Vehicle Health Monitoring Market Size By Component (Hardware [Sensors, GPS Systems, OBD Ports], Software, Services), By Health Management (Diagnostics, Prognostics), By Vehicle Type(Passenger, Commercial), By Sales Channel (OEM, Aftermarket), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027

Vehicle Health Monitoring Market Size

Vehicle Health Monitoring Market size was valued at over USD 32 billion in 2020 and is expected to grow at a CAGR of around 9% between 2021 and 2027. The market data displays a strong growth potential for vehicle health monitoring systems due to the rising demand for autonomous vehicles globally.
 

Vehicle health monitoring systems are integrated internally or externally into the vehicle. They allow users to check the overall health of the vehicle and analyze its diagnostic code, engine data, performance data, and battery status.
 

The rapid increase in the sales of commercial vehicles across the globe will fuel the vehicle health monitoring market demand. According to the statistics published by The Organisation Internationale des Constructeurs d'Automobiles (OICA), Germany witnessed a significant rise in the sales of commercial vehicles from 386,282 units in 2018 to 409,801 units in 2019. The amplifying market trend of tracking vehicle health for preventive maintenance and less downtime will drive the market growth during the forecast timeline.
 

Increasing internet penetration in various countries coupled with rising vehicle safety concerns across the globe will provide lucrative market opportunities for the adoption of vehicle health monitoring systems. As per the statistics published by World Bank, the number of internet users in the UAE increased from 98.4% of the country’s total population in 2018 to 99.1% in 2019. Internet assists end-users to track the performance of the vehicle through software or mobile application, supporting the market expansion
 

The factors hampering the vehicle health monitoring market revenue include the high cost associated with these systems. The cost of a vehicle health monitoring system involves expensive electronic components, wireless connectivity modules, and initial cost for the integration of hardware and software. The lack of awareness about vehicle health management systems will hinder the market outlook. However, several vehicle health service providers operating in the industry are adopting creative marketing strategies to address this challenge and enhance the market value.   
 

The market was adversely impacted during the first two quarters of 2020 owing to the emergence of COVID-19 pandemic. Severe measures, such as mass quarantines and travel restrictions, impeded the industry statistics of vehicle health monitoring systems on a large scale. Market factors, such as shortage of raw materials and labor, resulted in numerous problems in the design and development of new systems. This created an extensive gap in supply and demand, affecting the industry revenue for manufacturers. Furthermore, rising financial insecurities among end-users hampered the sales of passenger and commercial vehicles and influenced the industry in 2020.
 

Vehicle Health Monitoring Market Analysis

The hardware segment in the vehicle health monitoring market will showcase a 7% growth rate through 2027 led by a rapid rise in the demand for sensors, GPS systems, and services. Growing safety awareness coupled with the rising usage of vehicle health monitoring systems in commercial and passenger vehicles will propel the demand for the hardware segment. These health tracking systems involve device setup, which requires hardware components, thereby contributing to their growing representation in the market. 
 

The prognostics segment accounted for over 18% of the vehicle health monitoring market share in 2020 due to the development of vehicle health management from traditional maintenance to prognostics. The ability of prognostic systems to assess the reliability and health condition of systems in advance will support the revenue share. OEMs across the globe offer prognostics solutions as optional or default features in various vehicle segments.
 

The passenger vehicles are estimated to attain a CAGR of 8% by 2027 on account of the increasing usage of electric vehicles across the globe. According to a market report published by the International Energy Agency (IEA), the sales of electric vehicles in Europe grew by 57% in the first half of 2020. The growing focus of government authorities on the adoption of electric vehicles will accelerate the market progression.
 

The OEM segment dominated more than 75% of the vehicle health monitoring market share in 2020 driven by the pre-installation of vehicle health monitoring systems in vehicles by automobile manufacturers. OEMs including Robert Bosch, Delphi Technologies, and OnStar are the major companies catering to the vehicle health monitoring demand. Automobile manufacturers are deploying the technology in commercial and passenger vehicles to increase their fuel efficiency and engine performance, contributing to the industry demand.
 

Automobile companies in various countries across the globe are integrating their new vehicle models with vehicle health monitoring systems to meet strict emission regulations imposed by government authorities. These systems allow identifying battery performance, fuel efficiency, and engine performance, which support mitigating the harmful emissions. Furthermore, the rapid increase in the trend of automating the vehicles will foster the industry share of vehicle health monitoring systems during the forecast timeframe.
 

Asia Pacific vehicle health monitoring market size was around USD 8 billion in 2020 owing to growing disposable income and spending capacity in countries including India, China, and Japan. As per the data published by the National Bureau of Statistics, the disposable income in China accounted for USD 5,929.1 in 2018 compared to USD 5,177.2 in 2017. The increasing application of vehicle monitoring for identifying engine and battery performance will drive the regional growth.
 

Vehicle Health Monitoring Market Share

The prominent companies operating in this vehicle health monitoring market include

• Visteon Corporation
• Zubie
• Robert Bosch
• Continental
• Delphi Technologies
• KPIT
• Luxoft
• OnStar
• iotaSmart Labs
• Vector Informatik
• Harman International
• Garrett Advancing Motion
• Intangles Lab Private Limited
• Octo Group S.p.A

Market players are focused on new product launches and technological innovations to enhance their service offerings and cater to the changing customer demands.
 

The vehicle health monitoring market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2021 to 2027 for the following segments:

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Market, By Component

• Hardware
  • Sensors
  • GPS Systems
  • OBD port
• Software
• Services

Market, By Health Management

• Diagnostics
• Prognostics

Market, By Vehicle Type

• Passenger cars
• Commercial Vehicles

Market, By Sales Channel

• OEM
• Aftermarket

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

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• MEA
  • Saudi Arabia
  • UAE
  • South Africa