Market Size (2017)
2017
$13.37B
Vertical: AutoBase Year: 20189 Sections
Market Size (2017)
2017
$13.37B
Projected (2025)
2025
$39.27B
CAGR (2017–2025)
14.4%
14.4%Key Players
110+
Automotive remote diagnostics is widely adopted by OEMs and aftermarket players for application in vehicles owing to the benefits of reducing service downtime and maintenance of the vehicle. The system identifies the problem early and further offers an efficient on-point and on-time solution to the occupant. The growth of the automotive remote diagnostics market is driven by the increase in demand for IoT devices in automobiles and the need for reducing maintenance and service downtime in vehicles. However, the market growth can be hindered due to concerns regarding data security.
The global automotive remote diagnostics market is expected to grow at about 14.68% CAGR during the forecast period and reach USD 39,273.7 million by 2025. In 2018, the market was led by North America, with a 36.84% share, followed by Europe and Asia-Pacific with shares of 29.98% and 22.86%, respectively.
The automotive remote diagnostics market has been segmented based on product type, connectivity, vehicle type, application, and region. On the basis of product type, the diagnostic equipment segment dominated the market with a share of 83.8%, accounting for a value of USD 12,721.1 million in 2018; it is projected to grow at the CAGR of 15.15% during the forecast period. On the basis of connectivity, the Bluetooth segment dominated the market with a share of 42.7%, accounting for a value of USD 6,479.8 million in 2018; it is projected to grow at the CAGR of 13.22% during the forecast period. On the basis of vehicle type, the passenger car segment dominated the market with a share of 58.0%, accounting for a value of USD 8,807.6 million in 2018; it is projected to grow at the CAGR of 14.85% during the forecast period. On the basis of application, the roadside assistance segment dominated the market with a share of 41.0%, accounting for a value of USD 6,232.7 million in 2018; it is projected to grow at the highest CAGR of 12.67% during the forecast period.
The Automotive Remote Diagnostics Market market is projected to grow at a CAGR of 14.4% from 2017 to 2025.
Historical performance and future projections (2020–2030, USD Billion)
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View Subscription PlansAutomotive remote diagnostics is a solution to monitor the health of a vehicle, figure the root cause of the issues, and enable the customer to access information about the vehicle. It is used in passenger and commercial vehicles to gain information regarding the health of the vehicle. The diagnostic data is available with the dealer and is further shared with the occupant through the same dashboard. The service from the automotive service repair dealers are easily shared on a real-time basis and the workshops can assist remotely, around the globe. The information of vehicle issues are shared through wire or wireless platforms.
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View Subscription PlansThis report applies a rigorous multi-stage research process combining primary interviews, secondary data sources, and bottom-up market modelling to ensure accuracy and completeness across all segments and geographies.
Base Year
2018
Historical Period
2017 – 2018
Forecast Period
2018 – 2025
Primary Interviews
150+
Historical data (2017–2018) and forecast period (2018–2025)
Our research process spans primary interviews with industry stakeholders combined with comprehensive secondary data analysis, validated through triangulation across multiple independent sources.
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View Subscription PlansMarket estimates by geography (2025)
InsightNorth America leads with $11.92B by 2025, while Asia Pacific is projected to grow fastest at a 18.2% CAGR.
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View Subscription Plans| REGION | 2017 | 2018 | 2025 | CAGR | SHARE |
|---|---|---|---|---|---|
| Asia Pacific | $2.95B | $5.69B | $11.27B | 18.2% | 29% |
| Rest of the World | $1.35B | $2.45B | $4.54B | 16.3% | 12% |
| Europe | $4.01B | $6.71B | $11.55B | 14.1% | 29% |
| North America | $5.05B | $7.65B | $11.92B | 11.3% | 30% |
| Total | $13.37B | $22.50B | $39.27B | 14.4% | 100% |
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View Subscription PlansTotal Market Size
$39.27B
| APPLICATION | REVENUE ($B) | GROWTH RATE | MARKET PENETRATION |
|---|---|---|---|
| Diagnostic Equipment | $33.88B | 14.4% | 85% |
| Software | $5.40B | 14.4% | 89% |
* Revenue projections based on 2025 estimates. Growth rates represent CAGR 2024–2030. Market penetration indicates current adoption rate within addressable market segments.
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Analytical insights on Automotive Remote Diagnostics Market covering market dynamics, competitive landscape, and strategic outlook.
The Automotive Remote Diagnostics Market market is projected to reach $39.27B by 2025, growing at 14.4% CAGR. The Diagnostic Equipment segment holds the largest share.
The global automotive remote diagnostics market is projected to register significant growth during the forecast period. The growth of the global automotive remote diagnostics market is expected to be driven by various factors such as increase in demand for IoT devices in automobiles and need for reducing maintenance and service downtime in vehicles. However, the concerns regarding data security is expected to hamper the growth of the global market during the forecast period.
Digital technology is the latest trend in the automotive industry. Moreover, the rapid development of the advanced vehicles, such as electric vehicles, autonomous vehicles, and connected vehicles, wherein internal combustion engine to batteries, fuel cells, hydrogen, and electronic systems & controls are being adopted. The rapid evolution of electronic-based systems and software in new vehicles from 2016 owing to sales of electric vehicles are expected to create new design challenges and opportunities to lower the cost and further raise the demand for advanced vehicles. For instance, connected vehicles are the latest on-going development in the market that create investment opportunities in connected mobility, such as car-sharing and bike-sharing.
Currently, the vehicles are equipped with more than 10 million lines of mission-critical software code owing to increase in need of vehicle performance data sharing for consumer and automotive OEMs. IoT devices improve vehicle operations and connected vehicle systems with other in-vehicle systems using over-the-air connectivity. Thus, to continue monitoring the devices, companies install remote diagnostic systems for aftermarket quality. Such companies include Robert Bosch, Continental AG, Delphi technologies, and Magneti Marrelli. Remote diagnostics and other connected technologies have made it easier for the manufacturers, suppliers, and consumers to track IoT devices defects and maintenance needs. This results in proactive communication with end users about the maintenance service updates and notifications and reduced risk of sudden maintenance or sudden breakdown. However, this has made it difficult for some consumers to understand the algorithm of advanced vehicles, which is expected to enhance the demand for remote diagnostics in the vehicles, worldwide.
The demand for the automotive remote diagnostics is growing primarily in the developed countries owing to developed aftermarket services from the domestic companies. Therefore, the impact of increase in demand for IoT devices in automobiles on the global automotive remote diagnostics market is expected to shift from moderate to high over the forecast period.
The increasing adoption of automotive electronics, growth of connected infrastructure, and transition from ownership to mobility-as-a-service (Maas) are the factors expected to promote investments and developments in semi-autonomous and autonomous vehicles, around the globe. The remote diagnostics in the vehicles are used to monitor the health of a vehicle and complex designing of semi-autonomous and autonomous vehicles are expected to primarily adopt remote diagnostics to minimize the risk of vehicle breakdown.
Thus, the major automotive and technology providing companies, such as AB Volvo, Apple Inc., BMW AG, Daimler AG, Nvidia Corporation, Delphi Automotive PLC, Ford Motor Company, General Motors Company, Google, and Apple Inc., are investing in the development of semi-autonomous vehicles and connected vehicles. For instance, Robert Bosch GmbH signed an agreement with Mercedes in 2017 to develop level 4 (high automation) and level 5 (full automation) cars. In order to ensure reliability and safety, even in the event of a system malfunction, to reduce accidents and deaths, the security of semi-autonomous and autonomous vehicles is a major concern.
The increase in awareness and adoption of advanced electronics in semi-autonomous and autonomous vehicles results in the need for automotive remote diagnostic systems in the global market. The installation of automotive remote diagnostic systems such as vehicle health monitoring system and remote assistance warning solutions play a key role in remote monitoring and gaining detailed information of the vehicle issues. Thus, the development of semi-autonomous and autonomous vehicles is expected to provide promising opportunities to the global automotive remote diagnostics market players during the forecast period.
The trend in the automotive industry is the retrieval of vehicle/component information for customers and component suppliers.
According to Oracle Corporation, about 80% of the total data loss occurs within the company. Moreover, nearly 40% of Internet break-ins occur despite a firewall being installed at the clouds/servers. The evolution of connected mobility and electric vehicles without server protection is expected to increase the risk of data loss from the companies, which is expected to restrain the incorporation of automotive remote diagnostics and other cloud-based services in the global market during the forecast period. For instance, in February 2016, the Nissan Leaf was hacked due to insecure APIs. Moreover, in July 2015, Chrysler equipped with OnStar RemoteLink system was hacked to demonstrate at the conference and this led to a 1.4 million vehicle recall. The hackers controlled the steering, brakes, and transmission and misused the Uconnect feature in Chrysler vehicles' dashboards. Such risks of hacking are expected to increase the count of accidents and are expected to restrict the adoption of remote diagnostics and other connected systems in vehicle.
The cloud-based connected service providers are incorporating and investing in the encryption technology to reduce the risk of hacking and data loss from the vehicles using over-the-air technology. Moreover, the cloud-based systems like remote diagnostics requires high investments in terms research and development and data security, which is expected to hinder the growth of automotive remote diagnostics However, many manufacturers are making high investments to counter data loss. Therefore, the impact of concerns regarding data security on the global automotive remote diagnostics market is expected to shift from moderate to low over the forecast period.
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Profiles of 110 companies operating in the Automotive Remote Diagnostics Market market, including revenue, employee count, and market positioning where available.
Showing 110 of 110 companies
Softing AG
Company Headquarters: Germany Founded: 1979 Workforce: ~400 Company Working: Softing AG primarily develops and manufactures diagnostics, measuring, testing and communication for automotive application. It operates in the global market through three business segments, namely, industrial, automotive, and IT networks. The automotive segment covers diagnostics, communication, and testing solutions for automotive OEMs and aftermarket. It also offers diagnostics and communication tools and equipment for cars, motorcycles, trucks, and non-road mobile machinery. The industry segment includes communication solutions for manufacturing and process industry. The IT networks segment includes cabletseter, qualifier, certifier, and adapter. The company has its major operations in Germany and the US. SoftingRom s.r.l., SoftingRom.S.A.R.L., Softing Electronics Science & Technology Co., Ltd., and Softing North America Holding Inc. are main subsidiaries of the company.
Snap-on Incorporated
Company Headquarters: US Founded: 1920 Workforce: ~12,600 Company Working: Snap-on Incorporated is a developer and manufacturer of tools and equipment for the automotive and transportation applications. It offers products and complementary services in business segments, namely, tools, diagnostics, information and management systems, and equipment. The company offers remote diagnostics under the segment diagnostics, information and management systems as well as they are offered under hand and power tools, tool storage, handheld and PC-based diagnostic products. It also offers vehicle diagnostic software applications to provide vehicle-specific trouble codes for various vehicle control systems, such as engine, transmission, and antilock brake system for passenger car and heavy-duty truck applications. It also offers products for automotive, aviation and aerospace, collision, construction, agriculture, metal cutting, military & defense, and various other applications. The company has nearly 4,900 mobile stores and wide distribution network in more than 130 countries. It has 10 manufacturing facilities and more than 3,400 franchise vans in the US. Its major operations are in North America, Europe, and Asia-Pacific. The company primarily manages its sales through its franchised, authorized distributors and e-commerce channels.
Delphi Technologies
Company Headquarters: UK Founded: 1998 Workforce: ~21,000 Company Working: Delphi Technologies is one of the global leaders in manufacturing and distributing automotive components in the aftermarket. It is an automotive technology company that primarily serves automotive OEMs and provides aftermarket services and solutions. The company’s products have applications in passenger cars, trucks, SUVs, commercial vans, buses, light-duty, medium-duty, and heavy-duty trucks, and off-highway vehicles. Its products are procured by OEMs, aftermarket, and independent retailers and wholesale distributors. Delphi Technologies operates through two business segments, namely, powertrain system and aftermarket. The powertrain system segment comprises valvetrain, variable valve timing, fuel delivery modules, ignition coils, canisters, sensors, valves, actuators, and various powertrain components. The aftermarket segment covers fuel injection, electronics and engine management, maintenance, test equipment, steering & suspension, and vehicle diagnostics products. Delphi Technologies operates through 21 major manufacturing sites and 12 major technical centers worldwide. In 2018, it invested nearly USD 600 million in research and development. Delphi Powertrain Corporation is one of its major subsidiaries.
Tech Mahindra Limited
Company Headquarters: India Founded: 1986 Workforce: ~ 103,822 Company Working: Tech Mahindra Limited designs and develops integrated solutions and computer software across the globe. It is one of the leading companies in software development and artificial intelligence, and mobility solutions, around the globe. It offers software for telecommunication equipment manufacturers, telecom service providers, software vendors, and systems integrators. It also offers solutions including big data, cloud computing, Internet of Things (IoT), remote vehicle diagnostics, remote patient monitoring, connected service experience solution, freezer monitoring and digital enterprise services. The company has offices located in China, Japan, Malaysia, South Korea, Germany, France, Spain, Italy, Norway, Spain, the US, Canada, Mexico, and Brazil. Pininfarina Engineering S.R.L., Tech Mahindra LLC, Inter-Informatics SRL, TC Inter-Informatics a.s., YABX Technologies, and K-Vision Co., Ltd are some of the subsidiaries of the company.
Continental AG
Company Headquarters: Hanover, Germany Founded: 1871 Workforce: ~190,875 Company Working: Continental AG (Continental) is a leading German company offering customers and its business partners with the extensive variety of intelligent, innovative, and efficient technologies for automotive and industrial applications, as well as for the replacement market. It is involved in making mobility safer, cleaner, comfortable, and more accessible. The Continental Group operates its business into three main sectors, Automotive Technologies, Rubber Technologies, and Contract Manufacturing. The Automotive Technologies Sector comprises of two main areas, Autonomous Mobility & Safety and Vehicle Networking & Information. This sector is involved in design and development of technologies for passive safety, brake, chassis, motion, and motion control systems. Innovative solutions for assisted & automated driving, display & operating technologies, as well as audio & camera solutions for the vehicle interior. The Rubber Technologies Sector operates with two main areas Tires & ContiTech. The Tires group sector stands for innovative solutions in tire technology and provides intelligent products and services related to Motorcycle, Bicycle, Transport and Commercial Specialty Tires. The ContiTech group sector develops and manufactures environmentally friendly systems and intelligent products for the automotive industry, railway engineering, mining, agriculture, and other crucial industries. The Continental team has its employees working in around 527 locations in the areas of production, research and development, and administration, in 58 countries and markets. The top five major customers of the company are the Volkswagen Group, Mercedes-Benz, Stellantis, Ford and the Renault-Nissan-Mitsubishi alliance.
Robert Bosch GmbH
Company Headquarters: Germany Founded: 1886 Workforce: ~410,000 Company Working: Robert Bosch GmbH is one of the leading automotive component manufacturers in the global market. The company operates through four segments, which are industrial technology, mobility solutions, consumer goods, and energy and building technology. The mobility solutions segment covers powertrain systems, chassis systems, electrical drives, connected mobility, automated mobility, and powertrain systems. It offers products and services for end-use applications in passenger cars, commercial vehicles, two-wheelers, powersports vehicles, mobility services, software services, spare parts and workshop services, and industrial elements and components. It offers vehicle remote diagnostics under its mobility solutions segment. Additionally, it also offers diagnostic technologies and software for vehicles. In 2018, the company spent nearly USD 7,042.0 million on research and development. The company manufactures HUDs in Braga, Portugal. Robert Bosch GmbH has 440 subsidiaries and a presence in more than 60 countries. Robert Bosch Semiconductor Manufacturing Dresden GmbH, Robert Bosch Mobility Services GmbH, Security and Safety Things GmbH, Bosch Automotive Service Solutions GmbH, and Bosch Sensortec GmbH are some of its subsidiaries.
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Automotive Remote Diagnostics Market