On-board Diagnostics Aftermarket size worth USD 4 Bn by 2026
Published Date: January 5, 2021 Authors: Ankita Bhutani, Preeti Wadhwani
On-board Diagnostics (OBD) Aftermarket size is set to surpass USD 4 billion by 2026, according to a new research report by Global Market Insights, Inc.
The growing demand for monitoring the performance of an engine’s major components from vehicle owners is expected to boost OBD aftermarket industry. The vehicle owners are being conscious about the responsibility to control and monitor vehicle emissions. The advanced capabilities to assist in the diagnosis and repair of complex electronic engine components are contributing to the demand for OBD solutions in the market.
Growing demand for diagnosing and fixing of vehicle problems is expected to trigger the market expansion
The On-board diagnostics aftermarket growth is attributed to the growing need for effective communication & data exchange for vehicle diagnosis. The OBD solution works as a bridge to communicate and transfer vehicle data to scanning tool. The diagnostic services facilitate the information exchange initiated by an external test equipment in order to acquire information. These solutions help enterprises to in the diagnosis and repair of complex electronic engine components, contributing to the market growth.
The growing use of advanced technologies and extensive smartphone penetration are fueling the software segment market growth
The OBD software segment is projected to grow at 20% CAGR through 2026. The demand for on-board diagnosis telematics platform application has increased considerably in the past couple of years. The apps reduce the dependency on hardware to gather information and make it possible for the user to convert their smartphone or tablet into a portable on-board scanner for gathering diagnostic information. These apps handle all the information collected from on-board systems, ease the task of monitoring the vehicle parameters in real-time, and allow continuous monitoring of the vehicle’s status.
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Growing requirements for light commercial vehicles in industrial environment is supporting the market growth
The light commercial vehicle segment in the OBD aftermarket is estimated to observe above 19% growth rate from 2020 to 2026. The rising demand for cost-effective and low-emission ways to better manage fleet operations will fuel the market demand. The fleet owners are growing their vehicle fleets with the addition of LCVs with a mass carrying capacity between 3.5 and 7 tons. The growing industries and rising demand for efficient transport medium are enabling the growth in sales. The need for smart and light commercial vehicles to transport the goods within the cities is supporting the market expansion.
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)), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Growing adoption of telematics applications and favorable government initiatives are supporting the consumer telematics application segment
The consumer telematics application segment is likely to witness steady growth in the use of OBD solutions from 2020 to 2026. The system provides drivers with real-time feedback on their driving behavior such as speed, distance driven, and instances of harsh braking. Other data includes visual information on how they drive including live and retrospective feedback on their braking, cornering, acceleration, and idling. The supportive government initiatives and adoption of telematics solution are augmenting the market growth.
Increasing vehicle sales and rising market demand for telematics will usher new opportunities in the APAC market
Asia Pacific OBD aftermarket is poised to expand at an exponential growth of over 20% CAGR till 2026. The extensive vehicle production, supportive government initiatives, and new product developments in the automotive industry is likely to drive market revenue. For instance, in July 2019, Marshark launched THINKCAR OBD, an advanced diagnostic tool. The launched tool connects with the mobile device and transfers fault codes and data from vehicle on board computer. This launch helped the company to provide an ultra-compact and powerful OBD scanning tool to its customers.
Focus on inorganic growth strategies by key players to augment market share
The companies operating in the on-board diagnostics aftermarket are emphasizing on the development of advanced solutions. For instance, in February 2020, Carly Solutions GmbH & Co. KG. launched Carly Adapter for passenger vehicles. The launched adopter supports multiple vehicle brands with an OBD-II port and leverages low energy Bluetooth technology. This launch helped the company to provide vehicle owners with an advanced device to monitor vehicle health and performance. Similarly, other enterprises operating in the market are anticipated to develop advanced vehicle monitoring devices.
Some of the key players operating in the market include 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.