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The heavy-duty trucks on-board diagnostics system market size is forecast to increase by USD 89.21. million, at a CAGR of 3.42% between 2023 and 2028. The growth of the market depends on several factors such as the need for fleet operators to reduce the total cost of ownership, the adoption of usage-based insurance (UBI) models and the increasing volume of electronic content in modern vehicles.
The report includes a comprehensive outlook on the market offering forecasts for the industry segmented by Vehicle Type, which is class 8 and class 7. Additionally, it categorizes Type into hand-held scan tools, mobile device based tools, and PC-based scan tools and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The market analysis and report provide market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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Our researchers analyzed the data with 2023 as the base year, along with the key drivers, market trends and analysis, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing volume of electronic content in modern vehicles is notably driving market growth. The commercial vehicle industry is experiencing increased adoption of electronic content due to the electrification of mechanical components, which is fueling the need for advanced assistance systems for optimization. Solutions such as fleet management are witnessing growing demand across the world. In addition, the demand for navigation, safety, comfort, and content is pushing the adoption of electrical distribution systems in vehicles.
Hence, electronic component manufacturers have seen a boost in demand for high-speed wiring, connectors, and other electronic technologies to enable telematics and infotainment systems in the global automotive industry. Further, the presence of a conducive technology environment or platform to enable the viability of connected vehicle services is an inherent driver of the global system market during the market forecast period.
The emergence of truck platooning is an emerging trend shaping the market growth. Truck platooning, enabled by automated driving technologies, has been hailed as the future of the transportation industry. In a truck platoon, multiple trucks travel at an aerodynamically efficient distance and drive cooperatively by maintaining the distance at high speeds. The platoon is similar to a train's compartment-like arrangement but with physical disconnects. As automated driving technology penetrates the passenger cars segment and commercial vehicle segment, truck platooning will be viewed as an essential feature of the self-driven truck.
Moreover, in truck platooning technology, communications among truck fleets are enabled by wireless connectivity, and the vehicles get steering automatically, which reduces the driving pressure for truck drivers. The trucks in the platoon automatically synchronize speed and braking actions, thereby resulting in higher fuel efficiency for all vehicles in the platoon. Thus, the emergence of truck platooning is expected to positively affect the growth of the market during the forecast period.
The high cost of vehicle telematics services is a significant challenge hindering market growth. Initial costs of setting up telematics include license, setup and installation fee, and payment for customization and integration with current systems. The license has to be renewed periodically, which adds to the overall cost. In addition, integration or customization can be more expensive than the price of telematics devices and license fees. OBD systems are used by vehicle owners to keep emissions under check and for preventive maintenance. In addition, hidden costs could pose a challenge to the market growth analysis.
For instance, network providers levy roaming charges for vehicles that travel beyond a country's borders. Companies also charge in situations involving vehicle replacement and end-contractual equipment termination. In addition, the high cost of automobile-embedded telematics makes it difficult for manufacturers to keep their product prices low. Hence, the high cost of vehicle telematics services is expected to hamper the growth of the market during the forecast period.
The market research 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 and forecasting strategies.
Market 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.
ACTIA Group - The company offers heavy duty trucks onboard diagnostics systems such as S Diag and Multi Diag.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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 class 8 segment is estimated to witness significant growth during the forecast period. heavy-duty trucks weighing over 33,000 lbs (16.5 US tons) are the dominant contributor to the global market. These trucks are used in transporting goods across cities and construction and mining activities. The demand for Class 8 trucks is expected to be driven by the developing economies as these economies are expected to witness faster market growth and trends in terms of infrastructural developments than the developed economies.
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The class 8 segment was the largest and was valued at USD 332.27 million in 2018. Moreover, the automotive market in developed regions, including countries in Western Europe, is one of the most advanced markets, wherein most of the new advanced automotive technologies are tested and made available for commercial use. Heavy-duty trucks in Europe are adopting smart technologies such as predictive cruise control and OBD solutions. The adoption of advanced technologies makes heavy-duty trucks safer and more convenient for drivers. Thus, the high demand for heavy-duty trucks on the road due to their rising importance in logistics and the transportation of goods is expected to fuel the demand for OBD systems, thereby driving the growth global market through the Class 8 segment during the forecast period.
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North America is estimated to contribute 36% 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. The market in North America evolved after the implementation of mandatory heavy-duty vehicle OBD requirements by the US government in the last decade. Currently, the OBD systems market has come a long way since its inception, with start-up companies emerging with new technologies in the field of OBD connectivity, embedded display systems, and telematics. With the growing need for fuel efficiency, the demand for OBD systems is also increasing. OBD systems are claimed to increase fuel economy in heavy-duty vehicles.
Further, the United States New Car Assessment Program (US NCAP) may have an effect in deepening the penetration levels of OBD systems. The US NCAP, through its rating mechanisms, encourages OEMs to incorporate all possible safety features in vehicles. Canada and Mexico follow the heavy-duty vehicle OBD regulations similar to the US norms. This is driving the market for several telematics applications and services, thereby driving the regional market during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends, market research and growth opportunities from 2018 to 2028.
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Heavy-duty Trucks On-board Diagnostics System Market Scope |
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Report Coverage |
Details |
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Page number |
170 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Market forecasting period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 3.42% |
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Market Growth 2024-2028 |
USD 89.21 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
3.25 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 36% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ACTIA Group, Autel Intelligent Technology Co., AVL DiTEST GmbH, Bridgestone Corp., CalAmp Corp., Continental AG, Cummins Inc., Danlaw Inc., Fleet Complete, Garrett Motion Inc., Geotab Inc., iWave Systems Technologies Pvt. Ltd., Moj.io Inc., OBD Solutions LLC, Robert Bosch GmbH, Snap On Inc., Vector Informatik GmbH, Vidiwave Ltd., ZF Friedrichshafen AG, and Zubie Inc. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Vehicle Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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