On-board Diagnostics (OBD) Aftermarket Size By Vehicle Type ( Passenger Vehicles, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV)), By Component (Hardware [OBD Scanners, OBD Dongles], Software [PC-based software, Apps), Service [Training & Consulting, Integration & Maintenance, Managed Service]), By Application (Consumer Telematics, Fleet Management, Car Sharing, Usage Based Insurance (UBI)), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Published Date: Dec 2020  |  Report ID: GMI2839  |  Authors: Ankita Bhutani, Preeti Wadhwani

Report Format: PDF   |   Pages: 270   |   Base Year: 2019

Summary Table of Contents Industry Coverage Methodology

Industry Trends

OBD Aftermarket size estimated at USD 1 billion in 2019 and is poised to grow at a CAGR of over 17% from 2020 to 2026. The market growth can primarily be attributed to the rapid development of the automobile industry and the rising demand for more efficient vehicle management systems.

OBD Aftermarket
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The increasing complexity of vehicle systems has fueled the use of remote vehicle diagnostic systems using data-driven technology. Remote diagnostic technology brings a safety mechanism that allows the vehicle to be monitored and controlled using a remote operator, which has augmented the penetration of OBD systems.

The OBD aftermarket is witnessing a significant disruption in supply chain and production due to the ongoing COVID-19 pandemic. Vehicle sales have been drastically hit, and the adoption of remote diagnostics for Usage Based Insurance (UBI) has also observed a significant reduction with the imposition of lockdowns and restrictions on driving. This is expected to project a negative impact on the market growth.

On-board Diagnostics (OBD) Aftermarket Report Coverage
Report Coverage Details
Base Year: 2019 Market Size in 2019: 1 Billion (USD)
Historical Data for: 2015 to 2019 Forecast Period: 2020 to 2026
Forecast Period 2020 to 2026 CAGR: 17% 2026 Value Projection: 4 Billion (USD)
Pages: 270 Tables, Charts & Figures: 385
Geographies covered (18): U.S., Canada, UK, Germany, France, Spain, Italy, Netherlands, China, India, Japan, Australia & New Zealand (ANZ), South Korea, Brazil, Mexico, Argentina, South Africa, GCC
Segments covered: Component, Vehicle Type, Application and Region
Companies covered (19): Autel Intelligent Technology Corp.,Ltd., Automatic Labs, AVL Ditest, Azuga, Bosch Diagnostics, CalAmp, Continental AG, Danlaw, Inc., ERM Electronic Systems LTD, Geotab Inc., Innova, Intel Corporation, Magneti Marelli S.p.A., Metromile, Mojio, TomTom International BV., Vector Informatik, Verizon Communications, and Xirgo Technologies, Inc.
Growth Drivers:
  • Shifting focus towards remote diagnostics technology
  • Growing trend of automotive Internet of Things (IoT)
  • Increasing global automotive production
  • Growing emphasis on vehicle emission control
  • Increasing popularity of Usage-based insurance (UBI)
Pitfalls & Challenges:
  • Cyber security threats and privacy concerns
  • Compatibility and interoperability issues

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Rising trend of automotive IoT to boost the market demand

The OBD aftermarket is witnessing rapid growth in the adoption of in-built on-board diagnostic systems, which analyze, monitor, and rectify the problems or faults in vehicle components. The widespread adoption of IoT to build smart car systems, which can be monitored and can actively provide the information about health status of the vehicle’s components is driving the need for OBD systems.

Pay-as-you-drive technologies to spur the growth of hardware segment in South Korea market

The hardware segment held over 45% South Korea OBD aftermarket share in 2019. OBD dongles with telematics capabilities are gaining market traction as OEMs and insurance providers are using these devices to promote PAYD-based insurance premium payment options based on the driver’s driving style and overall status of the vehicle. Regional manufacturers operating in the industry are offering ONTs that support dual-band Wi-Fi for gigabit home networks.

In the services segment, the managed services accounted for 30% of the industry share in 2019. The growing demand among the Korean enterprises to outsource the OBD services and concentrate on their core business operations is propelling the demand for third-party on-board diagnostic service providers. Intense competition among market players and the growing need to provide enhanced customer experience are also encouraging vendors to offer a wide range of professional services to gain customer loyalty.

Increasing passenger vehicles sales and telematics deployment to augment the market revenue in Spain

Spain OBD Aftermarket

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In Spain OBD aftermarket, the passenger vehicles segment is predicted to register a substantial growth of over 19% through 2026 as the rising number of passenger cars will fuel the adoption of OBD tools to scan the vehicle’s engine and its sub-components. In January 2020, as per data from the Automobile Manufacturers Association of Spain (ANFAC), the passenger car registrations in the country were 105,853 units in December 2019, an increase of 6.6% over December 2018. The increased sales of passenger cars and rising shipments of OBD units are will drive the market growth.

Innovative telematics insurance services to fuel the OBD aftermarket size in Mexico

Mexico OBD Aftermarket

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In Mexico, the UBI segment is set to expand at 30% CAGR till 2026 owing to the increasing popularity of OBD for accurate estimation of insurance premiums based on vehicle usage and driver behavior. Vehicles equipped with telematics devices allow insurance providers to have more precise information to rate drivers’ premiums such as on-road activity including braking and cornering speed or acceleration. The growing demand for pay as you drive (PAYD) models has also created new market opportunities for the segment.

Increasing stringency of vehicle emission norms in Europe

Europe OBD Aftermarket

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Europe OBD aftermarket held more than 25% revenue share in 2019. The European industry is characterized by enforcement of more stringent fuel regulations and mandatory remote diagnostics device requirements by the European Commission. Governments in developed countries, particularly Germany, the UK, France, and Italy, are also providing support to reduce the carbon emissions and other air pollutants by introducing strict vehicle emission norms and imposing ban on heavy duty and light duty vehicles.

As the electric vehicles sector in Europe is rapidly growing, users are being encouraged to use integrated OBD and mobile applications to monitor and track their electric vehicles. This will propel the demand for on-board diagnostics to check for the real-time parameters of the electronic control units.

Launch of innovative solutions with enhanced features to gain a competitive edge

Some of the major players operating in the OBD aftermarket are Autel Intelligent Technology Corp., Ltd., Automatic Labs, AVL Ditest, Azuga, Bosch Diagnostics, CalAmp, Continental AG, Danlaw, Inc., ERM Electronic Systems LTD, Geotab Inc., Innova, Intel Corporation, Magneti Marelli S.p.A., Metromile, Mojio, TomTom International BV., Vector Informatik, Verizon Communications, and Xirgo Technologies, Inc.

The global OBD aftermarket industry is characterized by several initiatives undertaken by global technology companies to deliver innovative products and services to cater to their customers’ requirements. For instance, in May 2020, TELTONIKA Telematics released a new series of ultra-compact OBD trackers, with GNSS and Bluetooth Low Energy (BLE) 4.0 functionalities. The devices are 50% smaller than earlier products and offer high performance while being energy efficient.

The market has also witnessed several strategic alliances between key players for launching new products with added functionalities to maintain the revenue share and profitability. For instance, in 2019, Geotab partnered with Vodafone to accelerate the adoption of fleet & mobility services by combining Vodafone’s experience and reach in telematics with the company’s engineering & open platform technology. The partnership helped Geotab offer stiff competition to major industry rivals.

The OBD aftermarket research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:

Market, By Component

  • Hardware
    • OBD Scanners
    • OBD Dongles
  • Software
    • PC-based OBD Scanning Tools
    • Apps (OBD telematics platforms)
  • Service
    • Training & Consulting
    • Integration & Management
    • Managed Services

Market, By Vehicle Type

  • Passenger vehicles
  • Light commercial vehicles (LCV)
  • Heavy commercial vehicles (HCV)

Market, By Application

  • Consumer Telematics
  • Fleet Management
  • Car Sharing
  • Usage-based Insurance (UBI)

The above information has been provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Italy
    • Netherlands
  • Asia Pacific
    • China
    • Japan
    • South Korea
    • India
    • ANZ
    • Brazil
    • Mexico
    • Argentina
    • GCC
    • South Africa


Frequently Asked Questions (FAQ) :

The OBD aftermarket industry size had reached USD 1 billion in 2019 and will witness more than 17% CAGR through 2026 owing to the increased demand for efficient vehicle management systems.
More than 45% of South Korea market share was held by the hardware segment during 2019 with the growing need for telematics capabilities in vehicles.
Spain industry share from the passenger vehicle segment is projected to record over 19% CAGR between 2020-2026 due to the increased in passenger car registration across the nation.
Europe market accounted for over 25% share of the global revenue in 2019, fueled by strict emission regulations and European Commission’s mandate for remote diagnostic device requirements.

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Premium Report Details

  • Published Date: Dec 2020
  • Pages: 270
  • Tables: 358
  • Charts / Figures: 27
  • Companies covered: 19
  • Countries covered: 18

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