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Pulished Date January, 2021
ID: 10763
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Vehicle Diagnostics Market Segmentation By Application (Automatic Crash Notification, Vehicle Tracking, Vehicle Health Alert, and Roadside Assistance), By Connectivity (3G, 4G/LTE, Wi-Fi, and Bluetooth), By Sales Channel (OEM and Aftermarket), By Function (Engine Control, Battery and Charging, and Others) & By Region - Forecast till 2026

Pulished: January, 2021
ID: 10763
Pages: 175

Market Overview

In 2021, the global vehicle Diagnostics Market was valued at USD 18.67 billion and is projected to grow at a 15.5% CAGR to reach USD 59.06 Billion by 2026.

The Vehicle Diagnostics market comprises investigative solutions that are used to analyze the state of functions performed by sensors, electrical, and electronic systems to enhance the proper functioning of vehicles. It is a part of the auto services utilizes in the service stations. The vehicle diagnostic system identifies and overcomes the problems associated with the performance and operational efficiency. It has wide applications in the automotive industry.

Recent Developments

In October 2018, Denso Corporation announced that they had acquired Ease Simulation Inc. After this acquisition, Ease Simulation Inc. will be merged with Denso Products and Services Americas, Inc.

In October 2017, Repairify, Inc. announced that they had completed the purchase of Professional Automotive Diagnostics. After the acquisition, Repairify, Inc. will be integrated into the asTech business brand of Repairify, Inc.

Market Drivers

The growing production volume of vehicles is expected to push the global vehicle diagnostics system market during the forecast timeframe. Rising awareness among consumers, vehicle manufacturers, and vehicle service providers regarding safety and security in recent years is anticipated to boost the vehicle diagnostics system market in the coming years. Rising demand for the premium segment of passenger cars due to the shifting consumer preference for luxury cars equipped with the latest high-tech features is estimated to fuel the global vehicle diagnostics system business during the outlook period.


A key factor restricting the global vehicle diagnostics market is data security and privacy concerns. Additional data must be diagnosed on a real-time basis owing to the increased number of electronic components in the vehicle. The need to send real-time information to the system would bring about the threat of cybersecurity. It would severely affect the market. Another factor hindering the market growth is the stringent regulations by several governments for fuel economy. Some minor mechanical problems are likely to be there in the vehicle, for which the vehicle diagnostics system may not certainly show an error. Such inaccuracy may also restrict the demand for these products worldwide. 

Market Segmentation

Based on function, the engine control diagnostic segment holds a significant share of the market. Engine components must be analyzed regularly to be positive about the engine condition. Therefore, the engine control diagnostic system is generally being equipped in the automobile. Another segment based on function is the battery and charging system. As the demand for electric and hybrid cars is growing, the demand for battery and charging diagnostic systems also increases.

Based on application, the roadside assistance segment dominated the market, which is estimated to be the largest shareholder during the foreseen period. The high requirement for roadside assistance as a standard feature in vehicles is attributed to its advantages, including service at the time of a vehicle breakdown, emergency support, and sending a mechanic in case of critical failure. Such applications are witnessing substantial growth, with regulatory bodies planning to mandate some of the applications. 

Based on connectivity, the vehicle diagnostics system market can be categorized into 3G, 4G/LTE, Wi-Fi and Bluetooth. Of these, the Bluetooth segment is estimated to grow at a notable growth rate during the anticipated timeframe. Directly connecting to any of the network modes enhances the chances of hacking the system. If the system gets hacked, the hacker can gain direct control over the vehicle, cut off the brakes, disable the transmission, or lock the driver inside the car. Other network connectivity drawbacks are expected to provide promising opportunities for Bluetooth connectivity for vehicle diagnostics soon.

Based on the sales channel, the market is classified into OEMs and aftermarket. The OEM segment holds the leading market share due to the long-term agreement between the vehicle manufacturers and the component suppliers.

Regional Analysis

Most of the product demand in the Asia Pacific region is fulfilled by China, India, South Korea, and Japan. In 2018, China was one of the leading countries in the Asia Pacific region as well as globally. China is the largest automotive market, with 300 million cars on the road and production of 24.8 million vehicles in 2017, compared to 11.2 million in the U.S., 8.4 million in Japan, almost 5.7 million in Germany, and 4 million and 3.7 million vehicles in India and South Korea, respectively.

North America and Europe are at the forefront of the technology and are anticipated to control a larger share in the global vehicle diagnostics market. The latest technological advancements in the region are the key factor contributing to the development of this market.

North America has stringent norms for emissions, vehicle safety, and fuel economy globally, which is the crucial factor driving the regional market. In the Asia Pacific, the vehicle diagnostics market is estimated to grow at a higher CAGR due to the increasing demand for automobiles and ever-increasing awareness about road safety. In the Asia Pacific, the market is anticipated to grow at a higher rate in China, Japan, and South Korea.

Leading Company

OnStar LLC is currently the market leader and has adopted expansion as a critical strategy to gain traction in emerging markets. For instance, in 2016, the company entered the Argentinian market to expand its South American presence.

Key Players

Some of the key players operating in the global vehicle diagnostics market are Robert Bosch GmbH (Germany), Delphi Automotive PLC (U.K.), Continental AG (Germany), OnStar LLC (U.S.), Voxx International Corporation (U.S.), Snap-On Inc. (U.S.), Magneti Marelli S.p.A (Italy), Softing AG (Germany), and Vector Informatik GmbH (Germany). The companies mentioned above have been concentrating on new product development and collaborating with key local organizations to expand their global market presence.

Impact of COVID-19 on Vehicle Diagnostics Market 

The unexpected disruption of the coronavirus pandemic has occurred suddenly and imposed a considerable impact on the vehicle diagnostics market. It has been noticed that the impact of COVID-19 could make consumers more risk-averse to higher-priced vehicles and new technologies, which hampers vehicle diagnostics market growth in the current scenario. For instance, China is the largest manufacturer and exporter of renewable energy sources, which supplies the main inputs in the form of batteries used to manufacture electric vehicles. However, due to the unprecedented coronavirus situation, the current production is at a halt in China. It is ultimately affecting other electronic producers based in Europe, the U.S., and other countries, which creates a gap between private vehicles' demand and supply. On the contrary, to overcome this pandemic situation, the Indian Government is investing in a policy named "Niti Aayog," which helps achieve sustainable development by encouraging EV imports.

1. Introduction                            

          1.1 Market Definition                  

          1.2 Scope of the report               

          1.3 Study Assumptions               

          1.4 Base Currency, Base Year and Forecast Periods              

2. Research Methodology                      

          2.1 Analysis Design          

          2.2 Research Phases                   

                    2.2.1 Secondary Research 

                    2.2.2 Primary Research     

                    2.2.3 Data Modelling        

                    2.2.4 Expert Validation     

          2.3 Study Timeline            

3. Report Overview                     

          3.1 Executive Summary               

          3.2 Key Inferencees          

4. Market Dynamics                    

          4.1 Impact Analysis           

                    4.1.1 Drivers

                    4.1.2 Restaints       

                    4.1.3 Opportunities 

          4.2 Regulatory Environment                  

          4.3 Technology Timeline & Recent Trends                  

5. Competitor Benchmarking Analysis                        

          5.1 Key Player Benchmarking                 

                    5.1.1 Market share analysis         

                    5.1.2 Products/Service      

                    5.1.3 Regional Presence    

          5.2 Mergers & Acquistion Landscape               

          5.3 Joint Ventures & Collaborations                 

6. Market Segmentation                        

          6.1 Vehicle Diagnostics Market, By Function              

                    6.1.1 Engine Control         

                    6.1.2 Battery and Charging          

                    6.1.3 Market Size Estimations & Forecasts (2019-2024)        

                    6.1.4 Y-o-Y Growth Rate Analysis         

                    6.1.5 Market Attractiveness Index         

          6.2 Vehicle Diagnostics Market, By Application           

                    6.2.1 Automatic Crash Notification        

                    6.2.2 Vehicle Tracking      

                    6.2.3 Vehicle Health Alert 

                    6.2.4 Roadside Assistance 

                    6.2.5 Market Size Estimations & Forecasts (2019-2024)        

                    6.2.6 Y-o-Y Growth Rate Analysis         

                    6.2.7 Market Attractiveness Index         

          6.3 Vehicle Diagnostics Market, By Connectivity                   

                    6.3.1 3G      

                    6.3.2 4G/LTE

                    6.3.3 Wi-Fi   

                    6.3.4 Bluetooth       

                    6.3.5 Market Size Estimations & Forecasts (2019-2024)        

                    6.3.6 Y-o-Y Growth Rate Analysis         

                    6.3.7 Market Attractiveness Index         

          6.4 Vehicle Diagnostics Market, By Sales Channel                 

                    6.4.1 OEM    

                    6.4.2 Aftermarket   

                    6.4.3 Market Size Estimations & Forecasts (2019-2024)        

                    6.4.4 Y-o-Y Growth Rate Analysis         

                    6.4.5 Market Attractiveness Index         

7. Geographical Landscape                    

          7.1 Global Identity Governance and Administration Market, by Region                   

          7.2 North America - Market Analysis (2018 - 2024)             

                    7.2.1 By Country     



                    7.2.2 By Function    

                    7.2.3 By Application

                    7.2.4 By Connectivity        

                    7.2.5 By Sales Channel      

          7.3 Europe             

                    7.3.1 By Country     






                     Rest of Europe

                    7.3.2 By Function    

                    7.3.3 By Application

                    7.3.4 By Connectivity        

                    7.3.5 By Sales Channel      

          7.4 Asia Pacific                 

                    7.4.1 By Country     




                     South Korea

                     South East Asia

                     Australia & NZ

                     Rest of Asia-Pacific

                    7.4.2 By Function    

                    7.4.3 By Application

                    7.4.4 By Connectivity        

                    7.4.5 By Sales Channel      

          7.5 Latin America             

                    7.5.1 By Country     




                     Rest of Latin America

                    7.5.2 By Function    

                    7.5.3 By Application

                    7.5.4 By Connectivity        

                    7.5.5 By Sales Channel      

          7.6 Middle East and Africa          

                    7.6.1 By Country     

                     Middle East


                    7.6.2 By Function    

                    7.6.3 By Application

                    7.6.4 By Connectivity        

                    7.6.5 By Sales Channel      

8. Key Player Analysis                           

          8.1 OnStar LLC                 

                    8.1.1 Business Description

                    8.1.2 Products/Service      

                    8.1.3 Financials      

                    8.1.4 SWOT Analysis         

                    8.1.5 Recent Developments         

                    8.1.6 Analyst Overview      

          8.2 Robert Bosch GmbH              

          8.3 Delphi Automotive PLC         

          8.4 Continental AG           

          8.5 Voxx International Corporation                  

          8.6 Snap-On Inc               

          8.7 Magneti Marelli S.p.A            

          8.8 Softing AG                  

          8.9 Vector Informatik GmbH                 

9. Market Outlook & Investment Opportunities                     


          List of Tables          

          List of Figures                  

  • Global and country-level analysis and forecasts of the study market; providing Insights on the major countries/regions in which this industry is blooming and to also identify the regions that are still untapped
  • Segment-level analysis in terms By Cutting Systems and estimations to detect key areas of industry growth in detail
  • Identification of key drivers, restraints, opportunities and challenges (DROC) in the market and their impact on shifting market dynamics
  • Study of the effect of exogenous and endogenous factors that affect the global market; which includes broadly demographic, economics, and political, among other macro-environmental factors presented in an extensive PESTLE Analysis
  • Study the micro environment factors that determine the overall profitability of an Industry, using Porter’s five forces analysis for analyzing the level of competition and business strategy development
  • A comprehensive list of key market players along with their product portfolio, current strategic interests, key financial information, legal issues, SWOT analysis and analyst overview to study and sustain the market environment
  • Competitive landscape analysis listing out the mergers, acquisitions, collaborations in the field along with new product launches, comparative financial studies and recent developments in the market by the major companies
  • An executive summary, abridging the entire report in such a way that decision-making personnel can rapidly become acquainted with background information, concise analysis and main conclusions
  • Expertly devised analyst overview along with Investment opportunities to provide both individuals and organizations a strong financial foothold in the market
  1. Global Vehicle Diagnostics Market By Region, From 2021-2026 ( USD Billion )
  2. Global Vehicle Diagnostics Market By Function, From 2021-2026 ( USD Billion )
  3. Global Engine Control Market By Region, From 2021-2026 ( USD Billion )
  4. Global Battery and Charging Market By Region, From 2021-2026 ( USD Billion )
  5. Global Vehicle Diagnostics Market By Application, From 2021-2026 ( USD Billion )
  6. Global Automatic Crash Notification Market By Region, From 2021-2026 ( USD Billion )
  7. Global Vehicle Tracking Market By Region, From 2021-2026 ( USD Billion )
  8. Global Vehicle Health Alert Market By Region, From 2021-2026 ( USD Billion )
  9. Global Roadside Assistance Market By Region, From 2021-2026 ( USD Billion )
  10. Global Vehicle Diagnostics Market By Connectivity, From 2021-2026 ( USD Billion )
  11. Global 3G Market By Region, From 2021-2026 ( USD Billion )
  12. Global 4G/LTE Market By Region, From 2021-2026 ( USD Billion )
  13. Global Wi-Fi Market By Region, From 2021-2026 ( USD Billion )
  14. Global Bluetooth Market By Region, From 2021-2026 ( USD Billion )
  15. Global Vehicle Diagnostics Market By Sales Channel, From 2021-2026 ( USD Billion )
  16. Global OEM Market By Region, From 2021-2026 ( USD Billion )
  17. Global Aftermarket Market By Region, From 2021-2026 ( USD Billion )

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