The diagnostic tools for electric vehicles (EVs) market is projected to witness substantial expansion between 2025 and 2035, owing to the rapid rise in EV ownership worldwide, advancements in automotive diagnostics, and the increasing demand for cost-efficient battery health monitoring systems. The market, valued at USD 1,970.3 million in 2025, is expected to grow significantly and reach USD 6,535.8 million by 2035, expanding at a robust compound annual growth rate (CAGR) of 12.8% over the forecast period. This growth is driven by the evolving needs of EV servicing, especially around high-voltage battery systems, electric drivetrains, thermal management components, and electronic control units (ECUs), which require precise and efficient diagnostic processes. As EVs become more mainstream, both OEMs and independent repair networks are investing in sophisticated tools that can accurately detect issues, optimize performance, and enable predictive maintenance—reducing vehicle downtime and lifecycle costs.
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Key Takeaways
The proliferation of electric vehicles globally has intensified the need for accurate, reliable, and scalable diagnostic tools tailored to their unique architecture. Unlike internal combustion engine vehicles, EVs rely heavily on complex electronic systems and battery modules, necessitating specialized diagnostics for components like battery management systems, power inverters, and regenerative braking systems. The rising consumer preference for connected services has fueled demand for software-based solutions that can deliver real-time performance analysis and remote troubleshooting. The emphasis on minimizing repair time and enhancing vehicle uptime has driven the adoption of cloud-based diagnostics integrated with artificial intelligence for predictive fault detection. Additionally, fleet operators are increasingly using centralized platforms that offer unified diagnostics for large EV fleets, ensuring smoother operations and reduced service costs.
Emerging Trends in the Global Market
The diagnostic tools for EVs market is witnessing several transformative trends. One major trend is the integration of AI and machine learning in diagnostics platforms to automate fault detection, pattern recognition, and predictive maintenance, especially in battery performance and degradation analysis. The use of cloud-connected platforms that offer over-the-air (OTA) diagnostics and remote servicing is on the rise, allowing manufacturers and service providers to detect and even resolve issues without physical inspections. Another trend is the development of diagnostic tools that are compatible with multiple vehicle brands and models, enabling independent service providers to expand their EV servicing capabilities. In addition, portable handheld diagnostic tools with wireless communication are becoming popular among field service technicians and mobile service units. Cybersecurity diagnostics is also gaining importance, as EVs become more software-defined and vulnerable to digital threats.
Significant Developments in the Global Sector: Trends and Opportunities in the Market
There is a growing emphasis on unified diagnostic platforms that can interface with diverse EV components through standardized protocols such as CAN (Controller Area Network), LIN (Local Interconnect Network), and OBD (On-Board Diagnostics). Automotive software developers are partnering with hardware manufacturers to deliver all-in-one diagnostic ecosystems that combine hardware tools, diagnostic software, analytics dashboards, and cloud-based service portals. The expanding use of diagnostic tools by OEMs during production and post-sale servicing is opening up new opportunities for end-to-end diagnostics integration from the factory to the workshop. The increasing complexity of EV systems has also led to the demand for technician training tools embedded within diagnostic systems, providing guided workflows and repair instructions in real-time. Market participants are also seeing growth in developing economies, where EV adoption is rising, and local service networks are rapidly digitizing to accommodate the maintenance needs of electric vehicles.
Recent Developments in the Market
In recent years, several companies have launched innovative diagnostic solutions tailored specifically for EV platforms. Bosch has introduced advanced EV diagnostic software modules integrated with its KTS hardware series, designed to test battery, inverter, and high-voltage system components. Autel has rolled out its new EV Diagnostic Tablet series with features such as real-time voltage tracking, thermal system analysis, and battery cell balancing checks. Launch Tech has expanded its product range to include multi-brand diagnostic scanners with expanded EV compatibility. Tesla has upgraded its internal service platforms with real-time cloud diagnostics and remote repair capability across its global fleet. Meanwhile, independent aftermarket players in Asia and Europe have formed partnerships with cloud solution providers to develop mobile-based diagnostics apps tailored to emerging EV brands. Furthermore, industry associations and government bodies are investing in standardization initiatives to ensure interoperability of diagnostic tools across diverse EV platforms.
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Competition Outlook
The diagnostic tools for EVs market is becoming increasingly competitive, with a diverse mix of OEMs, diagnostic equipment manufacturers, automotive software firms, and cloud-based service providers. OEMs are focusing on in-house platforms for proprietary diagnostic services, offering end-to-end diagnostics that support their vehicle architectures. Tool manufacturers are expanding their product lines to include EV-specific functionalities, such as insulation resistance testing, high-voltage battery analysis, and powertrain diagnostics. Software providers are developing user-friendly interfaces and data analytics features that support predictive maintenance and fleet-level diagnostics. Competitive strategies include regional expansion, product innovation, partnerships with EV makers, and subscription-based pricing models that offer regular software updates and cloud storage features.
Key Players
Key players in the diagnostic tools for EVs market include Bosch Automotive Service Solutions, Autel Intelligent Technology Corp., Launch Tech Co. Ltd., Snap-on Incorporated, Siemens AG, AVL List GmbH, Softing AG, Vector Informatik GmbH, Actia Group, and Delphi Technologies. These companies are investing in R&D to develop advanced diagnostic platforms, EV-specific test equipment, cloud-integrated service solutions, and technician-friendly hardware tools.
Key Segmentations
The market is segmented by product type, application, vehicle type, and region. By product type, it includes hardware-based tools such as diagnostic scanners and multimeters, and software-based platforms including cloud analytics systems and mobile apps. By application, the categories include battery diagnostics, motor control system analysis, thermal management inspection, and on-board software monitoring. Vehicle type segmentation covers electric passenger vehicles, electric light commercial vehicles, and heavy-duty electric trucks and buses. Regionally, the market spans North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa, with Asia-Pacific holding the largest share due to the growing EV manufacturing base, supportive regulatory policies, and early adoption of digital servicing technologies.
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