Automotive Remote Diagnostics Market

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.