PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1536779
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1536779
Global automotive diagnostic scan tools market is anticipated to observe a CAGR of 5.78% during the forecast period 2024-2031, growing from USD 37.17 billion in 2023 to USD 58.27 billion in 2031. The market has experienced significant growth in recent years and is expected to maintain a rapid expansion in the coming years, owing to constant technological advancements, increase in sales and production of vehicles and automotive workshops, and a rapid trend of personalization. The automotive diagnostic scan tools market demand is projected to rise as it can swiftly and accurately recognize issues within your vehicle's systems. The rising safety concerns and government rules and regulations concerning road safety, and zero emission are projected to propel the global market growth as these tools are a series of sensors that monitor different components, from the engine and transmission to the brakes and emissions.
A significant advancement and complexity in vehicle design coupled with an increase in connected vehicles and IoT integration are estimated to drive the global automotive diagnostic scan tools market in the forecast period. Moreover, expansion in the global vehicle fleet, increasing strict carbon emissions regulations to reduce carbon footprints, and growing production and adoption of EVs and hybrid vehicles are expected to propel the growth of the global automotive diagnostic scan tools market in the forecast period. In addition, key participants in the market are planning to introduce different and advanced diagnostic scan tools to dominate the global automotive diagnostic scan tools market share in the projected years.
For instance, in October 2023, Matco Tools Corporation announced the launch of its newest diagnostic scan tool, the Maximus Plus, to offer complete coverage flexibility, OE-level functionality, and the power of Android at your fingertips. This premium tool is prevalent in eliminating unnecessary expenses and is designed to function with wireless diagnostics coupled with providing unparalleled productivity.
Rising Demand for Safety Features in Vehicles Drives the Market Growth
In emerging countries, there is an increase in road accidents leading to the growing adoption of safety features including tire pressure monitoring systems, engine performance analysis, traction control, parking assistance, airbags, and others. Also, the growing trend of innovative and advanced features in passenger and commercial vehicles, owing to growing security awareness among end-users and increasing complexity in advanced and connected cars is projected to further accelerate the global market growth in the forecast period. Manufacturers in the market are installing advanced safety features including advanced driver assistance systems that can detect nearby drive errors and obstacles to alert drivers and stop the vehicle based on road conditions coupled with decelerating engines automatically.
For instance, in July 2023, Innova Electronics, Inc. announced the launch of its OE-level professional Smart Diagnostic System Tablets and RepairSolutionsPRO app to deliver pro-level features and functions that increase the diagnostic practices, enhance shops' interaction with their customers, and save automotive technician's time.
Growing Production of Semi-Autonomous and Autonomous Vehicles to Propel Market Demand
Semi-autonomous and autonomous vehicles are greatly equipped with advanced technologies and sensors and largely reliant on different complex software, which is significantly driving the global automotive diagnostic scan tools market growth in the coming years. Manufacturers of semi-autonomous and autonomous vehicles are progressively investing in different research and development activities to offer an overall better driving experience and test the compatibility coupled with the fuel efficiency of vehicles. Automotive diagnostic scan tools in semi-autonomous and autonomous vehicles help collect and record data from different information sources including satellites, and others along with user inputs including destinations, user recognition, vehicle operation preferences, and others. Key participants in the market are launching effective solutions to diagnose the system efficiently and streamline the repair process for advanced convenience.
For instance, Kinderhook Industries, LLC announced the introduction of a new asTech All-In-One solution for local and remote automotive calibrations, diagnostics, and programming to simplify the repair procedure. This advanced solution is an all-inclusive tablet-based solution that will demonstrate ADAS identification and calibration capabilities.
Government Policies and Regulations Drives the Market Growth
Governments in emerging countries are efficiently framing favorable policies and spreading awareness concerning zero carbon emissions are projected to drive the global automotive diagnostic scan tools market growth in the forecast years. Governments across developed countries are planning to start campaigning to keep customers updated concerning advanced safety and security features in vehicles such as connected and autonomous vehicles. In addition, strict emission-related regulations and safety standards by legal authorities across developing and developed countries across the globe are forcing automakers to fund the diagnostic scan tools to confirm compliance, and address the regulatory demands, propelling the global market growth in the forecast period.
For instance, in January 2024, the Government of India announced the formation of a committee to assess the auto industry's request for expanding the Production Linked Incentive scheme. The members of this committee planned to integrate more automotive components into the PLI schemes owing to technological advancements.
Passenger Vehicles to Dominate the Global Automotive Diagnostic Scan Tools Market Share
Passenger vehicles registered the largest market share of market, owing to the rising advancement and complexity in connected and autonomous vehicle systems and growing stress on high-performance components and sensors. Diagnostic scan tools in passenger vehicles are helpful in monitoring and detecting faults. The passenger vehicles segment growth is accredited to growing passenger vehicle sales and production across the globe. Governments across emerging countries are framing different policies to strengthen the performance of passenger vehicles and compel manufacturers to test the compatibility coupled with safety features, driving the demand for automotive diagnostic scan tools globally. Manufacturers are addressing market demand for effective diagnostic solutions in passenger vehicles and focusing on developing sustainable and user-friendly tools to address precise requirements, propelling the segment growth in the forecast period.
For instance, in April 2024, MAHLE GmbH announced the launch of the second generation of its workshop diagnostic tools MAHLE TechPRO and BRAIN BEE Connex. This completely redesigned user interface making the diagnostic device more user-friendly and equipped with an integrated camera.
Asia-Pacific Registers Largest Global Automotive Diagnostic Scan Tools Market Size
Asia-Pacific registers the largest market size in the global market, owing to the presence of big market players, an increase in per-capita income, a significant rise in demand for passenger and commercial vehicles, and the growing production of electric vehicles. Companies in emerging countries, including India and China are planning to invest in different advanced technologies to offer safer rides and address the growing demand for automobiles. Governments across the region are implementing different policies and regulations to decrease carbon footprint, propelling the demand for automotive diagnostic scan tools in Asia-Pacific. Companies across the region are compelled to lower vehicular emissions and integrate advanced automotive technologies for better performance, accelerating the Asia-Pacific automotive diagnostic scan tool market growth.
For instance, in August 2023, Autel Intelligent Technology Co Ltd., one of the leading companies in Asia-Pacific, introduced a vehicle diagnostic scanner to help mechanics to detect car conditions for repairing.
Future Market Scenario (2024 - 2031F)
The growing trend of integrating advanced features into automobiles, owing to growing security and safety awareness among consumers, rising complexity, and hybrid and connected cars are projected to foster the growth of the global automotive diagnostic scan tools market.
Favorable government policies in developed and emerging countries awareness campaigns related to the benefits of diagnostic tools are estimated to propel global market growth in the forecast period.
Key Players Landscape and Outlook
Companies in the global automotive diagnostic scan tools are efficiently investing in different research and development activities to improve the performance and reliability of automotive diagnostic tools. Companies are advancing their manufacturing process to contribute zero carbon emission and planning to integrate lightweight. In addition, key market participants are adopting different market growth strategies including joint ventures, new product launches, mergers and acquisitions, amalgamation, and others to expand their presence and product portfolio.
Softing AG is one of the leading market players that offers a large selection of diagnostic scan tools and instruments with cutting-edge functioning and an intuitive user interface.
Snap-on Incorporated is a global supplier of cutting-edge services, software, and products that are popular for their precision, user-friendliness, and dependability.
All segments will be provided for all regions and countries covered
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.