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(I-AutoNewsWire.com, February 04, 2020 ) The Automotive Diagnostic Scan Tools Market is estimated to be USD 38.9 billion in 2019 and is projected to reach USD 57.4 billion by 2027, at a CAGR of 5.0% from 2019 to 2027. The key growth drivers for the market are the rise in vehicle production and sales, increase in automotive workshops, and the trend of integrating advanced features in the vehicles.
Increase in vehicle sales
Economic growth has led to a gradual change in the overall lifestyle of the consumers. The change in the economy is noticeable, especially in developing countries such as China, India, and Brazil. The increased sales of passenger cars globally, especially premium passenger cars, is indicative of the improved lifestyle and financial status. As more and more families have moved to a higher economic status, their demands and preferences have changed. This has positively impacted the sales of premium cars across the globe. According to Statista, 81.6 million units of passenger cars are expected to be sold in 2018. The global sales of passenger cars have risen by 11.01% from 2014 to 2017. This growth can be attributed to factors such as strengthening economy of emerging markets such as India, China, Brazil, and Mexico.
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Along with economic growth, there is an intense competition among vehicle manufacturers to capture a large consumer base across all regions. This makes automakers encourage potential customers to purchase vehicles and boost the profitability. Thus, the rise in the vehicle production globally contributes to the growth of the automotive diagnostic scan tools market.
High cost of advanced technology equipment
Diagnostic scan tool equipment has witnessed a decline in their overall price levels. However, the newer technologies are more expensive compared to the conventional OBD-I systems. This can slow the adoption of new technologies. The demand for innovative products may also suffer. Diagnostic scan tool manufacturers are under constant pressure from OEMs to curtail the prices of diagnostic scan tool equipment. Such a scenario may deter the diagnostic scan tool manufacturers to invest in R&D activities. It can be noticed in the developing countries, where OEMs are still launching new models that come with basic diagnostic scanning systems.
Moreover, since the automobile must successfully meet stringent safety regulations, automotive diagnosis requires highly sophisticated instruments and equipment, which add to the overall cost of the diagnosis equipment. The equipment also needs to be updated whenever there are changes in the regulations.
The global demand for eco-friendly vehicles is on the rise. The diagnosis of hybrid vehicles with electric powertrains requires technologically advanced equipment such as mobile-based scan tools and others. Minor handheld tools are not an appropriate or adequate choice for testing eco-friendly vehicles. Advanced equipment is more expensive than conventional diagnosis equipment. The addition of complex diagnosis technology increases the overall cost of automotive diagnostic scan tools equipment.
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The Automotive Diagnostic Scan Tools Market is dominated by a few global players and comprises several regional players. Some of the key manufacturers operating in the market are Denso (Japan), Bosch (Germany), Delphi (UK), Continental (Germany), and Snap-on (US).
• In March 2018, Snap-On showcased a special edition SOLUS Edge full function scan tool (EESC320EURWC) in a bold, new look. Featuring a stylish white carbon fiber bezel, “sophisticated functionality, advanced graphing features, and an intuitive user interface makes SOLUS Edge the ideal scan tool for experienced technicians”.
• In June 2018, SGS acquired Advanced Metrology Solutions S.L. (AMS), Spain, a provider of 3D metrology precision services and highly technical inspection measurement processes. The acquisition is likely to help SGS to expand into the fast-growing 3D metrology and dimensional measurement inspection services in Spain and Europe.
• In May 2018, Siemens PLM Software and the Michigan-based American Center for Mobility (ACM) announced a new partnership that brought Siemens’ Simulation and Test solution for automotive to ACM to support virtual and physical testing and validation of automated and connected vehicles. Siemens is part of similar strategic initiatives in Singapore and the Netherlands.
• How will the trend of automotive diagnostic scan tools impact the overall EV market in the long term?
• How will the implementation of emission norms and increasing adoption of EVs impact the market?
• What are the upcoming trends in the automotive diagnostic scan tools market? What impact would they make in the coming years?
• What are the key strategies adopted by the leading players in this market?
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Mr. Shelly Singh