Automotive Diagnostic Scan Tool Market

Automotive Diagnostic Scan Tool Market Outlook from 2024 to 2034

The automotive diagnostic scan tool market size is estimated to reach USD 39.7 billion by the end of 2024. The sector is anticipated to experience robust growth at a CAGR of 7% in the forecast period, thereby taking the size to USD 78.1 billion by 2034.

The industry is likely to undergo profound changes driven by technological advancements, regulatory requirements, and shifting industry dynamics. The automotive industry is poised for significant transformation during this period, with the rise of electric vehicles (EVs), autonomous driving technologies, and connected car features reshaping vehicle architectures and driving demand for advanced diagnostic capabilities.

Attributes	Description
Estimated Automotive Diagnostic Scan Tool Market Size (2024E)	USD 39.7 billion
Projected Automotive Diagnostic Scan Tool Market Value (2034F)	USD 78.1 billion
Value-based CAGR (2024 to 2034)	7%

In the forecast period, the sector is anticipated to experience steady growth as automotive manufacturers and aftermarket service providers invest in diagnostic scan tools equipped with enhanced features and functionalities. This phase is projected to witness a surge in demand for wireless diagnostic solutions, cloud-based diagnostics platforms, and predictive analytics tools, enabling faster and more accurate troubleshooting of vehicle issues.

In the later years of the forecast period, the sector is estimated to enter a phase of rapid evolution and innovation. The widespread adoption of autonomous vehicles and connected car technologies, such as car scanner apps, is set to usher in a new era of diagnostic requirements, with diagnostic tools needing to validate and test complex systems.

Manufacturers are anticipated to invest in developing specialized diagnostic solutions capable of ensuring the safety, reliability, and performance of these cutting-edge technologies. They are set to pave the way for a new generation of diagnostic scan tools tailored to autonomous and connected vehicles.

The rise of mobility-as-a-service (MaaS) models and shared mobility platforms is projected to create new opportunities for diagnostic scan tool manufacturers. As the automotive industry embraces a more service-oriented and data-driven model, diagnostic scan tools are set to evolve to meet the changing needs of mobility service providers, offering integrated solutions for vehicle health monitoring, predictive maintenance, and performance optimization.

Key Industry Highlights

Rising Complexity of Modern Vehicles to Boost Demand

Continuous advancements in automotive technology, including the integration of electronic systems, advanced car sensors, automotive scan tools, and connectivity features, are driving the demand for sophisticated diagnostic scan tools capable of diagnosing complex vehicle issues. Stringent emissions regulations and safety standards imposed by governments worldwide are compelling automotive manufacturers to invest in diagnostic scan tools to ensure compliance and meet regulatory requirements, driving growth.

The increasing complexity of modern vehicles, with intricate electronic systems, onboard computers, and advanced driver assistance systems (ADAS), is fueling the need for diagnostic solutions that can accurately diagnose and troubleshoot a wide range of vehicle issues.

Need for Special Training and High Cost to Hamper Demand

The high cost of diagnostic scan tools, especially those equipped with advanced features and capabilities, can be a barrier to adoption for smaller automotive repair shops and independent technicians, limiting industry penetration. The complexity of modern diagnostic tools and the need for specialized training to operate these effectively create a skills gap among automotive technicians, hindering the widespread adoption of advanced diagnostic solutions and limiting growth.

Compatibility issues between diagnostic scan tools and vehicle models can pose challenges for technicians, particularly in multi-brand repair shops or when working with older vehicles, impacting the usability and effectiveness of diagnostic solutions. The automotive diagnostic scanner market is highly fragmented, with numerous players offering a wide range of products and solutions, leading to sector saturation, price competition, and commoditization of basic diagnostic tools.

Rising Adoption of EVs to Bolster Expansion of Aftermarket Services

The growing adoption of electric vehicles (EVs) and hybrid vehicles presents opportunities for diagnostic scan tool manufacturers to develop specialized diagnostic solutions tailored to assess battery health, electric drivetrain performance, and charging system functionality. The integration of artificial intelligence (AI) and Internet of Things (IoT) technologies into diagnostic scan tools enables advanced features, creating new opportunities for innovation and differentiation in the sector.

The expansion of automotive industry in emerging economies presents opportunities for diagnostic scan tool manufacturers to tap into new customer segments and geographic regions where vehicle ownership is on the rise. The growing demand for aftermarket services creates opportunities for diagnostic scan tool manufacturers to offer integrated solutions that cater to the needs of automotive repair shops, dealerships, and fleet operators.

Integration of Telematics Systems to be a Key Trend

With the increasing adoption of electric vehicles (EVs), diagnostic scan tools are evolving to support the unique diagnostic needs of electric drivetrains, battery management systems, and charging infrastructure. Diagnostic scan tools are integrated with telematics systems and connected car platforms to access real-time vehicle data, monitor vehicle health remotely, and deliver predictive maintenance insights.

Diagnostic scan tools are becoming increasingly versatile, supporting multi-brand and multi-system compatibility to cater to the diverse needs of operators. Universal diagnostic platforms offer comprehensive vehicle coverage, enabling technicians to diagnose and repair vehicles from different manufacturers with a single diagnostic tool.

Country-wise Insights

India’s Booming Automotive Aftermarket Industry Pushes Demand for Diagnostic Solutions

The automotive diagnostic scan tool market in India is experiencing robust growth, driven by the country's expanding automotive aftermarket industry, increasing vehicle ownership, and rising demand for diagnostic solutions. The sector is characterized by a large number of independent repair shops, service centers, and aftermarket retailers catering to a diverse customer base.

The country's automotive industry is embracing technological advancements, including the adoption of diagnostic scan tools with features such as wireless connectivity, cloud-based diagnostics, and predictive analytics. There is a growing demand for advanced diagnostic solutions capable of diagnosing a wide range of vehicle issues across different vehicle makes and models.

Spain is Experiencing Increased Adoption of Advanced Diagnostic Scan Tools

Spain's automotive diagnostic scan tool market is characterized by steady growth, driven by the country's automotive aftermarket sector, which comprises a mix of independent repair shops, dealership service centers, and aftermarket retailers. The sector is influenced by factors such as vehicle fleet composition, regulatory requirements, and technological advancements.

The automotive industry in Spain is witnessing increased adoption of advanced diagnostic scan tools equipped with features such as real-time data streaming, system diagnostics, and remote diagnostics capabilities. There is a growing demand for diagnostic solutions capable of addressing complex vehicle issues and supporting advanced automotive technologies.

Canada’s Automotive Sector Progressively Embraces Novel Technological Innovations

Canada's automotive diagnostic scan tool market is characterized by steady growth, driven by factors such as vehicle ownership rates, aftermarket service demand, and technological advancements. The sector comprises a diverse ecosystem of automotive repair shops, dealership service centers, and aftermarket retailers.

The country’s automotive industry is embracing technological innovations in diagnostic scan tools, including wireless connectivity, cloud-based diagnostics, and predictive analytics. There is a growing demand for diagnostic solutions capable of diagnosing complex vehicle issues, supporting advanced automotive systems, and enhancing service efficiency.

Category-wise Insights

Dynamometers to be Highly Preferred by Automakers Globally

Dynamometers play a crucial role, particularly in the automotive diagnostic scan tool market, in performance testing and calibration of vehicles. There are various types of dynamometers, each serving specific diagnostic and testing purposes.

Chassis dynamometers are set to be widely used to measure the performance and emissions of vehicles under simulated driving conditions. These allow technicians to assess vehicle performance parameters in a controlled laboratory or testing environment.

Engine dynamometers are projected to be used to measure the performance characteristics of internal combustion engines. Hydraulic dynamometers utilize hydraulic fluid to load and control the output of engines or drivetrain components during testing.

Wi-Fi Tools to Find Extensive Use across the Globe with High Convenience

The demand for Wi-Fi automotive diagnostic scan tools is rising due to the increasing complexity and sophistication of modern vehicles. As cars become more advanced with numerous electronic systems and sensors, the need for efficient and accurate diagnostics has grown.

Wi-Fi diagnostic tools offer the convenience of wireless connectivity, allowing mechanics and car owners to easily connect their smartphones, tablets, or laptops to the vehicle's onboard diagnostics system. This wireless functionality enables more flexible and accessible diagnostics, facilitating real-time data monitoring, remote diagnostics, and software updates without the need for physical cables.

Competition Outlook

The competition outlook for the automotive diagnostic scan tool market is expected to remain intense, driven by several factors shaping the industry landscape. It is set to be fueled by technological innovations, with companies striving to develop advanced diagnostic solutions with enhanced features, capabilities, and performance. The sector is likely to witness increased consolidation and merger and acquisition activity as companies seek to strengthen competitive positions, expand product portfolios, and gain access to new markets and customers.

Competition is projected to intensify as automotive diagnostic scan companies expand into emerging markets such as Asia Pacific, Latin America, and Africa, where rising vehicle ownership, urbanization, and disposable income levels present growth opportunities.

Companies are likely to invest in establishing a strong presence, distribution networks, and partnerships in these sectors to capitalize on the growing demand for diagnostic scan tools and aftermarket services. Companies that can differentiate themselves through innovation, customer-centric strategies, global expansion, and strategic collaborations will be well-positioned to succeed in this competitive market landscape.

For instance

• In April 2024, MAHLE Aftermarket, a Germany-based company, launched MAHLE TechPRO® and BRAIN BEE Connex, two second generation workshop diagnostic tools.
• In April 2024, United States-based Launch Tech USA introduced access to Nissan Security Gateway, which is now available on the company’s wide range of scan tools.

Key Segments of Market Report

By Tool Type:

On the basis of tool type, the industry is divided into scanners, code readers, TPMS tools, digital pressure testers, battery analyzers, exhaust gas analyzers, wheel alignment equipment, paint scan equipment, dynamometers, headlight teaser, fuel injection diagnostics, pressure leak detection.

By Mobility Type:

The sector is bifurcated into handheld and fixed.

By Connectivity Type:

The sector is divided into USB, Wi-Fi, and Bluetooth.

By Vehicle Type:

Two primary types of vehicles include passenger cars and commercial vehicles.

By Region:

Based on region, the market is spread across North America, Latin America, Western Europe, Eastern Europe, Asia Pacific excluding Japan, Japan, and the Middle East and Africa.

Frequently Asked Questions

How big is the automotive diagnostic scan tool market?

The industry is estimated to reach USD 39.7 billion by 2024.

What is the anticipated growth rate of the industry?

The sector is expected to rise at a CAGR of 7% by 2034.

What is the estimated automotive diagnostic scan tool market size?

The market is projected to reach USD 78.1 billion by 2034.

Who are the key players in the sector?

ACTIA Group, DG Technologies, and Crawford United Corporation.

Which tool type segment is leading the industry?

Code readers.