Global On-Board Diagnostics Telematics Market to Reach US$10.4 Billion by 2030

The global market for On-Board Diagnostics Telematics estimated at US$4.3 Billion in the year 2024, is expected to reach US$10.4 Billion by 2030, growing at a CAGR of 15.7% over the analysis period 2024-2030. Passenger Cars End-Use, one of the segments analyzed in the report, is expected to record a 17.6% CAGR and reach US$7.4 Billion by the end of the analysis period. Growth in the Commercial Vehicles End-Use segment is estimated at 11.8% CAGR over the analysis period.

The U.S. Market is Estimated at US$1.1 Billion While China is Forecast to Grow at 14.7% CAGR

The On-Board Diagnostics Telematics market in the U.S. is estimated at US$1.1 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.6 Billion by the year 2030 trailing a CAGR of 14.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 14.7% and 13.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 11.3% CAGR.

Global On-Board Diagnostics (OBD) Telematics Market - Key Trends & Drivers Summarized

Why Is OBD Telematics Becoming Central to Vehicle Intelligence and Fleet Efficiency?

On-board diagnostics (OBD) telematics combines vehicle diagnostics with wireless communication to monitor, transmit, and analyze real-time data from vehicles. By connecting to a vehicle’s OBD port, telematics systems collect critical information such as engine performance, fuel efficiency, emissions, battery voltage, and fault codes. This data is transmitted to cloud platforms for remote access and analytics, enabling proactive vehicle maintenance, driving behavior monitoring, and fleet optimization.

Adoption of OBD telematics is rising rapidly in commercial fleets, insurance, and aftermarket vehicle management. It supports cost savings through predictive maintenance, reduces breakdown risk, and enables compliance with emissions and safety regulations. As mobility trends shift toward connected, electric, and autonomous vehicles, OBD telematics is becoming an integral tool for maximizing operational efficiency and transparency in vehicle health monitoring.

How Are Technology Innovations Enhancing OBD Telematics Capabilities?

Technological advancements are significantly expanding the scope of OBD telematics systems. Modern plug-and-play OBD-II dongles are equipped with cellular, GPS, and Bluetooth connectivity to support real-time tracking, over-the-air updates, and mobile app integration. These systems are increasingly cloud-enabled, allowing centralized access to vehicle diagnostics, usage patterns, and driver behavior metrics.

Data analytics and machine learning algorithms are being embedded in telematics platforms to deliver predictive insights, such as component failure forecasts and fuel usage trends. Integration with AI-powered dashboards helps fleet operators identify route inefficiencies, enforce driving standards, and manage assets dynamically. Security is also a focus area, with encryption and cybersecurity protocols being implemented to protect sensitive vehicle and user data. These developments are transforming OBD telematics from basic tracking tools into intelligent fleet and vehicle management ecosystems.

What Market Trends Are Driving Demand Across Vehicle Categories and Use Cases?

The OBD telematics market is seeing strong growth across both commercial and consumer segments. In fleet management, rising fuel costs, regulatory requirements, and the need for digital compliance reporting are driving widespread adoption. Fleet operators are using OBD telematics to monitor idling, track routes, and reduce operational inefficiencies. In usage-based insurance (UBI), insurers deploy OBD devices to collect driving data and offer personalized premiums based on behavior and mileage.

In the consumer vehicle segment, aftermarket OBD telematics devices are being used for real-time vehicle health monitoring, trip tracking, and emergency alerts. This is especially relevant in used car markets and for owners of older vehicles not equipped with built-in connectivity. The growing focus on emissions reduction and vehicle electrification is also influencing telematics development, with new devices being adapted to monitor battery performance and energy usage in electric vehicles (EVs).

What Factors Are Driving Growth in the OBD Telematics Market?

Growth in the OBD telematics market is driven by several factors. Rising demand for connected vehicle technologies and real-time diagnostics is expanding the use of OBD-based telematics in both commercial and private vehicles. Increasing need for fleet optimization, fuel savings, and compliance with safety and emissions regulations is accelerating adoption in logistics and transportation sectors. Advancements in mobile connectivity, GPS accuracy, and cloud-based analytics are enhancing functionality and user experience. The expansion of usage-based insurance programs is opening new opportunities in personal and commercial auto segments. Additionally, the shift toward predictive maintenance and data-driven vehicle operations is supporting long-term investment in telematics infrastructure. These drivers are positioning OBD telematics as a foundational component of smart mobility and digital vehicle ecosystems.