Automotive Prognostics Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Automotive Prognostics Market Size

Automotive Prognostics Market Trends & Drivers

Advancement in Technology Is Biggest Market Trend

• The increase in the number of advanced electronic systems in vehicles has made the overall automobile highly complex.
• The adoption of artificial intelligence and machine learning in automobile prognostics has greatly enhanced the predictive capabilities of prognostics systems. The advanced algorithms can detect faults more precisely and send maintenance alerts.
• By using a prognostics system, automobile manufacturers can design maintenance schedules, as it gives knowledge about the wear and tear of different parts and the duration after which they need to be replaced.
• The development of the connected car technology, which involves the integration of a host of advanced sensors and IoT components in automobiles, has led to an increase in the number of electronic components dependent on software, thus driving the market.

Increase in Road Traffic Accident Volume Is Strongest Market Driver

• There has been an abated surge in the number of road traffic accidents in the past few years, causing the loss of life and money. As per the National Highway Traffic Safety Administration (NHTSA) of the U.S., 42,795 people lost their lives in road accidents in the country in 2022.
• To reduce the number of accidents due to the failure of in-vehicle equipment, automobile manufacturers are installing failure prediction systems.
• The increasing focus of automobile manufacturers to increase safety and eliminate accidents due to mechanical failure is expected to drive the growth of the automotive prognostics market during the forecast period.

Data Privacy and Connectivity Issues Hamper Growth of Market

• Automotive prognostics systems require a seamless integration of data from different sources and equipment, including telematics systems, vehicle sensors, and backend analytics. This makes it a complex task to ensure connectivity, data accuracy, and compatibility.
• The increasing adoption of connected vehicles and the introduction of AI, ML, and IoT have made automobiles technologically advanced. Therefore, they require expertise in data analytics, predictive modeling, and machine learning to develop and manage prognostic solutions.
• Extracting and evaluating the complex data acquired from prognostic systems is a complex process and requires expertise.
• Cybersecurity measures are needed for the massive volumes of data generated and transferred during the process. Prognostics systems should maintain customer trust and comply with data protection regulations and legal guidelines.

Automotive Prognostics Industry Outlook

Application Insights

• The battery is the largest category, holding a share of 35% in 2024. It is also expected to be the fastest-growing category, at a CAGR of 16.0%, during 2024–2030. The increase in the number of electric components drives the strain on the battery.
• The common occurrence of battery failure or explosion has pushed manufacturers to install predictive maintenance systems for these components.
• The increase in the sales of electric vehicles is the paramount factor behind this category’s growth.
• As per the International Energy Agency (IEA)’s Global EV Outlook 2023 report, more than 10 million electric cars were sold around the world in 2022, representing over 14% of the total vehicle sales that year.

The following applications are covered in the report:

• Engine
• Battery (Largest and Fastest growing category)
• Power Steering System
• Suspension System
• On-Board Monitoring & Diagnostics

Vehicle Type Insights

• Passenger vehicles are the largest category, holding a share of 45% in 2024. There has been a global increase in sales of passenger cars since COVID-19 lockdowns were lifted.
• The technological advancements in the automobile industry and the growth of major economies worldwide, along with the increase in the purchasing power of people, have contributed to the dominance of this category.
• Prognostics solutions minimize the unplanned downtime of vehicles, which results in an overall enhancement of the ownership experience. Customers appreciate this predictive approach to maintenance scheduling for vehicles, which also increases the brand value and their trust in advanced automobiles.
• Light commercial vehicles are the fastest-growing category, at a CAGR of 16.1% during 2024–2030. The long and rough use of commercial vehicles makes them susceptible to damage due to equipment or mechanical failure.
• The growing focus of fleet operators on fleet management and the periodic and scheduled maintenance of their vehicles will drive the market growth in this category.

The segment has the following categories:

• Passenger Vehicles (Largest category)
• Light Commercial Vehicles (Fastest growing category)
• Trucks
• Buses & Coaches

End User Insights

• OEMs dominated the market in 2024, with a share of 40%. During the manufacturing of automobiles, it is important to pre-analyze the strength and functionality of different equipment and devices to ensure the durability of the vehicle and predetermine expected failures in actual running conditions. The use of prognostics software also enables them to come up with a warranty duration for different equipment.
• Fleet operators will witness the highest CAGR, of 16.3%, in the forecast period. This is attributed to the growing demand of fleet operators to manage their vehicles and schedule them for maintenance, for smooth execution of their respective operations.

The report covers the following end users:

• OEMs (Largest category)
• Aftermarket
• Fleet Operators (Fastest growing category)
• Private Owners

Regional Insights

• North America held the largest share, of 50%, in 2024. This is due to the presence of key automotive manufacturers, strict road safety rules and regulations, and advanced transportation infrastructure.
• Asia-Pacific is predicted to experience the highest CAGR, of 16.5%, during this decade. The expanding automotive industry, increasing adoption of connected vehicles, rising consumer awareness of road safety, growing economies, and surging purchasing power of people are expected the key growth drivers for the market in the region.
• Europe currently holds the second-largest share in the automotive prognostics system market. The development of autonomous and connected vehicles is fueling the need for gaining information for monitoring, assessing, and optimizing the performance of vehicles.

The regions and countries analyzed in this report include:

• North America (Largest Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • U.K.
  • Germany (Largest and Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest Growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest and Fastest-Growing Country Market)
  • Mexico
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia (Largest Country Market)
  • South Africa
  • U.A.E. (Fastest-Growing Country Market)
  • Rest of MEA

Automotive Prognostics Market Share

The automotive prognostics market is dynamic and influenced by the current customer preferences, automobile sales, technological advancements, and regulatory changes. Additionally, industry competition and economic conditions impact the demand for these solutions.

The market has witnessed several different collaborations among OEMs and software companies of late, to develop cutting-edge solutions for enhanced predictive analysis. Further, several new ventures and startups specializing in automotive prognostics are receiving funding from automotive companies. These investments are enabling the development of new prognostic and diagnostic software and hardware for different vehicle functionalities and systems.

Therefore, the automotive prognostics market is characterized by healthy competition. The presence of both new innovators and established Key market players in the industry has augmented the overall focus on strategic partnerships, technological advancements, and acquisitions.

Automotive Prognostics Industry News

• The major players in the automotive prognostics market are focused on model-based predictive control (MPC) software, which predicts the behavior of various pieces of vehicle equipment in actual conditions using a mathematical model. It then suggests preventive actions to achieve the desired result.
• In June 2021, a Switzerland-based company, Garrett Moton Inc., launched MPC software to assess the performance of vehicle systems in real-world conditions, to enhance reliability, efficiency, and performance.
• In May 2021, a U.S.-based company, Solera Holdings Inc., acquired DealerSocket Inc. and Omnitracs LLC. With these acquisitions, Solera expanded its business portfolio of fully integrated intelligent solutions.