Originally Published on: technavio |Automotive Prognostics Market by Application, End-user, and Geography - Forecast and Analysis 2023-2027
The automotive prognostics market is poised for substantial growth, with an estimated Compound Annual Growth Rate (CAGR) of 21.58% from 2022 to 2027, resulting in a market size increase of USD 5,269.12 million. This expansion can be attributed to various factors, including the cost-saving advantages of automotive prognostics systems, the heightened focus of prominent automotive Original Equipment Manufacturers (OEMs) on enhancing vehicle diagnostics services, and the increasing popularity of electric vehicles, which is fueling the demand for prognostic solutions.
Market Segmentation:
Application: The market is segmented by application, including passenger cars and commercial vehicles.
End-User: It encompasses end-users, both aftermarket and OEMs.
Geography: The market is analyzed across different regions, including North America, Europe, APAC, South America, and the Middle East and Africa.
Key Market Drivers:
Cost Savings Through Maintenance: Automotive prognostic systems are driving market growth by reducing maintenance costs. These systems employ advanced diagnostic technologies to predict the remaining useful life of vehicle components, allowing fleet operators to schedule preventive maintenance cost-effectively, avoiding unexpected vehicle downtime and high labor and parts costs.
Trend in Predictive Maintenance: The development of autonomous vehicles is expected to benefit the prognostics market. As autonomous vehicles lack human drivers to provide real-time feedback, prognostics are critical for understanding the functionality of vehicle components over time. Automotive manufacturers and technology providers are investing heavily in autonomous vehicles, thereby boosting the demand for automotive prognostics.
Key Market Challenge:
High Telematics Costs: The major challenge impeding market growth is the high cost associated with telematics services. The initial setup of telematics systems involves licensing, setup, installation fees, customization, and integration costs, with periodic subscription fees adding to the overall cost. Hidden costs such as roaming charges also affect the market. Additionally, automotive manufacturers are pursuing low-cost alternatives, including smartphone-integrated telematics systems, which may pose a challenge to the prognostics market.
Customer Landscape:
The report includes insights into the customer lifecycle of the market, from innovators to laggards, with a focus on adoption rates in different regions based on penetration. It also includes key purchase criteria and drivers of price sensitivity to assist companies in evaluating and developing their growth strategies.
Major Market Vendors:
The report highlights the strategies employed by vendors to enhance their presence in the market. One of the notable vendors in the automotive prognostics market is VMware Inc., which offers a range of digital solutions for advanced driver assistance systems (ADAS), semiconductor solutions, and safety automotive solutions.
Fastest-Growing Segment:
The passenger cars segment is expected to exhibit significant growth during the forecast period. While still in the early stages of adopting prognostic systems, this segment is being driven by increasing demand for telematics services from consumers. As consumers seek innovative features and services that integrate seamlessly with their digital and mobile lifestyles, the adoption of telematics is becoming standard in passenger cars worldwide.
Key Regions for Market Growth:
North America is projected to contribute significantly to the growth of the global automotive prognostics market, with an estimated 42% share during the forecast period. The region, particularly the United States, is witnessing growing demand for prognostic systems due to high adoption of advanced telematics in both passenger cars and commercial vehicles. This is further accelerated by feature upgrades and new business models aimed at generating additional revenue for OEMs.
This report offers a comprehensive overview of the automotive prognostics market, providing insights into drivers, trends, challenges, and regional dynamics to assist businesses and stakeholders in effectively navigating this market.
contact us:
https://www.technavio.com/content/contact-us
https://www.technavio.com/report/automotive-prognostics-market-size-industry-analysis
there doesn't seem to be anything here