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OBD2 Scanners Market

The market for OBD2 Scanners was estimated at $1.0 billion in 2024; it is anticipated to increase to $1.7 billion by 2030, with projections indicating growth to around $2.5 billion by 2035.

Report ID:DS1202076
Author:Chandra Mohan - Sr. Industry Consultant
Published Date:
Datatree
Semiconductors & Electronics
Electrical & Electronics
OBD2 Scanners
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Report Summary
Market Data
Methodology
Table of Contents

Global OBD2 Scanners Market Outlook

Revenue, 2024

$1.0B

Forecast, 2034

$2.3B

CAGR, 2025 - 2034

8.3%

The OBD2 Scanners industry revenue is expected to be around $1.1 billion in 2025 and expected to showcase growth with 8.3% CAGR between 2025 and 2034. Based on the projected numbers provided on the growth of OBD2 Scanners market indicates a notable increase in the importance of this technology within the automotive sector. The significant advancement is propelled by factors such as improvements in technology and increased interest in vehicle diagnostics along with strict emission regulations implemented globally. Moreover the growing preference among car owners for maintenance and the subsequent expansion of the auto repair industry further support the continued relevance of OBD2 Scanners, in the market.

Simply put OBD2 Scanners are tools used for diagnosing and fixing issues with a cars computer system. They are essential for identifying engine problems and checking parts of the vehicle to ensure proper emission control. OBD2 Scanners are widely used in auto repair shops and vehicle inspection centers. Are also popular, among DIY enthusiasts.

OBD2 Scanners market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034
OBD2 Scanners Market Outlook

Market Key Insights

  • The Obd2 Scanners market is projected to grow from $1.0 billion in 2024 to $2.3 billion in 2034. This represents a CAGR of 8.3%, reflecting rising demand across Auto Repair & Maintenance Services, Emissions Testing Centres, and Auto Manufacturing Units.

  • Autel Intelligent Technology Corp Ltd, Launch Tech Co Ltd, Bosch Diagnostics are among the leading players in this market, shaping its competitive landscape.

  • U.S. and Japan are the top markets within the Obd2 Scanners market and are expected to observe the growth CAGR of 6.1% to 8.7% between 2024 and 2030.

  • Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 8.0% to 10.4%.

  • Transition like Decentralization of Vehicle Diagnostics is expected to add $51 million to the Obd2 Scanners market growth by 2030.

  • The Obd2 Scanners market is set to add $1.3 billion between 2024 and 2034, with manufacturer targeting Auto Repair Shops & Vehicle Manufacturers Application projected to gain a larger market share.

  • With The emergence of advanced automotive technology, and auto Aftermarket Growth, Obd2 Scanners market to expand 122% between 2024 and 2034.

obd2 scanners market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032
OBD2 Scanners - Country Share Analysis

Opportunities in the OBD2 Scanners

Cars nowadays are getting more high tech with different systems collaborating for better performance efficiency. The trend is also creating a market for OBD2 Scanners that come with advanced connectivity capabilities like wireless connectivity, mobile app integrations and real time updates. These tech upgrades can improve the usability and convenience of these devices making them an appealing choice, for users looking for easy to use and thorough vehicle tools.

Growth Opportunities in North America and Asia Pacific

North America holds a significant share in the global OBD2 Scanners market. The growth in this region can be credited to the stringent emission control regulations in countries like the United States and Canada, spurring the demand for these devices. Furthermore, the presence of numerous technologically advanced automotive manufacturers accelerates the adaptation of OBD2 Scanners. The competitive landscape here is marked by key brands offering diverse products, intensifying the battle for market share. Major market drivers include the increasing need for real-time engine diagnostics, the rising sales of used cars, and an evolving culture of DIY automotive maintenance.
The OBD2 Scanners market in the Asia Pacific is proliferating due to the increase in vehicle production, especially in countries like China, Japan, and South Korea. Local manufacturers are focusing on portability, superior connectivity, and advanced diagnostics to stay competitive. Furthermore, the demand surge is stoked by rising consumer awareness about vehicle maintenance and the necessity of reducing carbon emissions. Key market drivers include rapid urbanization, vehicle motorization, and stringent policies for environmental protection in burgeoning economies.

Market Dynamics and Supply Chain

01

Driver: The Emergence of Advanced Automotive Technology, and Regulatory Standards

The advancement of technology has also had also a major influence on the utilization of OBD2 Scanners because of the increasing demand for vehicle diagnostics to address intricate problems commonly found in hybrid vehicles and those with advanced assistance systems installed in them As more vehicles integrate sophisticated technology into their systems the demand for top notch and advanced OBD2 Scanners is also expected to rise This trend is also projected to drive the development of versatile OBD2 scanners that are also compatible, with cutting edge automotive technologies. Increasing regulatory standards worldwide regarding vehicle emissions and diagnostics also drive the growth of OBD2 Scanners. Governments globally mandate regular emissions tests to conform with environmental conservation efforts. For measuring and assessing emissions reliably, OBD2 Scanners have also become indispensable tools.
The growing automotive aftermarket sector is also a market for OBD2 Scanners as vehicles mature and need regular upkeep and repairs. This calls for equipment like OBD2 Scanners to pinpoint and fix car issues effectively and precisely. The thriving automotive aftermarket industry emphasizes vehicle durability and efficiency which indicates a rising need, for trustworthy OBD2 scanners.
02

Restraint: High Cost of Advanced Devices

Advanced OBD2 scanners have a lot of benefits and are technologically advanced; however one major factor hindering their market growth is their expensive price tag. Individual car owners and small auto repair shops often opt for diagnostic tools instead of investing in advanced OBD2 scanners. This affordability issue significantly impacts the market dynamics. Influences consumer preferences when it comes to purchasing OBD2 scanners.
03

Opportunity: Untapped Potential in Emerging Markets and Collaborations with Automobile Manufacturers

In developing nations where economies are showing signs of improvement and progress is being made on the frontiers of emerging markets like India and Brazil and South Africa included in the mix. There is a noticeable uptick in demand for cars and car related gadgets such as OBD2 scanners that help with diagnosing issues with vehicles more efficiently than ever before. Its worth noting that with these positive advancements in the market landscape for automotive technology tools like OBD2 scanners; there remains a noticeable gap when compared to developed countries regarding the adoption rate of cutting edge diagnostic equipment. Pursuing business opportunities in these regions could prove fruitful for companies operating in the OBD2 scanner industry as these markets continue to evolve and mature towards embracing technologies and consumer preferences lean, towards more sophisticated gadgets for their vehicles.
Forming strategic partnerships with automobile manufacturers presents a significant opportunity in the OBD2 scanner market. By collaborating directly with car makers, scanner producers can integrate their devices into vehicle production lines, ensuring compatibility and enhancing diagnostics capabilities. These alliances also facilitate co-development of specialized tools, improve after-sales support, and expand market reach. Such collaborations strengthen brand credibility, accelerate adoption, and create a competitive advantage in the automotive diagnostic solutions industry.
04

Challenge: Lack of Technical Expertise

Another notable in the market is the lack of technical expertise required for the operation of OBD2 Scanners. As these devices come with sophisticated features, users without extensive technical knowledge can find it challenging to utilize their full potential, turning them towards less complex alternatives. This constraint significantly impacts market demand as it restricts the usage of OBD2 Scanners to highly skilled professionals or larger auto repair services with trained personnel.

Supply Chain Landscape

1

Raw Material Sourcing

Broadcom Inc.Infineon Technologies AG
2

Component Manufacturing

Robert Bosch GmbHContinental AG
3

Assembling & Manufacturing

Autel Intelligent Technology Corp.Foxwell Technology Co. Ltd
4

Distribution & End user

AutomotiveAutomotive Repair Shops
OBD2 Scanners - Supply Chain

Use Cases of OBD2 Scanners in Auto Repair & Maintenance Services & Emissions Testing Centres

Auto Repair & Maintenance Services : OBD2 Scanners are widely used in auto repair and maintenance services for vehicle diagnostic purposes. The application of these scanners in this sector aids in efficient identification and fixing of issues, saving significant time and cost. A handheld OBD2 Scanners is predominantly employed in this realm, enabling technicians to swiftly plug into a vehicles on-board computer system to retrieve diagnostic trouble codes. Companies like Innova Electronics and Autel Intelligent Technology are key players, recognized for their advanced OBD2 Scanners tools providing exceptional services in the market.
Emissions Testing Centres : Another key application of OBD2 Scanners is in emission testing centres. Emissions inspections are a crucial component of motor vehicle maintenance. Therefore, it is predominantly Bluetooth or wireless OBD2 Scanners being utilized here for swift and precise readings. These devices can accurately measure vehicle emissions, helping the centers determine whether a vehicle meets the necessary standards for environmental compliance. Market leaders in this segment include Launch Tech and Bosch Automotive Service Solutions, providing innovative and reliable OBD2 Scanners tools.
Auto Manufacturing Units : The auto manufacturing industry is a major application area for OBD2 scanners, particularly within automotive assembly plants. These facilities rely heavily on professional-grade OBD2 scanners due to their advanced diagnostic capabilities, which enable real-time monitoring of engine performance, emissions, and electronic systems. By integrating these scanners into production and quality control processes, manufacturers can ensure vehicle reliability, optimize assembly efficiency, and maintain compliance with regulatory standards, driving overall operational effectiveness.

Recent Developments

The automotive diagnostic industry has been witness to an exciting surge in technology advancement, particularly with the rise of On-Board Diagnostic Scanners. Recently, the market for OBD2 Scanners has noted significant developments, underpinned by transformations in the realm of automotive diagnostic tools and technologies. A predominant market trend influencing these developments is the growing drift towards wireless OBD2 Scanners.

December 2024 : Launchpad Tech introduced state-of-the-art wireless OBD2 Scanners, revolutionizing the way diagnostics tests are conducted, reducing the time taken by a significant margin
October 2024 : Bosch Automotive Service Solutions unveiled its advanced OBD2 Scanners with enhanced onboard diagnostic capabilities, offering precise error detection and swift troubleshooting
September 2024 : Autel Intelligent Technology Corp. released its latest OBD2 Scanners equipped with AI-powered predictive analytics, raising the bar in vehicle diagnostics and problem-solving.

Impact of Industry Transitions on the OBD2 Scanners Market

As a core segment of the Electrical & Electronics industry, the OBD2 Scanners market develops in line with broader industry shifts. Over recent years, transitions such as Decentralization of Vehicle Diagnostics and Integration with Smart Devices have redefined priorities across the Electrical & Electronics sector, influencing how the OBD2 Scanners market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Decentralization of Vehicle Diagnostics

The ubiquitous nature of OBD2 Scanners technology has led to a significant industry transition, specifically, the decentralization of vehicle diagnostics. Previously, proprietary diagnostic equipment was only available in dedicated service centers or garages. Now, OBD2 Scanners allow vehicle owners themselves to diagnose car issues, leading to increased transparency and reduced dependence on professional mechanics. This evolution has had a remarkable impact on the automotive service industry by creating opportunities for new entrant diagnostic tool makers and potentially changing the business model of traditional providers who relied exclusively on customers lack of access to sophisticated diagnostic tools.
02

Integration with Smart Devices

The rise of smart devices has significantly enhanced the functionality and accessibility of OBD2 scanners. Modern scanners can now transmit real-time diagnostic information directly to a vehicle owner’s smartphone, tablet, or other connected devices via Bluetooth or Wi-Fi. This seamless integration allows users to monitor engine performance, fuel efficiency, and system alerts remotely, making vehicle troubleshooting faster and more convenient. Additionally, mobile apps often provide intuitive dashboards, maintenance reminders, and predictive analytics, enabling proactive vehicle care. By combining portability with smart technology, OBD2 scanners are transforming the automotive diagnostics experience, appealing to both individual consumers and fleet operators.