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.
Table of Contents
INTRODUCTION
I. EXECUTIVE SUMMARY
II. MARKET ENVIRONMENT
- General
- Macroeconomic Environment
- Light Vehicle Supply & Demand Dynamics
- Automotive Industry Trends
- Light Vehicle OEMs
- Legal & Regulatory Trends
- Air Quality
- Fuel Efficiency
- Global Warming
- Aftermarket Access to Diagnostic Information
- Pricing Trends
- Technology & Materials Trends
- Foreign Trade & International Issues
III. MARKET & COMPETITIVE ASSESSMENT
- General
- New Fuel Economy Focus
- Light Vehicle Service Diagnostic Trends
- On-Board Diagnostic System II
- CAN & Other Vehicle Communications Systems
- Concerns About Technician Capabilities
- Issues Surrounding Equipment
- Market Assessment
- Quality Improvement
- Light Vehicle Technology Trends
- Vehicle Electronics Evolution
- Competitive Assessment
IV. AUTOMOTIVE AFTERMARKET PRODUCT TRENDS
- General
- Diagnostic-Intensive Aftermarket Product Demand
- Electronic Product Aftermarket
- Electronic Controls, Modules & Sensors
- Entertainment Systems
- Security Systems
- Electrical Product Aftermarket
- Batteries
- Ignition Systems & Parts
- Charging Equipment
- Spark Plugs
- Other Electrical Products
V. DIAGNOSTIC PRODUCTS
- General
- Diagnostic Products Demand
- Diagnostic Equipment
- Scanners, Engine Analyzers & Oscilloscopes
- Scanners
- Engine Analyzers
- Oscilloscopes
- Gas Analyzers
- Multimeters
- Charging, Starting & Battery Diagnostic Equipment
- Other Electronic Diagnostic Equipment
- Scanners, Engine Analyzers & Oscilloscopes
- Diagnostic Software, Services & Data
- Published Repair & Diagnostic Data
- Diagnostic Software Updates
- Remote Diagnostic Services
VI. DIAGNOSTIC PRODUCT DEMAND BY SERVICE PERFORMER
- General
- Aftermarket Service Overview
- Service Concentration
- Professional
- Garages & Service Stations
- Automobile Dealerships
- Specialists
- Others
- Consumer/DIY
VII. INDUSTRY STRUCTURE
- General
- Industry Composition & Market Share
- Mergers, Acquisitions & Industry Restructuring
- Product Development & Manufacturing
- Marketing
- Distribution
- Financial Issues & Requirements
- COMPANY PROFILES
- Actron, see SPX Corporation
- Actuant Corporation
- ALLDATA LLC, see AutoZone Incorporated
- Associated Equipment Corporation
- ATD Tools Incorporated
- ATEC Trans-Tool LP
- Automotive Electronics Services Incorporated
- AutoXray, see SPX Corporation
- AutoZone Incorporated
- Blue Streak Electronics Incorporated, see Standard Motor Products Incorporated
- Bosch (Robert) GmbH
- Carley Automotive Software
- CEJN AB
- Danaher Corporation
- DeJaye Electronics Incorporated
- Delphi Corporation
- DISTools LLC
- EASE Diagnostics
- Electronic Specialties Incorporated
- Fluke Corporation, see Danaher Corporation
- Gardner Bender, see Actuant Corporation
- General Motors Corporation
- General Technologies Corporation
- GxT Incorporated
- Hickok Incorporated
- Injectoclean SA de CV
- Knight Electronics Incorporated
- Mac Tools, see Stanley Works
- Matco Tools Corporation, see Danaher Corporation
- National Automotive Parts Association
- NEXIQ Technologies, see Snap-on Incorporated
- Omitec Group Limited
- OnStar Corporation, see General Motors Corporation
- OTC, see SPX Corporation
- Pico Technology Limited
- Robinair, see SPX Corporation
- Sheffield Research, see General Technologies Corporation
- Snap-on Incorporated
- SPX Corporation
- Standard Motor Products Incorporated
- Stanley Works
- SuperFlow Technologies Group
- Teradyne Incorporated
- Thexton Manufacturing Company Incorporated
- Universal Enterprises Incorporated
- VACULA Automotive Products, see CEJN AB
LIST OF TABLES
SECTION I -- EXECUTIVE SUMMARY
- Summary Table
SECTION II: MARKET ENVIRONMENT
- 1 Macroeconomic Indicators
- 2 Light Vehicle Indicators
- 3 Hybrid-Electric Internal Combustion Engine Light Vehicle Demand
- 4 Manufacturers' Price Ranges for Selected Diagnostic Equipment, 2006
SECTION IV -- AUTOMOTIVE AFTERMARKET PRODUCT TRENDS
- 1 Diagnostic-Intensive Aftermarket Products Demand
- 2 Electronic Product Aftermarket Demand
- 3 Electronic Control, Module & Sensor Aftermarket Demand
- 4 Entertainment System Aftermarket Demand
- 5 Electronic Security System Aftermarket Demand
- 6 Automotive Electrical Product Aftermarket Demand
- 7 Automotive Battery Aftermarket Demand
- 8 Ignition Systems & Parts Aftermarket Demand
- 9 Aftermarket Charging Equipment Demand
- 10 Spark Plug Aftermarket Demand
- 11 Other Automotive Electrical Product Aftermarket Demand
SECTION V -- DIAGNOSTIC PRODUCTS
- 1 Automotive Diagnostic Product Demand by Type
- 2 Automotive Diagnostic Equipment Demand by Type
- 3 Scanner, Engine Analyzer & Oscilloscope Demand
- 4 Gas Analyzer Demand
- 5 Multimeter Demand
- 6 Charging, Starting & Battery Diagnostic Equipment Demand
- 7 Other Automotive Diagnostic Equipment Demand
- 8 Diagnostic Data, Software & Services Demand
- 9 Published Diagnostic & Repair Data Demand
- 10 Diagnostic Software Updates Demand
- 11 Remote Diagnostic Services Demand
SECTION VI -- DIAGNOSTIC PRODUCT DEMAND BY SERVICE PERFORMER
- 1 Automotive Diagnostic Product Market by Performer
- 2 Professional Demand for Automotive Diagnostic Products
- 3 Garage & Service Station Demand for Diagnostic Products
- 4 Automobile Dealership Demand for Diagnostic Products
- 5 Specialist Demand for Diagnostic Products
- 6 Other Professional Demand for Automotive Diagnostic Products
- 7 Consumer/DIY Demand for Diagnostic Products
SECTION VII -- INDUSTRY STRUCTURE
- 1 Sales of Selected Diagnostic Product Producers, 2006
LIST OF CHARTS
SECTION II -- MARKET ENVIRONMENT
- 1 US Light Vehicle Production by Company, 2006
SECTION III -- MARKET & COMPETITIVE ASSESSMENT
- 1 Evolution of Engine Diagnostic Devices
- 2 Automotive Fuel Economy Improvement Decision Tree
- 3 Historical & Potential OBD-II Park Penetration -- Passenger Car Example
- 4 Forces Influencing Diagnostic Equipment Demand
- 5 Quality Impact on Major Aftermarket Component Segments
- 6 Electrical/Electronics-Intensive Repair Frequency Trend, 1996 to 2006
- 7 Vehicle Durability Comparison
- 8 Aftermarket Value of Increased Durability
- 9 Light Vehicle Electronics Evolution
- 10 Diagnostic Equipment Market Scenarios
- 11 Forces at Work in the US Diagnostic Equipment Industry
SECTION VI -- DIAGNOSTIC PRODUCT DEMAND BY SERVICE PERFORMER
- 1 OBD-II-Equipped Passenger Cars in the 5- to 10-Year Age Range
SECTION VII -- INDUSTRY STRUCTURE
- 1 Light Vehicle Sensor & Fractional Horsepower Motor Fitment Evolution
- 2 Diagnostic Equipment & Services Market Share by Company, 2006
