Global Vehicle Diagnostics Market Size By Connectivity, By Engine (IC Engines, Electric Engines ), By Application, By Geographic Scope And Forecast

Vehicle Diagnostics Market Size And Forecast

Vehicle Diagnostics Market size was valued at USD 44.79 Billion in 2024 and is projected to reach USD 129.88 Billion by 2032, growing at a CAGR of 15.70% from 2026 to 2032.

Rapid technology breakthroughs and an increasing automotive industry are the primary elements driving the rapid expansion. Furthermore, the market is expected to be driven by the increased usage of vehicle diagnostics as a result of a large reduction in service downtime and the effective forecast of problematic components. The Global Vehicle Diagnostics Market study provides an outlook on the development of the market in terms of revenue throughout the prognosis period.

Global Vehicle Diagnostics Market Definition

Vehicle diagnostics systems demand the use of strong diagnostic solutions for the repair and maintenance of sophisticated electrical and electronic systems and sensors that allow the vehicle to work properly. It is a mechanism that allows the car to self-diagnose and report on its own. Car diagnostics systems are generally used at vehicle service centres and are essentially a part of auto servicing. The vehicle diagnostics system assists in identifying and assessing vehicle faults that are likely to have a negative impact on overall operating efficiency and performance. A scanner is hooked into a port in the car to identify defects, if any, in different components of the vehicle such as the powertrain, chassis, body, and so on.

Global Vehicle Diagnostics Market Overview

Consumers' increased awareness of road safety is one of the primary factors driving the growth of the car diagnostics industry. The governments of several areas are taking steps to reduce the frequency of traffic accidents. Manufacturers are expanding their spending to fulfil regulatory criteria, which aids in market expansion. The rise in sales of high-end luxury vehicles is hastening the market's expansion. The increase in disposable income is increasing demand for high-end luxury automobiles among the global population. Consumer desire for high performance and dependability in vehicles is driving market expansion. Increased demand for passenger vehicles due to a growth in the middle-income group population, as well as an improvement in the standard of living in emerging nations, all have an impact on the market.

Consumers are additionally drawn to these cars because of the availability of cost-effective solutions. Furthermore, the development of the automotive sector, spike in investments, and higher disposable income all have a beneficial impact on the vehicle diagnostics market.

Furthermore, the introduction of new technologies such as 5G and AI expand the profit potential for market participants from 2022 to 2029. Furthermore, benefits for fleet operators will accelerate the expansion of the vehicle diagnostics industry. On the other side, the rise in data security concerns is projected to stymie the expansion of the automotive diagnostics industry. Furthermore, the availability of low-cost equipment in the aftermarket is expected to provide a challenge to the vehicle diagnostics industry.

Global Vehicle Diagnostics Market Segmentation Analysis

The Global Vehicle Diagnostics Market is segmented on the basis of Engine, Connectivity, Application, and Geography.

Vehicle Diagnostics Market, By Engine

• IC Engines (Cars, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle)
• Electric Engines (BEV & HEV)
• On the basis of Engine, the market is segmented into IC Engine (Cars, Light Commercial Vehicle, Medium & Heavy Commercial Vehicle), Electric (BEV & HEV). In the projection period, hybrid electric vehicles (HEVs) are more likely to dominate the market with the biggest share. It is mostly due to rapidly expanding environmental concerns, as well as government legislation to address them. The considerable sale of these cars, particularly in Europe and Asia-Pacific, is expected to boost demand for HEVs and fuel market expansion over the projection period.

Vehicle Diagnostics Market, By Connectivity

• 4G LTE
• 3G
• Wi-Fi
• Bluetooth
• Others
• On the basis of Connectivity, the market is bifurcated into 4G LTE, 3G, Wi-Fi, Bluetooth, and Others. Wi-Fi is expected to increase the quickest throughout the projection period. It is the result of rising technical breakthroughs and reliance on easily accessible gadgets and networking mediums for car diagnostics. Because a Wi-Fi connection allows the user to maintain an unbroken connection with the car diagnostics and view the vehicle's real-time condition, the demand for Wi-Fi connectivity is increasing substantially. As a result, it leads the category to exhibit the quickest market growth throughout the projection period.
• Vehicle Diagnostics Market By Application
• Automatic Crash Notification
• Vehicle Tracking
• Vehicle Health Alert
• Roadside Assistance
• On the basis of Application, the Global Vehicle Diagnostics Market has been segmented into Automatic Crash Notification, Vehicle Tracking, Vehicle Health Alert, Roadside Assistance. The high demand for roadside assistance as a standard feature in vehicles is linked to its benefits like as service at the moment of vehicle breakdown, emergency support, and dispatching a mechanic in case of serious failure.

Vehicle Diagnostics Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world
• Global Vehicle Diagnostics Market is segmented on the basis of geography into North America, Europe, Asia Pacific, Rest of the World. Asia Pacific is located in fast-rising economies like India and ASEAN, which are expected to enhance vehicle demand and, as a result, the vehicle diagnostics system market throughout the projected period.
• Due to the increased number of automobiles manufactured in significant nations such as China and Japan, as well as cheaper manufacturing and labour costs throughout the region, Asia Pacific maintained a leading proportion of the worldwide vehicle diagnostics system market. Furthermore, the availability of low-cost labour and raw materials in the area, along with a growth in the number of local manufacturers, is expected to boost the Asia Pacific market during the projected period.

Key Players

The "Global Vehicle Diagnostics Market" study report will provide valuable insight with an emphasis on the global market. The major players in the market are Delphi Automotive PLC, VOXX International Corporation, Robert Bosch GmbH, Continental AG, Magneti Marelli, Onstar LLC, Snap-On Inc., Softing AG, Vector Informatik, Vidiwave Ltd. among others. Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis.

Key Developments

• March 2021, the ADS 625X is the latest scan instrument from Bosch. The ADS 625X incorporates capabilities for extraordinary speed, access, and versatility to assist handle difficulties quicker and faster than ever before.
• Ace Matrix Analysis
• The Ace Matrix provided in the report would help to understand how the major key players involved in this industry are performing as we provide a ranking for these companies based on various factors such as service features & innovations, scalability, innovation of services, industry coverage, industry reach, and growth roadmap. Based on these factors, we rank the companies into four categories as Active, Cutting Edge, Emerging, and Innovators.