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The automotive computer-based diagnostics market is booming, poised for a revenue surge into the hundreds of millions from 2025 to 2034, driving a revolution in sustainable transportation. The rising adoption of advanced diagnostics solutions by automotive workshops for detecting faults in vehicles coupled with technological advancements in the automobile manufacturing sector has boosted the market expansion.
Additionally, the increasing demand for portable OBD scanners along with growing consumer awareness towards regular vehicle maintenance is playing a vital role in shaping the industrial landscape. The integration of AI and IoT in diagnostic tools is expected to create ample growth opportunities for the market players in the future.
The automotive computer-based diagnostics market is a crucial branch of the automotive industry. This industry deals in manufacturing and distribution of computer-based diagnostics solutions for the automotive sector. There are several hardware components developed in this sector comprising of OBD scanners, analyzers, code readers, TPMS tools, multimeters and some others. Also, numerous software are developed in this sector consisting of diagnostic software platforms, cloud-based diagnostics systems and embedded vehicle diagnostic systems. These diagnostics solutions finds various applications in engine and transmission diagnostics, brake systems, emission control, fuel systems, infotainment & connectivity systems, ADAS & safety systems and some others. The end user of this sector comprises of OEMs, automotive repair & maintenance service providers, fleet operators, DIY consumers and some others. This market is expected to rise significantly with the growth of the software industry in different parts of the world.
| Metric | Details |
| Key Growth Drivers | EV sales, AI & IoT integration, portable OBD demand, software deployment, service center expansion |
| Leading Region | Asia Pacific |
| Market Segmentation | By Offering, By Vehicle Type, By Communication Technology, By Deployment Type, By Application, By End User and By Region |
| Top Key Players | Bosch Automotive Service Solutions, Delphi Technologies, Continental AG, Snap-on Incorporated, Denso Corporation, Softing AG, Actia Group. |
The major trends in this market consists of partnerships, opening of automotive service centers and rising sales of EV.
Several market players are partnering with software companies to deploy advanced diagnostics solutions in service centers. For instance, in July 2025, Vector partnered with QNX. This partnership is done for developing a foundational vehicle software platform to reduce complexity of automotive software integration. (Source: Vector)
Various automotive companies are investing heavily for opening up new service centers to provide regular car maintenance services to automotive consumers. For instance, in April 2025, Rosmerta Group announced the opening of a new automotive service center in India. This facility is named as MyRaasta COCO Garage that is opened to cater the automotive consumers across Gurgaon, India.(Source: Nurc Media Next)
The sales of EVs have increased rapidly with an aim at reducing vehicular emission and numerous government initiatives to develop the EV industry. According to the International Energy Agency, around 11000000 BEVs were sold globally in 2024. (Source: International Energy Agency)
The software segment led the market with a share of 42%. The growing demand for advanced software from the automotive sector to inspect the faults in vehicles has boosted the market growth. Moreover, the rapid deployment of cloud-based software in modern workshops to gather real time insights about vehicles is expected to drive the growth of the automotive computer-based diagnostics market.
The services segment is expected to expand with the highest CAGR during the forecast period. The rising popularity of subscription-based services among automotive consumers has boosted the market expansion. Moreover, numerous services provided by automotive workshops such as remote diagnostics services, repair & maintenance services, software updates and integration services, and some others is expected to propel the growth of the automotive computer-based diagnostics market.
The on-board diagnostics (OBD) segment dominated the market with a share of 48%. The rising demand for OBD scanners from automotive workshops and EV service centers has boosted the market growth. Additionally, the increasing adoption of OBD-II type scanners by insurance providers and fleet operators to derive accurate results of vehicle inspection is contributing to the industrial expansion. Moreover, the growing popularity of portable OBD scanners in China and the U.S. coupled with rapid investment by market players for developing affordable OBD scanners is expected to drive the growth of the automotive computer-based diagnostics market.
The Wi-Fi/Bluetooth enabled diagnostics segment is expected to rise with the fastest CAGR during the forecast period. The growing demand for Wi-Fi enabled diagnostics solution in automotive service centers for enabling remote diagnostics, data monitoring, updating software and some others has boosted the market growth. Also, the increasing adoption of Bluetooth-based diagnostics tools in local workshops for detecting faults in vehicles is expected to propel the growth of the automotive computer-based diagnostics market.
Why did the off-board segment held the largest share of the Automotive Computer-Based Diagnostics Market in 2025?
The off-board segment led the market with a share of 58%. The growing use of external tools and third-party software to detect faults in vehicles has boosted the market expansion. Also, numerous advantages of off-board diagnostics solutions including system reprogramming, detailed troubleshooting, cost savings through early issue detection and some others is expected to boost the growth of the automotive computer-based diagnostics market.
The on-board segment is expected to rise with the fastest CAGR during the forecast period. The rising use of OBD scanners for detecting the faults in vehicles has boosted the market growth. Additionally, various benefits of on-board diagnostics solutions including comprehensive troubleshooting capabilities, in-depth analysis of vehicle systems, ability to access and analyze data from multiple ECUs across different vehicle and some others is expected to drive the growth of the automotive computer-based diagnostics market.
The passenger vehicles segment dominated the market with a share of 64%. The growing sales and production of passenger cars in several countries such as India, China, the U.S. and some others has boosted the market growth. Additionally, numerous offers provided by automotive OEMs for regular servicing of luxury cars is playing a vital role in shaping the industrial landscape.
Moreover, the rising emphasis on developing advanced software for diagnosing passenger cars is expected to boost the growth of the automotive computer-based diagnostics market
The commercial vehicles segment is expected to expand with the fastest CAGR during the forecast period. The rising sales of autonomous trucks in developed nations such as the UK, Germany, the U.S., China and some others has boosted the market expansion. Additionally, the rapid adoption of AI-based diagnostics solutions in commercial vehicle service centers is contributing to the industrial growth. Moreover, partnerships among automotive companies and software developers to develop advanced solutions to detect faults in commercial vehicles is expected to drive the growth of the automotive computer-based diagnostics market.
The engine & transmission segment led the industry with a share of 35%. The growing use of OBD scanners for detecting faults in engines and transmission systems has boosted the market growth. Additionally, rapid investment by automotive brands to deploy advanced diagnostics solutions to check engine and transmission systems in vehicles is playing a vital role in shaping the industrial landscape. Moreover, the rising emphasis on developing diagnostic software platforms to check the capabilities of engines and transmission systems is expected to foster the growth of the automotive computer-based diagnostics market.
The ADAS & safety systems segment is expected to rise with the fastest CAGR during the forecast period. The rising sales of autonomous cars in developed nations such as the U.S., UK, Italy, China, and some others has increased the demand for ADAS diagnostics solutions, thereby driving the market expansion. Additionally, growing emphasis of software companies on developing advanced software to detect faults in ADAS systems is playing a vital role in shaping the industry in a positive direction. Moreover, the integration of AI-enabled diagnostics software in ADAS-based vehicles is expected to propel the growth of the automotive computer-based diagnostics market.
The repair & maintenance providers segment held the dominant share of the industry with 50%. The rising demand for advanced diagnostics solutions from automotive repairing centers has boosted the market expansion. Additionally, rapid investment by automotive companies to open new service centers coupled with deployment of cloud-based software in maintenance shops is playing a vital role in shaping the industrial landscape. Moreover, numerous collaborations among automotive OEMs and market players to deploy efficient diagnostic solutions is expected to boost the growth of the automotive computer-based diagnostics market.
The fleet operators segment is expected to expand with the highest CAGR during the forecast period. The rise in number of EV fleet operators in numerous countries such as Singapore, Italy, China, Germany and some others has boosted the market growth. Additionally, rapid adoption of advanced solutions by fleet operators to detect faults in vehicles is playing a crucial role in shaping the industry in a positive direction. Moreover, partnerships among fleet operators and software developers to deploy advanced solutions for managing fleets is expected to drive the growth of the automotive computer-based diagnostics market.
Asia Pacific dominated the automotive computer-based diagnostics market with a share of 38%. The growing sales and production of passenger vehicles in several countries such as India, Japan, China, South Korea and some others has boosted the market expansion. Additionally, technological advancements in the automotive sector coupled with rapid investment by automotive brands for inaugurating new automotive service centers is playing a vital role in shaping the industrial landscape. Moreover, the presence of numerous market players such as Denso Corporation, KPIT Technologies, Marelli Holdings Co., Ltd. and some others is expected to drive the growth of the automotive computer-based diagnostics market in this region.
China led the market in this region. The growing number of EV startups coupled with technological advancements in the automotive sector has boosted the market expansion. Also, rapid investment by automotive brands for opening new OEM service centers is playing a vital role in shaping the industry in a positive direction.
North America is expected to rise with a significant CAGR during the forecast period. The rising sales of electric vehicles in the U.S. and Canada for reducing vehicular emission has boosted the market expansion. Additionally, rise in number of third-party automotive workshops coupled with increasing awareness of timely servicing of luxury vehicles is adding to the industrial growth. Moreover, the presence of numerous diagnostic solution providers such as Zubie Inc., Snap-on Incorporated, Vox Automotive and some others is expected to propel the growth of the automotive computer-based diagnostics market in this region.
U.S. dominated the market in this region. The growing investment by automotive companies for opening new service centers coupled with rapid adoption of advanced technologies such as AI and IoT in the automotive sector has driven the market expansion. Additionally, rise in number of startups dealing in automotive software along with rising sales of EVs is playing a vital role in shaping the industry in a positive direction.
The automotive computer-based diagnostics market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Denso Corporation, Snap-on Incorporated, Magna International Inc., KPIT Technologies, Robert Bosch GmbH, Bayerische Motoren Werke Aktiengesellschaft, Harman International, Vector Informatik GmbH, Delphi Technologies, Continental AG, Pioneer Corporation and some others. These companies are constantly engaged in developing computer-based diagnostics solutions for the automotive sector and adopting numerous strategies such as partnerships, joint ventures, business expansions, acquisitions, launches, collaborations and some others to maintain their dominance in this industry.
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