OEMs spend nearly 2% to 5%, annually, on warranty claims, which add to the losses of these companies and subsequently lowers customer confidence. The OEMs, through the software embedded in the vehicle, can monitor the working of the vehicle system, detect a failure, and update the software. OEMs can also lower the risk of warranty and reduce recalls.
Automotive prognostics is a technology that forecast maintenance, improves system functions and reliability, detects and alerts the driver in case of failure, and prolongs the life of the various automotive systems
Advent of connected vehicles and autonomous driving is estimated to drive the demand for the automotive prognostics. Data streamed from a connected car can be used to monitor faults, predict failure of the component, and recommend maintenance required. Rising consumer preference for connectivity, navigation requirements, infotainment, and entertainment is driving sales of connected vehicles, which in turn is estimated to boost the demand for the automotive prognostics.
Advent of connected vehicles, autonomous vehicles, and electric vehicles has made the automotive systems more complex and dependent on computer and electronics component. On-spot repair and fault prediction have become difficult, and failure of electronic and software systems leads to complete vehicle breakdown. Consequently, development of prognostics technology to predict failure and maintenance of the automotive systems has become imperative.
Vehicle servicing, collectively, contributes to nearly US$ 12 billion annually. Rising consumer demand for intelligent vehicle maintenance solutions is estimate to propel the automotive prognostics market. Rise in number of vehicles on road and sales of aftermarket connected devices is expected to further drive the automotive prognostics market.
High cost of technology is likely to hamper the adoption of prognostic systems among fleet operators and vehicle owners in order to avoid additional costs
The battery segment is anticipated to expand significantly during the forecast period, as the battery health monitoring system is likely to emerge as a vital parameter in electric vehicles. Battery failure can stall an electric vehicle and could also lead to fatal accidents in case of explosion. Therefore, safe running, charging, and discharging is of utmost importance. Monitoring the battery, predicting maintenance, and alerting the driver in case of emergency can mitigate the risk and ensure reliable working of the vehicle. Surge in adoption of electric vehicles globally is projected to boost the battery segment considerably in the near future.
Passenger Vehicle Segment to Lead Automotive Prognostics Market
The passenger vehicle segment is anticipated to account for a major share of the market as this technology is likely to be adopted first in luxury and premium cars. The heavy commercial vehicle segment is also anticipated to expand at a notable pace, as fleet operators try to minimize unpredicted vehicle failures and to ensure smooth business operations.
OEM Segment to Hold Leading Share of Global Automotive Prognostics Market
The automotive prognostics market is in the introductory phase and hence, OEMs (Automakers) are adopting and offering the technology to minimize warranty claims. The technology is likely to be installed in vehicles by automaker during the initial stages. Subsequently, the aftermarket is expected to expand, as the aftermarket connectivity solutions become more prevalent and prognostics technology becomes cheaper.