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OBD II Dongles Are Set To Offer Services Such As EcoStart and Remote Immobilisation, Facilitated By Enhanced Authentication
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The global OBD II automotive aftermarket is witnessing rapid growth; original equipment manufacturers (OEMs) are continuously investing in and acquiring dongle suppliers that are relevant to their businesses. Frost & Sullivan segments the ecosystem into dongle suppliers, Internet and connectivity, and service enablers. This study focuses on key sub-segments on the lines of the aftermarket, tier 1s, OEMs, mobile carriers, telecoms, and platform enablers. Start-ups and OEMs wish to enter this market. OEMs are likely to gain higher proliferation from new vehicles enabled with embedded telematics, but OBD dongle-based solutions are expected to record quicker growth in North America due to the older parc. The adoption of OBD II dongles is likely to grow from 5.5 million in 2016 to 27.8 million in 2023 in North America. Europe is likely to adopt a pro-embedded stand post the 2020 mandate, which will dampen OBD dongle penetration. The adoption of dongles in Europe is likely to grow from 0.9 million in 2016 to 4.1 million in 2023. OBD II dongle proliferation is heavily dependent on distribution channels and channel enablers such as garages, mechanics, and retailers. Deploying last-mile services for consumers and providing well-rounded services are the key to overall product success. OBD II-based aftermarket solutions depend on retail and auto repair shops for their market penetration. Government policies, safety regulations, and real-world behavior are likely to create ripples in the overall OBD II dongle aftermarket.
The base year for the analysis is 2016 and the forecast period is from 2016 to 2023. Funding is provided in the US Dollar. The study concentrates on key markets such as North America and Europe.
The study also sheds light on product benchmarking and distribution channel benchmarking. Regional technology trends and growth potential over the next 5 years are some of the highlights covered as part of the benchmarking.
Key Issues Addressed
Frost & Sullivan has determined that e-Call 2020 will be a double-edged sword - it will drive as well as restrain the market. It dictates that all cars must have embedded solutions come 2020, which will slowdown market growth. On the other hand, existing cars will require OBD II dongles to be e-Call-compliant.
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