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North America OBD Aftermarket Size Worth Over $1 Bn By 2026
Published Date: 2021-01-21
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According to the Graphical Research new growth forecast report titled “North America On-board Diagnostics (OBD) Aftermarket Size By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV)), By Component (Hardware [OBD Scanners, OBD Dongles], Software [PC-based Software, Apps), Service [Training & Consulting, Integration & Maintenance, Managed Service]), By Application (Consumer Telematics, Fleet Management, Car Sharing, Usage Based Insurance (UBI))”, Estimated To Exceed USD 1 Billion By 2026
The need to implement stringent vehicle emission norms to curb pollution levels and improve the vehicle reliability will drive market growth of the North America OBD Aftermarket.
The North America OBD Aftermarket growth can primarily be attributed to the rapid development of the automobile industry and the rising demand for more efficient vehicle management systems. The increasing complexity of vehicle systems has fueled the use of remote vehicle diagnostic systems using data-driven technology. Remote diagnostic technology brings a safety mechanism that allows the vehicle to be monitored and controlled using a remote operator, which has augmented the penetration of OBD systems. It is expected that by 2020, a quarter of a billion vehicles will be connected to the IoT platforms, promising new market possibilities for in-vehicle services and OBD solutions.
The passenger vehicles segment is set to witness a substantial market growth of over 13% CAGR by 2026 as the rising number of passenger cars will fuel the adoption of OBD tools to scan the vehicle’s engine and its sub-components. For instance, as per data from the Bureau of Transportation Statistics, the passenger car registrations in the U.S. were 341,101 units in December 2020, an increase of 23.2% over November 2020. The increased sales of passenger cars and rising shipments of OBD units are expected to drive the market growth.
In North America, the hardware segment held over 45% market share in 2019. OBD dongles with telematics capabilities are gaining market traction as OEMs and insurance providers are using these devices to promote PAYD-based insurance premium payment options based on the driver’s driving style and overall status of the vehicle. Intense competition among market players and the growing need to provide enhanced customer experience are also encouraging vendors to offer a wide range of products to gain customer loyalty.
The UBI segment is set to attain a CAGR of over 20% by 2026 due to the increasing popularity of OBD for accurate estimation of insurance premiums based on vehicle usage and driver behavior. 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 growing demand for pay as you drive (PAYD) models has also created new market opportunities for the segment.
Some of the key vendors in the North America OBD Aftermarket 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..
The North America OBD Aftermarket research report includes an in-depth coverage of the industry, with estimates & forecast in terms of revenue in USD million from 2020 to 2026, for the following segments:
North America OBD Aftermarket, By Component
- OBD Scanners
- OBD Dongles
- PC-based OBD Scanning Tools
- Apps (OBD Telematics Platforms)
- Training & Consulting
- Integration & Management
- Managed Services
OBD Aftermarket, By Vehicle Type
- Passenger Vehicles
- Light Commercial Vehicles (LCV)
- Heavy Commercial Vehicles (HCV)
North America OBD Aftermarket, By Application
- Consumer Telematics
- Fleet Management
- Car Sharing
- Usage-based Insurance (UBI)
The above information has been provided for the following regions and countries:
- North America