Vehicle Health Monitoring Market to exceed $55 Bn by 2027
Published Date: March 30, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Vehicle Health Monitoring Market size is set to exceed USD 55 billion by 2027, according to a new research report by Global Market Insights Inc.
Stringent vehicle emission regulations imposed by various governments will support the industry representation through 2027. The increasing popularity of health monitoring services in the automotive sector coupled with the positive outlook of the global economy will drive the vehicle health monitoring market revenue. The growing presence of global market players including Intangles Lab Private Limited, Garrett Advancing Motion, and Harman International that offer vehicle health monitoring services will contribute to the escalating market trends.
The rapid increase in the adoption of electric system analyzers owing to the surging demand for electric vehicles globally will provide growth opportunities to the market. Companies are focusing on providing diagnostics and prognostics solutions to ensure vehicle safety. For instance, Robert Bosch provides electrical system diagnostic analyzer kit, BAT 151 that associates direct temperature measurement with deep scan technology. The integration of advanced technologies into solutions offered by market players will augment the market growth.
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Analyst view: “Rapid increase in disposable income across the globe will accelerate the market penetration of vehicle health monitoring systems. The adoption of electric vehicles due to rising emission concerns will fuel the market growth.”
One of the major factors hampering the market forecasts is the lack of connected infrastructure for vehicles. Vehicle health monitoring systems require a robust infrastructure to deploy the software solutions that can track the vehicle’s health. Furthermore, the lack of standard protocols to develop software platforms that are used for monitoring of critical components in automobiles will hinder the market statistics.
The market for vehicle health monitoring witnessed a sluggish growth in 2020 due to the rapid spread of the COVID-19 pandemic in various countries globally. OEMs in this sector have faced various challenges including suspension of various manufacturing facilities and gradual decline in the sales of automobiles. The growing financial uncertainty impacted the growth of the automobile industry in 2020, hindering the market representation of vehicle health monitoring systems. However, the market will witness a slow growth post the decrease in impacts of COVID-19.
Browse key industry insights spread across 190 pages with 241 market data tables & 22 figures & charts from the report, “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” in detail along with the table of contents:
Demand for the software segment will proliferate during the forecast timeline
The software segment is anticipated to grow at a CAGR of around 11% from 2021 to 2027 on account of increasing adoption of automotive electronics and solutions in vehicles. Shifting consumer preference for automobiles that are integrated with advanced driver-assisted systems (ADAS), including park assist, blind-spot detection, and adaptive cruise control (ACC), will augment the industry statistics.
Shifting preferences toward vehicle automation will propel the aftermarket growth
The aftermarket segment will witness significant increase in the market size at over 10% CAGR through 2027. Aftermarket channels mainly cater to the need for replacement of failed or damaged components or engine parts in vehicles. Aftermarket providers offer a wide range of vehicle health monitoring systems that can be installed externally to ensure effective vehicle performance, contributing to the increasing market size.
Proliferation of commercial vehicles will fuel the market demand
The commercial vehicle segment accounted for a market share of more than 25% in 2020. Increasing adoption of commercial vehicles in various countries including the U.S., Italy, South Korea, Saudi Arabia, and Canada is likely o drive the segment revenue. The surge in the demand for the transportation and logistics segment will propel the commercial vehicles segment, thereby supporting the market trends. As per the statistics published by the International Organization of Motor Vehicle Manufacturers, the U.S. witnessed a significant increase in the sales of commercial vehicles from 12.39 million units in 2018 to 12.76 million units in 2019.
Rising demand for electric vehicles in North America
The North America vehicle health monitoring market is projected to witness above 9% CAGR till 2027. Growing market representation of electric vehicles in the North American countries including the U.S. and Canada will boost the regional market demand. As reported by the International Energy Agency (IEA), the sales of electric passenger vehicles in Canada increased from 44.15 thousand units in 2018 to 50.96 thousand units in 2019. Furthermore, the increasing government initiatives toward the vehicular emissions will propel the industry trends.
Companies are focusing on new product launches and strategic partnerships to gain a competitive edge and enhance their business operations. The key players operating in the vehicle health monitoring market include Visteon Corporation, Robert Bosch, Zubie, Continental, KPIT, iotaSmart Labs, Octo Group S.p.A., Delphi Technologies, Luxoft, Vector Informatik, OnStar, Harman International, Intangles Lab Private Limited, and Garrett Advancing Motion.