Global OBD Aftermarket to grow at 17% CAGR from 2018 to 2024: Global Market Insights Inc. OBD Aftermarket size was estimated at over USD 500 million in 2017, and OBD Aftermarket size is set to exceed USD 1.5 billion by 2024. The increasing emphasis on developing connected vehicle solutions and the growing adoption of IoT technology in the automobile sector are driving the growth of the OBD aftermarket. The increase in vehicle production, particularly LCVs and HCVs, has generated the demand for more stringent emission control standards. The government agencies around the world have implemented stringent emission control regulations to combat the increasing impact of air pollution on the environment. The increasing complexities in vehicles have generated the need to have more robust remote diagnostics solutions. Remote diagnostics technology is also gaining more popularity as it provides the vehicle owners and technicians with the real-time information about the vehicle’s status and helps in the effective monitoring of vehicle components remotely.
The passenger vehicles segment held a dominant share of over 40% in 2017 in the global OBD aftermarket. The increased production of passenger vehicles, particularly in the U.S. and China, is majorly contributing to the adoption of OBD telematics solutions in the segment. According to the American Auto Council, the U.S. auto production is expected to exceed 12 million vehicles per year through 2019 and reach 13 million by 2020. As it has been made mandatory by government institutions in various countries to have OBD compatibility for passenger vehicles, the segment is projected to grow consistently during the forecast timeline.
The hardware segment held a majority share of over 40% in the OBD aftermarket in 2017 due to the large-scale adoption of traditional OBD scanners such as scan tools and code readers to access the vehicle’s OBD port. These scanners act as an interface to provide users with the vehicles’ engine-related parameters. However, with the emergence of OBD dongles, additional information, such as driver behavior analytics and remote diagnostics, can be effectively extracted from vehicles. 1|Page