Abstract
Demand to grow more than 5% annually through 2011
US demand for automotive diagnostic equipment, software, services and data
will rise 5.4% per year to $1.3 billion in 2011. Despite the
vehicle-quality-driven slowdown experienced in overall aftermarket parts and
service sales in the US, diagnostic equipment demand should remain healthy for
a number of reasons. Perhaps most importantly, demand for these products is
driven by the expanding role played by electronic systems in automobiles --
these systems should comprise over 45% of total vehicle value by 2016; up
significantly from the 15% they represented in 2000. As a result, light
vehicle electronic content and system sophistication levels continue to climb,
opening new market space for more advanced diagnostic equipment.
Industry shifts spur demand
Two ongoing shifts within the diagnostic equipment industry will affect future
market demand. The first involves the transition from highly expensive
shop-owned "big box" devices toward technician- owned handheld systems. Today,
rather than rely on the shop' s big box analyzer, more technicians are
purchasing their own scanners and other electronic tools, which has supported
demand for these tools. Another trend involves the shift away from a primary
focus on hard-ware to the rising influence of software. Some diagnostic
equipment makers see software becoming the dominant source of value for the
industry in the future, as hardware becomes more commodity-like in nature. In
fact, the introduction of less-expensive PC/Windows-based operating systems
opens the door to a commoditization of hardware, with software be-coming the
most valuable aspect of the business. This trend is already visible in annual
data updates offered by equipment makers, and could signal a significant shift
in the industry' s strategic focus.
Study coverage
It presents historical demand data (1996, 2001 and 2006) plus forecasts for
2011 and 2016 by product and service performer. The study also details market
environment factors, evaluates market share and profiles 32 industry players.
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