Global Automotive Diagnostics Market Report and Forecast 2025-2034

Global Automotive Diagnostics Market Size

The global automotive diagnostics market value reached approximately USD 45.46 billion in 2023. The market is estimated to grow at a CAGR of 8.3% in the forecast period of 2024-2032, reaching a value of around USD 93.76 billion by 2032.

Global Automotive Diagnostics Market Growth

Automotive diagnostics refers to the analysis of a vehicle and its components to identify potential issues and rectify them. This diagnostic procedure can identify performance issues with the major components of a vehicle.

The increased applications of OBD (on-board diagnostics) tools are one of the crucial automotive diagnostics market trends. OBD test is primarily conducted when a vehicle is moving to perform emission-related diagnosis and monitor vehicle performance. The growing adoption of remote diagnostics in vehicles, which enables automotive companies to identify faults or defects in a fleet from a distance, is further driving the revenue growth of the automotive diagnostic industry.

Global Automotive Diagnostics Market Analysis

The development of high-end diagnostic systems that leverage the capabilities of AI and machine learning to provide real-time data on a vehicle’s condition and performance as well as identify data patterns to minimise the probability of errors also contributes to the automotive diagnostics industry growth.

The automotive diagnostic market dynamics and trends are being enhanced as various companies form strategic partnerships with top technology providers to create mobile-based diagnostic scan tools for vehicles.

Global Automotive Diagnostics Industry Outlook

The global passenger car production in 2022 reached 68,161,802 units, marking a 7.9% increase from 2021. Asia dominated the market with a 59.6% share, producing 40,624,837 units, which represents a 10.3% year-on-year growth. China led the production with 23,170,356 units, a rise of 11.7%, accounting for 34% of the global total. India also saw a significant boost, with production up 21.6% to 4,324,283 units. In North America, production grew by 10.3% to 10,424,181 units, with the U.S. alone producing 7,061,146 units, reflecting an 11.7% increase. South America's output increased by 9.1% to 2,126,988 units, with Brazil contributing 1,812,214 units, up 6.1%. The European Union saw a 7.1% increase in production, reaching 10,769,893 units. In the Middle East/Africa, production rose by 14% to 1,842,895 units, with Iran contributing 1,085,859 units, a 10.8% increase. This growth boosts the automotive diagnostics market revenue, as advanced diagnostics play a crucial role in integrating complex systems in passenger cars, such as engine control units, infotainment systems, and driver assistance features, ensuring their proper functioning together.

According to NAAMSA, South Africa's domestic vehicle production showed significant changes from 2018 to 2022. In 2020, production totalled 446,216 units, rising to 449,087 units in 2021, and increasing further to 555,889 units in 2022. Passenger car production was 237,214 units in 2020 and grew to 309,423 units by 2022. In Q4 2022 alone, passenger car production reached 78,708 units, marking a 49.2% increase compared to Q4 2021. Light Commercial Vehicles (LCVs) production was stable at 185,691 units in 2020, with a 4.3% year-on-year increase in Q4 2022, reaching 58,094 units. Medium Commercial Vehicles (MCVs) saw production of 6,874 units in 2020, with a 26.1% growth in Q4 2022, totalling 2,546 units. Heavy Commercial Vehicles (HCVs) demonstrated steady growth, rising from 4,208 units in 2020 to 5,151 units in 2021, and further to 6,270 units in 2022. Production in Q4 2022 reached 1,535 units, marking a 14.1% increase from the previous year’s fourth quarter. This growth drives automotive diagnostics industry revenue, as diagnostics facilitate a smoother production process by detecting issues in real-time, enabling faster adjustments, and minimizing assembly line downtime.

Continuous innovations in diagnostics tools, such as advanced sensors and software, enhance vehicle maintenance and repair capabilities.

• Increasing complexity in modern vehicles drives demand for sophisticated diagnostic solutions to identify and resolve issues effectively.

• Higher vehicle ownership and usage globally increase the need for regular diagnostics boost the automotive diagnostics market demand.

Advanced diagnostic tools can be expensive, potentially limiting adoption among smaller repair shops and independent technicians.

• Frequent updates and technological advancements require continuous investment and training, posing challenges for market participants.

• Compatibility issues with various vehicle models and manufacturers can complicate the implementation of diagnostic solutions.

Expanding automotive markets in developing regions offer significant opportunities for increasing sales and services of diagnostic tools.

• The integration of diagnostics with Internet of Things (IoT) technology offers opportunities for real-time monitoring and predictive maintenance.

• The rise in electric vehicles creates new market segments for specialised diagnostic tools tailored to their unique needs.

Economic slowdowns can reduce vehicle repair budgets, impacting demand for the automotive diagnostics market.

Evolving regulations and standards can lead to increased compliance costs and require constant adaptation.
The market is highly competitive with numerous players, which can lead to price wars and reduced profit margins.

Key Players in the Global Automotive Diagnostics Market and Their Key Initiatives

Robert Bosch GmbH

• Launched advanced diagnostics software to capture the automotive diagnostics market opportunities.

• Expanded partnerships with automotive manufacturers.

Continental AG

• Launched a high-performance automotive diagnostic computer in China.

• streamlined its global R&D network.

Delphi Automotive PLC

• Partnered with Movimento to enhance over-the-air (OTA) software capabilities.

• Collaborated with LeddarTech to develop LiDAR solutions.

Magna International Inc.

• Acquired Veoneer to enhance ADAS business.

• Developed Integrated Driver & Occupant Monitoring System.

Global Automotive Diagnostics Industry Segmentation

“Global Automotive Diagnostics Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Offering

• Software

• Hardware

• Services

Market Breakup by Type

• On-board

• Electric System Analyser

• Scan Tools

Market Breakup by Vehicle Type

• Passenger Cars

• Commercial Vehicles

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Automotive Diagnostics Market Share

Passenger cars hold a major share of the automotive diagnostics market due to heightened safety concerns. The market is further driven by favourable government regulations requiring the use of onboard diagnostics (OBD) in these vehicles and the rising sales of passenger cars.

Additionally, the development of advanced automotive diagnostic systems by market players, aimed at enhancing testing efficiency and minimizing service downtime and costs, contributes to the growth of the automotive diagnostics market.

Leading Companies in the Automotive Diagnostics Market

The companies are automotive parts manufacturers, offering a range of products and technologies such as automotive components, infotainment systems, intelligent transportation solutions, and safety technologies, among others.

• Robert Bosch GmbH 

• Continental AG 

• Delphi Automotive PLC 

• Magna International Inc. 

• HELLA GmbH & Co. KGaA 

• DENSO Corp. 

• KPIT Technologies Ltd. 

• AVL DiTEST GmbH 

• Hickok Waekon LLC 

• Vector Informatik GmbH 

• Vidiwave Limited 

• Softing Automotive Electronics GmbH

Key Highlights of the Report

Automotive Diagnostics Market Report Snapshots

Automotive Diagnostics Market Size

Automotive Diagnostics Market Growth

Automotive Diagnostics Market Analysis

Automotive Diagnostics Market Share

Automotive Diagnostics Companies