Growing preference of consumers for high-end cars, rising stringent emission norms and an increase in the number of automotive workshops globally propel the automotive diagnostic scan tools market to grow at a CAGR of 4.5% till 2026.
According to the new market research report published by MarketsandMarkets - Automotive Diagnostic Scan Tools Marketby workshop equipment, vehicle, handheld scan tools, offering, connectivity, type and region - Global Forecast to 2026, the automotive diagnostic scan tools market is estimated to be $ 33.1 billion in 2021 and is projected to reach a market size of $ 41.4 billion by 2026.
With the rise in demand for vehicle repair and maintenance, demand for diagnostic equipment would also rise. In addition, the installation of electronics components in vehicles is increasing with advancements in-vehicle technology, further increasing the market for automotive diagnostic scan tools.
The battery analyser segment is estimated to be the fastest-growing market in the automotive diagnostic scan tools market during the forecast period. Battery analysers have gained significant importance with the increase in vehicle electrification in automobiles. Periodic battery analysis is needed because batteries tend to have a shorter life than the components it powers. Also, the increasing demand for electric vehicles, which in turn pushes the growth of automotive batteries, is boosting the demand for battery analysers in the market globally. These tools analyse the operating condition of the battery and charging system, thereby ensuring the proper functioning of the electric power source. It also provides alternator information and projects the status of the power supply. In addition, battery analysers act as gatekeepers to retire packs when they fall below a set performance criterion.
Some of the key market players in this space includeRobert Bosch, Siemens, Continental, Denso and Snap-on.
According to the report, the passenger car segment is estimated to be the largest growing market in the automotive diagnostic scan tools market during the forecast period. The increasing sales of passenger cars coupled with the high demand for premium segment cars are majorly responsible for the fastest growth of the passenger car segment in the global market. In addition, the increase in disposable income of consumers has pushed the demand for passenger cars, which, in turn, has driven the growth of the passenger car market.
In terms of connectivity, the WiFi segment is estimated to be the fastest-growing market during the forecast period, the research firm said. WiFi is one of the upcoming technologies in vehicle diagnostics; it provides a better operation range than USB and Bluetooth connectivity. WiFi is used for DoIP (Diagnostics over Internet Protocol) and is expected to register significant growth over Bluetooth during the forecast period. Moreover, countries such as China, India, Japan, and South Korea, which are expected to adopt remote diagnostics with the help of DoIP, are further expected to drive market growth. WiFi has played an essential role in enabling vehicle connectivity applications in vehicle diagnostics. Additionally, it provides an extensive data codes transfer capability that has enabled over USB and Bluetooth for vehicle diagnostics.
The Asia Pacific region is projected to be the largest market for automotive diagnostic scan tools during the forecast period. The market growth in the region can be attributed to the rapid growth of the automotive sector in countries such as China, Japan, India, Thailand, and South Korea. Moreover, the improved lifestyle of consumers and rapid urbanisation have boosted the demand for passenger vehicles and commercial vehicles, which, in turn, would trigger the growth of the market in the region.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Bosch.