Automotive diagnostic scan tools market worth $3.8 billion by 2018

DALLAS, USA: The report, "Automotive Diagnostic Scan Tools Market by Geography (US, Europe, Asia-Pacific & ROW) & Product Type (Diagnostic Equipment, Diagnostic Software, & Repair & Diagnostic Data) - Industry Trends & Forecast To 2018", defines and segments the US and European Automotive Diagnostic Scan Tools Market with analysis and forecasting of their respective values.

The US market for automotive diagnostic scan tools is estimated to reach a value of $1.8 billion in 2018, whereas the European market is expected to grow to $1.9 billion in 2018.

In recent times, Europe was the largest market for automotive diagnostic scan tools due to its large vehicle fleet equipped with complex electrical/electronic systems and the number of new vehicle models launched annually. This has increased the development of more advanced diagnostic scan tools which can diagnose faults in more than 40,000 vehicle models. Slowly, the gap between the European and U.S. markets has reduced in the last few years due to the increasing vehicle registrations, stringent emission norms, increased fuel efficiency standards, and advanced technologies equipped in the vehicles.

All these factors call for the increased growth in the diagnostic scan tools market in the US. By 2018, it is estimated that US would be very much near the European market in terms of value. The market in Europe is expected to grow at a CAGR of 5.23 percent over the period from 2013 to 2018, whereas US would grow at a CAGR of 5.75 percent.

The automotive diagnostic scan tools market in US and Europe is dominated by the diagnostic equipment product type, followed by diagnostic software, and repair and diagnostic data. In terms of growth rate, the market for diagnostic software is expected to show high CAGR of 8.51 percent in the next five years.

This can be attributed to the increasing number of new vehicle models launched every year, the type of electronics present in the vehicles, and the increasing number of software updates rolled out every year.