Increasing sales of passenger cars push the global automotive diagnostic scan tools market to record a valuation of $ 46.17 billion by 2028.
According to a recent study by Brandessence Market Research & Consulting, the automotive diagnostic scan tools market size was valued at $32.38 billion in 2021 and is anticipated to grow at 5.2% CAGR till 2028.
Passenger vehicle sales have increased, with growth in top auto markets such as China, the US, and Europe. Additionally, the growing demand for low emission reduction and governments initiative in vehicle inspection approval have pressured the manufacturers to provide automotive diagnostic scan tools around the world.
According to the report, the passenger car is the fast-growing segment in the automotive market and is expected to witness significant growth during the forecast period. Global passenger car sales is expected to reach around 73.8 million units in 2025 from 64.4 million units in 2021. The passenger cars market is generally impacted by the distribution of wealth within a country or region and serves as a good indicator of financial stability.
The technological advancements in this field is another factor driving the global automotive diagnostic scan tool market. The vehicle's architecture is highly complex with greater application of technology like electronic control modules and advanced driver assistance systems. For these systems, the fault diagnosis is much more technically challenging; therefore, these scan tools with the advanced provision of standard fault codes and other services provide a simple interface for consumers to identify the car's issue and avoid expensive workshop repair for a minor problem. Hence, the greater complexity of automotive electronic leads to driving the market's growth, Brandessence Market Research & Consulting said.
Additionally, the surge in quality and demand for fuel-efficient vehicles increased the production of vehicles globally, and strict environmental laws and rules in many nation areas also supplement the market growth.
However, the high initial cost of advanced diagnostic tools may hamper the market growth. Despite that, the increasing consumer preference for high-end cars leads may create more opportunities for the further growth of the global automotive diagnostic scan tool market.
Some of the key players in the automotive diagnostic scan tools marked include Robert Bosch GmbH, Siemens,
Dg Technologies, Softing AG, Snap-On Inc, AVL List GmbH, Dsa Daten- Und Systemtechnik GmbH, Hickok Inc, Bosch Automotive Service Solutions Inc, Delphi Automotive PLC, Actia SA, Actia Group SA, Etas GmbH, General Technologies Corp, Innova, Hunter Engineering, Continental AG, TopDon, Denso, Snap-on, Denso Corp, SPX Corp and Hickok Incorporated.
Asia Pacific Has High Growth Potential
The Asia Pacific is expected to witness significant growth in the global automotive diagnostic scan tool market. This growth is attributed to the developing infrastructure and increasing industrialisation activities in developing economies, opening several opportunities for automotive original equipment manufacturers (OEMs) in this region. In addition, the growing purchasing capability of the population increases the demand for automobiles.
Developing and implementing new technologies, forming new manufacturing plants, and building value-added supply chains between manufacturers and material providers have made the Asia Pacific a market with high growth potential.
China has the highest market share in the Asia Pacific and has high growth in sales and the demand for premium vehicles. The increasing automotive manufacturing levels in China have driven the demand for automotive diagnostic scan tools. Additionally, the increase in the number of service stations and automotive workshops and the high production of automobiles in India and China are additional factors supplementing the market growth. Furthermore, increasing manufacturing of electric vehicles in the Asia Pacific region is anticipated to drive further the demand for the automotive diagnostic scan tool market.
Europe is expected to witness lucrative growth in the automotive diagnostic scan tool market due to prominent automakers & OEMs and the growing manufacturing of vehicles & sales in this region, the report noted.
Courtesy: Brandessence Market Research & Consulting. NB: Photo is representational; courtesy: Bosch.