On-Board Diagnostics (OBD) Aftermarket Size By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles (LCV), and Heavy Commercial Vehicles (HCV)), By Component (Hardware [OBD Scanners, OBD Dongles], Software [PC-based Software, Apps), and Service [Training & Consulting, Integration & Maintenance, Managed Service]), By Application (Consumer Telematics, Fleet Management, Car Sharing, Usage Based Insurance (UBI)), and Regional Forecast, 2024-2032

Onboard Diagnostics (OBD) is a computer system incorporated into a vehicle that tracks and monitors the car’s performance. This OBD system collects information from the network of sensors inside the vehicle, which can affect car systems and alert the user to problems. A diagnostic routine checks each vehicle component to verify it is functioning properly. If a problem is spotted, the OBD system sends a warning light on the vehicle instrument panel to alert the driver. OBD aftermarket provides OBD-related products and services. These products and services can include anything from OBD-related repairs and diagnostics to OBD scanners and software.

Key Market Insights

The growing complexities of vehicle systems encourage the adoption of vehicle diagnostic systems globally. As vehicle owners become more aware of the potential benefits of OBD-equipped vehicles, the demand for OBD products and services is anticipated to grow rapidly over the forecast period. OBD system can detect small glitches before they occur or occur, thereby eliminating unnecessary repair costs. The system also alerts the vehicle driver/operator about potential problems that can affect the vehicle's emission performance.

Furthermore, the U.S. government has mandated the installation of OBD systems for heavy-duty vehicles and engines. For instance, the United States Environmental Protection Agency (U.S. EPA) requires all 1996 and newer model year passenger cars to be sold in any state to meet the U.S. EPA OBD requirements.

Impact of COVID-19 on the Onboard Diagnostic Aftermarket

The government-enforced lockdowns and economic crisis induced by the Covid-19 pandemic severely impacted the global supply chain and resulted in semiconductor shortages. The global shortage of semiconductor chips toppled the automotive industry. The shortage of semiconductors forced the OEMs to slow the production of several automotive features, including driver assistance systems, heated seats, onboard diagnostics systems, and dashboard cameras.

In the automotive space, chips have made vehicles exponentially safer, smarter, and more efficient. The global shortage of certain semiconductors impacted the automotive industry, slowing the production of some cars. The shortage was due to the increased use of semiconductors in advanced vehicles.

However, the onboard diagnostic aftermarket is poised to grow significantly due to the semiconductor industry recovery, rising sales of passenger cars, and supportive government regulations to curb pollution.

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships.
• Porter’s Five Forces Analysis.
• Technological Developments.
• Impact of COVID-19 on the Onboard Diagnostic Aftermarket.

Analysis by Vehicle Type

The passenger vehicle segment held a significant market share in 2021 and is expected to grow at a significant CAGR over the forecast period. This can be attributed to the rising sales of passenger cars integrated with OBD systems to scan engines and regulate car systems to alert drivers to problems. According to the International Organization of Motor Vehicle Manufacturers (OICA) report, passenger car sales stood at 56,398,471 in 2021. The OBD system has now become a standard for all cars to monitor emissions, speed, mileage, and other data about the car. Hence, the growing need for more advance and sophisticated monitoring systems to help identify problems more accurately will drive aftermarket growth. The vehicle onboard monitoring systems have undergone several iterations to efficiently service a wide range of vehicles.

Regional Analysis

Asia Pacific dominated the OBD aftermarket in 2022. The positive market outlook can be attributed to rising sales of vehicles with advanced features. Moreover, strict laws regarding vehicular emission and growing awareness of passenger & car safety will propel the market growth of the OBD aftermarket over the forecast period. For instance, in June 2018, the Ministry of Ecology and Environment of the People’s Republic of China released the final regulation for the China VI emission standard for heavy-duty vehicles

China VI regulations include OBD requirements based on the Euro VI OBD program. As per the regulation, an OBD system must be installed on all China VI engines and vehicles to identify, record and send alerts in case of malfunctions. All such initiatives and vehicle sales uptick will drive the OBD aftermarket growth in Asia Pacific countries over the forecast period.

Key Players Covered

AVL Ditest (Germany), Autel Intelligent Technology Corp., Ltd. (China),  Bosch Diagnostics (Germany), Azuga (U.S.),  CalAmp (U.S.), Danlaw, Inc. (U.S.), Continental AG (Germany),  Geotab Inc. (Canada), ERM Electronic Systems LTD (Israel), Innova Electronics Corporation (U.S.), HeLLA GmbH & Co. KGaA (Germany), and Intel Corporation (U.S.).

Segmentation

Key Industry Developments

• March 2023: Innova Electronics Corporation, a supplier of diagnostic reporting and test equipment for the automotive aftermarket, announced the availability of its latest software and firmware for current-generation OBD2 scanner tools and dongles. New features in OBD2 scanner tools include maintenance and battery reset procedures, oil light reset, and battery initialization for compatible Ford, BMW, and Volvo vehicles.
• January 2023: MAHLE Aftermarket announced the launch of RemotePRO, a complementary diagnostic system for vehicle service. Independent workshops can perform complex diagnostics and service routines with RemotePRO. Specialists can be called in via hotline or chat to provide expert support and guidance through the diagnostic process.