Demand for automotive diagnostic scan tools is expected to witness strong growth due to increasing electrification of vehicles worldwide. Automotive diagnostic scan tools are combination of electronic devices and software that are used as interface with diagnostic systems in vehicles. These tools are used for identifying faults or malfunctions in electric systems of vehicles by simply plugging cable into a diagnostic connector and running full scan. Advancements in technologies have enhanced these diagnostic tools to detect faulty areas in an electronic systems with ease. Increasing preference for automated diagnostic systems over conventional manual systems have accelerated demand for diagnostic scan tools for automobiles.  

Increasing production of vehicles and complexity involved in connected cars are some other factors fueling adoption of diagnostic scan tools. Stringent emission norms introduced by governments across the globe for continuously monitoring vehicle emissions is further enhancing the market growth. For instance, in India, BS IV emission norms were enforced since April 2017.

In 2016, the government of India announced that the BS V norms would be skipped and the country will altogether adopt BS VI norms by 2020. In line with these norms, vehicles will equip on-board diagnostic systems for emission control. Prior to the introduction of automotive diagnostic scan tools, robust procedures and large number of tools were required to identify defects in vehicles. The process was carried out manually which consumed huge amount of time and was tiresome. Thus, in order to overcome this challenge, the garage equipment manufacturers introduced a state-of-the-art diagnostic tools for quickly identifying and rectifying faults in vehicles.

Growing consumer preferences for technologically advanced high-end cars having sophisticated architecture is another factor facilitating the growth of the automotive diagnostic tools market. Moreover, rising number of independent vehicle service stations is anticipated to further spur the growth of automotive diagnostic tools market in the coming years.

On the other hand, complexities involved in the functioning of the diagnostic scan tools coupled with limited presence of skilled workforce for handling technologically advanced equipment are some of the major factors acting as hindrances to the market growth.

Automotive diagnostic scan tools are used increasingly across various service stations for all types of vehicles including passenger cars and commercial vehicles. The vehicle type segment was led by passenger cars in 2023. The dominance of passenger cars is reflective of their greater production share over commercial vehicles.

In terms of geography, North America led the overall automotive diagnostic scan tools market in 2021. The market in the region is primarily backed by rising demand for technologically advanced high-end cars. Additionally, growing consumer preference for accurate and easy fault detection mechanism is facilitating the market growth in the region.

On the other hand, Asia Pacific is expected to witness strong growth during the forecast period. Growing demand for luxury and comfort cars and stringent government emission norms are some of the major factors contributing to the growth automotive diagnostic scan tools in the region.

Market Dynamics

Drivers:

• Increasing sales of passenger cars
• Increasing technological advancements in automobiles
• Rise in stringent emission norm to prevent environmental impact

Restraints:

• High initial cost of advanced diagnostic tools
• Lack of skilled workforce

Opportunities:

• Consumer preference for high-end cars
• Vehicle inspection mandates

Challenges:

• Lack of awareness towards vehicle technologies updates
• Outdated automotive diagnostic scan tools

Key players identified in the global automotive diagnostic scan tools market include but are not limited to:

Actia Group SA, Avl List GmbH, Bosch Automotive Service Solutions, Inc., Continental AG, Denso Corp, Dg Technologies, Dsa Daten- Und Systemtechnik GmbH, Etas GmbH, General Technologies Corp., Hickok Incorporated, Kpit Technologies, Robert Bosch GmbH, Snap-On Inc., Softing AG, SPX Corp. and Others.

Recent Developments

March 2021: Robert Bosch GmbHintroduced ADS 625 X that performs all system DTC scans under 60 seconds on average, with complete scans taking 30 seconds or less. 

August 2021: Continental AG launched the Autodiagnos Drive, an innovative, remote vehicle data solution designed to deliver advanced diagnostic information that service providers, fleet managers, and repair facilities can use to maximize their data-driven services.

November 2019: Denso launched the vehicle MRI Inspection tool, which is compatible with android smartphones and tablets allowing technicians to inspect vehicles and identify underperforming parts to prescribe their customers a predictive maintenance plan quickly and accurately.

December 2020: Snap-on launched a new diagnostic website to provide even more relevant information to help customers learn about diagnostic products and services quickly. 

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Automotive Diagnostic Scan Tools market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Automotive Diagnostic Scan Tools market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Automotive Diagnostic Scan Tools market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Automotive Diagnostic Scan Tools market?
• Which is the largest regional market for Automotive Diagnostic Scan Tools market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Automotive Diagnostic Scan Tools market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Automotive Diagnostic Scan Tools market worldwide?