NEW
YORK, July 25, 2024 /PRNewswire/ -- The global
automotive OBD dongle market size is estimated to grow by
USD 87.87 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of 18.52% during the forecast period. Usage-based insurance (UBI)
model to drive utility value of OBD dongles is driving market
growth, with a trend towards advanced analytics on
telematics data to reduce risk severity. However, privacy and
hacking concerns with onboard diagnostics poses a challenge. Key
market players include AutoPi.io ApS, BAFX Products, BorgWarner
Inc., Continental AG, Danlaw Inc., Geotab Inc., Huawei Technologies
Co. Ltd., Intel Corp., iWave Systems Technologies Pvt. Ltd., Legion
Autodata JSC, Moj.io Inc., OBD Solutions LLC, Prizmos Ltd., Robert
Bosch GmbH, ShenZhen CheBoTong Technology Co. Ltd., TomTom NV,
Veepeak, Verizon Communications Inc., Zubie Inc., and Zymbia
Interactive Technologies Pvt. Ltd..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Vehicle Type (Passenger
cars and Commercial vehicles), Type (Bluetooth and WiFi), and
Geography (North America, APAC, Europe, South America, and Middle
East and Africa)
|
Region
Covered
|
North America, APAC,
Europe, South America, and Middle East and Africa
|
Key companies
profiled
|
AutoPi.io ApS, BAFX
Products, BorgWarner Inc., Continental AG, Danlaw Inc., Geotab
Inc., Huawei Technologies Co. Ltd., Intel Corp., iWave Systems
Technologies Pvt. Ltd., Legion Autodata JSC, Moj.io Inc., OBD
Solutions LLC, Prizmos Ltd., Robert Bosch GmbH, ShenZhen CheBoTong
Technology Co. Ltd., TomTom NV, Veepeak, Verizon Communications
Inc., Zubie Inc., and Zymbia Interactive Technologies Pvt.
Ltd.
|
Key Market Trends Fueling Growth
In the automotive industry, data transparency and personalized
solutions are becoming key priorities for both Original Equipment
Manufacturers (OEMs) and insurers. With growing concerns around
data privacy and security, some customers are hesitant to adopt
connected features in their vehicles. To address these concerns,
OEMs are partnering with telecom service providers to apply
advanced analytics to telematics data. This data enables real-time
monitoring of vehicle health, recall issues, and customer behavior,
providing opportunities for personalized solutions and improved
customer experience. Insurers, too, are leveraging telematics data
to identify high- and low-risk clients, offering customized
coverage and enhancing their relationship with customers.
Cloud-based solutions, including Over-the-Air (OTA) software
updates, infotainment, security monitoring, and Usage-Based
Insurance (UBI), are driving the growth of the automotive OBD
dongle market.
The Automotive OBD (On-Board Diagnostics) Dongle market is
experiencing significant growth due to increasing trends in vehicle
safety and emissions standards. OBD systems help monitor engine
performance, fuel consumption, and identify diagnostic trouble
codes in real-time. Aftermarket suppliers provide both wired and
wireless OBD Dongles for usage-based insurance, fleet management
solutions, and insurers. Real-time data on driving behavior,
efficiency, and connectivity offer data-driven insights for fleet
operators and insurers. However, cybersecurity concerns, such as
hacking, unauthorized access, and cyber threats, require encryption
protocols, authentication mechanisms, firmware updates, and
cybersecurity measures. Industry standards, including passenger
cars, Bluetooth, WiFi, and the OBD port, are crucial for IoT
technology, vehicle tracking, and telematics solutions. Automotive
manufacturers utilize OBD systems for preventive maintenance and
insurance models.
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Market Challenges
- The automotive onboard diagnostics market holds potential for
enhancing Customer Relationship Management (CRM) by providing
valuable vehicle data to manufacturers and service centers.
However, customer concerns regarding security and privacy breaches
pose significant challenges to the market's growth. Instances of
unauthorized vehicle tracking and data collection without consent
have raised privacy concerns, leading to a loss of customer
confidence. General Motors faced negative publicity when they were
ordered to stop collecting car-generated data after customers
canceled their OnStar subscriptions. This was due to the collection
and sharing of user data with third-party suppliers without
consent. Moreover, malware can infiltrate in-vehicle entertainment
and information systems, linking them to critical vehicle functions
through the Controller Area Network (CAN) bus. Hackers can seize
control of a vehicle's engine and brakes by connecting to the
onboard diagnostic port using a laptop or mobile device. Advanced
systems require the exchange of personal information between
drivers or passengers and automobile manufacturers, which can be
vulnerable to hacking. Furthermore, the insertion of multiple web
applications and Bluetooth connectivity in automobiles creates
additional security vulnerabilities, giving hackers access to
users' personal information, such as passwords and usernames,
leading to potential data losses. These security concerns can
hinder the growth of the automotive OBD dongle market in the
forecast period.
- The Automotive OBD (On-Board Diagnostics) Dongle market is
experiencing significant growth due to the increasing demand for
vehicle connectivity and diagnostics. Telematics services, wireless
communication technology, and vehicle-to-everything communications
are driving this market forward. However, challenges such as
vehicle warranty voidance concerns and the need for advanced
technologies like artificial intelligence and machine learning are
hindering growth. Connected car technologies, including Bluetooth
and Wi-Fi dongles, smartphones, tablets, and computers, are
enabling remote monitoring and fleet management operations. OEMs
and aftermarket channels, including retail outlets, online
platforms, independent workshops, and the OEM channel, are offering
various cellular data plans and Wi-Fi hotspots to cater to this
demand. Vehicle performance data, fault codes, and vehicle health
are key areas of focus for automotive IoT technologies. These
technologies provide valuable insights into vehicle diagnostics,
fuel efficiency, maintenance alerts, and driving experiences.
Connectivity technologies like cellular networks and mobile
applications are essential for data transmission and web-based
applications. Road safety, traffic management, smart mobility,
autonomous vehicles, and vehicle electrification are also major
trends in the automotive industry, and OBD dongles play a crucial
role in enabling these technologies. The market is expected to
continue growing as more vehicles become connected and the demand
for real-time vehicle data increases.
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Segment Overview
This automotive obd dongle market report extensively covers
market segmentation by
- Vehicle Type
- 1.1 Passenger cars
- 1.2 Commercial vehicles
- Type
- Geography
- 3.1 North America
- 3.2 APAC
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Passenger cars- The passenger car segment holds the
largest share in the global automotive OBD dongle market due to its
significant volume and value in the automotive industry. This
segment's growth is closely linked to economic development, as
sales of passenger cars correlate with industrial output, economic
progress, and population demographics. The demand for passenger
cars is expected to continue dominating the market, driven by
strong demand from emerging countries and the revival of developed
economies. Telematics offerings are becoming standard fitments in
most cars, enhancing the passenger cars' share in the market. The
growth of the e-hailing market is also contributing to the wider
adoption of OBD dongles through aftermarket offerings. There is a
growing need for telematics service providers to track vehicles and
driving behavior to determine insurance claims. Consumers demand
innovative features and services that seamlessly integrate into
their digitized lifestyles. Traditional automotive players are
adapting their business models to meet changing demands and
increase cost-effectiveness. Prominent OEMs, such as Ford Motor
Company and General Motors, have introduced embedded systems in
mass-segment vehicles. During the forecast period, the passenger
cars segment is expected to grow, driven by improving economic
conditions and the launch of new vehicles with advanced features.
For instance, Chinese EV manufacturer BYD's Seal U electric SUV,
launched in May 2024, is equipped
with all the features of electric driving. The Indian automotive
market has experienced slow growth in the last 18 months, but the
connected car segment has remained stable due to the introduction
of additional features such as vehicle-to-vehicle (V2V)
connectivity, navigation, safety alerts, and remote tracking. The
growing adoption of luxury vehicles, equipped with automotive OBD
dongles as standard fitment, will benefit both the volume and
revenue growth of the passenger cars segment in the global
automotive OBD dongle market.
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analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
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reports
The global Commercial Vehicle Fleet Management System market is
experiencing significant growth, driven by advancements in
telematics and the increasing demand for efficient fleet
operations. Key players are leveraging AI and IoT technologies to
enhance fleet productivity and safety. Concurrently, the global
E-axle market is expanding due to the rising adoption of electric
vehicles (EVs) and stringent emission regulations. Innovations in
e-axle design are pivotal in improving EV performance and
efficiency. Both markets are poised for robust expansion,
reflecting the broader trend towards digitalization and
sustainability in the automotive industry.
Research Analysis
The Automotive OBD (On-Board Diagnostics) Dongle market is
witnessing significant growth due to the increasing demand for
real-time vehicle monitoring and diagnostics. OBD dongles, which
plug into the OBD port of passenger cars, enable Bluetooth and WiFi
connectivity for engine performance analysis, fuel consumption
monitoring, and diagnostic trouble code reading. These devices
offer preventive maintenance alerts, trip tracking, and telematics
solutions for both personal vehicles and commercial fleets.
Automotive manufacturers are integrating OBD dongles into their
vehicles to enhance vehicle connectivity and provide vehicle health
data for telematics services and insurance models. OBD dongles use
various connectivity technologies, including Wi-Fi, data
transmission, mobile applications, and web-based applications, to
offer real-time vehicle diagnostics, fuel efficiency analysis, and
driving experiences.
Market Research Overview
The Automotive OBD (On-Board Diagnostics) Dongle Market is a
rapidly growing sector within the automotive industry, focusing on
Passenger Cars equipped with an OBD port. These dongles enable
Bluetooth, WiFi, and cellular communication, allowing real-time
monitoring of engine performance, fuel consumption, diagnostic
trouble codes, and vehicle health. Telematics solutions offer trip
tracking, fleet management operations, and vehicle-to-everything
communications for personal vehicles and commercial fleets.
Connected car technologies, including Bluetooth OBD dongles,
smartphone, tablet, and computer compatibility, provide access to
vehicle performance data, fault codes, and maintenance alerts.
Wireless communication technology, such as Wi-Fi dongles and
cellular OBD dongles, enable remote monitoring and fleet management
through cellular networks. Aftermarket channels, including retail
outlets, online platforms, independent workshops, and OEM channels,
offer various OBD dongle options. Usage-based insurance and fleet
management solutions utilize real-time data for driving behavior
analysis, efficiency improvements, and vehicle safety. Emissions
and environmental standards are driving the adoption of OBD systems
and automotive IoT technologies. Vehicle electrification and
autonomous vehicles are expected to further expand the market, as
OBD dongles play a crucial role in monitoring and managing the
unique requirements of these vehicles. The integration of
artificial intelligence and machine learning enhances the
diagnostic capabilities and driving experiences, providing
data-driven insights for preventive maintenance, insurers, fleet
operators, and automotive manufacturers.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Vehicle Type
-
- Passenger Cars
- Commercial Vehicles
- Type
-
- Geography
-
- North America
- APAC
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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Contacts
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Jesse Maida
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UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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