Vehicle Diagnostics Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The vehicle diagnostics market size has grown rapidly in recent years. It will grow from $38.09 billion in 2024 to $44.26 billion in 2025 at a compound annual growth rate (CAGR) of 16.2%. The growth in the historic period can be attributed to regulatory compliance, consumer demand for reliability, cost pressures on vehicle maintenance, globalization of automotive manufacturing, the rise of vehicle ownership, and fleet management.

The vehicle diagnostics market size is expected to see rapid growth in the next few years. It will grow to $79.77 billion in 2029 at a compound annual growth rate (CAGR) of 15.9%. The growth in the forecast period can be attributed to increasing vehicle complexity, focus on predictive analytics, the shift towards subscription-based services, the rise of mobility-as-a-service (MaaS), growing focus on sustainability. Major trends in the forecast period include increasing adoption of connected diagnostic solutions, expansion of predictive maintenance solutions, integration of advanced sensor technologies, shift towards software-based diagnostics, and emergence of augmented reality (AR) diagnostics.

The increasing prevalence of vehicle leasing is poised to drive growth within the vehicle diagnostics market in the foreseeable future. Vehicle leasing entails a contractual arrangement wherein a lessee rents a vehicle from a lessor for a specified duration, typically ranging from months to years. This surge in vehicle leasing is attributed to various factors such as access to newer vehicles, reduced maintenance costs, flexibility, and tax benefits, particularly for businesses. Vehicle diagnostics play a critical role in vehicle leasing by ensuring the maintenance and performance of leased vehicles. This enables lessors to monitor vehicle health, detect issues promptly, and optimize fleet management to ensure efficient and reliable operation throughout the leasing period. For example, data from MotorFinanceOnline, powered by Verdict Media Limited, revealed that in the initial six months of 2022, 1 out of every 5 (20%) new leasing clients were seeking to lease a pure battery electric vehicle (BEV), indicating a notable surge of 1575% in BEV demand compared to previous years and underscoring the pivotal role of rising vehicle leasing in propelling growth within the vehicle diagnostics market.

Prominent enterprises operating within the vehicle diagnostics market are directing their efforts toward the development of advanced vehicle battery diagnostic technology to enhance their competitive positioning. MDX-AI represents one such innovation, serving as a battery diagnostic tool designed to assess the health, performance, and condition of batteries utilized in various tests and analyses. For instance, Midtronics Inc., a US-based battery management systems company, introduced MDX-AI in July 2024. This cutting-edge solution harnesses the capabilities of artificial intelligence to deliver accuracy and speed in evaluating battery health and performance. By eliminating 'Charge and Retest' decisions and providing instantaneous and precise battery health assessments, MDX-AI enhances efficiency and productivity in vehicle maintenance. Notably, MDX-AI offers advanced features, including the accurate testing of electric vehicle 12V batteries, crucial for ensuring the reliability of safety systems and addressing the challenges encountered by service providers in accurately diagnosing battery issues.

In May 2022, KPIT Technologies, an India-based software development company, finalized the acquisition of Somit Solutions, bolstering its after-sales platform by integrating cloud-based vehicle diagnostics expertise from SOMIT Solutions. This strategic move aimed to provide a comprehensive solution for strategic clients and optimize after-sales service efficiencies within the automotive and mobility industries. Somit Solutions, a US-based cloud-operated vehicle diagnostics company, brought valuable expertise to KPIT Technologies, reinforcing its capabilities in delivering robust and scalable solutions tailored to meet the evolving needs of the automotive and mobility sectors.

Major companies operating in the vehicle diagnostics market are 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 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vehicle diagnostics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the vehicle diagnostics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, 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).

Vehicle diagnostics involves the systematic identification, analysis, and resolution of issues or malfunctions within a vehicle's systems, components, and subsystems. This process empowers mechanics, technicians, and automotive professionals to accurately diagnose and rectify problems pertaining to critical aspects such as the engine, transmission, braking system, electrical system, emissions system, and other vital components.

Key products of vehicle diagnostics include the OBD2 scanner, multi-system auto diagnostic tool, OBDII scanner Bluetooth automotive ECU coding diagnostic tool, OBD2 car code reader or scan tool, OBD2 adapter check engine diagnostic tool, smartphone diagnostic tool, and various other diagnostic products. Additionally, exhaust gas analyzers are utilized to measure and analyze the composition of exhaust gases emitted by vehicles, aiding in assessing engine performance and emissions levels. Different types of vehicles involved in vehicle diagnostics encompass light-duty vehicles, commercial vehicles, and heavy commercial vehicles. Various equipment such as exhaust gas analyzers, wheel alignment equipment, headlight testers, paint scan equipment, and dynamometers are employed for tasks ranging from automatic crash notification and vehicle tracking to vehicle health alert monitoring and roadside assistance.

The vehicle diagnostics market research report is one of a series of new reports that provides vehicle diagnostics market statistics, including vehicle diagnostics industry global market size, regional shares, competitors with vehicle diagnostics market share, detailed vehicle diagnostics market segments, market trends, and opportunities, and any further data you may need to thrive in the vehicle diagnostics industry. This vehicle diagnostics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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