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The automotive prognostics market size is forecast to increase by USD 9.93 billion at a CAGR of 29.12% between 2023 and 2028. The market is experiencing significant growth due to the maintenance cost-saving benefits of prognostics systems. These systems enable predictive maintenance, reducing the need for unscheduled repairs and downtime. Traditional automotive suppliers are also entering the automotive telematics market, expanding the scope of prognostics technology application. However, the high costs associated with telematics services exert pressure on the adoption of prognostics systems. Manufacturers are addressing this challenge by developing cost-effective solutions, integrating prognostics technology with existing systems, and offering subscription-based models. The market is expected to grow steadily, driven by these factors and the increasing demand for reliable and efficient transportation solutions.
The market is experiencing significant growth due to the increasing demand for predictive maintenance and failure prevention in both passenger vehicles and commercial vehicles. Owners and repair service companies are seeking real-time insights into vehicle health to minimize downtime and reduce repair costs. Prognostics solutions, which utilize sensors and advanced analytics, provide failure probabilities and predictive diagnostics to enable preventive maintenance. Automotive OEMs and aftermarket players are investing in these systems to enhance the lifespan of automotive systems, reduce air pollution, and improve overall vehicle performance. Telematics services and sensors are playing a crucial role in monitoring the operation of various automotive systems, including internal combustion engines and ABS production.
Fleet operators and private owners of hatchbacks and other passenger vehicles are adopting these solutions to optimize maintenance and ensure safe and efficient vehicle operation. The market for automotive prognostics is expected to grow steadily as the vehicle ownership rate continues to increase.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The passenger cars segment is estimated to witness significant growth during the forecast period. The market is witnessing significant growth due to the increasing adoption of advanced technologies in vehicles. Owners of both traditional passenger cars and electric vehicles seek to prevent mechanical failures and accidents through real-time data and predictive diagnostics. Repair service companies and automakers are investing in maintenance prediction systems to provide owner's with failure probabilities and preventive maintenance recommendations. Sensors, a crucial component of these systems, provide real-time insights into vehicle health, enabling component replacement before catastrophic failure. Private automotive manufacturers and financial companies target middle-class families and fleet operators, recognizing the potential cost savings and consumer safety benefits.
Vehicle types, including hatchbacks and passenger vehicles, are equipped with vehicle electronics and semiconductor production, leading to an increase in the vehicle ownership rate. Real-time data analysis plays a vital role in predicting operational life, mechanical failure, and vehicle emissions. Electric vehicles, such as those with battery-powered engines, require special attention due to the risk of battery explosion. Predictive diagnostics help prevent accidents and reduce maintenance costs for electric cars. As the market evolves, ABS production and other vehicle systems will increasingly rely on automotive prognostics to optimize performance and ensure consumer safety.
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The passenger cars segment was valued at USD 1.57 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market encompasses various vehicle types, including Sedans, Utility Vehicles, Light Commercial Vehicles, Trucks, Buses and Coaches. Automotive Original Equipment Manufacturers (OEMs) are increasingly integrating prognostics solutions into their offerings to enhance commercial vehicles' maintenance, systems operation, and reliability. These advanced technologies enable early detection of malfunctions and predictive analysis of vehicle lifespan. Prognostics solutions are not limited to passenger cars; they extend to heavy-duty vehicles such as trucks and buses. The integration of telematics services and incentives, including rewards for eco-friendly driving and EV adoption, further boosts the market's growth. Internal combustion engines, a significant contributor to air pollution, benefit from prognostics solutions, which optimize fuel efficiency and reduce emissions.
The focus on maintaining vehicle health not only improves performance but also ensures a safer driving experience. Automotive systems, including braking, powertrain, and HVAC, can be monitored and analyzed for potential malfunctions, ensuring optimal operation and reducing downtime. The integration of these technologies in commercial vehicles is expected to revolutionize the transportation industry, providing cost savings, increased efficiency, and improved sustainability.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Maintenance cost-saving benefits of automotive prognostics system is the key driver of the market. The escalating maintenance costs for vehicles have led to a significant increase in the adoption of prognostics solutions. The annual growth rate of maintenance expenses for automobiles is approximately 3%, primarily due to rising labor and parts costs, as well as the deferral of preventive maintenance. The scarcity of skilled technicians has further exacerbated labor expenses, a trend that is anticipated to persist as modern vehicles continue to evolve. Although the cost of automotive parts and preventive maintenance is inevitable, the financial burden is most acutely felt when incurred due to driver or fleet manager negligence. Moreover, the importance of failure prevention cannot be overstated, as it not only reduces repair service companies' costs but also ensures consumer safety.
Prognostics solutions, such as maintenance prediction systems, provide real-time insights into failure probabilities, enabling timely component replacement and predictive diagnostics. These systems are increasingly being adopted by automakers, private automotive manufacturers, fleet operators, and even private owners, including middle-class families. Passenger cars, hatchbacks, electric vehicles, and battery-powered electric cars are all benefiting from these advancements. Vehicle electronics, semiconductor production, and anti-lock braking system (ABS) production are also experiencing the positive impact of these solutions. Financial companies are also investing in these technologies to mitigate the risks associated with vehicle ownership, particularly for fleet operators. In summary, prognostics solutions offer a cost-effective and efficient approach to vehicle maintenance, ensuring the operational life of vehicles, reducing vehicle emissions, and enhancing overall consumer safety.
Traditional automotive suppliers entering automotive telematics market is the upcoming trend in the market. The global market is witnessing an influx of traditional automotive component manufacturers entering the telematics sector. These companies, such as Bosch and Continental, are expanding their business by offering advanced diagnostics and prognostics capabilities. By doing so, they aim to capitalize on the increasing demand for connected vehicle technologies and predictive maintenance solutions. This strategic shift signifies a move towards providing more value-added services, leveraging their deep automotive systems and components expertise. Real-time monitoring and predictive analysis are key components of these offerings, enabling vehicle owners, repair service companies, and automakers to prevent mechanical failures, component replacements, and even accidents.
These insights also help fleet operators and private owners optimize maintenance schedules, reduce operational costs, and enhance consumer safety. Furthermore, the integration of telematics in passenger cars, hatchbacks, electric vehicles, and even commercial vehicles, is driving the growth of the market. The market is also witnessing significant investments from private automotive manufacturers, financial companies, and middle-class families, further fueling its expansion. Semiconductor production and vehicle electronics are also playing a crucial role in the development of advanced prognostics systems, with applications ranging from Anti-lock Braking Systems (ABS) to battery management systems, including the prevention of battery explosions in electric cars.
High costs associated with telematics services exert pressure on the adoption of prognostics system is a key challenge affecting the market growth. The market encompasses the use of advanced technologies, such as sensors and real-time data analysis, to provide failure prevention solutions for various vehicle types, including passenger cars, hatchbacks, electric vehicles, and commercial fleets. Owners and repair service companies benefit from predictive maintenance and preventive diagnostics, which enable the identification of potential mechanical failures and component replacements before they escalate into costly accidents or operational disruptions. Automakers and private automotive manufacturers invest in maintenance prediction systems to enhance consumer safety, improve engineering, and optimize the operational life of their vehicles. Moreover, the increasing vehicle ownership rate, particularly among middle-class families, has led financial companies and fleet operators to explore the benefits of these systems.
Real-time insights into failure probabilities and vehicle electronics, such as ABS and semiconductor production, facilitate more efficient and cost-effective maintenance strategies. However, the initial investment in telematics systems includes setup and installation fees, customization costs, and periodic subscription fees. Hidden costs, like roaming charges, pose a challenge to market growth, as telematics providers levy additional fees on vehicles that travel beyond national borders. Battery explosion in electric vehicles, such as those using lithium-ion batteries, is a significant concern, necessitating ongoing research and development in this area.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is witnessing significant growth due to the increasing focus on failure prevention and predictive maintenance in the automotive industry. Vehicle owners and repair service companies are investing in advanced maintenance prediction systems to identify potential mechanical failures in real-time, enabling component replacement before a catastrophic event occurs. These systems utilize sensors to collect real-time data on vehicle performance and diagnose data to determine failure probabilities. Private automotive manufacturers and automakers are integrating predictive diagnostics into their vehicles to enhance consumer safety and improve operational life. The shift towards electric vehicles, such as electric cars and hatchbacks, has also fueled the demand for prognostics in the automotive industry.
Further, battery explosion in electric vehicles is a major concern, and prognostics can help prevent such accidents by providing real-time insights into battery health. The market for automotive prognostics is not limited to passenger cars alone. It also caters to the needs of fleet operators, financial companies, and middle-class families. The vehicle electronics industry, including semiconductor production and ABS production, is also benefiting from the growth of automotive prognostics. The vehicle ownership rate is expected to increase, leading to a higher demand for maintenance and repair services, further boosting the market growth.
Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 29.12% |
Market Growth 2024-2028 |
USD 9.93 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
22.62 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 39% |
Key countries |
US, Germany, China, UK, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ANSYS Inc., Bridgestone Corp., Cloudera Inc., Continental AG, Dell Technologies Inc., Digital Management LLC, Fleet Complete, Garrett Motion Inc., International Business Machines Corp., Magna International Inc., OpenText Corp., Pioneer Corp., Predii Inc., Preteckt Inc., Progress Software Corp., Ridgetop Group Inc., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Solera Holdings LLC, and VMware Inc. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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