Connected Cars Drive Growth in Remote Diagnostics Market, Forecasted to Hit USD 108 Billion

 

By 2034, the global automotive remote diagnostic market is expected to reach USD 108,163.40 million, with an impressive projected compound annual growth rate (CAGR) of 17.40%. In 2024, the market size is anticipated to be USD 21,747.60 million.

The growth of the automotive remote diagnostics market is driven by several key factors, including the increased focus of automakers on minimizing maintenance costs and downtime, the growing integration of IoT technologies, and the development of connected car ecosystems.

Automotive remote diagnostic solutions have become increasingly popular among both automakers and vehicle owners due to their significant advantages. These solutions help reduce maintenance and service downtime, enable early identification of issues, and provide efficient, targeted solutions. These benefits are driving the rising demand for automotive remote diagnostics.

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Additionally, remote diagnostics offer vehicle owners the ability to identify potential problems, defects, and shortcomings in advance, leading to reduced maintenance time and costs. This functionality is expected to further propel the market’s growth.

The shift toward vehicle electrification has significantly influenced the growth of the automotive remote diagnostics market. Furthermore, the expansion of connected car ecosystems and the increasing prevalence of IoT and connected devices in the automotive industry are expected to continue driving market growth in the coming years.

Automotive Remote Diagnostics Equipment to Account for Leading Market Shares

While equipment and software both form integral parts of an automotive remote diagnostics, the study finds that equipment will continue to account for leading shares of the market, owing to associated periodical replacement and maintenance activities. On the other hand, software are installed in the equipment as first fit, and are renewed on the basis of subscriptions. This further alludes high-growth potential of software solutions in the automotive remote diagnostics market.

Automotive remote diagnostics market will continue to witness robust gains from the light commercial vehicles, compared to other vehicle categories. As the logistics and transportation sector gains increased traction, vis-à-vis growth of the ecommerce and warehousing industry, light commercial vehicles are expected to record relatively greater sales compared to their past statistics. This will create significant opportunities for players in the automotive remote diagnostics market.

Automotive remote diagnostics are expected to witness high demand in vehicle system & component access, and health tracking & diagnosis applications. These application requirements are comparatively higher in commercial vehicles, and with the rise in construction and infrastructure development activities, demand for the commercial vehicles, and in turn the automotive remote diagnostics will also rev up in the near future.

Europe to Remain Most Attractive Market for Automotive Remote Diagnostics

The study finds that Europe will continue to be the most lucrative market for automotive remote diagnostics, trailed by North America. The economic vigor and robust infrastructure development activities in the region allude at significant sales of commercial vehicles, along with passenger cars, which in turn continue to drive demand for advanced solutions such as the automotive remote diagnostics. According to the study, East Asia will also remain an attractive market for automotive remote diagnostics, with sales projected to grow at a CAGR of over 20% through 2028.

The automotive remote diagnostics market continues to remain consolidated, with leading players accounting for bulk shares of the market. Additionally, the complexity and extensive R&D investments required to provide a total solution continue to present significant entry barriers to new market entrants, which further underpins the supremacy of leading players in the automotive remote diagnostics market.

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Key players operating in the automotive remote diagnostics market include Robert Bosch GmbH, Tech Mahindra Limited, Continental AG, OnStar LLC, Vector Informatik GmbH, Transics, Verizon, ACTIA Group, Softing AG, Magneti Marelli S.p.A., IBM, and Harman International, among others.

Key Segmentations

By Product Type

Equipment

Software

By Vehicle Type

Passenger Cars

Compact

Mid-Sized

Luxury

SUVS

Light Commercial Vehicles (LCVs)

Heavy Commercial Vehicles (HCVs)

By Application

Vehicle System & Component Access

Vehicle Health Tracking & Diagnosis

Service Assistance

By Region

North America

Latin America

Europe

East Asia

South Asia

Oceania

Middle East & Africa

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Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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