Diagnostic tools for automobiles are able to reveal problems with the vehicle's engine, exhaust system, transmission, brakes, and other critical components. In addition to this, it seeks to address any performance concerns that may have been caused by the ignition coils, fuel injector, air flow, and coolant, as well as the throttle system.
Automotive Diagnostics Market
Global Automotive Diagnostics Market: Overview
Automotive diagnostic solutions disclose glitches in relation to the car's engine, exhaust system, transmission, brakes, and other essential components. It also aims at improving any lagging performance issues with the ignition coils, fuel injector, air flow & coolant, and throttle system.
One of the prominent contributors includes the rising number of car accidents across the globe. For instance, in 2018, an approximate of 2,841 people died in the US owing to distracted driving methods. Moreover, out of the nearly 40,000 fatal accidents per year in the US, 25% of such accidents are a result of distracted driving. Thus, such strategies are set to boost the automotive diagnostics market growth in the near future.
Automobile companies have started launching new models of electric vehicles. The rising inclination towards electrics cars is fueling the market growth of automotive diagnostics. For instance, in 2017, Dubai purchased 200 Teslas to expand the city's airport taxi fleet, including some Model X's.
Global Automotive Diagnostics Market: Overview
With the swelling of remote diagnostics and vehicle automation in developing and underdeveloped countries, original equipment manufacturers (OEMs) are persuaded to provide remote support to the clients. For instance, Tesla rolled out major updates to the vehicles through the Air update method, and other OEMs are succeeding the same in consideration to the rise in economic profits.
The global automotive diagnostics market growth is rising at a tremendous pace owing to the factors such as the rising demand for automobiles, rapid urbanization in most developing as well as underdeveloped regions, and the inclination of key players towards creating awareness on the essentiality of auto insurance policies.
Furthermore, the rise in road accidents and the severity of claims is another prominent factor pushing the market growth. For instance, according to the data published in June 2021 by World Health Organization (WHO), an approximate of 1.3 million people die each year as a result of road traffic crashes. Road traffic crashes cost most countries 3% of their gross domestic product. According to the same source, 93% of the world's fatalities on the roads befall in the low- and middle-income countries, even though such countries have about 60% of the world's vehicles. Similarly, the United Nations General Assembly has set a determined target of halving the worldwide figure of deaths and injuries from road traffic crashes by 2030.
The COVID-19 outbreak has forced the auto diagnostic players to reexamine its role and eliminate the grey areas in the industry. The automotive diagnostic tools market remained relatively immune to the effect of Covid-19 outbreak to a certain extent. The rise in remote diagnostics aided in the use of such tools in the grime of the pandemic. The outbreak also augmented the digitization process.
Global Automotive Diagnostics Market: Segmentation
The global automotive diagnostics market is classified based on type, vehicle type, and region. Based on the type, the global automotive diagnostics market is segmented into onboard diagnostics (OBD), electric system analyzers, and scan tools. On the basis of vehicle type, the global automotive diagnostics market is bifurcated into passenger car and commercial vehicle.
Global Automotive Diagnostics Market: Regional Analysis
The North American region is estimated to hold the largest share in the global automotive diagnostics market over the forecast period. The rise in government initiatives, growing concerns regarding car accidents & injuries, rise in vehicle sales, and the increase in the number of prominent insurance providers are the major factors that drive the growth of the market in this region. For instance, in 2019, nearly 22,800 people were killed in road accidents in the European Union. In the same year, Romania had 96 people killed per million inhabitants in road accidents, which was the highest among all the European Union countries.
Moreover, Asia Pacific region is projected to be the fastest growing region owing to the increasing inclination towards the use of automotive diagnostic tools. The government authorities have also levied several regulations for the safety and compliance issues to avoid any discrepancies in the industry. For instance, the China 6 OBD provisions are similar to that of California OBD II regulations but with minor changes that exempt a few monitoring requirements to facilitate compliance burdens for vehicle manufacturers. In addition to that, the China 6 standards have provisions for deficiencies in the OBD systems, exempting the automobile manufacturers from installing all the monitoring systems. Thus, such promising strategies indirectly point towards the significant share of this region in the global automotive diagnostics market.
Moreover, the European region is projected to witness considerable growth in the market due to the growing competition among the manufacturers to launch new tools to lure customers. The rising medical costs in relation to accidents as well as the booming cost of vehicle physical damage repairs pushes the demand for automotive diagnostics, thereby surging the growth of the European automotive diagnostics market in the anticipated period.
Global Automotive Diagnostics Market: Competitive Players
Some of the key players in the global automotive diagnostics market are Continental AG, Robert Bosch, Snap-on, Delphi Automotive, KPIT, Carman, General Technologies Corporation, and Pico Technology, among others.
Global Automotive Diagnostics Market: Regional Segment Analysis
What Reports Provides
Factors such as increasing road accidents, the launch of top-notch coverage policies, as well as the presence of established players are the key factors that are driving the growth of the market. Furthermore, an increasing number of vehicle sales across the world will offer lucrative opportunities for the growth of the global automotive diagnostics market during the forecast period.
Some of the key players in the global automotive diagnostics market are Continental AG, Robert Bosch, Snap-on, Delphi Automotive, KPIT, Carman, General Technologies Corporation, and Pico Technology.
The North American is estimated to hold the largest share in the global automotive diagnostics market over the forecast period. The rise in government initiatives, increasing awareness and high adoption of new vehicular advancements are the major factors that are boosting the growth of the market in this region.