Vehicle Scanner Market

Market Definition

The market encompasses a range of technologies and systems designed to inspect, analyze, and monitor vehicles for various purposes, including security, diagnostics, and maintenance. They serve multiple purposes, including security screening, vehicle diagnostics, and compliance checks. 

The report examines critical driving factors, industry trends, regional developments, and regulatory frameworks impacting market growth through the forecast period.

Vehicle Scanner Market Overview

Global vehicle scanner market size was valued at USD 2,145.5 million in 2023, which is estimated to be valued at USD 2,254.1 million in 2024 and reach USD 3,338.0 million by 2031, growing at a CAGR of 5.77% from 2024 to 2031. 

Increasing security concerns, including threats from terrorism, drug trafficking, and illegal activities, are driving the demand for advanced vehicle inspection systems. These systems offer effective monitoring and detection capabilities to mitigate risks. 

Major companies operating in the vehicle scanner industry are OSI Systems Company, SecuScan, SecureOne International BV, Leidos, Omnitec, UVeye inc., INFINITE TECHNOLOGIES, Magtech Group, Godrej Enterprises, Vehant Technologies, Bharat Electronics Limited (BEL), Anjali Technologies, The Motwane Manufacturing Company Pvt. Ltd., ISS Corp, LOYALTY-SECU Technology Co., LTD, and others.

The market is experiencing growth driven by the increasing need for enhanced security and regulatory compliance across various sectors. Advanced scanning technologies are being deployed for non-intrusive vehicle inspections, supporting border security, infrastructure protection, and safety checks. 

The market for vehicle scanners is expanding with the rising global threats and the demand for efficient, real-time monitoring solutions in government, commercial, and critical infrastructure applications.

• In April 2025, OSI Systems secured USD 17 million in orders to provide Eagle M60 mobile cargo and vehicle inspection systems to a North American customer. This contract is part of a multi-year framework agreement established in 2024, supporting robust border security and non-intrusive inspection for critical infrastructure protection.

Key Highlights

1. The vehicle scanner industry size was recorded at USD 2,145.5 million in 2023.
2. The market is projected to grow at a CAGR of 5.77% from 2024 to 2031.
3. North America held a market share of 40.12% in 2023, with a valuation of USD 860.8 million.
4. The sensing technology segment garnered USD 646.9 million in revenue in 2023.
5. The fixed vehicle scanners segment is expected to reach USD 2,184.7 million by 2031.
6. The drive-through vehicle scanners segment is having a market share of 56.09% in 2023
7. The private and commercial facilities segment is anticipated to have a CAGR of 6.67% during the forecast period.
8. The hardware segment is anticipated to have a market share of 66.11% in 2031.
9. Asia Pacific is anticipated to grow at a CAGR of 6.98% during the forecast period.

Market Driver

Increasing Security Concerns

Rising global security concerns, such as terrorism, drug trafficking, and other criminal activities, are significant growth drivers for the market. Governments and security agencies are prioritizing advanced inspection systems to enhance border security and prevent illegal activities. 

Vehicle scanners equipped with non-intrusive technologies enable faster, more accurate screening, helping authorities detect contraband and threats before they can enter secure locations. As security challenges evolve, demand for sophisticated scanning solutions that can efficiently address these risks continues to surge, thereby fueling market expansion.

• In March 2024, OSI Systems’ Z Portal system helped U.S. Customs and Border Protection seize six and a half tons of methamphetamine at the Eagle Pass Port of Entry. This highlights the growing importance of non-intrusive inspection systems in border security and drug trafficking prevention.

Market Challenge

High Initial Investment

The high initial investment required for purchasing and installing advanced vehicle scanning systems pose a significant challenge in the vehicle scanner market. This upfront cost, coupled with installation and setup expenses, can deter smaller companies or those with limited budgets from adopting such technology. 

To overcome this challenge, key players are offering flexible financing options, such as leasing or subscription-based models, to reduce the financial burden. Additionally, governments and regulatory bodies are providing grants or incentives to encourage adoption, making the technology more accessible.

Market Trend

Shift Towards Mobile Solutions

The market is seeing a shift towards mobile solutions, with portable scanners gaining traction for vehicle health diagnostics. These mobile systems offer flexibility for on-the-go inspections and can be deployed quickly in various settings. 

This trend benefits fleet management, repair services, and vehicle maintenance, as it allows for real-time diagnostics without the need for fixed infrastructure. Mobile diagnostic scanners provide a cost-effective, adaptable solution for organizations needing scalable, efficient tools to monitor vehicle health and ensure optimal performance.

• In October 2023, Amazon introduced its new AI-powered Automated Vehicle Inspection (AVI) technology, designed to enhance delivery van safety. By performing quick, accurate scans to detect issues like tire deformities and undercarriage wear. The system provides fleet managers with real-time data, improving vehicle maintenance. This reduces manual inspections, boosts efficiency, and minimizes safety risks, ensuring a smoother delivery process across multiple regions.

Vehicle Scanner Market Report Snapshot

Segmentation	Details
By Technology Type	Sensing Technology, Illuminating Technology, Scanning Technology, Imaging Technology, Processing Technology
By Scanner Type	Fixed Vehicle Scanners, Portable Vehicle Scanners
By Structure Type	Drive-Through Vehicle Scanners, Under-Vehicle Surveillance Systems
By Application	Government and Critical Infrastructure Protection, Private and Commercial Facilities
By Component	Hardware, Software
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Technology Type (Sensing Technology, Illuminating Technology, Scanning Technology, Imaging Technology, Processing Technology): The sensing technology segment earned USD 646.9 million in 2023 due to its advanced ability to detect minute vehicle anomalies, improving diagnostic accuracy and vehicle safety.
• By Scanner Type (Fixed Vehicle Scanners, Portable Vehicle Scanners): The fixed vehicle scanners segment held 66.09% of the market in 2023, due to their reliable, continuous monitoring capabilities, making them essential for security checks and consistent vehicle inspections at fixed locations.
• By Structure Type (Drive-Through Vehicle Scanners, Under-Vehicle Surveillance Systems): The under-vehicle surveillance systems segment is projected to reach USD 1,673.9 million by 2031, owing to growing security concerns and the increasing need to detect hidden contraband or threats under vehicles in high-risk areas.
• By Application (Government and Critical Infrastructure Protection, Private and Commercial Facilities): The private and commercial facilities segment is anticipated to have a CAGR of 6.67% during the forecast period, due to increasing demand for vehicle inspection systems to ensure security and compliance in transportation and logistics operations.
• By Component (Hardware, Software): The hardware segment is anticipated to have a market share of 66.11% in 2031, due to its critical role in the accurate detection of mechanical issues and security threats through advanced scanning and imaging technologies.

Vehicle Scanner Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and South America.

The North America vehicle scanner market share stood at around 40.12% in 2023 in the global market, with a valuation of USD 860.8 million. North America is the dominating region for the market, driven by the rapid adoption of advanced technologies and a strong focus on vehicle safety and maintenance. 

The presence of major automotive manufacturers, along with stringent regulatory requirements, fuels the demand for efficient scanning solutions. Additionally, the region benefits from robust infrastructure, high investment in security, and widespread use of vehicle scanners across commercial, government, and private sectors, ensuring continued market leadership and growth.

• In October 2023, Gerber Collision & Glass strengthened its partnership with Opus IVS, integrating the advanced DriveSafe platform for enhanced diagnostics. This collaboration streamlines remote and on-site diagnostic services across the U.S., utilizing CoPilot technology to improve ADAS calibrations and vehicle diagnostics.

Asia-Pacific is poised for significant growth over the forecast period at a CAGR of 6.98%. Asia Pacific is the fastest-growing region for the vehicle scanner industry, driven by rapid urbanization, infrastructure development, and increasing security concerns. The rising demand for vehicle inspections in both public and private sectors, especially in countries like China, India, and Japan, is fueling market growth. 

Additionally, the growing adoption of advanced technologies for traffic management, border security, and fleet maintenance further accelerates the market's expansion. Government initiatives and investments in infrastructure also contribute to the growth of the market in Asia Pacific.

Regulatory Frameworks

• In India, the Bureau of Indian Standards (BIS) regulates vehicle diagnostic equipment and scanning devices, ensuring they comply with established performance and safety standards. This ensures the reliability and effectiveness of diagnostic technologies used across the automotive industry.
• In the U.S., the Department of Transportation (DOT) oversees regulations for commercial vehicles, ensuring they meet safety and emissions standards. This regulatory framework drives the demand for advanced diagnostic and scanning technologies to maintain compliance and vehicle safety.
• In the EU, vehicle diagnostic equipment and scanning devices must comply with safety, health, and environmental standards, requiring CE marking. This ensures these devices meet the EU's stringent quality and safety regulations.

Competitive Landscape

Companies in the vehicle scanner market are focusing on technological advancements to enhance the accuracy, speed, and efficiency of vehicle inspections. They are investing in AI-powered diagnostics, mobile scanning solutions, and automated vehicle health monitoring systems. 

These developments aim to improve safety, compliance, and operational efficiency. Additionally, companies are forming strategic partnerships and expanding their product offerings. Key players are enhancing integration with existing infrastructure to meet the growing demand for vehicle scanners from both the public and private sectors.

• In October 2024, Intelligent Security Systems (ISS) partnered with Advanced Electronics Company (AEC) to produce the SecurOS Under-Vehicle Surveillance System (UVSS) in Saudi Arabia. Under this agreement, AEC will handle the assembly and integration of the UVSS, leveraging its production capabilities to meet the growing demand for advanced security systems in Saudi Arabia and the broader Middle East market. This collaboration combines ISS’s cutting-edge technology with AEC’s local expertise, ensuring high-quality, reliable solutions.

List of Key Companies in Vehicle Scanner Market:

• OSI Systems Company
• SecuScan
• SecureOne International BV
• Leidos
• Omnitec
• UVeye inc.
• INFINITE TECHNOLOGIES
• Magtech Group
• Godrej Enterprises
• Vehant Technologies
• Bharat Electronics Limited (BEL)
• Anjali Technologies
• The Motwane Manufacturing Company Pvt. Ltd.
• ISS Corp
• LOYALTY-SECU Technology Co., LTD

Recent Developments (Funding/Agreement)

• In March 2025, Teledyne FLIR Defense secured a USD 7.8 million contract with Middle East Task Company (METCO) to deliver advanced LVSS mobile surveillance systems to a prominent military entity in Saudi Arabia.
• In January 2025, UVeye secured USD 191 million in funding to enhance its AI-powered vehicle inspection technology and expand its market presence.
• In March 2023, OSI Systems received a USD 600 million contract from Secretaría de la Defensa Nacional (SEDENA) to provide advanced cargo and vehicle inspection systems. This includes the Eagle High-Energy Inspection Portals and Carview Vehicle Systems to inspect vehicles at Mexican border checkpoints, with additional support for civil works, training, and maintenance.