The global market for heavy truck on-board diagnostic (OBD) systems is expected to grow by $210 million from its 2014 value, to reach $699.15 million in 2019, according to a new report from Technavio.
These diagnostics systems take a two-pronged approach to making transport trucks and large passenger vehicles more efficient. The first is threshold monitoring, which ensures effective operation and measurement of the emission control equipment of a vehicle. It also provides vehicle emission data that are used in inspection and maintenance programs for reducing in-use emissions.
Then there’s comprehensive component monitoring. This includes performance monitoring and acts as a valuable tool for drivers and technicians by providing engine and component operations information, through which maintenance requirements can be identified.
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Technavio analysts have identified three key trends expected to boost sales of OBD systems for heavy-duty trucks over the forecast period.
Shift in focus toward remote diagnostics
OBD systems use remote diagnostics to identify a fault or a potential malfunction in the component functionality of a vehicle and transmit the relevant trouble codes to a remote data center. The data center then collects and interprets the data, and send them to the driver or technician in question.
These remote systems are in high demand for use in both passenger and commercial vehicles, as they help in preventive maintenance and scheduling vehicle service cycles, which in turn helps reducing vehicle downtime and breakdowns.
Segmentation of heavy truck OBD systems market by component revenue, 2015
Source: Technavio, 2015
Change in focus from OBD hardware to software
The shift in focus of OBD manufacturers from hardware (like OBD terminals) to a software interface is an emerging trend influencing market growth.
OBD system manufacturers are investing in software that provides end-to-end solutions for preventive maintenance through a connected car concept. This allows the software to extract, analyze, and transmit data from the vehicle’s OBD system to the driver’s server-side endpoints, in any format, enabling the driver to easily integrate vehicle, accelerometer, and location data into mobile apps.
The OBD terminal is also expected to integrate other function modules like air purification and voice recognition, by using advanced software algorithms to evolve into multifunctional and intelligent systems.
OBD telematics
Players in the OBD systems market are focusing on the development of integrated OBD telematics. Typically, these systems include:
- OBD terminal: This is the hardware components of the OBD system including panels, sensors, cables, and display interface
- OBD software: This is the platform for communication between the equipment and the driver or technician. With the introduction of mobile phone connectivity with the vehicle, many companies are developing mobile software applications that communicate with the vehicle’s OBD system
- Cloud platform: The data collected from the OBD systems are transmitted to a remote cloud platform where the data are interpreted, and relevant information is passed on to mobile applications
The telematics market is at a nascent stage, and many OBD providers are focusing on leveraging this technology and integrating OBD telematics systems in vehicles. In January 2015, Automatic, along with Nest, a smart thermostats company, developed smart home controller OBD products. In 2014, Zubie, a startup providing automotive safety technologies, entered into a data exchange agreement with PEQ, which provides software and services for SmartHome Ventures, to collaboratively develop an integrated software that connects the OBD system with mobile apps.
