Asia Pacific On-board Diagnostics Aftermarket size crossed USD 200 million in 2019 and is predicted to witness around 15% CAGR from 2020 to 2026.
The Asia Pacific OBD aftermarket industry growth is owing to the fact that rapid development in 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 with data-driven technology is gaining traction in the automobile industry. The remote diagnostic technology is gaining popularity as vehicle owners need not buy expensive software applications to identify a problem or to rush to a station in case of vehicle malfunctions.
In the component segment, OBD services are anticipated to grow at a CAGR of 25% through 2026. With growing complexities in vehicles and the swiftly changing technological landscape, it has become mandatory for auto companies to impart training and consulting services to their customers for the efficient use of OBD devices. Auto manufacturers and technology solution providers have designed specialized training courses to provide knowledge to vehicle owners and drivers.
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Usage-based Insurance (UBI) is estimated to be among the most attractive segments in the regional OBD aftermarket. Presently, UBI and insurance telematics have a huge impact on the insurance industry. Vehicles equipped with telematics devices allow insurance providers to have more precise information to rate drivers’ premiums such as on-road activity including braking and cornering speed or acceleration.
The passenger vehicles segment will observe a growth rate of 18% during the forecast timespan. Passenger vehicles offer the most convenient mode of travel and are likely to witness a surge in demand in the coming years, further accelerating the need for on-board diagnostics devices. New entrants, such as car rental companies and multi-brand service networks, are offering personal mobility solutions, which are expected to present excellent market expansion opportunities.
The China on-board diagnostics aftermarket is set to gather considerable gains of around 15% till 2026. To combat air pollution and to minimize associated health hazards, the Chinese government is adopting several vehicle emission standards and new action plans to reduce the usage of petrol & diesel cars, thereby supporting the use of OBD systems in alternative fuel vehicles and zero-emission automobiles.
Prominent players in the Asia Pacific OBD aftermarket industry include Autel Intelligent Technology Corp., Ltd., Azuga, Inc., Bosch Diagnostics (Robert Bosch GmbH), Continental AG, CalAmp Corporation, Danlaw, Inc., ERM Electronic Systems Ltd. (Ituran), Geotab, Inc., Intel Corporation, Magneti Marelli S.p.A., TomTom N.V., and Verizon Communications, Inc.
Key vendors are continuously adding innovative features to their OBD offerings along with expanding product functionalities. For instance, in May 2020, TELTONIKA Telematics released a new series of ultra-compact OBD trackers with the Global Navigation Satellite System (GNSS) and Bluetooth Low Energy (BLE) 4.0 functionalities. The devices are 50% smaller compared to the previous products and offer high-performance while being energy efficient.