Automotive On Board Diagnostics - OBD Market Report 2025 (Global Edition)

Global Automotive On Board Diagnostics - OBD Market Report 2025 Market Size Split by Diagnostic Device Outlook: (Handheld, Scanner, Code Reader, Digital Pressure Tester, TPMS Tool, Battery Analyzer, P...

Automotive On Board Diagnostics - OBD Market Report Description

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Competitive Landscape of the Automotive On-Board Diagnostics - OBD Market

Leading companies in the Automotive On-Board Diagnostics (OBD) market are distinguished by their emphasis on product development, strategic alliances, and innovation. Prominent businesses like Delphi, Bosch, Continental, and Denso are investing in cutting-edge OBD systems with IoT and telematics features. Additionally, startups are joining the market with OBD solutions that are app-based and wireless. While regional businesses serve local markets, increasing the diversity of the global market, fierce rivalry propels technological breakthroughs.

In April 2023, Electric vehicles (EVs), zero-emission vehicles (ZEVs), and plug-in hybrid electric vehicles (PHEVs) can now perform Automotive On-Board Diagnostics (OBD) due to a toolchain made by Vector Informatik GmbH specifically for the most recent diagnostic standard, ZEVonUDS (SAE J1979-3). (Source: https://cdn.vector.com/cms/content/know-how/_press-releases/ZEVonUDS_PressRelease_202304_EN.pdf) In January 2023, MAHLE Aftermarket introduced RemotePRO, an additional diagnostic tool for auto repair. RemotePRO enables independent workshops to carry out intricate diagnosis and maintenance procedures. Specialists are available by chat or hotline to offer knowledgeable assistance and direction during the diagnosis procedure. (Source: https://newsroom.mahle.com/press/en/press-releases/mahle-opens-up-maximum-diagnostic-possibilities-for-independent-workshops-95488#) In July 2023, Bartec USA released the latest software update for its TPMS tool, significantly improving the Rite-Sensor's coverage. Bartec's OBD II capabilities were also enhanced, and the model year tool coverage was extended. (Source: https://www.bartecusa.com/bartec-usa-releases-their-latest-tool-update-r65-2-r5-2)

Top Companies Market Share in Automotive On Board Diagnostics - OBD Industry: (In no particular order of Rank)

• AVL DiTEST GmbH
• Continental AG
• Innova Electronics Corp.
• Intel Corp.
• iWave Systems Technologies Pvt. Ltd.
• Marelli Holdings Co. Ltd.
• Mercedes Benz Group AG
• Moj.io Inc.
• OBD Solutions LLC
• Robert Bosch GmbH
• Vector Informatik GmbH
• Verizon Communications Inc.
• Zubie Inc.
• Denso Corp.
• HELLA GmbH and Co. KG.
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Regional Analysis of the Automotive On-Board Diagnostics - OBD Market

Which Region Dominates the Automotive On-Board Diagnostics - OBD Market in 2024?

According to Cognitive Market Research, North America currently dominates the Automotive On-Board Diagnostics - OBDs market, and the region is expected to have significant growth during the projected period. This is due to strict government regulations on emissions and vehicle safety requirements that will propel the Automotive On-Board Diagnostics (OBD) market's expansion in North America. OBD systems are in great demand due to the region's widespread use of cutting-edge automotive technologies, such as connected and driverless cars. Strong customer knowledge of car upkeep and safety, along with a thriving automotive aftermarket, encourages market growth. Additionally, the existence of major automakers and tech companies encourages innovation in OBD solutions. As telematics and IoT are increasingly incorporated into automobiles, North America continues to play a major role in the growth trajectory of the worldwide OBD market.

Which Region is Expanding at the Fastest CAGR?

Asia-Pacific is expected to make significant gains during the projected period, with the greatest compound annual growth rate (CAGR). The automotive on-board diagnostics (OBD) market is anticipated to increase significantly in Asia Pacific as a result of growing vehicle ownership, rising vehicle manufacturing, and fast urbanization. OBD systems are becoming more and more necessary to meet regulatory requirements and enhance vehicle performance as a result of the region's expanding automotive sector, especially in nations like China, India, and Japan. Furthermore, the demand for sophisticated OBD solutions is being fueled by the growing use of connected automotive technologies and electric cars (EVs) in Asia Pacific. Asia Pacific is positioned as a major growth driver as a result of government policies supporting car safety and pollution reductions.

The current report Scope analyzes Automotive On Board Diagnostics - OBD Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Automotive On Board Diagnostics - OBD

According to Cognitive Market Research, the global Automotive On Board Diagnostics - OBD market size was estimated at USD 32514.6 Million, out of which North America held the major market share of more than 40% of the global revenue with a market size of USD 13005.84 million in 2024 and will grow at a compound annual growth rate (CAGR) of 23.5% from 2024 to 2031.

• According to Cognitive Market Research, the US had a major share in the Automotive On-Board Diagnostics - OBD market with a market size of USD 10261.61 million in 2024 and is projected to grow at a CAGR of 23.3% during the forecast period. In the US, OBD system advancements, including wireless and sophisticated diagnostic tools, fuel industry expansion.
• The Canada Automotive On Board Diagnostics - OBD market had a market share of USD 1560.70 million in 2024 and is projected to grow at a CAGR of 24.3% during the forecast period. The use of OBD systems in Canada is accelerated by the growing integration of sophisticated diagnostics in vehicle management systems.
• The Mexico Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 24.0% during the forecast period, with a market size of USD 1183.53 million in 2024.

Europe Automotive On Board Diagnostics - OBD

According to Cognitive Market Research, the global Automotive On Board Diagnostics - OBD market size was estimated at USD 32514.6 Million, out of which Europe held the market share of more than 30% of the global revenue with a market size of USD 9754.38 million in 2024 and will grow at a compound annual growth rate (CAGR) of 23.8% from 2024 to 2031.

• The United Kingdom Automotive On Board Diagnostics - OBD market had a market share of USD 1638.74 million in 2024 and is projected to grow at a CAGR of 24.6% during the forecast period. In the UK, OBD systems are necessary for battery health monitoring as EV usage rises, which fuels industry expansion.
• The France Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 23.0% during the forecast period, with a market size of USD 897.40 million in 2024.
• According to Cognitive Market Research, the German Automotive On Board Diagnostics - OBD market size was valued at USD 1931.37 million in 2024 and is projected to grow at a CAGR of 24.0% during the forecast period. Germany is one of the biggest auto markets, and its robust automotive sector fuels the need for OBD systems for both performance and legal compliance.
• The Italy Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 23.2% during the forecast period, with a market size of USD 838.88 million in 2024.
• The Russia Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 22.8% during the forecast period, with a market size of USD 1511.93 million in 2024.
• The Spain Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 22.9% during the forecast period with a market size of USD 799.86 million in 2024
• The Luxembourg Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 23.9% during the forecast period, with a market size of USD 302.39 million in 2024.
• The Portugal Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 23.6% during the forecast period, with a market size of USD 204.84 million in 2024.
• The Greece Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 24.1% during the forecast period, with a market size of USD 117.05 million in 2024.
• The Rest of Europe's Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 22.5% during the forecast period, with a market size of USD 1511.93 million in 2024.

Asia Pacific Automotive On Board Diagnostics - OBD

According to Cognitive Market Research, the global Automotive On Board Diagnostics - OBD market size was estimated at USD 32514.6 Million, out of which Asia Pacific held the market share of around 23% of the global revenue with a market size of USD 7478.36 million in 2024 and will grow at a compound annual growth rate (CAGR) of 27.3% from 2024 to 2031.

• According to Cognitive Market Research, the China Automotive On Board Diagnostics - OBD market size was valued at USD 3365.26 million in 2024 and is projected to grow at a CAGR of 26.8% during the forecast period. Automotive On Board Diagnostics - OBD surged in China due to the Increased focus of the manufacturers and major market players.
• The Japan Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 25.8% during the forecast period, with a market size of USD 1032.01 million in 2024.
• The India Automotive On Board Diagnostics - OBD market had a market share of USD 897.40 million in 2024 and is projected to grow at a CAGR of 29.1% during the forecast period. India's demand for OBD solutions is growing as a result of India's increasing automotive industry, especially in the passenger and commercial vehicle segments.
• The South Korean Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 26.4% during the forecast period, with a market size of USD 747.84 million in 2024.
• The Australian Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 27.0% during the forecast period, with a market size of USD 388.87 million in 2024.
• The South East Asia Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 28.3% during the forecast period, with a market size of USD 516.01 million in 2024.
• The Rest of Asia Pacific Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 27.1% during the forecast period, with a market size of USD 530.96 million in 2024.

South America Automotive On Board Diagnostics - OBD

According to Cognitive Market Research, the global Automotive On Board Diagnostics - OBD market size was estimated at USD 32514.6 Million, out of which Latin America held the market share of around 5% of the global revenue with a market size of USD 1625.73 million in 2024 and will grow at a compound annual growth rate (CAGR) of 24.7% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Automotive On Board Diagnostics - OBD market size was valued at USD 695.81 million in 2024 and is projected to grow at a CAGR of 25.3% during the forecast period. Automotive On-Board Diagnostics - OBDs flourished in Brazil due to OBD-related diagnostics, and services have a lot of prospects because of Brazil's growing automobile aftermarket.
• Argentina's Automotive On Board Diagnostics - OBD market had a market share of USD 273.12 million in 2024 and is projected to grow at a CAGR of 25.6% during the forecast period. Argentina's increasing adoption of modern vehicles.
• Colombia Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 24.5% during the forecast period, with a market size of USD 144.69 million in 2024.
• Peru Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 24.9% during the forecast period, with a market size of USD 133.31 million in 2024.
• Chile Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 25.0% during the forecast period, with a market size of USD 117.05 million in 2024.
• The Rest of Latin America's Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 23.8% during the forecast period, with a market size of USD 261.74 million in 2024.

Middle East Automotive On Board Diagnostics - OBD

According to Cognitive Market Research, the global Automotive On Board Diagnostics - OBD market size was estimated at USD 32514.6 Million, out of which the Middle East and Africa held the major market share of around 2% of the global revenue with a market size of USD 650.29 million in 2024 and will grow at a compound annual growth rate (CAGR) of 25.0% from 2024 to 2031..

• The GCC Countries Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 25.8% during the forecast period, with a market size of USD 278.32 million in 2024. Automotive On Board Diagnostics - OBD sales flourish due to the increasing adoption of luxury vehicles.
• The Egypt Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 25.3% during the forecast period, with a market size of USD 68.28 million in 2024.
• The South Africa Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 26.0% during the forecast period, with a market size of USD 102.75 million in 2024. Automotive On Board Diagnostics - OBD sales flourished in South Africa due to the need for OBD systems that produce useful data driven by the increasing significance of data analytics.
• The Turkey Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 24.5% during the forecast period, with a market size of USD 55.93 million in 2024.
• The Nigeria Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 24.1% during the forecast period, with a market size of USD 68.28 million in 2024.
• The Rest of the MEA Automotive On Board Diagnostics - OBD market is projected to witness growth at a CAGR of 24.0% during the forecast period, with a market size of USD 76.73 million in 2024.

Automotive On Board Diagnostics - OBD Market Analysis

How are Segments Performing in the Global Automotive On-Board Diagnostics - OBD Market?

Automotive On Board Diagnostics - OBD Market Diagnostic Device Segment Analysis

According to Cognitive Market Research, handheld is likely to dominate the Automotive On-Board Diagnostics - OBD Market over the forecast period. Because of their ease of use and effectiveness in conducting vehicle diagnostics, handheld diagnostic devices are becoming more and more popular in the automotive on-board diagnostics (OBD) market. These portable gadgets provide instant insights into engine performance, emissions, and system faults, making it simple for mechanics and car owners to detect and resolve concerns. Their cost-effectiveness, compatibility with different car models, and user-friendly interface all contribute to their growing appeal. Handheld OBD devices are becoming an essential tool in the professional and aftermarket automobile service industries as more customers and service providers look for effective and reasonably priced diagnostic solutions.

The mobile device is the fastest-growing segment in the Automotive On-Board Diagnostics - OBD Market. Because mobile device diagnostic tools are convenient and simple to use, there is a growing demand for them in the automotive on-board diagnostics (OBD) sector. These devices provide real-time diagnostics through smartphone apps and pair with cars via Bluetooth or Wi-Fi. Mobile OBD devices make it easier for consumers to maintain their vehicles by enabling them to track performance, discover problems, and monitor engine health from their cell phones. The market for mobile OBD diagnostic tools is expanding due to the increased popularity of do-it-yourself auto repair and the development of connected automobile technologies.

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Automotive On Board Diagnostics - OBD Market Vehicle Propulsion Segment Analysis

According to Cognitive Market Research, the IC engine segment holds the largest share of the market. Because of the need to improve vehicle performance and comply with more stringent emissions laws, there is a growing need for Automotive On-Board Diagnostics (OBD) systems in internal combustion (IC) engine vehicle propulsion. OBD systems allow for the early identification of problems by monitoring important engine parameters such as fuel economy, exhaust pollutants, and general performance. Vehicles with IC engines are guaranteed to run effectively and in accordance with regulations. OBD systems for IC engine vehicle propulsion are becoming more and more popular as a result of tougher pollution regulations and consumer demands for increased vehicle dependability. This is propelling the development of diagnostic technology.

In the Automotive On-Board Diagnostics - OBD Market, the electric vehicle has been expanding at a rapid pace. Due to the expanding EV market and the requirement for effective performance monitoring, there is a sharp rise in demand for Automotive On-Board Diagnostics (OBD) systems in EV propulsion. Critical parts, including the battery, electric motor, and energy management systems, are the focus of OBD systems in EVs. In order to guarantee optimal performance, these devices assist in monitoring battery health, energy usage, and performance. OBD solutions designed specifically for electric vehicle propulsion are becoming more and more necessary as EV usage increases in order to improve vehicle efficiency, prolong battery life, and adhere to environmental standards. This is propelling market expansion.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Automotive On Board Diagnostics - OBD Vehicle Type Outlook: Segment Analysis

Automotive On Board Diagnostics - OBD Market Vehicle Type Segment Analysis

According to Cognitive Market Research, the passenger vehicles segment holds the largest market share. Vehicle maintenance awareness and safety concerns are driving up demand for Automotive On-Board Diagnostics (OBD) systems in passenger cars. OBD systems in passenger cars keep an eye on pollutants, engine performance, and other vital elements, enabling early defect identification and lowering maintenance expenses. OBD systems must be installed in passenger cars in order to comply with increasingly stringent regulatory rules on emissions and safety standards. Additionally, the demand for sophisticated OBD systems in the passenger vehicle market is increased by the growing trend of linked cars and smart mobility solutions.

In the Automotive On-Board Diagnostics - OBD market, the rapidly growing sector is the light commercial vehicles category. The growing need for effective fleet management and regulatory compliance is driving up demand for Automotive On-Board Diagnostics (OBD) systems in light commercial vehicles (LCVs). OBD systems in LCVs keep an eye on vital parts like the engine, gearbox, and emissions systems, assisting in the early detection of problems and enhancing vehicle uptime. OBD technologies facilitate improved maintenance scheduling and fuel economy as companies concentrate on lowering operating expenses and enhancing vehicle performance. OBD solutions are also essential for light commercial cars to comply with environmental rules due to tighter emissions standards, which further fuels market demand.

• Two-Wheeler Vehicles
• Passenger Vehicles
• Light Commercial Vehicles
• Trucks
• Buses & Coaches

Automotive On Board Diagnostics - OBD Application Outlook: Segment Analysis

Automotive On Board Diagnostics - OBD Market Application Segment Analysis

According to Cognitive Market Research, the fleet management segment dominates the market. Automotive On-Board Diagnostics (OBD) systems are becoming more and more necessary in fleet management applications as companies place a higher priority on economical and effective vehicle operation. Real-time fleet performance monitoring, including driver behavior, fuel economy, and engine health, is made possible via OBD systems. OBD systems help lower maintenance costs, eliminate downtime, and increase vehicle longevity by identifying problems early. Furthermore, OBD devices enhance overall fleet safety and make it easier to comply with emissions requirements. The use of sophisticated OBD systems for improved tracking, diagnostics, and predictive maintenance is growing as fleet operators look for ways to streamline their operations.

Consumer telematics is projected to be the fastest-growing segment in the Automotive On-Board Diagnostics - OBD market. In consumer telematics applications, the need for Automotive On-Board Diagnostics (OBD) systems is increasing as more drivers look for data-driven, connected car solutions. OBD devices allow for real-time car monitoring via smartphone apps, giving users information about maintenance requirements, fuel economy, and engine health. This improves the user experience by providing diagnostics, driving behavior analysis, and predictive maintenance notifications. OBD systems are increasingly indispensable for customers seeking to maximize vehicle performance, guarantee safety, and cut expenses due to the growing popularity of linked automobiles and smart mobility solutions. This is propelling the market expansion for telematics applications

• Driver Behavior Monitoring
• Emission Testing
• Supplementary Instrumentation
• Consumer Telematics
• Usage-based Insurance
• Fleet Management
• Car Sharing
• Others

Automotive On Board Diagnostics - OBD Diagnostic Type Outlook: Segment Analysis

Automotive On Board Diagnostics - OBD Market Diagnostic Type Segment Analysis

According to Cognitive Market Research, the remote diagnostic segment leads the market. In the Automotive On-Board Diagnostics (OBD) market, the need for remote diagnostics is expanding quickly as cars become increasingly connected. Remote diagnostic tools give fleet managers and service providers remote access to real-time vehicle data, facilitating proactive maintenance and early problem discovery. This improves the overall performance and safety of the vehicle while lowering downtime and repair expenses. Additionally, customers and service centers are using remote diagnostics more frequently for effective troubleshooting, which eliminates the need for in-person inspections. With the development of linked car technologies, the need for remote diagnostic capabilities keeps propelling the OBD market.

Cloud diagnostic is projected to be the fastest-growing segment in the Automotive On-Board Diagnostics - OBD market. As the automobile industry uses cloud-based technologies, there is an increasing need for cloud diagnostics in the automobile On-Board Diagnostics (OBD) market. Cloud diagnostic systems give greater insights into vehicle performance, maintenance requirements, and possible problems by enabling the real-time storing and processing of vehicle data. Service providers and fleet operators can remotely access diagnostic data by utilizing cloud platforms, which enables preventive maintenance, lowers downtime, and boosts operational efficiency. The market for OBD systems is expanding as cloud diagnostic solutions are being adopted more frequently, and linked and smart cars are becoming more common.

• Remote Diagnostic
• Cloud Diagnostic

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Sumedha Gosavi

Research Associate at Cognitive Market Research

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