As per the global diagnostic tools for EVs market analysis report, the total valuation of the market is estimated to be around USD 1,628.1 million for 2023. During the forecast period, the demand for diagnostic tools for EVs is expected to develop at an impressive rate of 12.8%. Based on these estimates, the global diagnostic tools for EVs market is expected to reach roughly USD 5,401.6 million by 2033.
Increasing HEV (Hybrid Electric Vehicles) and PHEV (Plug-in HEV) adoption for personal as well as commercial purposes are expected to remain the primary driver for EV diagnostic tools. The rising inclination for premium electric vehicles that deliver maximum performance is also fueling the need for diagnostic tools to a certain degree.
The period of rapid sales of electric vehicles is over or has at least come to a halt, other markets connected to electric vehicles are still experiencing a favorable trajectory. The deployment of modern software technology that enables better analysis and record of diagnosis data is expected to bode well in this market.
Electric vehicles are also looking to acquire favor by portraying the use of EV diagnostic equipment for their products as a unique selling factor. Reduction in cost alongside a successful transition to cutting-edge technology is expected to boost the demand for diagnostic tools for EVs in the coming years.
The construction of new charging stations is a hurdle that will persist for a while now and hinder the EV as well as other associated markets. In many regions, such infrastructure is currently insufficient which is expected to remain a key challenge for the market.
| Attributes | Details |
|---|---|
| Market Share (2022) | USD 1,437 million |
| Market Size Value (2023) | USD 1,628.1 million |
| Market Size Value (2033) | USD 5,401.6 million |
| Market Growth Rate (2023 to 2033) | 12.8% |
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EV sales increased by more than 50% annual rate between 2018 and 2020 and were expected to show robust growth ahead. However, vehicles sold in 2020 fell by 25%, which was constraining for the electric vehicle allied markets as well. Despite this dip in overall sales of EVs, the global diagnostic tools for EVs market development climbed by 9.6% CAGR between 2018 and 2022, reaching USD 1,437 million.
The diagnostic tool for EVs is expected to grow significantly in the coming days, owing to rising sales of electric vehicles in environmentally concerned nations. Moreover, there is a rising international and national movement for them. Hence, market participants predict a notable increase in the adoption of diagnostic tools for EVs throughout the projected timeframe.
The comparatively higher development of the global EV market reflects both an average rise in the industry and a notable hike in sales of diagnostic tools for EVs. The substantial growth in the establishment of companies providing a diagnostic tool for EVs also represents the government's objective of encouraging electric mobility. The biggest barrier that might stymie the market opportunities is the additional cost of monthly or yearly plan purchases of diagnosis services.
Based on the different offerings of global diagnostic tools for the EVs market, the hardware category is the leading segment in terms of value. This segment was recorded to have contributed around USD 98,147.1 million in the year 2022. This value was figured out to be 68.3% of the overall revenue generated by the market that year globally.
Different types of diagnostic services have grown in popularity in recent years of the effort of EV manufacturers to extend such services. Also, the EV diagnostic software tool is expected to increase significantly throughout the projected period with the adoption of digital technology. As vehicle system testing software enables total control over the engine, this sub-segment of diagnostic software is getting more emphasis in recent years.
As per the market analysis report, the USA is a prominent nation in the advancement of all types of the EV market. It was recorded to have generated a revenue of USD 165 million from the sales of diagnostic tools for EVs in 2022. This value is figured out to be around 11.5% of the overall market, which is higher in comparison to all other countries.
The presence of many leading companies investing a higher amount in the research and development of EV diagnostic equipment is expected to drive the market in the USA. Since the early years, the USA OEMs have earned credits for most diagnostic tools for EVs developed and adopted in the world. As per industry experts, the USA is also projected to remain the leading country in the development and advancement of modern equipment for the diagnosis of electric vehicles in the coming days.
Many Western European Union nations have witnessed a rapid rise in the overall adoption of EVs in the last few years. Other businesses linked with diagnostic tools for EVs have also witnessed considerable growth, setting a global trend.
Germany and the United Kingdom collectively lead the European diagnostic tool for the EVs market and are expected to retain their control during the projected period. Germany generated a revenue of around USD 145 million in the year 2022 through the sales of diagnostic tools for electric vehicles. In the next ten years, it is projected to retain its dominance in the European region and reach a valuation of 145 million by 2033.
the United Kingdom is expected to witness significant growth in sales of diagnostic tools for EVs in the regional market. According to the recently released report by FMI, it is expected to develop at an annual growth rate of 12.4% during the forecast years.
China is manifesting itself as a strong competitor of western countries in the development and use of all types of electric mobility market sectors these days. FMI finds the year-on-year growth rate in sales of diagnostic tools for EVs in China which would be around 10.1% through 2033. It entered the market with the presence of prominent renowned electric automotive manufacturing companies and a strong industrial base for tools and equipment.
The electric vehicle diagnostic tools market in Japan is also predicted to expand significantly, particularly in the hardware category. In the Asia Pacific region, Japan remains a strong competitor of China in the production and supply of diagnostic tools for electric vehicles. By the year 2033, Japan is figured out to become a market worth more than USD 76 million in sales and export of diagnostic tools for EVs.
The upgrading outlook of India is expected to own a substantial proportion of the global diagnostic tool for the EVs market. The federal government provides purchase incentives for electric cars and has also increased the subsidy amount of electric transport vehicles for commercial purposes. Subsequently, the demand and sales of diagnostic tools for EVs in the country have reached a noteworthy level in the present times.
During the forecast period, the demand for diagnostic tools for EVs in India is likely to grow by 14.2% and become a determining market. Australia is likely to be the emerging market that might provide significant potential for global diagnostic tools for EV businesses. As per the estimates, this country is projected to garner nearly USD 43.5 million in revenue from its diagnostic tools for the EVs market by 2033.
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A diagnostic tool for EVs is a must-have for every EV servicing and repair facility that saves a lot of time when diagnosing any problem. The market is expected to grow significantly due to rising EV sales and greater coordination of workflow and design flow.
The global diagnostic tool for the EV market looks to be fairly diversified and competitive after the emergence of many new players recently. Prominent diagnostic tools for electric vehicle makers are experimenting with various techniques to combine breakthrough technology while further reducing tool costs. Continental, Delphi Automotive Plc, and Actia Group SA are among the leading competitors in the worldwide automotive diagnostic tool for the EVs industry.
With the rapid pace of technological breakthroughs and incorporation in the electric mobility sector, the diagnostic tool for it is also evolving constantly. Therefore, global diagnostic tools for electric vehicle manufacturers must also boost their research and development operations to remain competitive in the market.
The global diagnostic tools for EVs market is anticipated to register a CAGR of 12.8% during the forecast period.
The global diagnostic tools for EVs market is predicted to be valued at USD 5,429.7 million by 2033.
The global diagnostic tools for EVs market was valued at USD 1,437 million in 2022.
The United States accounts for 11.5% share of global diagnostic tools for EVs market alone.
India is predicted to witness a CAGR of 14.2% in the diagnostic tools for EVs market.
| Estimated Size, 2024 | USD 38,204.7 million |
|---|---|
| Projected Size, 2034 | USD 68,418.8 million |
| Value-based CAGR (2024 to 2034) | 6.0% |
| Estimated Market Size (2024E) | USD 39.7 billion |
|---|---|
| Projected Market Value (2034F) | USD 78.1 billion |
| Value-based CAGR (2024 to 2034) | 7% |
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