North America OBD Market Share is estimated to surpass USD 1 billion in 2026 and is expected to register a lucrative growth between 2020 and 2026 with a CAGR of over 15%.
North America Market, By Hardware
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The North America market growth is attributed to the growing need for effective communication & data exchange for vehicle diagnosis. The OBD solution works as a bridge to communicate and transfer vehicle data to scanning tool. The diagnostic services facilitate the information exchange initiated by an external test equipment in order to acquire information. These solutions help enterprises in the diagnosis and repair of complex electronic engine components. The advanced capabilities to assist in the diagnosis and repair of complex electronic engine components are contributing to the demand for OBD solutions.
The light commercial vehicle segment accounted for nearly 40% of the market share in 2019. The market growth is attributed to the rising demand for cost-effective and low-emission ways to better manage fleet operations. The fleet owners are expanding their vehicle fleets with the addition of LCVs with a mass carrying capacity between 3.5 and 7 tons. The growing industries and rising demand for efficient transport medium are enabling the growth in sales. The need for smart and light commercial vehicles to transport the goods within the cities is supporting the segment growth.
The OBD software segment in the market is expected to grow at a CAGR of around 18% during the forecast period. The demand for on-board diagnosis telematics platform application has increased considerably in the past couple of years. The apps reduce the dependency on hardware to gather information and make it possible for the user to convert their smartphone or tablet into a portable on-board scanner for gathering diagnostic information. These apps handle all the information collected from on-board systems, ease the task of monitoring the vehicle parameters in real-time, and allow continuous monitoring of the vehicle’s status.
The consumer telematics application segment is expected to hold over 23% of the market by 2026. The system provides drivers with real-time feedback on their driving behavior such as speed, distance driven, and instances of harsh braking. Other data includes visual information on how they drive including live and retrospective feedback on their braking, cornering, acceleration, and idling. Supportive government initiatives and adoption of telematics solution are augmenting the market growth
The U.S. held over 80% of the total market share in 2019. The automobile industry in the U.S. continues to record a steady growth in the region due to high penetration of advanced technologies in transportation systems and the increased momentum of autonomous vehicles. For instance, Toyota is planning to invest USD 10 billion in the U.S. by 2022. The increase in vehicle production will drive the need for in-built onboard diagnostics systems, which help to evaluate the health status of the vehicle.
The companies operating in the North America on-board diagnostics industry are emphasizing on the development of advanced solutions. For instance, in October 2020, Azuga launched the new series of its OBD-based GPS tracking and fleet management solutions. The launch was specifically directed at utility fleets that are under consistent stress to deliver services on a short notice amid the ongoing pandemic. Azuga has also incorporated preventive maintenance and vehicle diagnostics monitoring capabilities in the solution. This launch helped the company to provide vehicle owners with an advanced device to monitor vehicle health and performance. Similarly, other enterprises operating in the market are anticipated to develop advanced vehicle monitoring devices.
Some of the leading companies operating in the North America OBD market include Autel Intelligent Technology Corp., Ltd., Automatic Labs, AVL Ditest GmbH, Azuga, Inc., Bosch Diagnostics, CalAmp Wireless Network Corporation, Continental AG, Danlaw, Inc., ERM Electronic Systems LTD (Ituran), Geotab Inc., Innova Electronics Corporation, Intel Corporation, Magneti Marelli S.p.A., Metromile, Mojio, Inc., TomTom International BV., Vector Informatik, Verizon Communications, and Xirgo Technologies, Inc.