Pune, India, June 29, 2021 (GLOBE NEWSWIRE) --
The on-board diagnostics (OBD) aftermarket size is poised to observe substantial CAGR during the forecast period propelled by the frequent technological advancements in the automotive industry. On account of regional OBD vendors introducing innovative features to their services, the demand for efficient vehicle management systems is set to expand exponentially through 2026.
While North America on-board diagnostics aftermarket size is slated to be worth $1 billion by 2026, Asia Pacific OBD aftermarket industry share is expected to reach $900 million, owing to the growing popularity of luxury cars across these markets. On-board diagnostics for electric vehicles, autonomous cars, and other vehicles includes remote diagnostic technology with data-driven capabilities.
These top seven reasons explain why global OBD aftermarket size is set to exhibit a strong growth up to 2026:
Government support toward telematics in North America
The adoption of telematics solutions is gaining momentum and favoring North America OBD aftermarket forecast. The technology provides driving behavior feedback including harsh braking, speed, distance driven, and similar aspects. With the regional government backing the deployment rate of this technology, the share from the consumer telematics segment is expected to represent more than 23% of the total North America industry.
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North America sees consistent passenger vehicle registrations
As per the recent data published by the Bureau of Transportation Statistics, more than 341,101 passenger car registrations were recorded in the U.S. alone, as of December 2020. This marks an increase of over 23.2% than the previous month. Driven by the augmenting sales, the passenger vehicle segment is set to grow at a 13% CAGR between 2020 and 2026.
Popularity of autonomous vehicles in the U.S.
U.S. on-board diagnostics aftermarket share accounted for nearly 80% of the total industry in North America during 2019. As the region is home to prominent automakers, the penetration of advanced technologies is high. The adoption of autonomous vehicles is increasing rapidly amongst Americans, thereby encouraging the demand for OBD diagnostics tools such as OBD2 scanner.
As per the ISO 15765-4 regulations, it is mandatory to implement OBDII via a Controller Area Network across all vehicles in the U.S. since 2008. With the advent of Geotab telematics, translation of vehicle diagnostic codes across all kinds of models is possible. It also enables use of on-board diagnostics for electric vehicles.
Preference for third-party service providers in Europe
Europe OBD aftermarket industry share from the managed services segment is slated to grow at a 20% CAGR through 2026, fueled by the trending preference toward outsourcing of OBD services. Enterprises are looking for reliable third-party service providers to they can focus on their core capabilities instead. As outsourcing helps in attaining a superior customer experience, the trend is likely to gain ground through the next five years across Europe.
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Growing vehicle production across Germany
The production of vehicles across German automotive industry is growing at a remarkable pace since the last few years. The 2020 production statistics published by the International Organization of Motor Vehicles Manufacturers reveal that over 3,515,372 vehicles were manufactured across Germany during 2020. Since passenger cars represent a substantial portion of this figure, Europe industry outlook is set to gain from the increasing use of OBD2 scanner and other OBD diagnostics tools for German passenger cars.
Precise information for insurance providers in APAC
In terms of application, Asia Pacific on-board diagnostics aftermarket is bifurcated into fleet management, car sharing, consumer telematics, and usage-based insurance (UBI). The UBI segment in Asia is expected to emerge as a lucrative niche through the analysis timeline. Integration of telematics devices into vehicles permits insurance providers to access accurate data regarding the on-road activities of the driver, including speed and braking. With access to driver behavior data, determining insurance premium rates becomes easy for insurers.
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Route planning and fuel optimization benefits
Owing to the enhanced capabilities of OBD, car-sharing companies including Uber and Ola cab services across Asia are leveraging the technology for route planning, monitoring and optimizing fuel usage. Between 2020 and 2026, APAC on-board diagnostics aftermarket share from the car-sharing segment is poised to grow at a 30% CAGR. Car-sharing services use OBD for tracking driver activities in real-time and fleet management.
About Graphical Research:
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