Automotive remote diagnostics: Key market research findings
- Adoption of new business models by original equipment manufacturers (OEMs) to drive the market
- Majority of the market share comes from the passenger car segment
- Key vendors—Robert Bosch GmbH, Continental AG, OnStar, Vector, and Vidiwave
Technavio’s market research analysts estimate the global automotive remote diagnostics market to grow at a CAGR of over 14% between 2016 and 2020. The exploration of untapped revenue sources as a business model by OEMs is the fundamental driver for the market. Vehicle OEMs and Tier-I players are making significant investments in telematics applications and services to sustain the competition in a market characterized by increasing consumer demands. The expansion of the used passenger and commercial vehicles market, the rise in demand for efficient fleet management solutions and the rapid increase in electronic content in vehicles are some of the factors that are likely to propel growth of the market during the forecast period. At present, the Americas dominate the global automotive remote diagnostics market by accounting for almost 45% of the overall market share. Feature upgrades and new business models aimed at developing additional revenue streams for OEMs are likely to further drive the market in this region by 2020.
The new market research report from Technavio presents a breakdown and analysis of the automotive remote diagnostic segments by vehicle type.
“The increase in the integration of mobile phones with telematics systems and vehicle diagnostic-based insurance programs is the latest trend in the market. The market is registering a growing number of vehicle diagnostic mobile apps for use with on-board diagnostics (OBD) devices or dongles. The evolution of automotive remote diagnostics into a new advanced connected technology called prognostics is yet another noteworthy trend in the market currently,” says Siddarth Jaiswal, Lead Analyst, Automotive, Technavio Research.
In 2015, the worldwide automotive remote diagnostics market was dominated by the passenger car segment which accounted for more than 74% of the overall market share. This segment of the market is thriving due to its first-mover advantage. There is also an increased penetration of remote diagnostics, which was previously exclusive for luxury vehicles, through bundled offerings.
The key vendors in the global automotive remote diagnostics market include Robert Bosch GmbH, Continental AG, OnStar, Vector, and Vidiwave. Competition in this market is expected to intensify during the forecast period because all the large OEMs will offer connected car offerings. Several new players are expected to enter the market as the value chain is expanding in step with newer business models.
A more detailed analysis is available in the Technavio report, Global Automotive Remote Diagnostics Market 2016-2020.
We can customize reports by other regions and specific segments upon request.
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