Latest News- Automotive On-Board Diagnostics (OBD) Market: Allied services is expected to lead the Product segment during 2025-2029

The Automotive On-Board Diagnostics (OBD) Market is being driven by Increase in adoption of usage-based insurance (UBI) using OBD as measurement parameter

The Automotive On-Board Diagnostics (OBD) Market is expected to grow at a CAGR of 24.9% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 77375.3 million. In the automotive industry, Remote On-Board Diagnostics (OBD) systems have emerged as a game-changer in vehicle maintenance and service. These advanced systems enable the diagnosis of faults or potential malfunctions in a vehicle's components and transmit relevant trouble codes to a remote data center. The data center, in turn, processes the data into software or application-compatible formats for easy interpretation and transmission to the respective driver or technician. This innovative solution offers significant benefits, including preventive maintenance, efficient scheduling of service cycles, and reduced vehicle downtime and breakdowns. The popularity of remote diagnostics among OBD system manufacturers is on the rise, driven by the increasing demand from fleet operators of both passenger and commercial vehicles. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Product
  • Allied services
  • OBD port
• Vehicle Type
  • IC engine
  • Electric vehicle
• Connectivity
  • Wired
  • Wireless
• Geography
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • North America
    • US
  • Europe
    • Germany
    • UK
    • France
    • Italy
  • Middle East and Africa
    • South Africa
  • South America

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Increase in adoption of usage-based insurance (UBI) using OBD as measurement parameter
• Increase in electronic content in vehicles
• Regulations mandating OBD systems

However, the market also witnesses some limitations, which are as follows:

• Increase in cost for integration of telematics
• Security concerns of OBD
• Limitations of OBD systems

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Market Scope in Automotive On-Board Diagnostics (OBD) Market Research Report

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Research Analysis Overview

In the Information Age, the Automotive On-Board Diagnostics (OBD) market is witnessing significant growth due to advancements in wireless communications and in-vehicle electronics. Location technology, insurance, telematics, and fleet management are key sectors driving market expansion. Insurance carriers leverage OBD data for risk portfolio management, while fleet management segments use it for real-time vehicle monitoring and driver behavior analysis. Companies like Innova Electronics provide OBD scanner tools for the Diagnostic Device segment, available as handheld or PC/laptop based. OBD aftermarket products, including emission testing, supplementary instrumentation, consumer telematics, and vehicle customization, are also gaining popularity. The Internet of Things (IoT) is integrating OBD systems into the connected car ecosystem, enabling remote diagnostics and real-time data transmission. Automotive production and vehicle maintenance also benefit from OBD technology, ensuring vehicle connectivity and improving the overall vehicle experience.

Market Research Overview

The global automotive components and equipment market encompasses businesses producing parts and accessories for various vehicle types, including passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. According to Technavio, market size is determined by the consolidated revenue generated by automotive components and equipment manufacturers. Key growth drivers for this market include the rising adoption of wireless communications, in-vehicle electronics, and location technology in automobiles. Additionally, the integration of telematics systems in insurance carriers' risk portfolios for analyzing mileage, driver behavior data, and electric vehicle usage patterns among vehicle owners contributes to market expansion. The increasing popularity of EVs and the subsequent demand for OBD devices to monitor and diagnose their performance further bolsters market growth.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
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