The India vehicle diagnostics market size reached USD 1,567.60 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 6,273.92 Million by 2033, exhibiting a growth rate (CAGR) of 16.70% during 2025-2033. The market is fueled by increasing adoption of connected cars, demand for real-time monitoring of vehicle health, and more stringent emissions regulations. Improved telematics, awareness of preventive maintenance among consumers, and the integration of OBD technology in advanced cars drive growth across automotive segments.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 1,567.60 Million |
Market Forecast in 2033 | USD 6,273.92 Million |
Market Growth Rate 2025-2033 | 16.70% |
Rising Integration of Advanced Telematics and IoT in Vehicle Diagnostics
India’s vehicle diagnostics ecosystem is evolving rapidly with the growing adoption of telematics and Internet of Things (IoT) technologies. These systems allow real-time tracking of vehicle performance, predictive maintenance, and remote diagnostics, enhancing operational efficiency for both fleet operators and individual users. Automakers are now integrating telematics control units (TCUs) and cloud-based analytics into new vehicle models, enabling instant data transmission to service centers or mobile apps. This aligns with India’s smart mobility ambitions and the rising trend of connected vehicles. Government initiatives supporting smart transportation and road safety are further driving uptake. Reflecting this shift, the India automotive telematics market was valued at ₹555 crore in 2021, with the commercial vehicle segment accounting for 66% of the total market. The sector is poised for strong growth, reinforcing IoT-driven diagnostics as a vital component of modern mobility.
Increasing Demand for On-Board Diagnostics (OBD-II) Systems
Demand for OBD-II systems in India is increasing as regulatory environments and emission standards get more stringent. OBD-II systems enable real-time checks of engine health, emissions, fuel economy, and component failure. The adoption of Bharat Stage VI (BS-VI) emission standards has forced manufacturers to incorporate tough diagnostic systems to comply. OBD-II systems provide motorists and repair technicians with easily accessed diagnostic trouble codes (DTCs), allowing for timely repairs and lower long-term maintenance expenses. Additionally, growing consumer consciousness about vehicle health and maintenance prevention is driving aftermarket sales of portable OBD scanners. Increasing penetration of passenger vehicles and light commercial vehicles with inbuilt diagnostics is further boosting the market, as OBD-II becomes a mainstream technology in India's transforming automotive landscape.
Expansion of Digital Vehicle Health Monitoring and Predictive Analytics
Digital vehicle health monitoring systems based on AI-powered predictive analytics are gathering pace in India's diagnostics landscape. These solutions process real-time sensor data, past performance, and driver habits to predict component failures ahead of time. As cars become increasingly software-defined, predictive diagnostics supports reducing unplanned breakdowns and optimizing service intervals. OEMs and fleet managers are using these insights to maximize asset utilization and lower maintenance costs. This trend is also picking up in the electric vehicle space, where digital platforms play a key role in tracking battery health and motor efficiency. The transition from reactive to predictive maintenance is transforming the way diagnostics is viewed—not only as a repair tool, but as a strategic function that facilitates cost-effective, data-driven vehicle management.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on vehicle type, connectivity, and application.
Vehicle Type Insights:
The report has provided a detailed breakup and analysis of the market based on the vehicle type. This includes light-duty vehicle, and commercial vehicle.
Connectivity Insights:
A detailed breakup and analysis of the market based on the connectivity have also been provided in the report. This includes 4G LTE, 3G, Bluetooth, and Wi-Fi.
Application Insights:
The report has provided a detailed breakup and analysis of the market based on the application. This includes automatic crash notification, vehicle tracking, vehicle health alert, and roadside assistance.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North, South, East, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Vehicle Types Covered | Light-Duty Vehicle, Commercial Vehicle |
Connectivitys Covered | 4G LTE, 3G, Bluetooth, Wi-Fi |
Applications Covered | Automatic Crash Notification, Vehicle Tracking, Vehicle Health Alert, Roadside Assistance |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: