Growing Prominence of Telematics to Boost Automotive On-board Diagnostics Market
Despite having had a significant impact on the automobile sector, the coronavirus epidemic is propelling stakeholders into the digital era. Future revenue potential in in-vehicle electronics, wireless communications, and positional technology involving insurers and OEMs are anticipated by companies in the automobile on-board diagnostics industry. Telematics is gaining traction as a result of these factors, which is likely to work in favor of the global automotive on-board diagnostics market in the near future.
Drivers are expected to benefit from lower insurance premiums as a result of telematics, as opposed to the standard pay-per-mile scheme, which is based on the distance driven. Even insurance companies may use mileage and driver behavior data to better handle their risk portfolios, paving the door for more precise prediction of risk. OEMs are utilizing telematics to harness connected vehicle data to provide value-added experiences to car automobile owners, since they are an important component of the automotive on-board diagnostics industry.
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Remote Diagnostic Solutions to Create Preventive Maintenance to Gain Rapid Prominence
In the forthcoming years, real-time automobile diagnostics, geo fence, and vehicle tracking are expected to become more prevalent. In March 2021, independent Semiconductor, a manufacturer of SoCs (System-on-Chips) for the automotive sector, will debut its new on-board diagnostics (OBD) device, seizing on this potential.
Mergers and acquisitions are taking place in the automobile on-board diagnostics sector to improve supply chains for OBD software and hardware. Vehicle tracking, geo fence, and black box event data recorders are all examples of OBD devices. Remote diagnostic solutions are critical for creating preventative maintenance and scheduling vehicle repair cycles so as to minimize breakdown and downtime risks. This factor is anticipated to bolster growth of the global automotive on-board diagnostics market in the near future.
Remote diagnostic solutions are expected to command a larger market revenue share. In the near future, the demand for cloud-based diagnostics is expected to rise at an exponential rate. Whilst adoption of electric vehicle is still in its infancy, connected technologies such as on-board diagnostics are becoming more prevalent in new automobile models across all fuelling modalities. The global automotive on-board diagnostics market is also being driven by growing 5G deployment and new electrical components.