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Vehicle Diagnostics Market Forecast: What Value Will The Market Reach By 2030?
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.
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Vehicle Diagnostics Market Growth Backed By Core Demand Fundamentals
The rise in vehicle leasing is expected to propel the growth of the vehicle diagnostics market going forward. Vehicle leasing refers to a contractual arrangement where a company or individual (the lessee) rents a vehicle from a leasing company or financial institution (the lessor) for a specified period, typically months to years. The rise in vehicle leasing is due to access to newer vehicles, reduced maintenance costs, flexibility, and tax benefits for businesses. Vehicle diagnostics is essential in vehicle leasing to ensure the maintenance and performance of leased vehicles, enabling lessors to monitor vehicle health, detect issues, and optimize fleet management for efficient and reliable operation throughout the leasing period. For instance, in 2024, according to the British Vehicle Rental & Leasing Association (BVRLA), a UK-based professional association, the UK lease fleet reached about 1.94 million vehicles at the end of 2024. Therefore, the rise in vehicle leasing is driving the growth of the vehicle diagnostics market.
Vehicle Diagnostics Market Segment Breakdown: Which Categories Lead On Revenue?
The vehicle diagnostics market covered in this report is segmented –
1) By Product Type: 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, Other Products
2) By Vehicle Type: Light-Duty Vehicle, Commercial Vehicle, Heavy Commercial Vehicle
3) By Equipment Type: Exhaust Gas Analyzer, Wheel Alignment Equipment, Headlight Tester, Paint Scan Equipment, Dynamometer
4) By Application: Automatic Crash Notification, Vehicle Tracking, Vehicle Health Alert, Roadside Assistance
Subsegments:
1) By OBD2 Scanner: Standard OBD2 Scanner, Advanced OBD2 Scanner
2) By Multi-System Auto Diagnostic Tool: OEM Multi-System Diagnostic Tool, Aftermarket Multi-System Diagnostic Tool
3) By OBDII Scanner Bluetooth Automotive ECU Coding Diagnostic Tool: Wireless OBDII Scanner with Bluetooth Connectivity, ECU Coding And Reprogramming OBDII Diagnostic Tools
4) By OBD2 Car Code Reader Or Scan Tool: Basic OBD2 Code Reader, Professional OBD2 Scan Tool
5) By OBD2 Adapter Check Engine Diagnostic Tool: OBD2 Bluetooth Adapter, OBD2 USB Adapter
6) By Smartphone Diagnostic Tool: Mobile App-Based Diagnostic Tools, Smartphone OBD2 Adapter Kits
7) By Other Products: Vehicle Battery Diagnostic Tools, TPMS Diagnostic Tools, Hybrid Or Electric Vehicle Diagnostic Tools, Automotive Performance Diagnostic Tools
Vehicle Diagnostics Market Growth Trends Reshaping The Competitive Landscape
Major companies operating in the vehicle diagnostics market are focused on developing vehicle battery diagnostic technology, such as MDX-AI, to gain a competitive edge in the market. MDX-AI is a battery diagnostic tool used to assess the health, performance, and condition of batteries employed in various tests and analyses. For instance, in July 2024, Midtronics Inc., a US-based battery management systems company, launched MDX-AI, a battery diagnostic technology for automotive service equipment. This innovative solution harnesses the power of artificial intelligence to provide accuracy and speed in assessing battery health and performance. Midtronics has developed MDX-AI, a battery diagnostic technology powered by artificial intelligence, to eliminate ‘Charge and Retest’ decisions, provide instant and accurate battery health assessments, and ensure reliable support for critical functions in electric vehicles. To address the challenges faced by service providers in accurately diagnosing battery issues. MDX-AI enables technicians to make precise decisions on battery health quickly, enhancing efficiency and productivity in vehicle maintenance. Additionally, MDX-AI offers advanced capabilities, such as accurate testing of electric vehicle 12V batteries, which are critical for ensuring the reliability of safety systems.
Vehicle Diagnostics Market Leading Players And Competitive Positioning
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
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Vehicle Diagnostics Market Regional Split: Which Areas Are Fueling Growth?
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.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.
