Even though the coronavirus pandemic has caused a major impact on the automotive industry, the pandemic is pushing stakeholders into the information age. Companies in the automotive on-board diagnostics market are anticipating future revenue opportunities in wireless communications, in-vehicle electronics, and location technology involving insurance and OEMs (Original Equipment Manufacturers). Such trends are paving the way for telematics.
With the help of telematics, drivers are predicted to enjoy discounted insurance premium rates based on the distance they drive as per the traditional pay-per-mile program. Even insurance carriers can better manage their risk portfolios using mileage and driver behavior data, which is leading the way for accurate risk prediction. OEMs being an integral part of the automotive on-board diagnostics market are using telematics to leverage connected car data to offer value-added experience to vehicle owners.
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Automotive On-board Diagnostics Market: Overview
- The global automotive on-board diagnostics market is anticipated to expand at a CAGR of ~5% during the forecast period, owing to rapid expansion witnessed by the automotive industry worldwide. The automotive sector has become a major contributor to the GDP of various nations such as India, Saudi Arabia, and many others; consequently, governments of these nations have introduced multiple policies to boost automobile production in order to cater the local demand as well as for export in international markets. These instances have driven the demand for automotive components and sub-assemblies, thus fueling the automotive on-board diagnostics market growth.
Drivers of Automotive On-board Diagnostics Market
- Consistent rise in GDP of the global population has boosted disposable income, which, in turn, is driving the sales and production of vehicles. This rise in sales and production activities of vehicles across the globe has boosted the global automotive on-board diagnostics market.
- Increase in awareness about safety, vehicular emissions, and other such concerns has prompted government agencies to mandate the integration of certain on-board devices in vehicles. This mandatory integration of various automotive components compliant with on-board diagnostics is propelling the automotive on-board diagnostics market across the globe.
- Growing industrialization across continents has fueled trade activities, thus increasing the fleet of commercial vehicles on-road. Rise in the number of commercial vehicle fleet has augmented the demand for telematics solutions among fleet owners for effectively managing their vehicles’ health and reducing the downtime of vehicles. This increase in demand for telematics from commercial vehicle fleet owners is driving the global automotive on-board diagnostics market.
Challenges for Automotive On-board Diagnostics Market
- The recent outbreak of COVID-19 pandemic has negatively impacted majority of businesses across the globe, owing to forced shutdown of companies and trade activities. This caused the global economy to contract to its lowest growth rate. Disruption in supply chains of the automotive sector hampered the production of vehicles. Moreover, the demand for new vehicles also reduced, as people are restraining themselves from spending money on non-essential products and services. These factors resulting from the COVID-19 pandemic hampered the demand for automotive on-board diagnostic devices.
- Rise in popularity of electric vehicles render the conventional applications as well as on-board diagnostic devices obsolete, thus restraining the global automotive on-board diagnostic devices market
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Automotive On-board Diagnostics Market: Regional Analysis
- Based on region, the global automotive on-board diagnostics market has been segregated into North America, Asia Pacific, Europe, Latin America, and Middle East & Africa
- Asia Pacific held a notable share of the global automotive on-board diagnostics market in 2020. It is projected to be a highly lucrative region during the forecast period. Countries in Asia Pacific, such as China, India, Japan, and South Korea account for more than 40% of the total automobile production worldwide. Moreover, these countries are amending their emission norms that mandate the use of OBD II devices for emission testing. These factors are contributing toward the high share held by Asia Pacific of the global automotive on-board diagnostics market.
Automotive On-board Diagnostics Market: Competition Landscape
- Key players operating in the global automotive on-board diagnostics market include
- Vector Informatik GmbH
- Continental AG
- AUTEL Intelligent Technology Corp., Ltd.
- Bosch Automotive Service Solutions Inc.
- iWave Systems Technologies Pvt. Ltd.
- OBD Solutions, LLC
- AVL DiTEST GmbH
- Azuga
- CalAmp.
- Danlaw, Inc.
- ERM Electronic Systems LTD
- Geotab Inc.
- Intel Corporation
- Marelli Holdings Co., Ltd
- TomTom International BV.
- Verizon
- Xirgo Technologies, LLC.
- Innova
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