Europe On-board Diagnostics Aftermarket size surpassed USD 300 million in 2019 and is projected to register exponential growth of over 15% between 2020 and 2026. The enforcement of more stringent fuel regulations and mandatory OBD requirements by the European Commission will lead to the market expansion.

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The European OBD aftermarket industry growth is attributed to well established automotive sector in the region.  The rapid development of the automobile industry has led to an increase in demand for more efficient vehicle management systems. Due to the increasing complexity of vehicle systems and sub-systems, the use of remote vehicle diagnostic systems using data-driven technology is gaining traction in the automobile industry. The remote diagnostic technology brings a safety mechanism that allows the vehicle to be monitored and controlled using a remote operator.

European Market, By Vehicle Type

The Light Commercial Vehicle (LCV) will register around 40% growth rate through 2026. The demand for LCVs is likely to grow since the vehicle owners are looking for cost-effective and low-emission ways to better manage fleet operations. The rapid growth in the construction industry and ecommerce sector is expected to drive the need for smart and light commercial vehicles to transport the goods within the cities. Rapid urbanization and the rising demand for efficient transport medium are uplifting the sales of light commercial vehicles.

European Market, By Component

The hardware segment market is estimated to witness over 10% CAGR till 2026. The OBD hardware market is observing rapid growth in the adoption of in-built on-board diagnostic systems, which analyze, monitor, and rectify the problems or faults in vehicle components. The widespread adoption of IoT to build smart car systems, which can be monitored and can actively provide the information about health status of the vehicle’s components is driving the need for OBD hardware.

European Market, By Country

The Germany on-board diagnostics aftermarket is predicted to grow substantially during the forecast period propelled by increasing vehicle production. According to the International Organization of Motor Vehicles Manufacturers, the German automobile market recorded 4,98,158 cars produced in 2019, with the highest share belonging to passenger cars. The regional infrastructure and investments by the automobile industry in R&D infrastructure are the major growth drivers.

European Market, By Application

The fleet management application held the market share of over 50% in 2019 driven by three crucial factors, which include rising demand for operational efficiencies, growing environmental concerns, and decreasing hardware and connectivity costs of the vehicles. Growth in environmental concerns and implementation of stringent laws has also created steady rise in market demand.

Competitive Industry Landscape

Some of the leading companies operating in the Europe OBD aftermarket include Bosch Diagnostics, Continental AG, Intel Corporation, Magneti Marelli S.p.A, TomTom International B.V., Vector Informatik GmbH, Xirgo Technologies, Verizon Communications Inc, Mojio, Geotab, Inc., ERM Electronic Systems LTD, and CalAmp Corp.

Industry players are focusing on new product development with robust functionalities and garner a wider customer base. For instance, In January 2019, Bosch partnered with Mojio, an automotive SaaS provider, to jointly launch the IoT suite for asset communication. The new offering adds crash detection and emergency call (eCall) response to an existing connected car solution from Mojio. Through the simple combination of a plug-and-play device for the vehicle’s OBD-II port and a mobile app, nearly a million consumers in Europe have already upgraded their cars with Mojio’s white-label connected car solutions