Vehicle Diagnostics Market Report 2026

The vehicle diagnostics market size has grown rapidly in recent years. It will grow from $43.73 billion in 2025 to $50.39 billion in 2026 at a compound annual growth rate (CAGR) of 15.2%. The growth in the historic period can be attributed to growth in vehicle parc, increasing electronic content in vehicles, emission regulation enforcement, rise of aftermarket diagnostics, adoption of onboard diagnostics.

The vehicle diagnostics market size is expected to see rapid growth in the next few years. It will grow to $82.44 billion in 2030 at a compound annual growth rate (CAGR) of 13.1%. The growth in the forecast period can be attributed to expansion of electric vehicles, connected car penetration, demand for remote diagnostics, ai-based fault prediction, fleet management growth. Major trends in the forecast period include adoption of advanced obd diagnostics, growth of connected vehicle diagnostics, expansion of smartphone-based tools, rising use of predictive diagnostics, demand for multi-system scanners.

The rise in vehicle leasing is expected to drive the growth of the vehicle diagnostics market going forward. Vehicle leasing is a contractual arrangement in which a company or individual (the lessee) rents a vehicle from a leasing company or financial institution (the lessor) for a specified period, typically spanning months to years. The growth in vehicle leasing is fueled by access to newer vehicles, reduced maintenance costs, flexibility, and tax benefits for businesses. Vehicle diagnostics is essential in leasing to maintain and monitor the performance of leased vehicles, enabling lessors to assess vehicle health, detect issues, and optimize fleet management for efficient and reliable operation throughout the lease term. For instance, in 2024, according to the British Vehicle Rental & Leasing Association (BVRLA), a UK-based professional association, the UK lease fleet reached approximately 1.94 million vehicles at the end of 2024. Therefore, the rise in vehicle leasing is driving the growth of the vehicle diagnostics market.

Major companies in the vehicle diagnostics market are focusing on vehicle battery diagnostic technologies, such as MDX-AI, to gain a competitive advantage. MDX-AI is a diagnostic tool used to assess the health, performance, and condition of automotive batteries through various tests and analyses. For instance, in July 2024, Midtronics Inc., a US-based battery management systems company, launched MDX-AI, an AI-powered battery diagnostic technology for automotive service equipment. This solution eliminates the need for 'Charge and Retest' decisions, provides instant and accurate battery health assessments, and supports critical functions in electric vehicles. MDX-AI enables technicians to make precise decisions on battery health quickly, enhancing efficiency and productivity in vehicle maintenance. Additionally, it offers advanced capabilities, including accurate testing of electric vehicle 12V batteries, which are vital for ensuring the reliability of safety systems.

In February 2025, Rotunda Capital Partners, a US-based private equity firm, acquired AirPro Diagnostics for an undisclosed amount. This acquisition aims to accelerate AirPro’s growth, expand into new markets, and strengthen its position in OEM-compliant ADAS solutions. AirPro Diagnostics is a US-based company providing remote and on-site ADAS diagnostics, scanning, programming, and calibration services for the automotive repair industry.

Major companies operating in the vehicle diagnostics market report include DENSO Corporation, Continental AG, BorgWarner Inc, Snap-on Incorporated, ACTIA Group, AVL List GmbH, OnStar LLC, SPX Corporation, VOXX International Corporation, KPIT Technologies, Launch Tech Co. Ltd, Telemotive AG, Repairify Inc, ETAS GmbH, Magneti Marelli S.P.A, Softing AG, General Technologies Corporation, DSA Daten- und Systemtechnik GmbH, Autologic Diagnostics Ltd, Hickok Incorporated, AVL DiTEST GmbH, Vector Informatik GmbH, Vidiwave Limited, Autel Intelligent Technology Corp. Ltd, Robert Bosch GmbH.

North America was the largest region in the vehicle diagnostics market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vehicle diagnostics market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle diagnostics market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vehicle diagnostic market consists of revenues earned by entities by providing services such as repair services, mobile diagnostic services, and pre-purchase inspections. The market value includes the value of related goods sold by the service provider or included within the service offering. The vehicle diagnostics market also includes sales of diagnostic software, test equipment, scan tools, and vehicle diagnostic interfaces. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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