Automotive Diagnostic Tool Market Research Report Information By Type (Diagnostic equipment (hardware), Diagnostic software, Automotive Diagnostic Scan Tool Technology, Repair & Diagnostic Data) Vehicle Type (Passenger Car, Commercial Vehicle), Equipment Type (Wheel Alignment Tester, Digital battery tester, Vehicle Emission Test System, Others) Forecast 2030

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).

Automotive Diagnostic Tool Market Overview

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.

COVID-19 Impact on the Auto Diagnostic Tool Market:

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.

Automotive Diagnostic Tool Market Dynamics

Drivers

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  Increasing Production and Usage of Vehicles across the Globe

  
  

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.

Restraints

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  High Initial Cost of Advanced Diagnostic Tools

  
  

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.

Opportunity

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  Growing Demand of Consumers for High-End Cars

  
  

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.

Challenges

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  Lack of Skilled Workforce

  
  

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.

Automotive Diagnostic Tool Market Segmentation

By Type

• Diagnostic equipment (hardware)


• Diagnostic software


• Automotive Diagnostic Scan Tool Technology


• Repair & Diagnostic Data

By Vehicle Type

• Passenger Car


• Commercial Vehicle

By Equipment Type

• Wheel Alignment Tester


• Digital battery tester


• Vehicle Emission Test System


• Others

Automotive Diagnostic Tool Market Regional Analysis

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.

Automotive Diagnostic Tool Market Competitive Landscape

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

Some of the key developments include:

• In November 2021, SPX purchased Cincinnati Fan from Dominus Capital. This highly strategic acquisition expands HVAC cooling platform into an attractive engineered air movement market.


• In December 2021, Softing AG has released a new version of the Softing TDX repair shop tester kit. The new version makes it possible to define mandatory updates for programs and content, handle VCI configurations more conveniently.


• In January 2022, Robert Bosch Gmbh signed a memorandum of understanding with Volkswagen Group to establish a battery equipment manufacturing unit in Europe.,

Automotive Diagnostic Tool Market Report Overview:

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.

Objectives of the Study

• To get a comprehensive overview of the global automotive diagnostic tool market


• To get wide-ranging information about the key factors driving the market and market opportunities


• To gain information regarding the key players in the industry, their product portfolio, strategies, and key developments


• To gain insights about the key country/region in which the market is growing

Intended Audience

• Automotive Diagnostic Tool Companies


• Automotive Companies


• Research Institutes


• Government Organizations