Report Overview

Saudi Arabia Automotive On-board Diagnostics (OBD) Market - Industry Trends & Forecast Report, 2031

Saudi Arabia Automotive On-board Diagnostics (OBD) Market size was estimated to be worth USD 40 million in 2024. During the forecast period between 2025 and 2031, Saudi Arabia Automotive On-board Diagnostics (OBD) Market size is projected to grow at a CAGR of 7.71% reaching a value of USD 67 million by 2031. Major growth factors for Saudi Arabia Automotive On-board Diagnostics (OBD) Market include the rising complexity of modern vehicles, deepening penetration of electric and hybrid powertrains, and growing integration of advanced safety and connectivity features. Modern automobiles are equipped with highly sophisticated systems, such as advanced driver-assistance systems (ADAS), autonomous technologies, infotainment solutions, and electric powertrains, all of which require precise diagnostic tools to ensure reliability and performance. The accelerating shift toward electric and hybrid vehicles, supported by stricter emission regulations, government incentives, and heightened consumer awareness about sustainable mobility, is also contributing to market growth. As of March 2025, there were more than 23,000 registered EVs in Saudi Arabia and the EV adoption is growing rapidly. EVs integrate high-voltage batteries, regenerative braking, power electronics, and complex software systems that require specialized diagnostic solutions for accurate fault detection, software updates, and optimization. Additionally, favorable policies for on-board diagnostics (OBD) and growing demand for connected car solutions are further supporting market expansion. Leading players are leveraging artificial intelligence (AI), machine learning (ML), and cloud-based technologies to deliver faster and more accurate diagnostic solutions. For instance, in July 2023, Renault Group, in partnership with Bosch Automotive Service Solutions, introduced the Alliance Diagnosis Tool (ADT), an AI-enabled platform that enables over-the-air connectivity between workshops and vehicles, improving repair efficiency and reducing downtime.

Source: BlueWeave Consulting

Automotive On-board Diagnostics (OBD) – Overview

Automotive on-board diagnostics (OBD) refers to the process of monitoring, analyzing, and identifying issues within a vehicle’s systems using specialized hardware and software tools. It helps detect faults in critical components, such as the engine, transmission, exhaust, brakes, and electronic control units (ECUs). Modern diagnostics also support advanced features like real-time monitoring, over-the-air updates, and predictive maintenance. By ensuring accurate fault detection and timely repairs, automotive OBD enhances vehicle safety, performance, and compliance with emission regulations, while reducing downtime and maintenance costs for both individual users and fleet operators.

Saudi Arabia Automotive On-board Diagnostics (OBD) Market

Growth Drivers

Rapid Adoption of Connected Cars and Telematics

The rising vehicle ownership and road congestion, heightening accident risks, are driving the strong demand for advanced vehicle diagnostic systems, including automotive on-board diagnostics (OBD). Inadequate vehicle maintenance has led to failures in brakes, airbags, and other critical systems, contributing to severe accidents, with the World Health Organization (WHO) estimating 6,651 fatalities in Saudi Arabia in 2021. To address these concerns, diagnostics play a vital role in detecting potential failures in components such as tires, steering, and braking systems, reducing the likelihood of breakdown-related accidents. The integration of telematics and connected car technologies further strengthens this trend by enabling real-time monitoring and alerts, enhancing safety while also supporting post-accident analysis to improve vehicle design standards. At the same time, artificial intelligence (AI) and machine learning (ML) are increasingly embedded in diagnostics to manage the complexity of modern vehicles with ADAS, electric powertrains, and connected features. These technologies facilitate real-time fault detection, predictive maintenance, and personalized insights, improving uptime, safety, and efficiency, while AI-powered mobile applications make diagnostics more accessible for drivers. As connected and AI-enabled diagnostics evolve, they are becoming central to the development of safer, smarter, and more reliable vehicles, thereby accelerating the growth of Saudi Arabia Automotive On-board Diagnostics (OBD) Market.

Challenges

Increasing Costs of Implementation

High implementation costs could restrain the growth of Saudi Arabia Automotive On-board Diagnostics (OBD) Market. Advanced diagnostic systems require significant investment in hardware, software, and skilled labor, which increases the overall setup expenses for automakers and service providers. Continuous updates to match evolving vehicle technologies further add to the financial burden. For small and independent workshops, the high cost of acquiring and maintaining modern diagnostic tools often outweighs the benefits, limiting adoption. Additionally, the need for specialized equipment and training escalates operational costs, making advanced diagnostics less accessible and hindering the growth of Saudi Arabia Automotive On-board Diagnostics (OBD) Market.

Impact of Escalating Geopolitical Tensions on Saudi Arabia Automotive On-board Diagnostics (OBD) Market

Escalating geopolitical tensions could significantly impact the growth of Saudi Arabia Automotive On-board Diagnostics (OBD) Market. Trade restrictions, tariffs, and disrupted supply chains caused by conflicts or strained relations between countries, particularly between the United States and China, could affect the availability of critical components, such as sensors, chips, and diagnostic software. Moreover, uncertainties in cross-border trade discourage investments and delay the expansion of diagnostic technologies across regions. Geopolitical risks also create instability in raw material sourcing and logistics, further challenging market growth. Such factors collectively restrict the seamless development and adoption of advanced OBD.

Saudi Arabia Automotive On-board Diagnostics (OBD) Market

Segmental Coverage

Saudi Arabia Automotive On-board Diagnostics (OBD) Market – By Product Type

Based on product type, Saudi Arabia Automotive On-board Diagnostics (OBD) Market is bifurcated into Hardware, Software, and Services segments. The hardware segment holds the largest share of Saudi Arabia Automotive On-board Diagnostics (OBD) Market by product type. It is driven by the widespread adoption of advanced diagnostic tools and integrated components. Hardware such as sensors, wires, cameras, and scanners plays a critical role in monitoring vehicle systems, enabling accurate fault detection and repair. The rising sales of technologically advanced vehicles have compelled OEMs to incorporate a wide range of diagnostic hardware solutions, while aftermarket demand further strengthens this segment. Modern diagnostic tools now feature enhanced capabilities, including repair data libraries, reset functions, and bidirectional controls, ensuring faster and more precise vehicle servicing.

Source: BlueWeave Consulting

Saudi Arabia Automotive On-board Diagnostics (OBD) Market – By Vehicle Type

Saudi Arabia Automotive On-board Diagnostics (OBD) Market by vehicle type is divided into Passenger Cars, Light Commercial Vehicles (LCVs), Heavy Commercial Vehicles (HCVs), and Electric Vehicles (EVs) segments. The EVs segment is expected to hold the largest share of Saudi Arabia Automotive On-board Diagnostics (OBD) Market by vehicle type during the forecast period. Rising government initiatives, such as subsidies, tax incentives, and R&D programs, are encouraging the development of advanced EV diagnostic technologies. Stricter emission and safety regulations are further driving the need for monitoring tools that assess real-time vehicle performance and ensure compliance. Governments not only mandate the integration of diagnostic systems in upcoming vehicles but also support innovations through funding and policy frameworks.

Source: BlueWeave Consulting

Saudi Arabia Automotive On-board Diagnostics (OBD) Market – By Diagnostic Type

On the basis of diagnostic type, Saudi Arabia Automotive On-board Diagnostics (OBD) Market is bifurcated into OBD-I and OBD-II segments.

Saudi Arabia Automotive On-board Diagnostics (OBD) Market – By Application

Saudi Arabia Automotive On-board Diagnostics (OBD) Market by application is segmented into Fleet Management, Usage-based Insurance (UBI), Consumer Telematics, and Car Sharing. The fleet management holds the largest market share of Saudi Arabia Automotive On-board Diagnostics (OBD) Market by application.

Competitive Landscape

Saudi Arabia Automotive On-board Diagnostics (OBD) Market is highly competitive, as a number of companies are competing to gain a significant market share. Key players in the market include Robert Bosch GmbH, Continental AG, Siemens AG, Aptiv PLC, Snap-On Inc., Softing AG, KPIT Technologies, Denso Corporation, General Technologies Corp., Onboard Diagnostics Inc., and Fluke Corporation. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product Type

• Hardware

• Software

• Services

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles (LCVs)

• Heavy Commercial Vehicles (HCVs)

• Electric Vehicles (EVs)

By Diagnostic Type

• OBD-I

• OBD-II

By Application

• Fleet Management

• Usage-based Insurance (UBI)

• Consumer Telematics

• Car Sharing

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Saudi Arabia Automotive On-board Diagnostics (OBD) Market Insights
   1. End User Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rising Electrification & ADAS Adoption
         2. Increasing Regulatory Push
         3. Growing Connected Cars & Telematics
      2. Restraints
         1. Rising Implementation Costs
         2. Limited OEM Data Access
      3. Opportunities
         1. Rapid Adoption of OBD
         2. Rising Use of AI & Predictive Analytics
      4. Challenges
         1. Limited Availability of Skilled Workforce
         2. Reliability Risks
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Saudi Arabia Automotive On-board Diagnostics (OBD) Market: Marketing Strategies
5. Saudi Arabia Automotive On-board Diagnostics (OBD) Market: Pricing Analysis
6. Saudi Arabia Automotive On-board Diagnostics (OBD) Market: Geography Analysis
   1. Saudi Arabia Automotive On-board Diagnostics (OBD) Market, Geographical Analysis, 2024
   2. Saudi Arabia Automotive On-board Diagnostics (OBD) Market, Market Attractiveness Analysis, 2024–2031
7. Saudi Arabia Automotive On-board Diagnostics (OBD) Market Overview
   1. Market Size & Forecast, 2019-2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
         1. Hardware
         2. Software
         3. Services
      2. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicles (LCVs)
         3. Heavy Commercial Vehicles (HCVs)
         4. Electric Vehicles (EVs)
      3. By Diagnostic Type
         1. OBD-I
         2. OBD-II
      4. By Application
         1. Fleet Management
         2. Usage-based Insurance (UBI)
         3. Consumer Telematics
         4. Car Sharing
8. Saudi Arabia Automotive Vehicle Diagnostics Market
   1. Market Size & Forecast, 2019-2031
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Product Type
      2. By Vehicle Type
      3. By Diagnostic Type
      4. By Application
9. Competitive Landscape
   1. List of Key Players and Their Types
   2. Global Automotive Vehicle Diagnostics Company Market Share Analysis, 2024
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
10. Impact of Escalating Geopolitical Tensions on Saudi Arabia Automotive On-board Diagnostics (OBD) Market
11. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Robert Bosch GmbH
    2. Continental AG
    3. Siemens AG
    4. Aptiv PLC
    5. Snap-On Inc.
    6. KPIT Technologies
    7. Denso Corporation
    8. General Technologies Corp.
    9. Onboard Diagnostics Inc.
    10. Fluke Corporation
    11.  Other Prominent Players
12. Key Strategic Recommendations
13. Research Methodology
    1.  Qualitative Research
       1.  Primary & Secondary Research
    2.  Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1        Saudi Arabia Automotive On-board Diagnostics (OBD) Market Segmentation        

Figure 2        Saudi Arabia Automotive On-board Diagnostics (OBD) Market Value (USD Million) Chain Analysis      

Figure 3        Company Market Share Analysis, 2024

Figure 4        Saudi Arabia Automotive On-board Diagnostics (OBD) Market Size, By Value (USD Million), 2019-2031       

Figure 5        Saudi Arabia Automotive On-board Diagnostics (OBD) Market Share, By Product Type, By Value (USD Million), 2019-2031        

Figure 6        Saudi Arabia Automotive On-board Diagnostics (OBD) Market Share, By Vehicle Type, By Value (USD Million), 2019-2031        

Figure 7        Saudi Arabia Automotive On-board Diagnostics (OBD) Market Share, By Diagnostic Type, By Value (USD Million), 2019-2031   

Figure 8        Saudi Arabia Automotive On-board Diagnostics (OBD) Market Share, By Application, By Value (USD Million), 2019-2031

List of Tables

Table 1         Saudi Arabia Automotive On-board Diagnostics (OBD) Market Size, By Value (USD Million), 2019-2031       

Table 2         Saudi Arabia Automotive On-board Diagnostics (OBD) Market Size, By Product Type, By Value (USD Million), 2019-2031

Table 3         Saudi Arabia Automotive On-board Diagnostics (OBD) Market Size, By Vehicle Type, By Value (USD Million), 2019-2031 

Table 4         Saudi Arabia Automotive On-board Diagnostics (OBD) Market Size, By Diagnostic Type, By Value (USD Million), 2019-2031      

Table 5         Saudi Arabia Automotive On-board Diagnostics (OBD) Market Size, By Application, By Value (USD Million), 2019-2031

Table 6         Robert Bosch GmbH Company Overview

Table 7         Robert Bosch GmbH Financial Overview

Table 8         Continental AG Company Overview

Table 9         Continental AG Financial Overview

Table 10       Siemens AG Company Overview

Table 11       Siemens AG Financial Overview

Table 12       Aptiv PLC Company Overview

Table 13       Aptiv PLC Financial Overview

Table 14       Snap-On Inc. Company Overview

Table 15       Snap-On Inc. Financial Overview

Table 16       KPIT Technologies Company Overview

Table 17       KPIT Technologies Financial Overview

Table 18       Denso Corporation Company Overview

Table 19       Denso Corporation Financial Overview

Table 20       General Technologies Corp. Company Overview

Table 21       General Technologies Corp. Financial Overview

Table 22       Onboard Diagnostics Inc. Company Overview

Table 23       Onboard Diagnostics Inc. Financial Overview

Table 24       Fluke Corporation Company Overview

Table 25       Fluke Corporation Financial Overview