Vehicle Health Monitoring Market Analysis

Vehicle Health Monitoring Market Analysis

The hardware segment in the vehicle health monitoring market will showcase a 7% growth rate through 2027 led by a rapid rise in the demand for sensors, GPS systems, and services. Growing safety awareness coupled with the rising usage of vehicle health monitoring systems in commercial and passenger vehicles will propel the demand for the hardware segment. These health tracking systems involve device setup, which requires hardware components, thereby contributing to their growing representation in the market. 

The prognostics segment accounted for over 18% of the vehicle health monitoring market share in 2020 due to the development of vehicle health management from traditional maintenance to prognostics. The ability of prognostic systems to assess the reliability and health condition of systems in advance will support the revenue share. OEMs across the globe offer prognostics solutions as optional or default features in various vehicle segments.

The passenger vehicles are estimated to attain a CAGR of 8% by 2027 on account of the increasing usage of electric vehicles across the globe. According to a market report published by the International Energy Agency (IEA), the sales of electric vehicles in Europe grew by 57% in the first half of 2020. The growing focus of government authorities on the adoption of electric vehicles will accelerate the market progression.

The OEM segment dominated more than 75% of the vehicle health monitoring market share in 2020 driven by the pre-installation of vehicle health monitoring systems in vehicles by automobile manufacturers. OEMs including Robert Bosch, Delphi Technologies, and OnStar are the major companies catering to the vehicle health monitoring demand. Automobile manufacturers are deploying the technology in commercial and passenger vehicles to increase their fuel efficiency and engine performance, contributing to the industry demand.

Automobile companies in various countries across the globe are integrating their new vehicle models with vehicle health monitoring systems to meet strict emission regulations imposed by government authorities. These systems allow identifying battery performance, fuel efficiency, and engine performance, which support mitigating the harmful emissions. Furthermore, the rapid increase in the trend of automating the vehicles will foster the industry share of vehicle health monitoring systems during the forecast timeframe.

Asia Pacific vehicle health monitoring market size was around USD 8 billion in 2020 owing to growing disposable income and spending capacity in countries including India, China, and Japan. As per the data published by the National Bureau of Statistics, the disposable income in China accounted for USD 5,929.1 in 2018 compared to USD 5,177.2 in 2017. The increasing application of vehicle monitoring for identifying engine and battery performance will drive the regional growth.