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Evolution of Automotive Remote Diagnostics to Prognostics Will Drive the Global Automotive Remote Diagnostics Market Through 2020, Says Technavio
[May 24, 2016]

Evolution of Automotive Remote Diagnostics to Prognostics Will Drive the Global Automotive Remote Diagnostics Market Through 2020, Says Technavio


The global automotive remote diagnostics market is expected grow at a CAGR of 14% during the forecast period, according to Technavio's latest report.

In this report, Technavio covers the market outlook and growth prospects of the global automotive remote diagnostics market for 2016-2020. The market is further categorized into two product segments, passenger cars and commercial vehicles with passenger cars dominating the market with over 74% penetration.

"The current demographic scenario across the globe consists of a high component of technology-savvy population that is keen to adopt technology in every aspect of life. Such demographics represent an added advantage for the market as their buying criteria depends heavily on technological features, digital capabilities, and low maintenance, in addition to value for money," says Siddharth Jaiswal, a lead automotive electronics research expert from Technavio.

Technavio's research study segments the global automotive remote diagnostics market into the following regions:

  • Americas
  • EMEA
  • APAC

Americas: largest market for remote diagnostics solutions

The automotive remote diagnostics market in the Americas is expected to reach approximately USD 9 billion by 2020, growing at a CAGR of over 13%, making it the largest market for remote diagnostics solutions in the world.

The evolution of the vehicle diagnostics market in this region dates back to the 1990s when the US government mandated the implementation of on-board diagnostics (OBD). The OBD system market has come a long way since its inception in the US, with new innovations in the form of OBD connectivity, embedded display systems, and telematics, among others. Remote vehicle diagnostics has thus captured a place from the extension of the traditional OBD and also as a part of connected car offerings that consist of various telematics applications and services.

Further, the US New Car Assessment Program (US NCAP) may have an effect in deepening penetration levels of remote vehicle diagnostics. The US NCAP (through its rating mechanisms) encourages OEMs to incorporate all possiblesafety features in vehicles. Thus, Technavio believes that remote vehicle diagnostics will continue to penetrate the automotive market in the Americas in all vehicle segments.



Ask for a sample of this report: http://goo.gl/4LaLGd

EMEA: stringent emission and fuel economy norms to propel growth


The automotive remote diagnostics market in EMEA is expected to exceed USD 6 billion by 2020, growing at a CAGR of over 12%. The automotive diagnostics market in EMEA has evolved since the early 2000s when the EU government's requirement for mandatory OBD systems in all vehicles came into force. But not many vehicle manufacturers worked to introduce remote vehicle diagnostics as the OBD port could do everything possible to perform vehicular performance checks. Therefore, remote vehicle diagnostics were prevalent only in developed regions of Europe such as the UK, Germany, France, and Italy with several global luxury automobile manufacturers such as BMW, Audi, Mercedes-Benz, and Volkswagen.

However, Europe's stringent emission and fuel economy norms are expected to have a positive impact on the vehicle diagnostics market. This market is expected to register steady growth backed by increasing usage of electronic components, connected car offerings from luxury to mid-level and entry-level segments, and a shift toward preventive maintenance due to expensive repair costs in the region.

The Middle East will witness a higher uptake of telematics applications and services because of the presence of a high population of ultra-high-net-worth tech-savvy individuals. However, the African market offers bottlenecks in terms of bandwidth and communication technologies.

APAC: awareness of benefits and strict regulations to propel market growth

The automotive remote diagnostics market in is expected to exceed USD 5 billion by 2020, growing at a CAGR of over 18%. The remote vehicle diagnostics is likely to develop rapidly in emerging countries such as India, China, and Russia, among others. Regulations that will require OBD systems as a mandatory requirement came into force in China for light vehicles. Such regulations will increase awareness levels of vehicle diagnostics.

The awareness and benefits associated with vehicle diagnostics are currently low in the developing regions of APAC. "The evolution of regulations and growth in the number of cars fitted with OBD ports should expand awareness of the benefits that arise from vehicle diagnostics. All these put together should drive the penetration and adoption of remote vehicle diagnostics in the region," says Siddharth.

Some of the top vendors in the global automotive remote diagnostics market are:

  • Robert Bosch GmbH
  • Continental AG
  • OnStar
  • Vector
  • Vidiwave

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About Technavio

Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.

Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.

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