On board diagnostics Device Market Expected to Reach $63.7 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “On board diagnostics Device Market By Type (Hand-Held Tools, Mobile-Based Tools, PC-Based Tools, Others), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Electric Vehicle): Global Opportunity Analysis And Industry Forecast, 2022-2031" The on board diagnostics device market was valued at $21.3 billion in 2021, and is estimated to reach $63.7 billion by 2031, growing at a CAGR of 11.7% from 2022 to 2031.

On-board diagnostics refers to the automotive electronic system that provides vehicle self-diagnosis and reporting capabilities for repair technicians. An on-board diagnostics device gives technicians access to subsystem information for the purpose of performance monitoring and analyzing repair needs. on-board diagnostics device is an important part of telematics and fleet management, making it possible to measure and manage vehicle health and driving.

Development of the automotive industry, increase in demand for IoT-based technology, and high demand for safety features in vehicles act as the key driving forces of the global on board diagnostics device market growth. Recent on board diagnostics device market trends suggests that the demand for vehicle on board diagnostics and on board diagnostic connector is expected to rise significantly owing to the increase in research and developments in the automotive inusttry across the globe. However, factors such as high implementation cost coupled with complexities in configuration and frequent requirement of troubleshooting & high maintenance of automotive software create a negative impact on the on board diagnostics device market share, thereby hampering the growth of the market across the globe. On the contrary, factors such as developments in semi-autonomous & autonomous vehicles and advent of multifunctional system are expected to create remunerative opportunities for the expansion of the global on board diagnostics device market share during the forecast period.

According to on board diagnostics device market analysis, the hand-held tools segment was the highest contributor to the market in 2021. The passenger cars and light commercial vehicles segments collectively accounted for around 89.3% market share in 2021. The outbreak of the COVID-19 has significantly impacted the growth of the on-board diagnostics device.

Region-wise, the on-board diagnostics device industry has gained immense traction across North America due to the strategies opted by the companies operating across the region. U.S. acquired a prime share in the on board diagnostics device market in the North American region and is expected to grow at a significant CAGR during the forecast period of 2022-2031.

In Europe, the Germany, dominated the on board diagnostics device market size, in terms of revenue, in 2021 and is expected to follow the same trend during the forecast period.

In Asia-Pacific, China is expected to emerge as a significant market for the on board diagnostics device industry, owing to a significant rise in investment by prime players and government institutions in automotive research and development, to boost smart infrastructure across industrial and manufacturing sectors.

By LAMEA region, the Latin America country garner significant market share in 2021 due to the shifts in artificial intelligence, industry 4.0, and smart technological changes in recent years.

The on-board diagnostics device market key players profiled in the report Autel Intelligent Technology Corp., Ltd., Robert Bosch GmbH, Detroit Diesel Corporation, Innova Electronics Corp., Vector Informatik, AVL DiTEST GmbH , Zubie Inc., ERM Electronic Systems LTD, Verizon Communications Inc and Denso Corporation. Market players have adopted various strategies, such as product launch, collaboration & partnership, joint venture, and acquisition, to expand their foothold in the on-board diagnostics device market.

KEY FINDINGS OF THE STUDY

• In 2021, the hand-held tools segment accounted for maximum revenue, and is projected to grow at a notable CAGR of 9.95% during the forecast period.
• The passenger cars and light commercial vehicles segments together for around 89.3% on board diagnostics device market share in 2021.
• North America contributed for the major share in the on board diagnostics device market, accounting for more than 36.3% share in 2021.

Key players profiled in the report include Autel Intelligent Technology Corp., Ltd., Robert Bosch GmbH, Detroit Diesel Corporation, Innova Electronics Corp., Vector Informatik, AVL DiTEST GmbH , Zubie Inc., ERM Electronic Systems LTD, Verizon Communications Inc and Denso Corporation. Market players have adopted various strategies, such as product launch, collaboration& partnership, joint venture, and acquisition to expand their foothold in the on board diagnostics device market.