Vehicle Diagnostics Market to Surge at a CAGR of Around 7.25% During 2025-30

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The Global Vehicle Diagnostics Market size was valued at around USD42.19 billion in 2024 and is projected to reach USD64.22 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 7.25% during the forecast period 2025-2030, cites MarkNtel Advisors in the recent research report. The vehicle diagnostic industry is growing rapidly because modern vehicles are increasingly becoming complex and equipped with advanced electronics, sensors, and software. Nowadays, cars, buses, and trucks are fitted with advanced electronic systems, such as advanced driver-assistance systems, autonomous driving technologies, infotainment systems, and electric powertrains. These developments necessitate much more advanced and accurate diagnostic tools to perform optimally. All these factors increase the demand for advanced diagnostic tools and software so that these systems are suitably overseen and maintained, thereby providing fuel to the market growth.

Furthermore, with increasing environmental concerns and strict emission legislation, the automotive sector is rapidly accelerating towards electric and hybrid vehicles. In most countries, policies and incentives are devised and implemented to help reduce carbon emissions, thus compelling car manufacturers to increase the production of EVs and hybrid cars. Also, heightened awareness and demand for cleaner transportation by consumers have massively improved EV range, performance, and affordability, together with better technology.

These electric vehicles bring new complications requiring advanced and efficient diagnostic systems. EVs and hybrids have innovative systems that must be addressed, such as high-voltage batteries, electric motors, power electronics, and regenerative braking, which require individually tailored diagnostic solutions. Besides, there are sophisticated software and control systems found in these vehicles that create a need for diagnostic tools that can handle data analysis and software updates. This rapidly growing landscape is creating huge demand for vehicle diagnostic systems and solutions across the world, thereby resulting in high growth in the vehicle diagnostics industry, further states the research report, “Global Vehicle Diagnostics Market Analysis, 2025.”

Global Vehicle Diagnostics Market Segmentation Analysis

Service Centers & Workshops are the Primary End-Users of the Vehicle Diagnostics Industry

Based on end users, the market is further segregated into Automotive OEMs, Service Stations & Workshops, Fleet Operators, and Government & Regulatory Bodies. Out of them all, the service centers and workshops segment holds a considerable market share in the global market, around 47%, owing to the high demand for diagnostic tools from a variety of vehicles getting checked. Service stations and workshops have an immense diversity of vehicles available from different brands. This therefore presents them with different diagnostic tools suiting different kinds of vehicles and models, thereby surging their demand and adoption in service centers. Moreover, since service centers & workshops present services to different consumer bases, they invest heavily in new and technologically advanced diagnostic tools, further increasing their adoption.

Moreover, the fleet in many countries consists of older vehicles that can be used for a longer time, thus increasing the demand for diagnostics in service stations and workshops. Older vehicles require frequent servicing and frequent repairs, so identification of upcoming problems at an early stage can help avoid costly failures. Independent workshops and service stations are major providers of such services and are, anyway, more common in older cars outside warranty or service campaigns from OEM stations, which is increasing the adoption of diagnostic tools in the service centers, propelling market growth.

Europe Leads the Global Vehicle Diagnostics Industry

The Europe region commanded an outstanding share of the total global market by nearly 33%. The stringent regulations of the authority in Europe regarding vehicle emissions and safety increased the demand for installing the latest onboard diagnostics in vehicles. For example, EU Euro 6 demands complete monitoring of the emission; advanced diagnostic tools, in this case, become very critical in the process. This creates a huge demand for diagnostic solutions that will correctly monitor and report on emissions and vehicle performance. Additionally, the key vehicle manufacturers, as well as tier-one suppliers, are located in Europe. The companies such as BMW, Volkswagen, etc., are deeply rooted and known for innovation in the field of vehicle technologies. This drives demand for diagnostic systems to handle new models and technologies, particularly in e-mobility and hybrid drivetrains.

The European market stands equally excellent in terms of technology adoption levels and emphasis on safety and vehicle maintenance. As a result, European consumers and fleet operators offer growing demand for advanced diagnostic solutions related to real-time data, predictive maintenance, and better vehicle performance monitoring. Furthermore, this demand is also substantiated by developed vehicle repair and maintenance infrastructure in the region, which includes a widespread network of authorized service centers and several independent workshops that are well-equipped with the latest diagnostic tools, thereby forming an expansive support network and aiding the growth of the European Vehicle Diagnostics Market.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading vehicle diagnostics companies, including Robert Bosch GmbH, Continental AG, Delphi Automotive PLC, Onstar LLC, Snap-On Inc., Magneti Marelli, Softing AG, VOXX International Corporation, Vector Informatik, Vidiwave Ltd., Pioneer Incorporation, Alpine Electronics Inc., Garmin Ltd., Harman International, Denso Europe B.V., and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the globe?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across various regions?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2020-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?