Automotive Remote Diagnostics Market

The Global Automotive Remote Diagnostics Market size was valued at USD 11.92 Billion in 2022 and is expected to surpass USD 48.60 Billion by 2031, expanding at a CAGR of 16.9% during the forecast period, 2023–2031. The market growth is attributed to the rising safety concerns among passenger car owners and the rising demand for advanced automotive remote diagnostic equipment and software to enhance vehicle users’ convenience.

Automotive remote diagnostics offer a range of advanced onboard vehicle-related solutions to improve the existing vehicle conditions, safety quality, and performance from a distant place. The remote diagnostics offer real-time data about potential issues of a vehicle and allow vehicle users to share the information available to concerned service providers for immediate help or emergency support regardless of vehicle location. Using various diagnostic tools, vehicle users can get help from engineering and mechanic service providers to fix problems in case of vehicle breakdown, engine failures, and emergency conditions. These tools allow vehicle owners to directly communicate and share accurate information about the exact problem with experts or service networks for various assistance.

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On top of passenger cars, remote diagnostic tools are also widely used in both light and heavy commercial vehicles to facilitate several applications such as automatic crash notification, vehicle location and tracking, vehicle health alert, and roadside assistance. Using these tools, the vehicle users can directly monitor vehicle health warnings, alert systems, and emissions tests that help the users improve vehicle conditions, avoid vehicle failure and reduce the maintenance cost of vehicles. The rapid growth of automotive remote diagnostics is largely influenced by the rising use of connectivity devices such as smartphones and laptops that help in easy access to information provided by diagnostic tools.

COVID-19 Impact

The market report finds that the COVID-19 pandemic had adversely impacted the global automotive remote diagnostics market due to the sharp decline in the production of both passenger cars and commercial vehicles globally. The prolonged shutdown of manufacturing units in the automotive industry, impacted by emergency lockdowns imposed by governments across the globe, hampered the market growth. In fact, the overall demand for passenger cars rose significantly as people preferred to use their personal vehicles rather than traveling in public transport buses or taxi/cabs but the sales of vehicles were limited due to the delay in the production of new passenger vehicles including compact, premium, SUVs, and mid-sized. The imbalance in demand and supply in the automotive sector resulted in a negative impact on the global market.

Movement restrictions and travel bans across the globe further limited the use of both passenger and commercial vehicles, which resulted in the sharp decline of automotive remote diagnostic tools in the automotive sector. Moreover, the sudden disruption in the supply chain in the automotive manufacturing units further restricted the market growth during the pandemic.

Automotive Remote Diagnostics Market Dynamics

The research report presents a complete overview by providing detailed information about the current market trends, existing drivers, growth opportunities and potentials, and emerging challenges. The global automotive remote diagnostics market report has up-to-date insights about market scenarios that can shape the overall market performance and output during the forecast period, 2022 to 2030.

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Key Trends

Growing investment in electric vehicles (EVs) and hybrid vehicles from giant automotive companies as well as the rising focus on their performance improvements from original equipment manufacturers (OEMs) are major market trends. The automotive manufacturers are widely engaged in developing various advanced automotive remote diagnostics in EVs and hybrid vehicles to easily detect defects and failures in vehicle parts, especially in battery diagnostics to ensure effective performance and enhance safety in operating vehicles.

Major Drivers

Increasing demand for effective assistance services including roadside assistance due to the rising incidence of vehicle breakdowns presents a key factor boosting the market. The rising sales of premium and luxury cars worldwide is largely influenced by the wide adoption of advanced automotive remote diagnostic equipment and software in expensive vehicles as these technical service facilities come to rescue during road emergency. Automotive remote diagnostics enhance vehicle users’ convenience and safety in vehicle operation, which further drives the global market.

Existing Restraints

High price of premium and luxury cars having remote diagnostic facilities acts as a major restraining factor for the market. Integration of various advanced sensors and connectivity electronic equipment are additional features to passenger cars, which usually cost higher as compared to regular or conventional vehicles. Moreover, owners are required to timely update software and firmware installed in their vehicles is another key challenge that can impede the market expansion in the coming years.

Emerging Opportunities

Rapid development of innovative technology in remote diagnostic tools including equipment and software by major automotive companies is expected to create lucrative opportunities for the market in near future. The innovation in the use of wireless digital networks such as Bluetooth and 4G with the rising integration of the Internet of Things (IoT) and cloud data system allow vehicle users to access accurate data and information about the existing or potential issues in their vehicles. Such developments in diagnostic tools are likely to enhance vehicle health tracking & diagnosis, vehicle system & component access, and service assistance availability.

Scope of Automotive Remote Diagnostics Market Report

The report on the global automotive remote diagnostics market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Automotive Remote Diagnostics Market Segment Insights

Based on product types, the global automotive remote diagnostics market is bifurcated into diagnostic equipment and software.

The software segment accounted for a major market share in 2021 and is expected to expand at a significant growth rate during the projected period due to the rapid introduction of innovative software solutions for highly accurate diagnostic results.

The wide integration of wireless networks and technology platforms such as 3G, 4G, and Wi-Fi in vehicles further leads to the increasing demand for automotive remote diagnostics software solutions. Moreover, the rapid development of software solutions for distant communication such as video conferencing and messaging platforms are other key factors driving the segment. The majority of diagnostic equipment are normally operated using software including the alert system to allow real-time vehicle update to the users.

The diagnostic equipment segment is projected to constitute a key market share in the coming years owing to the increasing demand for advanced diagnostic equipment for passenger cars and commercial vehicles. Some of the major electronic equipment widely used in remote vehicle diagnostics include sensors, GPS & GSM antenna, GPS modules, electronic control units, microcontrollers, storage systems, and the controller area network interface.

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In terms of vehicle types, the global market is divided into passenger cars and commercial vehicles. The passenger cars segment is further classified as compact, premium, SUVs, and mid-sized while the commercial vehicles segment is further bifurcated into light and heavy.

The passenger cars segment is anticipated to account for a key market share during the forecast period owing to the rising demand for high safety features in passenger cars and the increasing number of vehicle owners globally. Strict government regulations to improve the safety gears of passenger vehicles and the wide implementation of advanced analytic tools in premium cars further boost the segment.

Having equipped with advanced remote diagnostic tools in premium cars is a standard process as consumers usually prefer premium cars due to their high safety features and other diagnostic facilities that can help owners to get various services in time of emergency. Various innovations in remote diagnostic tools and the rising integration of the Internet of Things (IoT) for luxury cars further attract more customers, which aids in accurate and efficient diagnostics of vehicle problems as well as reducing overall repair and maintenance costs.

Based on applications, the global automotive remote diagnostics market is segmented into vehicle health tracking & diagnosis, vehicle system & component access, and service assistance.The service assistance segment held a sizable market share in 2021 and is expected to exhibit a steady growth rate during the forecast period owing to the growing demand for emergency support, engine failure, and roadside assistance due to vehicle breakdowns.

Roadside assistance service has become a standard feature in vehicles, especially in premium cars that can get assistance from mechanics and other service providers during emergency situations. Using service assistance tools in vehicles, users can easily share real-time information about the vehicle condition directly with service providers and get assistance for various services including car towing, repairing, and breakdowns. Service assistances offer urgent help and on-site assistance to vehicle users that can result in reducing inconvenience caused due to several conditions such as dead battery, flat tire, and fuel delivery.

On the basis of connectivity, the global market is segregated into Bluetooth, 3G, 4G LTE, and Wi-Fi. The Bluetooth segment accounted for a major market share in 2021 and is projected to register a considerable CAGR during the forecast period due to the wide use of the technology for better connectivity among various electronic gadgets used in vehicles.

CAN-Bluetooth module, as an advanced connectivity unit, can generate information and data about several features in vehicles, which can be shared with the smartphones of vehicle users. The rising demand for in-car connectivity and the rising use of smart features such as infotainment system and navigation in vehicles further accelerate segment growth. Bluetooth-based remote diagnostics are largely adopted to connect electronic equipment used in vehicles including dashboards.

In terms of regions, the global automotive remote diagnostics market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.Europe constituted a major market share, accounting for over 32% share of the global market revenue in 2021, and is anticipated to dominate the market during the forecast period. The market growth in Europe is attributed to the massive expansion of the automotive industry and the large presence of domestic OEMs using automotive remote diagnostic solutions to ensure safety and high efficiency in operating vehicles.

Over recent years, the region witnessed a surge in the sales of premium and commercial vehicles owing to the increasing disposable income among consumers and the rising awareness about safety concerns. Moreover, the increasing adoption of advanced technologies and wireless systems among OEMs in the region to enhance data analysis accuracy in automotive diagnostics further boosts the regional market.

Asia Pacific is a fast-growing market and the regional market is projected to account for a significant market share in the coming years owing to the rapid development of the automotive industry as many leading automotive players have their manufacturing base in the region. The increasing investment in digital transformation and the rising implementation of connected services in vehicles from emerging economies such as China, South Korea, and India are further propelling the regional market.

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Segments

Product Types

• Diagnostic Equipment
• Software

Vehicle Types

• Passenger Cars
  • Compact
  • Premium
  • SUVs
  • Mid-sized
• Commercial Vehicles
  • Light
  • Heavy

Applications

• Vehicle Health Tracking & Diagnosis
• Vehicle System & Component Access
• Service Assistance

Connectivity

• Bluetooth
• 3G
• 4G LTE
• Wi-Fi

Regions

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Players

• Robert Bosch GmbH
• Tech Mahindra Limited
• LUXOFT (DXC TECHNOLOGY COMPANY)
• Wejo Limited
• Continental AG
• Sibros Technologies Inc.
• OnStar, LLC
• Snap-on Incorporated
• ACTIA Group
• AVL DiTEST GmbH
• Softing AG
• HARMAN International
• Infineon Technologies AG
• Aptiv
• Vector Informatik GmbH

Competitive Landscape

Key players competing in the global automotive remote diagnostics market are Robert Bosch GmbH; Tech Mahindra Limited; LUXOFT (DXC TECHNOLOGY COMPANY); Wejo Limited; Continental AG; Sibros Technologies Inc.; OnStar, LLC; Snap-on Incorporated; ACTIA Group; AVL DiTEST GmbH; Softing AG; HARMAN International; Infineon Technologies AG; Aptiv; and Vector Informatik GmbH. Some of these major companies have adopted a series of business development strategies including mergers, acquisitions, partnerships, collaboration, product launches, and production capacity expansion to expand their consumer base and enhance their market share. For instance,

• November 18, 2021, a UK-based connected vehicle data start-up, Wejo Limited announced that it completed the merger deal with a US-based publicly traded special purpose acquisition company, Virtuoso Acquisition Corporation. The combined company was named “Wejo”, which would be traded on the Nasdaq Stock Market the next day under the new ticket symbols "WEJO" and "WEJOW,” respectively. The deal aimed at expanding the business of connected vehicle data by exploring more applications across several markets across the globe.

• August 30, 2022, a US-based end-to-end vehicle software and data analytic developer, Sibros Technologies Inc. (Sibros) announced that it entered into a collaboration with Google Cloud to expand its business in vehicle-to-cloud solutions and other services available to OEMs. Sibros claimed that the collaboration aimed at providing better visualization, data analytics, AI, ML, and API management tools to deliver real-time data in a wide range of EVs.