Overview of Automotive On-board Diagnostics Market
Automotive on-board diagnostics (OBD) market has made continuous strides to meet a wide range of vehicle monitoring and maintenance applications, and remote diagnostic solutions. Most extensively, vehicle owners and OEMs have leveraged the sensor and software technologies encompassed by on-board diagnostics for emission monitoring and the overall health of the vehicles. OBD typically includes black box event data recorders, vehicle tracking control units, and other electric control units. Over the years, the revenue potential has grown remarkably, circumscribing a wide range of stakeholders in the ecosystem. For instance, OEMs, software developers, and insurance providers have been able to see new revenue streams in the telematics. The value chain of the automotive on-board diagnostics market is fast expanding, with on-board diagnostics becoming a part of the driverless cars and electric vehicles. Two prominently lucrative areas are usage-based insurance and commercial vehicle telematics.
Fueled by vast possibilities, the global automotive on-board diagnostics market is projected to reach worth of US$ 22 Bn by 2031, clocking CAGR of ~5% from 2021 to 2031.
Key Findings of Automotive On-board Diagnostics Market Study
Prospect of Real-time Insurance Spurs Telematics
Telematics have increasingly been deployed in commercial fleets for their remote monitoring and maintenance, particularly with respect to their emissions. Over the past few years, consumers telematics are gaining traction. Of note, telematics are becoming a driver as well as accelerant for demand for real-time insurance policies, where high customer satisfaction is a key winning imperative. The transportation industry has also harnessed the benefits of OBD for monitoring driver’s behavior, especially in the commercial sector. Interested stakeholders are capitalizing on telematics-based insurance policies, and are harping on the benefits of real-time insurance or usage-based to attract OEMs and vehicle owners in the automotive industry.
Cloud Diagnostic Managers Muscling Their Way into Market
The market has evolved rapidly over the years. Over-the-air (OTA) software updates opens new avenues for market players. A case in point is the need for such updates in driverless vehicles. 5G integration and growing prospects of connected technologies in electric vehicles expand avenue. Cloud diagnostic managers in coming years are expected to benefit from the benefits of OTA, especially for driverless cars. This surely will attract lodes of investments in near future.
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Uptake of On-board Diagnostics Bolsters Innovations in Sensor Technology
The on-board diagnostics market is making strides on the back of markedly expanding array of technologically advanced hardware and software offerings by different companies. For instance, semiconductor devices manufacturers and sensor developers eye vast avenue in the market. Advancements in electronic control units and incorporation of novel sensors enable transportation industry to leverage the benefits of automotive on-board diagnostics
Automotive On-board Diagnostics Market: Key Driving Factors and Avenues
- Interest in automotive on-board diagnostics among transportation sector for emission testing and vehicle health monitoring has risen considerably, and is a key trend
- Rise in business prospects of mobility-as-a-service bolstering the growth potential in the automotive on-board diagnostics market
- Increase awareness about safety and vehicle’s health, supported by regulatory push, drive the demand
- Initiatives being taken by governments in numerous countries on boosting automobile production are engendering growth in the market
- Demand for connected technologies that allow better fleet management boosts market
Automotive On-board Diagnostics Market: Key Participants
A growing number of players are keen on reprogramming the OBD devices to prevent or rectify malfunctions. The ecosystem of players in the automotive on-board diagnostics market is fairly wide. Some of the well-entrenched players are:
- Intel Corporation
- ERM Electronic Systems LTD
- OBD Solutions, LLC
- Continental AG
- Vector Informatik GmbH