The remote diagnostics market size was valued at USD 25.71 billion in 2019 and is anticipated to grow with a significant CAGR of 12.78%.
Remote diagnostics are used to analyze the vehicle's condition and monitor the health and condition of the automobile. Increased automation level in the automobiles and reliance of customers on IoT applications and remote diagnostics integrated personal vehicles to drive market growth. The COVID-19 outbreak has significantly curbed the market growth scenario due to reduced production and sales of the vehicles. Additionally, the automotive sector is identified as one of the worst-hit markets in the pandemic's aftereffects.
The increased emphasis on vehicle maintenance and monitoring services to fortify market development avenues. New and enhanced products provide actionable insights and accurate monitoring to cement growth for the remote diagnostics market.
The new introduction of the technologies such as vehicle diagnostics and monitoring solutions is the factor that elevates the standards of vehicle maintenance and helps the customer keep track of its vehicle. The customers nowadays are also focused on the timely maintenance and development of the market. The increased importance of aftersales services, repair operations, and maintenance services emphasize the importance of remote diagnostics.
Many automobile customers also look for the vehicles' performance-oriented use, which requires acute monitoring and timely repairs and the automotive vehicle's replacement. Many remote diagnostics solutions provide information to the drive about the engine's oil temperature, the engine's temperature, and other vehicle health parameters and suggest the corrective measures to be implemented. The introduction of these kinds of products to project a substantial market development for remote diagnostics solutions
For instance, a company named Otonomo has introduced an enhanced and effective remote diagnostics product applicable for applications across the type of vehicles. The company also collaborates with other telematics service providers to represent the trouble code data into valuable and insightful information for the user. This product also provides Problem Alerting, Health Indicator Monitoring, and Trouble Code Monitoring solutions, increasing its effectiveness in-vehicle applications.
The integration of advanced operating systems and IoT solutions catalyze the market development in remote diagnostics. IoT powered automotive vehicles are also equipped with better telematics solutions, which provides increased effectiveness of the remote diagnostics solutions. IoT integrated cars are also referred to as semi-automatic cars capable of making decisions on the spot by analyzing the conditions of the vehicle's surroundings and condition.
The safer and smooth driving experience by the IoT integration also increasing customers' proclivity towards the use of IoT infused vehicles. This trend of connected cars also to push the market growth of remote diagnostics around the various regions.
Additionally, applying stringent norms for on-road driving to curb the increased frequency of accidents, many manufacturers are providing IoT solutions that partly assist the driver in controlling the vehicle. Further, remote diagnostics installation in these vehicles increases the insightful information to the IoT solutions, which can be used as an input by IoT systems to generate actionable insights required to be implemented to maintain the vehicle's wellbeing.
|Market Size||USD 25.71 billion in 2019|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
North America is anticipated to sustain its position as the leading contributor in the remote diagnostic market. The growing adoption of software technologies and connected cars is estimated to fuel the region's market growth across the type of vehicles. North America has always been a pioneer in adopting innovative technologies and introducing high-end vehicles in the market.
The significant presence of global manufacturers in the market is also anticipated to help the region retain its significant share throughout the forecast period. Europe is also identified as the prime contributor to the market following North America. The market of Europe is anticipated to be spearheaded by Germany owing to the established manufacturing cluster in the country.
The market of Asia Pacific is projected to register the fastest pace for developing the market over the forecast years. Although the automotive sector recorded a considerable decrement in the past couple of years, China's market has somehow managed to sustain a positive rate of market growth.
After the COVID -19 outbreak, China is the only country registered positive growth in the first quarter of 2020. This scenario is also expected to put the Asia-Pacific region in a strong position and an optimistic market for the development. Also, the rising trend of custom developments in India and China's market to provide new perspectives for market development.
The BlueTooth segment is expected to profess a substantial share in the market across the globe. The increasing use of Bluetooth technology for connectivity in the automotive sector is anticipated to fuel the growth of the segment in the Remote Diagnostics market.
Enhanced performance of the Bluetooth devices in terms of connectivity in automotive vehicles is an essential factor spurring the vehicles' adoption of Bluetooth connectivity solutions. The Bluetooth connections offer more flexibility, reduce complexity due to wireless connection, and add modularity factors in the vehicles' interiors. All these factors elevate the share of the market over the forecast years. 3G/4G LTE/5G network segment is also expected to retain substantial market share in the global market in the connectivity segment, followed by the Bluetooth segment. The increasing trend of connected cars and internet data for interactive broadband functioning to bolster the remote diagnostics market.
Tier-1 and Tier-2 manufacturers account for nearly 43% of the market share in the global market. Global market players' focus on the development and distribution of their remote diagnostics technology is expected to increase the organized sector's impact on the worldwide market. Additionally, many global players are trying to expand their market penetration capabilities in the region where they have a weak presence. The companies are especially looking to capitalize on the region of South America, Asia Pacific, where the market is looking to progress at a considerable pace. For instance, Onstar LLC is a global player intended to augment its presence in South America's market.
The increasing emergence of market players from China's market is expected to considerably change the competitive landscape of the market at the global level. Also, by looking at the market's optimistic growth potential and increasing penetration of the technology within the OEM manufacturers, the market is estimated to witness a considerable increment in the number of players active in the market. The increasing degree of fragmentation is expected to increase the product portfolio and support the development of cost-effective products.