The global automotive diagnostic scan tools market is growing. In fact, it's expected to grow by 5 percent each year to surpass $60 billion by 2030, according to a research study recently released by Global Market Insights Inc. 

Major scan tool manufacturers participating in the study included Continental AG, Daimler AG, Delphi Automotive PLC, Denso Corporation, DG Technologies, and Fluke Corporation.

According to the report, what's driving that growth is increasing electrification of vehicles and a growing number of service shops, "along with the demand for safe, efficient, and convenient driving experience," which seems to point to ADAS calibration needs.

"For passenger vehicles, the segment is predicted to observe 5 percent CAGR through 2030," the report states. "The increasing sales of luxury vehicles will drive the number of operational passenger vehicles across the world. The rapid rise in passenger vehicle sales is generating a strong demand for automotive diagnostic scan tools and strict fuel regulations to check the vehicle's emission levels and other air particulates."

The OEM diagnostics segment, in particular, is projected to generate substantial revenues from the increasing spending on R&D to innovate new diagnostic scan tools. Automakers are partnering with technology-based companies to offer a wide range of automotive diagnostic scan tools. 

Emissions controls another factor

Stringent vehicle emissions controls and carbon taxes introduced by various governments worldwide are another reason for a greater need for scan tools.

"The increasing internet penetration, technological development such as IoT, and the proliferation of smartphones are helping users to diagnose their vehicles at a customer-specific & cost-effective service center. Technical consultations and the adoption of vehicle customization augment the growth of diagnostic services," the report states.

Scan tool manufacturers are focused on increasing their global market presence. As an example, in Feb. 2022, Bosch Automotive announced it had invested $261.4 million (U.S.) by 2027 for expansion in India, also part of its goal of setting up over 1,000 automotive repair & diagnostic service centers by 2025.