Automotive On-Board Diagnostics (OBD) Market size is set to grow by USD 62.49 billion from 2024-2028, Increase in adoption of usage-based insurance (UBI) using OBD as measurement parameter to boost the market growth, Technavio

NEW YORK, June 26, 2024 /PRNewswire/ -- The global automotive on-board diagnostics (OBD) market  size is estimated to grow by USD 62.49 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  24.27%  during the forecast period.  Increase in adoption of usage-based insurance (UBI) using OBD as measurement parameter is driving market growth, with a trend towards growing focus on remote diagnostics. However, increase in cost for integration of telematics  poses a challenge. Key market players include Autel Intelligent Technology Co., AVL DiTEST GmbH, Bridgestone Corp., Continental AG, Dashboard Labs Corps., DENSO Corp., General Motors Co., Hearst Communications Inc., HELLA GmbH and Co. KGaA, Innova Electronics Corp., Intel Corp., iWave Systems Technologies Pvt. Ltd., Marelli Holdings Co. Ltd., Mercedes Benz Group AG, Moj.io Inc., OBD Solutions LLC, Robert Bosch GmbH, Vector Informatik GmbH, Verizon Communications Inc., and Zubie Inc..

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Key Market Trends Fueling Growth

The Automotive On-Board Diagnostics (OBD) market involves remote systems that detect vehicle faults and transmit trouble codes to data centers. These data centers interpret the data and send it to drivers or technicians for preventive maintenance and scheduled service cycles. This reduces vehicle downtime and breakdowns, making remote diagnostics a valuable tool. Its popularity among fleet operators of passenger and commercial vehicles is increasing and is expected to continue during the forecast period. 

The Automotive On-Board Diagnostics (OBD) market is experiencing significant growth due to the increasing demand for vehicle efficiency and emissions reduction. Wireless technologies, such as Bluetooth and Wi-Fi, are trending in the OBD market, enabling real-time vehicle monitoring and analysis. Components like OBD sensors, gateways, and software are driving the market's growth. Devices are becoming more compact and cost-effective, making them accessible to a broader consumer base. The market is also witnessing the integration of advanced features like predictive maintenance and vehicle tracking. OEMs and aftermarket players are investing in R&D to offer innovative solutions to cater to the evolving customer needs. The market is expected to continue its upward trajectory in the coming years. 

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Market Challenges

• The global automotive OBD market expansion relies heavily on telematics applications and services. OBD services are often included in bundled connected car offerings, utilizing the same TCU and hardware components. Subscription pricing is essential for market growth, and OEMs should offer OBD systems alongside other connected car services. However, customer reluctance to pay for these services, particularly in the mass market segment, poses a challenge. Effective business models are necessary to encourage user adoption and promote the value of connected car offerings within the complex value chain.
• The Automotive On-Board Diagnostics (OBD) market faces several challenges. One major challenge is the increasing complexity of vehicles, requiring advanced diagnostic tools to identify and repair issues. Another challenge is the need for standardization across different vehicle makes and models. Additionally, the rapid evolution of technology necessitates continuous updates to diagnostic software. Furthermore, data security and privacy concerns arise as vehicles become more connected. Lastly, the global nature of the market necessitates compliance with various regulations in different regions. Addressing these challenges requires continuous innovation and collaboration among industry players.

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Segment Overview 

This automotive on-board diagnostics (obd) market report extensively covers market segmentation by

1. Product 
• 1.1 Allied services
• 1.2 OBD port
2. Vehicle Type
• 2.1 IC engine
• 2.2 Electric vehicle
3. Geography 
• 3.1 North America
• 3.2 APAC
• 3.3 Europe
• 3.4 Middle East and Africa
• 3.5 South America

1.1 Allied services-  The Automotive On-Board Diagnostics (OBD) market refers to the sales and installation of diagnostic systems used in vehicles. These systems enable mechanics to identify and repair issues efficiently, enhancing vehicle performance and reducing downtime. The OBD market continues to grow due to increasing vehicle production and the demand for advanced diagnostic tools. Manufacturers focus on developing user-friendly systems with easy connectivity to ensure seamless integration with various vehicle models.

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Research Analysis

In the Information Age, the Automotive On-Board Diagnostics (OBD) market has experienced significant growth, particularly in the Wireless Communications sector. This technology is increasingly being utilized in In-Vehicle Electronics, including Location Technology, to enhance Insurance offerings through Telematics. Insurance carriers are leveraging OBD systems to monitor Risk Portfolios in the Fleet Management segment. Innova Electronics' Diagnostic Device segment caters to both Handheld and PC/Laptop Based solutions. OBD tools facilitate Driver Behavior Monitoring, Emission Testing, and Supplementary Instrumentation. Consumer Telematics and Vehicle customization are also benefiting from OBD aftermarket products. The Internet of Things (IoT) is revolutionizing Automotive Production, leading to advancements in Fleet management, Vehicle maintenance, and Vehicle connectivity. Real-time data transmission and Remote Diagnostics are key features of the Connected Car Ecosystem.

Market Research Overview

The Automotive On-Board Diagnostics (Obd) market refers to the technology used for monitoring and diagnosing various systems in vehicles. This system enables vehicle owners and mechanics to identify and address issues related to emissions, fuel economy, and vehicle performance. The Obd market consists of various components such as sensors, diagnostic tools, and software. The market is driven by stringent emission norms and increasing consumer awareness towards vehicle maintenance. The Obd system is essential for both new and old vehicles, making it a growing market. The technology is continuously evolving, with advancements in wireless connectivity and cloud-based diagnostics. The Obd market caters to various vehicle types, including passenger cars, commercial vehicles, and two-wheelers. The market is expected to grow significantly due to the increasing demand for real-time vehicle data and predictive maintenance solutions.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product
• Allied Services
• OBD Port
• Vehicle Type
• IC Engine
• Electric Vehicle
• Geography
• North America
• APAC
• Europe
• Middle East And Africa
• South America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio