Automotive Diagnostic Scan Tools Market Set for Robust Growth Through 2029, Fueled by Tech Advancements and Rising Vehicle Demand
The automotive diagnostic scan tools market is undergoing a phase of strong and sustained growth, driven by technological innovation, the proliferation of electric and hybrid vehicles, and increasing global vehicle production. A new report titled “Automotive Diagnostic Scan Tools Market Report 2025”, recently added to ResearchAndMarkets.com’s offerings, offers a comprehensive analysis of this dynamic and evolving sector.
Market Overview and Growth Trajectory
According to the report, the global market for automotive diagnostic scan tools reached a valuation of $40.51 billion in 2024 and is projected to grow to $42.64 billion by 2025, representing a compound annual growth rate (CAGR) of 5.3%. This upward trend is expected to accelerate over the forecast period, with the market anticipated to hit $55.93 billion by 2029, at a CAGR of 7.0%.
This robust growth can be attributed to several key factors, including the increasing complexity of modern vehicles, the widespread adoption of onboard diagnostics (OBD) standards, and growing consumer awareness about vehicle maintenance. Regulatory requirements for vehicle safety and emissions are also prompting manufacturers and service providers to adopt advanced diagnostic solutions that can ensure compliance while streamlining service delivery.
Historical Drivers of Growth
The historical growth of the automotive diagnostic scan tools market has been underpinned by a significant shift in the design and manufacturing of vehicles. Today’s vehicles incorporate numerous microprocessors, sensors, and embedded systems that monitor everything from engine performance to emission levels. As a result, traditional mechanical inspection methods are no longer sufficient for accurate vehicle maintenance and troubleshooting.
The widespread implementation of OBD systems, particularly OBD-II in newer vehicles, has standardized diagnostic capabilities across automotive brands, further spurring demand for compatible scan tools. Additionally, rising consumer demand for safe and reliable vehicles has encouraged more frequent diagnostic testing and preventive maintenance practices.
Forecasted Drivers: Electrification, Connectivity, and Predictive Maintenance
Looking ahead, the growth of electric and hybrid vehicles, the integration of artificial intelligence (AI) in diagnostics, and the rising adoption of connected vehicles are expected to be pivotal in shaping the future of the automotive diagnostic scan tools market. As vehicle architectures become increasingly software-defined and data-driven, diagnostic tools must evolve to handle more complex, real-time data analysis and remote diagnostics.
Predictive maintenance—where issues are detected and addressed before they cause breakdowns—has emerged as a major trend, especially in fleet management and commercial vehicle sectors. This shift is pushing manufacturers to develop scan tools that are not only precise but also capable of integrating with cloud platforms and telematics systems.
Key Market Trends: Wireless, Cloud-Based, and Mobile-Enabled Tools
Among the prominent trends reshaping the market is the evolution of wireless diagnostic scan tools that eliminate the need for traditional plug-and-play interfaces. These tools often rely on Bluetooth or Wi-Fi connectivity to transmit vehicle data to mobile devices or cloud platforms.
Cloud-based diagnostics and mobile app integrations are also gaining momentum, making diagnostics more accessible to independent repair shops and even individual consumers. Real-time remote diagnostics allow technicians to analyze vehicle data from anywhere, expediting the repair process and minimizing vehicle downtime.
Another emerging trend is the use of blockchain technology to secure diagnostic data, ensuring privacy, transparency, and authenticity of vehicle maintenance records—especially crucial in fleet management and vehicle resale.
Rising Vehicle Production and Sales Fuel Market Expansion
Global vehicle production and sales continue to be a significant growth engine for the diagnostic scan tools market. As the volume of vehicles on the road increases, so does the need for timely diagnostics and maintenance services.
For instance, data from the European Automobile Manufacturers Association (ACEA) shows that global vehicle production rose to 85.4 million units in 2022, marking a 5.7% increase from the previous year. Similarly, Brand Finance reported that approximately 78 million vehicles were sold globally in 2022—a 10% increase over 2021. This surge directly correlates with rising demand for diagnostic scan tools among both OEMs and aftermarket service providers.
Passenger Cars Drive Market Growth
Passenger cars represent a significant segment of the market due to their widespread use in personal and family transportation. These vehicles depend heavily on diagnostics for systems such as engines, braking, emissions, and infotainment. In the U.S. alone, passenger car sales climbed by 5.5% in 2021, reaching 11.9 million units, while domestic production of passenger cars exceeded 6.3 million units the same year—a 3.1% increase.
As passenger car ownership continues to rise globally, particularly in emerging markets, so will the demand for accessible and affordable diagnostic solutions.
Technological Innovation at the Forefront
One of the most defining characteristics of the automotive diagnostic scan tools market is its rapid pace of technological advancement. Companies are racing to develop innovative products that cater to both professional technicians and DIY enthusiasts.
For example, in October 2023, U.S.-based Matco Tools introduced the Maximus Plus—a diagnostic tool designed to be both budget-friendly and customizable. Running on an upgraded Android operating system, the Maximus Plus enables technicians to tailor their diagnostic software by selecting specific vehicle brands, significantly enhancing efficiency and reducing operational costs.
In another example of innovation, Launch Tech—a China-based automotive diagnostics leader—unveiled the X-431 Throttle V in October 2024. This high-performance diagnostic tool features 12GB of memory, 512GB of storage, and a 13.6-inch ultra-high-resolution screen, making it one of the most advanced tools in the market. The device is designed to deliver faster processing, greater data storage, and a more intuitive user experience for comprehensive vehicle diagnostics.
Strategic Acquisitions and Industry Consolidation
The market is also witnessing consolidation through strategic mergers and acquisitions aimed at strengthening technological capabilities and expanding geographic reach. A notable example is KPIT Technologies’ acquisition of SOMIT Solutions in May 2022. KPIT, an India-based provider of embedded software and engineering solutions for the automotive industry, integrated SOMIT’s diagnostic platforms to boost its AI-driven diagnostics offering.
This acquisition not only expanded KPIT’s portfolio but also enhanced its service delivery capabilities across Europe and North America, reflecting a broader trend of cross-border collaborations in the diagnostics space.
Market Segmentation and Key Players
The report segments the market by type, vehicle type, and offering type:
- By Type: On-Board Diagnostics (OBD), Electric System Analyzers, Other Types (e.g., engine diagnostic tools, ABS/airbag tools)
- By Vehicle Type: Passenger Cars, Commercial Vehicles
- By Offering Type: Diagnostic Equipment/Hardware, Diagnostic Software
Further segmentation includes:
- OBD Subtypes: OBD-I Scanners, OBD-II Scanners, Wireless OBD Adapters
- Electric System Analyzers: Battery, Alternator, and Starter Testers
Prominent players featured in the report include Nippon Denso, Snap-On Inc., Bosch Automotive Service Solutions, Delphi Automotive, Launch Tech Co. Ltd., KPIT Technologies, Autel Intelligent Technology, Fluke Corporation, Continental AG, and Robert Bosch GmbH, among many others.
The automotive diagnostic scan tools market is on a solid growth path, buoyed by a blend of technological disruption, increasing vehicle complexity, and growing consumer awareness. As automakers and service providers continue to embrace innovations such as cloud diagnostics, AI integration, and mobile accessibility, the market is poised to become more efficient, secure, and customer-centric.
With a projected market value of nearly $56 billion by 2029, companies operating in this space have a significant opportunity to capitalize on evolving customer needs, regulatory mandates, and the electrification of mobility.
