Europe Automotive Diagnostics Tool Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Europe Automotive Diagnostics Tool Market Analysis

The Europe Automotive Diagnostics Tool Market size is estimated at USD 6.31 billion in 2024, and is expected to reach USD 8.23 billion by 2029, growing at a CAGR of 5.45% during the forecast period (2024-2029).

The European automotive diagnostics tool market is being driven by several key factors. The increasing complexity of modern vehicles, which feature advanced electronics and integrated systems, necessitates sophisticated diagnostic tools to accurately identify and address issues. Additionally, stringent environmental regulations and emission standards in Europe require precise diagnostic capabilities to ensure compliance. The growing adoption of electric and hybrid vehicles, which have unique diagnostic needs, further fuels the demand for automotive diagnostics tools.

The growing adoption of connected car technologies and the increasing reliance on software-driven functionalities in vehicles create a need for comprehensive diagnostic solutions. The growing aftermarket service industry and the push for improved vehicle safety and performance are also significant contributors to the growth of the automotive diagnostics tool market in Europe.

Over the medium term, favorable government policies across regions mandating the utilization of OBD and growing awareness of the benefits offered by diagnostic tools are expected to drive demand in the market. The trend of integrating innovative features into vehicles due to rising security concerns among end users and growing complexity in connected cars may augment market growth during the forecast period.

Onboard diagnostics (OBD) are used to monitor the initial electronic systems in the vehicle, like electronic fuel injection and ignition. With a rise in the dependency and usage of electronics in automobiles, the need for a computerized malfunction detection system has been increasing, leading to the development of a better onboard diagnostics system.

The EU Regulation 566/2011 (dated June 19, 2011) states that manufacturers are obligated to release electronic data, enabling the precise identification of replacement parts for vehicles. The European automobile industry is subject to further regulatory amendments, such as 1400/2002, 715/2007, and 64/2012, to create a competitive landscape in which independent operators and authorized shops compete to serve different customer segments and needs. OEMs are following the trend toward automobiles that are electronically equipped for remote diagnostics. With the support of manufacturers and favorable regulations, the automotive diagnostics tool market is growing.

Europe Automotive Diagnostics Tool Market Trends

The Passenger Car Segment is Expected to Continue Dominating the Market in Europe

Europe Automotive Diagnostics Tool Industry Segmentation

An automotive diagnostic tool can detect and diagnose problems in a car's engine, transmission, brakes, and other systems. It can read error codes, perform system tests, reset warning lights, and provide detailed information about the vehicle's performance.

The European automotive diagnostics tool market has been segmented by offering, vehicle type, product type, workshop equipment, end user, and country. By offering, the report is segmented into diagnostic equipment/hardware and diagnostic software. By vehicle type, the report is segmented into passenger cars and commercial vehicles. By workshop equipment, the report is segmented into exhaust gas analyzer, wheel alignment equipment, paint scan equipment, dynamometer, headlight tester, fuel injection diagnostic, pressure leak detection, and engine analyzer. By end user, the report is segmented into automotive repair and maintenance shops, OEM dealerships, fleet management companies, and other end users. By country, the report is segmented into Germany, United Kingdom, France, Spain, Italy, Netherlands, and Rest of Europe.