TOP 3 FACTORS IN THE AUTOMOTIVE REMOTE DIAGNOSTICS MARKET
- Players Creating New Roles in the Industry
Automobile manufacturers are becoming software developers, or they are collaborating with prominent telecom players in order to move towards telematics to offer data-related solutions such as automotive remote diagnostics
- Breakneck Progress in the Data- & IoT-Driven Automotive Industry
In recent years, data has become the most valuable asset. The installation/adoption of automotive remote diagnostics enables the collection of a sea of data from each and every vehicle, which, in turn, helps manufacturers and IoT solution providers take decisions. This augments the demand for automotive remote diagnostics.
- Demand for LCVs is Creating Opportunities for Automotive Remote Diagnostics
Luxury commercial vehicles are experiencing a surge in demand in regions such as Europe, North America, and Asia Pacific, due to the growing per capita income and rapid urbanization in countries such as India and China. This is providing a huge growth opportunity for automotive remote diagnostic providers, as luxury and high-end cars are the prominent applications of remote diagnostics.
In order to develop advanced luxury commercial vehicles, automobile manufacturers are integrating remote diagnostic services to improve the overall experience of driving the vehicle, and to differentiate their brand from other competitors.
AUTOMOTIVE REMOTE DIAGNOSTICS MARKET STRUCTURE ANALYSIS
- Europe and North America are pegged to be prominent markets for automotive remote diagnostics, owing to well-established technology and high adoption rates in these regions. However, developing regions such as East Asia are expected to outpace other regions in terms of growth, owing to the high penetration and adoption of automotive remote diagnostics.
- The global automotive remote diagnostics market is unorganized, owing to the global presence of numerous players.
- Under the scope of the automotive remote diagnostics market research, it has been identified that, the organized sector holds more than 40% of the global automotive remote diagnostics market share. The organized sector in the automotive remote diagnostics market consists of tier-1 and tier-2 manufacturers of automotive remote diagnostics.
- Some of the tier-1 companies identified across the automotive remote diagnostics market value chain are Continental AG, Robert Bosch GmbH, Tech Mahindra Limited, Vector Informatik GmbH, Siemens AG, and IBM.
Automotive Remote Diagnostics: Solution for the Progressive Consumer
Automotive remote diagnostics is gaining prominence among consumers as well as OEMs, due to the number of benefits offered by these solutions. The adoption of automotive remote diagnostics helps in significantly reducing service downtime and maintenance, as it identifies the problem beforehand and offers an efficient on-point and on-time solution. This, in turn, is expected to be the primary factor driving the automotive remote diagnostics market, worldwide. Also, the eventual growth of the automotive industry, coupled with growing IoT adoption in vehicles, and connected car eco-systems, is predicted to lead a surge in the demand for automotive remote diagnostics.
Market Set to Grow 4.6X between 2018 and 2028
The automotive remote diagnostics market is estimated to experience healthy growth over the stipulated period. The automotive remote diagnostics market is considered to be a high-volume market, and moderate changes in prices are expected during the forecast period. Also, the automotive remote diagnostics market is estimated to grow, due to rising concerns regarding maintenance downtime in automotive vehicles.
Emerging Regions to Create Lucrative Opportunities
Europe, North America, and East Asia are expected to be the leading regions in terms of market share in the global automotive remote diagnostics market, owing to their significant inclination towards technology adoption and significant vehicle fleets. Growing IoT adoption and automobile sales in emerging countries are expected to propel the growth of the automotive remote diagnostics market in emerging countries such as China, India, and Indonesia.
Amongst these emerging countries, India is stipulated to register notable growth in the automotive remote diagnostics market over the forecast period. Hence, the emergence of these East Asian countries is estimated to contribute towards to the substantial growth of the automotive remote diagnostics market in East Asia.
The Broader Perspective
The ongoing digital transformation is changing the face of the automobile industry. Connected vehicles have created a new ecosystem within the automotive industry. Within the new ecosystem, automotive OEMs are implementing next generation technologies such as mobility management, vehicle management, driver assistance, and safety technologies with vehicles.
Across the industry, companies are adopting new ways of establishing a collaboration to accelerate innovation in connected vehicle technologies. These next generation technological advancements are creating demand for connected vehicles across the globe. Thus, the demand for automotive remote diagnostics has increased substantially for application in connected vehicles.
How Growth will Unfold
In terms of year-over-year growth rate, the passengers cars segment is projected to witness a sluggish growth rate during the latter half of the forecast period, whereas, the HCVs segment is projected to experience significant traction in the global automotive remote diagnostics market.
AUTOMOTIVE REMOTE DIAGNOSTIC MARKET TAXONOMY
The global automotive remote diagnostics market is segmented in detail to cover every aspect of the market and present a complete market intelligence approach in front of the reader.
By Product Type
- Equipment
- Software
By Vehicle Type
- Passenger Cars
- Compact
- Mid-Sized
- Luxury
- SUVS
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
By Application
- Vehicle System & Component Access
- Vehicle Health Tracking & Diagnosis
- Service Assistance
By Region
- North America
- Latin America
- Europe
- East Asia
- South Asia
- Oceania
- Middle East & Africa
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by - Sudip Saha, Managing Director and Co-Founder of Future Market Insights
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