New Delhi: The global auto industry is evolving fast towards automation, smart mobility and with this transition, demands for remote diagnostics market is increasing fast.
A recent study by Future Market Insights (FMI) has predicted that the automotive global remote diagnostics market will grow at a CAGR of nearly 18 per cent through 2028.
The factors that will play a key role behind this growth include increasing focus of automakers on reducing maintenance cost and downtime, increasing integration of IoT, the emergence of connected cars.
As the study says, reduced maintenance and service downtime, along with the identification of the bottlenecks beforehand has helped the automakers to focus more on remote diagnostics. The value-added advantages have helped in the growth of such technologies.
The remote diagnostics not only helped the vehicle manufacturers to reduce cost but have been beneficial for the vehicle owners as well. Identifying the potential downturns, defects and shortcomings of the vehicles in advance have helped the owners to save money.
With aid of the remote diagnostics systems, total time and cost spent during maintenance too have reduced significantly, eventually helping in the growth of demands for remote diagnostics market.
Europe will remain the leading market
The study finds that Europe will continue to be the biggest market for automotive remote diagnostics systems, trailed by North America. The robust infrastructure development activities and economic stability in Europe boost the sales of both passenger cars and commercial vehicles. This has helped in the growth of automotive remote diagnostics market there.
Eas Asia too will remain a lucrative market for the automotive remote diagnostics technologies, predicts the study, with the sales projected to grow at a CAGR of more than 20 per cent through 2028.
Electrification of vehicles has directly influenced the growth of the automotive remote diagnostics. The study says that as the connected car ecosystem, integration of IoT and connected devices increase, growth of the automotive remote diagnostics market will continue.
Automotive remote diagnostics equipment to lead the market share
Software and hardware both form integral parts of an automotive remote diagnostics. The study says that equipment will continue to lead the market share, owing to the periodical replacement and maintenance activities. Softwares are installed on that hardware and renewed on the basis of subscription. The study also points out the high growth potential of software solutions.
In the commercial vehicle segment, automotive remote diagnostics will continue to witness robust growth, claims the study. Increasing growth in logistics & transportation, e-commerce, warehousing will lead to more growth in light commercial vehicles sales, says the study. It also says that this trend will fuel further growth for the automotive remote diagnostics market.
Leading players to strengthen supremacy
Currently, the global automotive remote diagnostics market’s bulk shares are attributed to leading players and that will remain the same in future as well, claims the study. It also predicts that complexity and extensive R&D investments required to provide a total solution will continue to pose a barrier to new entrants in the segment.
This will establish further supremacy of the leading players that include Robert Bosch GmbH, Tech Mahindra Limited, Continental AG, Verizon, Magneti Marelli S.p.A., IBM, and Harman International etc.