Vehicle Health Monitoring Market Size

Vehicle Health Monitoring Market Size

Vehicle Health Monitoring Market size was valued at over USD 32 billion in 2020 and is expected to grow at a CAGR of around 9% between 2021 and 2027. The market data displays a strong growth potential for vehicle health monitoring systems due to the rising demand for autonomous vehicles globally.

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Vehicle health monitoring systems are integrated internally or externally into the vehicle. They allow users to check the overall health of the vehicle and analyze its diagnostic code, engine data, performance data, and battery status.

The rapid increase in the sales of commercial vehicles across the globe will fuel the vehicle health monitoring market demand. According to the statistics published by The Organisation Internationale des Constructeurs d'Automobiles (OICA), Germany witnessed a significant rise in the sales of commercial vehicles from 386,282 units in 2018 to 409,801 units in 2019. The amplifying market trend of tracking vehicle health for preventive maintenance and less downtime will drive the market growth during the forecast timeline.

Increasing internet penetration in various countries coupled with rising vehicle safety concerns across the globe will provide lucrative market opportunities for the adoption of vehicle health monitoring systems. As per the statistics published by World Bank, the number of internet users in the UAE increased from 98.4% of the country’s total population in 2018 to 99.1% in 2019. Internet assists end-users to track the performance of the vehicle through software or mobile application, supporting the market expansion

The factors hampering the vehicle health monitoring market revenue include the high cost associated with these systems. The cost of a vehicle health monitoring system involves expensive electronic components, wireless connectivity modules, and initial cost for the integration of hardware and software. The lack of awareness about vehicle health management systems will hinder the market outlook. However, several vehicle health service providers operating in the industry are adopting creative marketing strategies to address this challenge and enhance the market value.   

The market was adversely impacted during the first two quarters of 2020 owing to the emergence of COVID-19 pandemic. Severe measures, such as mass quarantines and travel restrictions, impeded the industry statistics of vehicle health monitoring systems on a large scale. Market factors, such as shortage of raw materials and labor, resulted in numerous problems in the design and development of new systems. This created an extensive gap in supply and demand, affecting the industry revenue for manufacturers. Furthermore, rising financial insecurities among end-users hampered the sales of passenger and commercial vehicles and influenced the industry in 2020.