Market Trends of Europe Automotive Diagnostics Tool Industry
The Passenger Car Segment is Expected to Continue Dominating the Market in Europe
- The passenger cars segment is set to lead the European automotive diagnostics tool market for several key reasons. Firstly, Europe has one of the highest densities of passenger cars globally, with countries like Germany, France, and the United Kingdom accounting for significant portions of the continent's automotive market.
- As the number of electrical components in automobiles increases, the requirement for a computerized diagnostic system to monitor the complex electrical architecture in vehicles is also growing. The European Union has mandated the use of onboard diagnostic (OBD) 2 in light-duty vehicles while implementing Euro 6 emission standards.
- Components, such as catalyst, catalyst heater, evaporative system, air conditioning system, fuel system, oxygen sensor, heater, exhaust gas recirculation (EGR), thermostat, fuel filler cap, particulate filter, positive crankcase ventilating, and parameters, like engine misfire frequency, and secondary airflow, are monitored by the OBD 2, along with comprehensive component monitoring of some more components.
- Rising awareness about the efficiency of automotive diagnostic scan tools and growing demand for sophisticated diagnostic software due to the notable adoption of these tools by car manufacturers may boost the adoption of scanning tools in passenger cars. In the wake of such benefits, key players operating in the market have started launching new products and are focusing on upgrading their portfolios to strengthen their customer bases.
- In addition to the OEM vehicle health monitoring services, aftermarket vehicle health diagnostic tools are also becoming increasingly available. For instance, the Integrated Vehicle Management System by Honeywell and Hum by Verizon are some of the aftermarket vehicle health diagnosing tools. The safety feature is expected to drive diagnostic features, thereby boosting the market for automotive diagnostic tools.
Understand The Key Trends Shaping This Market
Download PDF
Germany is Expected to Dominate the Market
- Germany is the largest market for automotive diagnostic tools in Europe due to its robust automotive industry and high vehicle production volume. Germany is home to some of the world's leading automotive manufacturers, including Volkswagen, BMW, and Mercedes-Benz, which produce millions of vehicles annually.
- The German market's demand for automotive diagnostic tools is also propelled by stringent environmental regulations and the country's commitment to advanced vehicle technologies. The European Union's implementation of the Euro 6 emission standards mandates the use of sophisticated onboard diagnostic (OBD) systems to monitor and control vehicle emissions. The German Association of the Automotive Industry (VDA) projects that, by 2027, the German automotive industry will spend an additional EUR 130 billion on constructing new factories and converting existing plants to accommodate the production of electric and hybrid vehicles. This transition necessitates advanced diagnostic equipment tailored to the unique requirements of these vehicles.
- Germany's strong focus on technological innovation and R&D in the automotive industry contributes to its leading position in the automotive diagnostics tool market. The country's investment in automotive technology is substantial, with companies like Bosch and Continental AG at the forefront of developing cutting-edge diagnostic solutions. Bosch, for instance, has consistently expanded its portfolio of diagnostic tools, including the ADS 625X, which offers advanced features like wireless updates and extensive vehicle coverage.
- According to VDA, from 2023 to 2027, manufacturers and suppliers in the German automotive industry will invest over EUR 250 billion in R&D worldwide, with a particular focus on electromobility, battery technology, autonomous driving, and digitization. This figure translates to more than EUR 50 billion annually, underscoring Germany's commitment to leading technological advancements in the automotive industry.
Get Analysis on Important Geographic Markets
Download PDF
