Global Automotive Diagnostics Market to Reach $109.84 Bn by 2030 Driven by Rising Vehicle Electrification

Advanced automotive diagnostics are essential to support EVs, reduce downtime, and meet stringent emission standards.

WILMINGTON, DE, UNITED STATES, October 8, 2025 /EINPresswire.com/ -- According to a new report published by Allied Market Research, titled, “Automotive Diagnostics Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type (On-board and Off-board), Device (Hand-held Tools, Mobile-based Tools, PC-based Tools, and Others), and Application (Passengers Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, and Electric Vehicles): Global Opportunity Analysis and Industry Forecast, 2021-2030" The global automotive diagnostics market was valued at $40.77 billion in 2020, and is projected to reach $109.84 billion by 2030, registering a CAGR of 10.5% from 2021 to 2030.

The global automotive diagnostics market is witnessing rapid growth driven by the increasing adoption of advanced vehicles equipped with sophisticated electronics and emission control systems. Rising demand for predictive maintenance, stringent government regulations on vehicle emissions, and the integration of IoT and AI-based diagnostics solutions are further propelling the market. The market encompasses diagnostic tools, software, and services that enable real-time monitoring, fault detection, and performance optimization of vehicles.

𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗣𝗗𝗙 𝗕𝗿𝗼𝗰𝗵𝘂𝗿𝗲: https://www.alliedmarketresearch.com/request-sample/A13069

𝗠𝗮𝗿𝗸𝗲𝘁 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀
• Growth of Connected and Electric Vehicles
The increasing penetration of connected vehicles and electric vehicles (EVs) is driving demand for advanced diagnostic tools. EVs and hybrid vehicles require specialized diagnostics solutions to monitor battery health, electric drive systems, and onboard electronics, fueling market expansion.

• Stringent Emission and Safety Regulations
Governments worldwide are enforcing strict emission norms and vehicle safety regulations. Compliance with standards such as Euro 7, BS-VI, and CAFE regulations necessitates sophisticated diagnostics solutions to monitor engine performance, exhaust emissions, and onboard safety systems.

• Technological Advancements
Integration of AI, machine learning, and cloud-based platforms in automotive diagnostics is transforming the market. Advanced telematics, predictive maintenance solutions, and real-time monitoring tools are enabling service providers to reduce downtime, enhance vehicle efficiency, and improve customer experience.

• Rising Vehicle Complexity
Modern vehicles are increasingly equipped with electronic control units (ECUs), sensors, and infotainment systems. The complexity of these systems demands more advanced diagnostic solutions for fault detection, software updates, and system calibration, boosting market adoption.

• Aftermarket Growth and Service Demand
The expanding automotive aftermarket is contributing significantly to the diagnostics market. Vehicle owners and fleet operators are investing in diagnostics tools for preventive maintenance, reducing repair costs, and extending vehicle lifespan, especially in commercial vehicle segments.

𝗖𝗼𝗻𝗻𝗲𝗰𝘁 𝗧𝗼 𝗔𝗻𝗮𝗹𝘆𝘀𝘁: https://www.alliedmarketresearch.com/connect-to-analyst/A13069

𝗦𝗲𝗴𝗺𝗲𝗻𝘁 𝗢𝘃𝗲𝗿𝘃𝗶𝗲𝘄
The automotive diagnostics industry is segmented by diagnostic tools, software, and services. Tools include handheld scanners, PC-based systems, and wireless devices, while software solutions provide predictive analytics, telematics, and cloud-based diagnostics. Services cover installation, maintenance, and support for automotive workshops and OEMs.

𝗥𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
North America dominates the automotive diagnostics market due to high adoption of connected vehicles, advanced infrastructure, and supportive government initiatives. The U.S. market is particularly strong in telematics-based diagnostics and aftermarket services.
Europe is witnessing steady growth, driven by stringent emission regulations and the adoption of EVs. Germany, France, and the U.K. are leading markets, with an emphasis on integrating AI-driven diagnostics into automotive workshops.

𝗙𝗼𝗿 𝗣𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗜𝗻𝗾𝘂𝗶𝗿𝘆: https://www.alliedmarketresearch.com/purchase-enquiry/A13069

𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲 𝗔𝗻𝗮𝗹𝘆𝘀𝗶𝘀
Key players in the market include Bosch, Continental AG, Denso Corporation, Delphi Technologies, and Texa S.p.A. Companies are focusing on strategic partnerships, product innovation, and expansion into emerging markets to maintain competitiveness. Continuous development of AI-enabled and IoT-based diagnostic solutions is a key differentiator.

The market is moderately consolidated, with established players dominating advanced diagnostic solutions while new entrants focus on cost-effective, mobile-based tools for emerging economies.

𝗞𝗲𝘆 𝗙𝗶𝗻𝗱𝗶𝗻𝗴𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗦𝘁𝘂𝗱𝘆
• Growing EV and connected vehicle adoption is driving demand for specialized diagnostics.
• AI and cloud-based solutions are transforming predictive maintenance and real-time monitoring.
• Stringent emission and safety regulations are fueling adoption of advanced tools.
• North America holds the largest market share, followed by Europe and Asia-Pacific.
• Strategic collaborations and product innovations are key strategies among top players.

𝗧𝗿𝗲𝗻𝗱𝗶𝗻𝗴 𝗥𝗲𝗽𝗼𝗿𝘁𝘀 𝗶𝗻 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆
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David Correa
Allied Market Research
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