicles due to rapid urbanization, more inclined towards personal mobility, is expected to drive the need for vehicle diagnostics solutions. In addition, increased demand for low-emission transportation and governments supporting vehicle inspection laws also drive market growth. Customers are emphasizing the importance of purchasing a vehicle with in-vehicle diagnostic technologies. Moreover, when consumers become more aware of such tools, their demand will increase. For instance, according to the International Organization of Motor Vehicle Manufacturers (France), In 2019, over 92 million vehicles were produced worldwide, with 67 million cars and 25 million commercial vehicles. Similarly, as per the World Economic Forum (Switzerland), By 2040, the overall number of passenger automobiles on the road is expected to double, with 2 billion cars on the road.
Workshops require more advanced automotive diagnostic instruments to keep up with continual improvements in car computer technology, but most small and medium-sized workshops cannot buy them all due to the initial cost of the tools. Automotive diagnostic instruments have seen a decline in their overall costs. Newer technologies, on the other hand, are more expensive than standard OBD-I (first generation) systems. This may decrease the demand for more innovative and cutting-edge technologies. Automotive diagnostic tool producers are constantly under pressure from original equipment manufacturers (OEM) to lower diagnostic tool pricing. Many manufacturers are also unwilling to invest in R&D because of high expenses, especially in emerging markets such as China, India, Turkey, Brazil, Russia, and others where OEMs are still launching new models with minimal diagnostic systems. Automobile diagnosis requires very advanced instruments and equipment to meet severe safety rules, which adds to the cost.
The current trend in developed countries around the world is to buy premium category cars with more precise, efficient, and fast diagnostic instruments. The market for luxury cars has been fueled by a considerable increase in actual luxury offerings in vehicles, a movement in consumer preferences from sedans to SUVs, and rising disposable incomes. As emerging technologies are adopted in automobiles to make them more efficient and sustainable, demand for OBD solutions remains high in both personal and commercial vehicles. Automotive trends such as connected cars, big data & analytics, human-machine interfaces, and electric vehicles demand advanced diagnostic tools for managing and regulating high-tech vehicle components.
There is an impending shortage of skilled professionals available for the automotive industry. The limited availability of high-skilled workers and automotive engineers is adversely affecting the growth of the global automotive diagnostic tool market. In addition, the lack of training programs for automotive professionals and the limited availability of scholarships results in fewer admissions to the undergraduate and postgraduate automotive engineering programs than required. As per the US Bureau of Labor Statistics, only 620,110 automotive service technicians and mechanics were in the US in 2020 Persistent shortage of semiconductor across the globe.
In terms of sales, the Asia-Pacific region is expected to drive the global automotive diagnostic tool market during the forecast period. Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022 to 2030. This is due to the factors such as growing Infrastructural & industrialization activities, the increased purchasing power of the population, and the presence of large markets such as India, China, and Japan had fueled an increase in demand for automobiles. Through joint ventures with domestic manufacturers, global OEMs such as Volkswagen (Germany) and General Motors (US) cater to this automotive diagnostic tool market. Asia-Pacific has become a market with great development potential due to the deployment of new technologies, the establishment of more manufacturing units, and the formation of value-added supply chains between manufacturers and material providers
Europe accounts for the second-largest market share due to the rising per capita disposable income among individuals. Mandatory On-board diagnostics (OBD) requirements, stringent emission regulations policies, and the presence of major automotive manufacturers in the region, including Robert Bosch GmbH (Germany), Continental AG (Germany), Softing AG (Germany), Actia SA (France), and others are anticipated to create huge demand for automotive diagnostic tools across Europe.
The global automotive diagnostic tool market is expected to showcase healthy growth throughout the forecast period. The global market represents strong numbers in terms of consumption and is expected to grow year on year. The global automotive diagnostic tool market is highly fragmented, with a majority presence of tier-1 players. Some of the key players operating in the global automotive diagnostic tool market are Robert Bosch Gmbh, Denso Corporation, AVL List Gmbh, Continental AG and few others
The automotive diagnostic tool market is segmented by type, vehicle type, equipment type, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global automotive diagnostic tool market emerging and fast-growing segments, regions, and countries.
|Market Size||2030: USD 43,312.2 Million|
|CAGR||5.0% CAGR (2022-2030)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type, Vehicle Type, and Equipment Type|
|Geographies Covered||North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa|
|Key Vendors||Robert Bosch Gmbh, Denso Corporation, AVL List Gmbh, and Continental AG|
|Key Market Opportunities||Growing Demand of Consumers for High-End Cars|
|Key Market Drivers||Increasing Production and Usage of Vehicles across the Globe|
The global automotive diagnostic tool market would register a growth of 5.0%.
A few significant players of the global automotive diagnostic Tool market are Robert Bosch Gmbh, Denso Corporation, AVL List Gmbh, and Continental AG
High initial cost of advanced diagnostic tools.
Asia-Pacific would enjoy the upper hand in the automotive diagnostic tool market.
China, as the largest consumer, would set the trend.