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The automotive diagnostics scan tool market is forecast to grow at a CAGR of 6.6%, reaching USD 44.8 billion in 2031 from USD 32.6 billion in 2026.
Automotive diagnostic scan tools, such as scanners and analyzers, analyze errors in-vehicle systems, such as faults in sensors or components. These tools are integral to improving overall vehicle performance. With the bolstering growth of global vehicle demand followed by investments in innovations to enhance acceleration rate and fuel efficiency, the demand for these tools is anticipated to show significant growth.
Moreover, the growing number of road accidents is driving the demand to promote automotive connectivity and aftermarket services that will assist in improving overall vehicle safety. Major market players are investing in innovations and development to support them, which has provided new market growth prospects. However, the technical complexities in manufacturing new software and hardware products, followed by raw material price volatility, act as major market growth obstacles.
Growing vehicle accidents have propelled the demand for effective diagnostic tools.
Overall vehicle performance is dependent on the integral performance of all components, and malfunctions in any system, including the engine, infotainment, gears, or steering, can cause serious malfunctions, thereby leading to accidents. Over the years, the prevalence of car accidents has witnessed significant growth globally.
For instance, according to the California Highway Patrol, in 2022, the number of traffic accidents in California reached 216,366, resulting in 165,978 injuries and 3,854 deaths. Moreover, according to the data provided by the government of Dubai, in 2022, the frequency of traffic accidents reached 3,281, which signifies a 29.5% growth over cases reported in 2021. With such high frequency, the demand for scanners and analyzers to monitor vehicle functioning and engine performance is expected to increase in the coming years.
Favorable investment in new automotive diagnostics innovations has provided a new market landscape.
Automotive diagnostic scan tools act as lifesavers since they provide technicians with real-time data that enable them to understand the root cause of vehicle malfunctioning, which can prevent adverse situations. Major automotive manufacturers and automation technology providers are investing in innovations to bolster automotive diagnostics offerings.
For instance, MAHLE’s Aftermanrt’s “MAHLE TechPRO®“ and “BRAIN BEE Connex” are second-generation workshop diagnostic tools that assist workshop teams in smooth vehicle diagnostics, thereby acting as a cost-effective solution that ensures the long-term running of vehicles. Likewise, strategic collaboration between companies such as Alliance Diagnostcs Tools (Partnership between Renault Group and Bosch Automotive Service Solutions), which aimed to bolster the development of the next generation of diagnostics & repair tools used in workshops, is also paving the way for future market expansion.
Passenger vehicles account for a considerable share of the market.
By vehicle type, the automotive diagnostics scan tools market is analyzed into passenger vehicles and commercial vehicles. The former is poised for significant growth, accounting for significant market share since these vehicle types account for the major portion of the global automotive production and registration volume.
Booming economic growth, rapid urbanization, and disposable income improvement have positively impacted consumers' purchasing power, driving the demand for passenger vehicles. As per the data provided by the International Organization of Motor Vehicle Manufacturers (OICA), in 2023, global automotive production stood at 93.54 million units, of which passenger vehicles accounted for a significant 72.7% share, with production volume reaching 68.02 million units. Additionally, the same source stated that in the same year, global vehicle sales stood at 80.06 million units, with passenger vehicles constituting 71.3% of the global share.
OBD is estimated to grow at a significant rate.
Based on diagnostic type, the automotive diagnostic scan tool market is segmented into OBD, professional diagnostics, and OEM diagnostics. The former is anticipated to show significant growth during the given timeframe. OBD (On-board Diagnostics) involves constant usage of scanners and specialized tools, such as a space-of-art computer system for retrieving diagnostic trouble codes during component monitoring.
The growing demand for fuel-efficient vehicles, coupled with the ongoing transition to electric vehicles equipped with various sensors and infotainment systems, has accelerated the demand for advanced vehicle diagnostics devices, thereby driving the segment's growth. Likewise, professional diagnostics is expected to grow at a constant rate and will account for an appropriate market share during the forecast period.
North America is poised for a significant expansion.
Region-wise, the global market is analyzed into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The market in the North American region is projected to show significant growth fueled by ongoing investments to bolster vehicle safety features and booming automotive production in major regional economies, namely the United States and Canada.
The OIC data specifies that in 2023, the United States witnessed a 5.52% growth in automotive production, followed by a 12.4% growth in sales. Moreover, the well-established presence of market players such as Carman International and KPIT Technologies and growing vehicle accidents have propelled the regional market expansion.
Likewise, the European and APAC regions are estimated to expand steadily, fuelled by favorable efforts to minimize road accident fatalities. The South American market is also poised for a positive expansion.
In April 2024, MAHLE Aftermarket announced the launch of its second generation of workshop diagnostics tools, “BRAIN BEE CONNEX” and” MAHLE TechPRO®." These tools feature a redesigned user interface that smoothens the overall vehicle diagnostics process. The products will optimize everyday workshop use and save time.
In September 2023, Delphi Technologies launched an online configurator tool that would assist in generating technical data that would increase the transparency and flexibility of automotive diagnostics based on their models. The new addition expanded Delphi’s diagnostic portfolio and offered varied options matching the technical expertise.
In March 2023, Launch Tech Co. Lted introduced a series of diagnostics and maintenance products for electric vehicles, namely the “EV Diagnostics Add-on Kit,” “ELA320 Digital Intelligent Power Supply,” and others. These products are used for repairing battery packs, electric motor systems, EV control units, and other gadgets compatible with EV models.
Snap-on Incorporated
Bosch Automotive Service Solutions Inc.
DENSO EUROPE
ACTIA Group
Softing AG
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Companies |
|
By Type
OBD
Electric System Analyzer
Scan Tool
By Vehicle Type
Passenger Vehicles
Commercial Vehicles
By Diagnostic Type
Professional Diagnostics
DIY Diagnostics
OEM Diagnostics
By Geography
North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
Japan
China
India
South Korea
Indonesia
Thailand
Others