Growing Fleet Management Market set to Propel the Utilization of Remote Vehicle Diagnostics.

Remote diagnostic systems are inbuilt systems used to monitor the performance of the components of the car and notify in case of problems. They are used to provide accurate real time diagnostics of the car. Remote diagnostics has been utilized to improve fuel efficiency, component reliability as well as reduce repair costs through continuous diagnostics. They are also being used to check the emissions of the vehicle as an environmental regulation compliance tool. These include performance data collection, and remote DTC scanning services. The remote diagnostics device in the vehicle is made capable of performing detailed diagnostic scans when triggered remotely or when certain key thresholds are crossed for e.g. distance travelled since last scan, time elapsed since last service etc. Remote diagnostics have been utilized for a number of applications and these applications are rising as the customer demand rises and new capabilities are introduced.

Leading automotive parts providers are supplying remote vehicle diagnostics devices, particularly for fuel efficiency management by measuring efficiency parameters as well as for vehicle monitoring for insurance applications. The growth of usage based insurance, particularly in fleet management, will significantly propel the remote vehicle diagnostics market.  The major companies in this segment are Bosch Automotive Technologies, Continental AG, Delphi Automotive, Snap-On Inc. and Softing AG. These companies have launched products with applications ranging from chassis, engine and emission management to fleet and vehicle tracking. These wide ranging applications will continue driving the adoption of remote vehicle diagnostics in one capacity or another.

Remote diagnostic systems are mainly used by fleet management sector to monitor fuel efficiency and unsafe driver behavior. The growth of fleet management services should see sales of remote diagnostic systems increase as this is the major end market for these systems. Remote diagnostics telematics are estimated to have low penetration but the growth is assessed to be strong. The chief driver for this market is stricter emission laws. As the laws become more stringent, the need for quick and accurate finding of the vehicle, whether the vehicle complies with the laws is imperative. As a result, OEM manufacturers have started offering emission regulation features on car diagnostic vehicles. So, the diagnostic systems are projected to exhibit a growth in sales. However the warnings from the Federal Bureau of Investigation (FBI), Department of Transport (DOT) and National Highway Traffic Safety Administration (NHTSA) regarding the possible utilization of aftermarket remote diagnostic devices for hacking and controlling the vehicle remotely will hinder the growth as consumers will be cautious about utilizing aftermarket devices. OEMs will need to address this problem before consumers will be satiated with the security of these devices.


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