The Vehicle Diagnostics Market is projected to grow to USD 82.43 billion by 2030, expanding at a CAGR of 13.1%
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The Business Research Company's Vehicle Diagnostics Market Report 2026 – Market Size, Trends, And Global Forecast 2026-2035
LONDON, GREATER LONDON, UNITED KINGDOM, February 5, 2026 /EINPresswire.com/ -- The vehicle diagnostics market has seen impressive growth in recent years, driven by evolving automotive technologies and increasing demand for efficient vehicle maintenance solutions. As vehicles become more complex with advanced electronics, the need for precise and timely diagnostics is becoming increasingly critical. Let’s explore the current market size, growth drivers, regional leadership, and key factors shaping this sector’s future.
The Vehicle Diagnostics Market Size and Its Growth Outlook Through 2026
The vehicle diagnostics market has expanded rapidly, reaching a size of $43.73 billion in 2025. It is projected to increase to $50.39 billion by 2026, representing a robust compound annual growth rate (CAGR) of 15.2%. This growth during the historical period has been driven by factors such as an expanding vehicle parc, greater electronic content within vehicles, stricter emission regulations, a rise in aftermarket diagnostic tools, and the widespread adoption of onboard diagnostics systems.
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Looking beyond 2026, the market is anticipated to continue its strong upward trajectory, reaching $82.44 billion by 2030 with an expected CAGR of 13.1%. This forecasted expansion is primarily fueled by the growing presence of electric vehicles, greater penetration of connected cars, increasing demand for remote diagnostics capabilities, advancements in AI-based fault prediction, and the rising importance of fleet management solutions. Significant trends likely to influence the market include the adoption of advanced onboard diagnostics (OBD), the proliferation of connected vehicle diagnostics, the rise of smartphone-based diagnostic tools, increased use of predictive diagnostics, and the growing need for multi-system vehicle scanners.
Understanding Vehicle Diagnostics and Its Importance
Vehicle diagnostics involves the process of detecting, analyzing, and troubleshooting problems within a vehicle’s various systems and components. This process aids automotive professionals such as mechanics and technicians in accurately identifying faults related to engines, transmissions, braking systems, electrical components, emission controls, and other crucial subsystems. By using diagnostic tools, these experts can effectively maintain and repair vehicles, ensuring optimal performance and safety.
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The Role of Vehicle Leasing in Boosting Market Growth
One key factor propelling the vehicle diagnostics market is the increasing popularity of vehicle leasing. Leasing allows companies or individuals (lessees) to rent vehicles from leasing firms (lessors) for specific periods, typically ranging from several months to years. This arrangement offers advantages such as access to newer models, reduced maintenance costs, operational flexibility, and tax benefits, especially for businesses. Vehicle diagnostics plays a vital role in leasing by helping lessors monitor vehicle condition, detect issues early, and enhance fleet management. This ensures leased vehicles remain reliable and well-maintained throughout the contract period. For example, in 2024, the British Vehicle Rental & Leasing Association (BVRLA) reported that the UK lease fleet totaled approximately 1.94 million vehicles by year-end, underscoring the impact of leasing on market demand for diagnostics.
North America Leads While Asia-Pacific Gears Up for Rapid Growth
In terms of regional dominance, North America held the largest share of the vehicle diagnostics market in 2025. However, the fastest market growth is expected to occur in the Asia-Pacific region during the forecast period. The comprehensive market analysis covers key geographical areas such as Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa, providing a global perspective on emerging trends and opportunities.
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