Automotive Remote Diagnostics Market to Achieve 18.9% CAGR Through 2028 | Future Market Insights, Inc.

According to a new study of Future Market Insights (FMI), the automotive remote diagnostics market is projected to record a CAGR of nearly 18.9% through 2028. In 2022, sales in the global market for automotive remote diagnostics are anticipated to reach US$ 11.6 billion. The market size is anticipated to reach US$ 32.9 Billion by 2028.

The automotive remote diagnostics market is experiencing rapid growth driven by technological advancements, increasing vehicle complexity, and the need for proactive maintenance and real-time vehicle monitoring. Remote diagnostics systems enable automotive manufacturers, dealerships, and fleet operators to remotely access vehicle data, diagnose mechanical issues, and perform software updates without physical inspection, reducing downtime, improving efficiency, and enhancing customer satisfaction. As the automotive industry embraces digitalization and connectivity, the automotive remote diagnostics market continues to expand, propelled by several key factors.

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Key Drivers Fueling Growth in the Automotive Remote Diagnostics Market:

  • Vehicle Connectivity and Telematics Integration: The proliferation of connected vehicles and telematics systems enables remote access to vehicle data, diagnostics, and software updates. Automotive OEMs integrate telematics modules, onboard sensors, and wireless communication technologies into vehicles to enable remote diagnostics capabilities. Connected vehicles transmit real-time diagnostic data, fault codes, and performance metrics to cloud-based platforms, enabling remote monitoring, analysis, and troubleshooting by automotive stakeholders.
  • Advancements in IoT and AI Technologies: Continuous advancements in Internet of Things (IoT) and artificial intelligence (AI) technologies drive innovation in automotive remote diagnostics solutions. AI-powered analytics platforms analyze large volumes of vehicle data to detect anomalies, predict potential failures, and recommend preventive maintenance actions remotely. IoT sensors and predictive algorithms enable predictive maintenance scheduling, parts inventory management, and fleet optimization, improving vehicle reliability and reducing maintenance costs for automotive stakeholders.
  • Proactive Maintenance and Predictive Analytics: Automotive remote diagnostics enable proactive maintenance strategies and predictive analytics to identify potential issues before they escalate into costly repairs or vehicle downtime. Remote monitoring of vehicle health indicators, such as engine performance, fluid levels, and battery status, allows automotive stakeholders to anticipate maintenance needs, schedule service appointments, and address emerging issues remotely. Predictive analytics algorithms leverage historical data and machine learning models to predict component failures and optimize maintenance schedules for fleets and individual vehicles.
  • Cost Reduction and Operational Efficiency: Automotive remote diagnostics systems help automotive stakeholders reduce operational costs, minimize unplanned downtime, and optimize vehicle lifecycle management. Remote troubleshooting and diagnostics eliminate the need for physical inspections, reducing labor costs and service technician time. Proactive maintenance and predictive analytics prevent costly breakdowns and extend the lifespan of vehicle components, reducing repair expenses and improving overall operational efficiency for vehicle owners, operators, and fleet managers.

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Automotive Remote Diagnostics Equipment to Account for Leading Market Shares

While equipment and software both form integral parts of an automotive remote diagnostics, the study finds that equipment will continue to account for leading shares of the market, owing to associated periodical replacement and maintenance activities. On the other hand, software are installed in the equipment as first fit, and are renewed on the basis of subscriptions. This further alludes high-growth potential of software solutions in the automotive remote diagnostics market.

Automotive remote diagnostics market will continue to witness robust gains from the light commercial vehicles, compared to other vehicle categories. As the logistics and transportation sector gains increased traction, vis-à-vis growth of the ecommerce and warehousing industry, light commercial vehicles are expected to record relatively greater sales compared to their past statistics. This will create significant opportunities for players in the automotive remote diagnostics market.

Automotive remote diagnostics are expected to witness high demand in vehicle system & component access, and health tracking & diagnosis applications. These application requirements are comparatively higher in commercial vehicles, and with the rise in construction and infrastructure development activities, demand for the commercial vehicles, and in turn the automotive remote diagnostics will also rev up in the near future.

Europe to Remain Most Attractive Market for Automotive Remote Diagnostics

The study finds that Europe will continue to be the most lucrative market for automotive remote diagnostics, trailed by North America. The economic vigor and robust infrastructure development activities in the region allude at significant sales of commercial vehicles, along with passenger cars, which in turn continue to drive demand for advanced solutions such as the automotive remote diagnostics. According to the study, East Asia will also remain an attractive market for automotive remote diagnostics, with sales projected to grow at a CAGR of over 20% through 2028.

The automotive remote diagnostics market continues to remain consolidated, with leading players accounting for bulk shares of the market. Additionally, the complexity and extensive R&D investments required to provide a total solution continue to present significant entry barriers to new market entrants, which further underpins the supremacy of leading players in the automotive remote diagnostics market.

Key players operating in the automotive remote diagnostics market include Robert Bosch GmbH, Tech Mahindra Limited, Continental AG, OnStar LLC, Vector Informatik GmbH, Transics, Verizon, ACTIA Group, Softing AG, Magneti Marelli S.p.A., IBM, and Harman International, among others.

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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


Nikhil Kaitwade (Associate Vice President at Future Market Insights, Inc.) has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.

About Future Market Insights (FMI)

Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer, Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 5000 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.

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