On-Board Diagnostics (OBD) Aftermarket Market size is set to reach USD 12 billion by 2030. , according to a new research report by Global Market Insights Inc.
Increasing focus of regulatory bodies on implementing stringent emissions control standards to curb pollutants from the environment in a growing automotive industry landscape is a major driver for on-board diagnostics aftermarket growth.
Rapid rise in the production of connected cars has augmented the integration of usage-based insurance (UBI) in the car insurance sector. Some auto insurance companies offer the UBI option to track vehicle-related data using OBD systems and cater to consumer demand for security and safety features, improved fleet management, and advanced vehicle maintenance.
More customers are being offered the telematic alternative for their car insurance policies. According to a survey conducted by TransUnion in February and March 2022, around 40% of respondents were offered a usage-based program, indicating an 8% rise in comparison to November 2021. The growing integration of UBI will have a substantial impact on on-board diagnostics aftermarket growth.
The light commercial vehicle (LCV) segment is projected to observe 25% CAGR through 2030 propelled by the growing demand for LCVs in developing and developed countries.
As per the data provided by the Society of Indian Automobile Manufacturers (SIAM), the sales of light commercial vehicles increased to 475,989 units from April 2021 to March 2022 in comparison to the previous year, which could contribute to increasing global market share.
Browse key industry insights spread across 270 pages with 358 market data tables and 27 figures & charts from the report, “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)), COVID-19 Impact Analysis, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2022 – 2030” in detail along with the table of contents:
The service segment to hold more than 20% of the market share by 2030. This growth is credited to an increased demand for outsourced OBD services from enterprises to focus on their primary business operations. The service segment is further bifurcated into integration and maintenance, managed service and training and consultation. Of these, the training and consultation segment is anticipated to account for 25% share of the on-board diagnostics aftermarket industry by 2030. This is attributed to increasingly complex vehicle systems and rapid evolution of the automotive technology landscape.
The car-sharing application is poised to register gains at nearly 25% from 2022 to 2030 due to increasing preference for car-sharing with increased fuel and car prices. Car sharing grew in popularity, especially after the commencement of mass shutdowns in March 2020 which reduced the demand for new cars as well as rented cars. The escalating inflation has resulted in millennials preferring to choose car-sharing services over owning personal cars.
Furthermore, technological support in terms of distributed blockchain applications and increasing internet penetration have positioned car sharing as a reliable, economical, and efficient alternative to conventional car ownership. Rising adoption of cloud-based digitization will also help bolster the segmental growth.
The Latin America on-board diagnostics aftermarket is predicted to surpass USD 500 million by 2030. A rise in the number of fleet asset damage and vehicle theft incidences has resulted in the increased demand for fleet management solutions in the region.
The companies operating in the OBD aftermarket focus on strategic partnerships to strengthen their market position. For instance, CalAmp formed a partnership with Noregon in March 2022 to provide predictive maintenance and remote diagnostics for fleet operators. This partnership combines CalAmp iOn fleet management software, edge computing services, and cloud platform with the predictive algorithms developed by Noregon for its TripVision remote diagnostics. Such business propositions will significantly contribute to the growth of the industry.
Some of the key players operating in the on-board diagnostics aftermarket are Autel Intelligent Technology Corp., Ltd., AVL Ditest, Azuga, Bosch Diagnostics, CalAmp, Verizon Communications, and Xirgo Technologies, Inc.