Automotive Fault Diagnostic Scan Tools Market Size - By Component, By Vehicle, By Application, By End-user, Forecast, 2024 – 2032

Automotive Fault Diagnostic Scan Tools Market Size

The global automotive fault diagnostic scan tools market size was valued at USD 9.9 billion in 2023 and is anticipated to grow at a CAGR of over 6% between 2024 and 2032. Increased vehicle complexity is anticipated to drive the market growth. Modern vehicles are equipped with advanced electronic systems, including complex engine control units (ECUs), infotainment systems, and sensors for functions such as collision avoidance and adaptive cruise control. This complexity requires diagnostic tools that can interface with multiple systems and protocols to effectively identify and troubleshoot faults. To meet growing market demand major player are focusing on introduction of new tools in the market.
 

For instance, in 2023, TOPDON launched latest diagnostic tool, TopScan. This innovative diagnostic tool caters to car enthusiasts and technicians for offering a user-friendly interface, comprehensive functions, and the capability to diagnose and resolve vehicle issues effortlessly. As vehicles incorporate more advanced technologies, the demand for diagnostic scan tools that offer comprehensive coverage and detailed analysis grows.
 

Rapidly growing vehicle fleet is driving the automotive fault diagnostic scan tool market growth. These tools are essential for identifying and addressing issues in a wide range of vehicles, ensuring they operate efficiently and safely. For instance, in March 2024, the Indian Government reported a 20% increase in automotive production with a significant portion incorporating advanced automotive system for better performance & reliability. This increase in vehicle production reflects the growing consumer demand and drives the need for efficient fuel delivery technologies.
 

With more vehicles requiring servicing, both dealerships and independent repair shops need advanced tools to handle the diverse and complex systems found in modern automobiles. The expanding vehicle fleet drives continuous demand for these tools and prompting ongoing innovations to keep pace with the increasing variety of vehicle models and technologies.
 

Automotive Fault Diagnostic Scan Tools Market Trends

Rapid technological advancements in the automotive industry are propelling the market growth. As automotive technology evolves rapidly, vehicles are incorporating innovative electronic systems, including advanced driver-assistance systems (ADAS), integrated infotainment, and complex powertrains. These innovations require fault diagnostic scan tools that can handle new and intricate protocols, interfaces, and data streams. Modern tools are evolving to include features such as real-time data analysis, predictive maintenance capabilities, and compatibility with various vehicle makes and models. This constant advancement is essential for accurately diagnosing and resolving emerging automotive issues, ensuring vehicles remain in optimal condition.
 

To gain business capabilities market players are focusing on strategic initiatives. For instance, in January 2023, Innova launched software and firmware updates for OBD2 scanner tools and dongles. This update expands tool functions, including more active test and special function capabilities such as battery reset, battery initialization, and alternator test. The demand for automotive fault diagnostic scan tools is growing, as they are essential for ensuring optimal vehicle performance and safety.
 

The substantial upfront investment required for advanced fault diagnostic scan tools can be a significant barrier for small repair shops and independent mechanics. The initial cost encompasses purchase price and potential expenses for software updates, training, and ongoing maintenance. For smaller operators, this high initial expense can limit their ability to access and invest in such technology. This financial hurdle can slow the adoption of new tools and affect the overall proliferation and usage of advanced diagnostic technologies in the automotive industry.
 

Automotive Fault Diagnostic Scan Tools Market Analysis

Based on component, the market is divided into hardware, software, and services. The software segment is expected to hold around 28% share in 2023. Modern diagnostic scan tools use advanced software to analyze complex data from vehicles. These tools can process large amounts of information from different vehicle systems, providing insights into performance, potential problems, and maintenance needs.
 

Features such as predictive diagnostics, real-time data visualization, and detailed fault reporting make these tools more effective. Innovations in artificial intelligence and machine learning improve software capabilities, leading to more accurate predictions and quicker issue identification. This ongoing software technology development drives market growth by meeting the increasing demand for advanced, reliable, and efficient diagnostic solutions.
 

Based on the vehicle, the automotive fault diagnostic scan tools market is divided into passenger and commercial. The passenger segment is expected to hold around 72.4% share in 2023. The shift towards electric and hybrid passenger vehicles is boosting the market growth. As the automotive industry moves to these advanced powertrains, the need for specialized tools grows.
 

Electric and hybrid vehicles have unique components such high-voltage batteries, electric drivetrains, and complex electronic control units. Diagnostic scan tools must be equipped with software and hardware to work with these systems and accurately find and fix problems. The growing integration of electrified technologies in passenger vehicles is driving further innovation in diagnostic solutions for the evolving automotive landscape.
 

North America dominates the global automotive fault diagnostic scan tools market with over 30% share in 2023. Stringent emission regulations are driving the market growth in North America. The U.S. and Canada have strong environmental standards that require vehicles to meet strict emissions limits. Compliance with these regulations requires advanced tools capable of monitoring and diagnosing emissions-related systems.
 

As regulations become more stringent, automotive repair shops and service centers need up-to-date fault diagnostic scan tools to ensure vehicles meet compliance standards. This increasing regulatory pressure drives demand for advanced tools that can accurately assess and rectify emissions issues, thereby ensuring vehicles operate within legal limits.
 

The growing adoption of advanced driver-assistance systems (ADAS) in Europe is projected to drive the automotive fault diagnostic scan tools market growth. The European automotive market is increasingly integrating ADAS technologies to enhance vehicle safety and driving comfort. These systems rely on complex sensors, cameras, and control units, which require specialized diagnostic scan tools to ensure proper functioning and calibration. As European consumer demand for higher safety standards and more advanced driver-assistance features increases, the necessity for advanced tools that can interface with and troubleshoot these systems also rises.
 

Rapid urbanization in the Asia-Pacific region is projected to drive the market growth. As cities in countries such as China, India, Japan, and Southeast Asian nations expand, more individuals are purchasing vehicles. This increase in vehicle ownership boosts the need for effective maintenance and repair solutions. With more cars on the road, repair shops and service centers need to quickly diagnose and fix vehicle problems. Advanced fault diagnostic scan tools are essential for managing the complex systems in modern vehicles and ensuring they meet local standards.
 

Automotive Fault Diagnostic Scan Tools Market Share

Robert Bosch and Continental AG dominate the market with over 10% of the market share. Bosch leverages its extensive expertise in automotive technology to develop advanced diagnostic solutions that integrate seamlessly with modern vehicle systems. By investing in research and development, Bosch focuses on creating tools that offer real-time data analysis, enhanced user interfaces, and compatibility with electric and hybrid vehicles.
 

Similarly, Continental AG emphasizes its commitment to software-driven diagnostics, integrating artificial intelligence and machine learning into its tools. This approach enhances diagnostic accuracy and predictive maintenance capabilities. Additionally, both companies are also expanding their partnerships with automotive manufacturers and service providers, ensuring their tools are widely adopted in various repair environments.
 

Automotive Fault Diagnostic Scan Tools Market Share

Top companies operating in the automotive fault diagnostic scan tools industry include:

• Autel
• AVL DiTEST GmbH
• Continental AG
• Delphi Technologies
• Denso Corp.
• Launch Tech UK Ltd.
• Robert Bosch
• Snap on Incorporated
• Softing AG
• Vector Informatik GmbH
   

Automotive Fault Diagnostic Scan Tools Industry News

• In August 2024, Bosch Diagnostics launched ADS X 6.0 software update. The new update improves scanning speed by an average of 57% across multiple popular Asian and European brands, including Honda, Volvo, Land Rover and more.
   
• In October 2023, Matco Tools launched diagnostic scan tool, the Maximus Plus. This tool offers comprehensive coverage flexibility, OE-level functionality, and harnesses the power of Android, making it the ultimate tool in automotive diagnostics. This launch helped enhance the automotive fault diagnostic scan tools industry by offering professionals a powerful and versatile tool for efficient and comprehensive diagnostics.
   

The automotive fault diagnostic scan tools market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) and volume (Units) from 2021 to 2032, for the following segments:

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Market, By Component

• Hardware
  • Scanners/readers
  • Testers
  • Code readers 
  • Battery analyzers
  • Others
• Software
  • Diagnostic software
  • Vehicle ECU coding software
  • Repair information software
  • Others
• Services
  • Professional
  • Managed

Market, By Vehicle

• Passenger vehicle
• Commercial vehicle
  • Light commercial vehicle
  • Medium commercial vehicle
  • Heavy commercial vehicle

Market, By Application

• Engine diagnostics
• Transmission diagnostics
• Electrical system diagnostics
• Others

Market, By End-user

• OEM
• Automotive repair shops
• Dealerships
• Fleet management

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Netherlands
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina 
• MEA
  • UAE
  • Saudi Arabia
  • South Africa