On-board diagnostics (OBD) is a term referring to a vehicle's self-diagnostic and reporting capability. In the United States, this self diagnostic is a requirement to comply with Federal Emissions standards to detect failures that may increase the vehicle tailpipe emissions to more than 150% of the standard to which it was originally certified.
A primary benefit of this is that OBD systems give the vehicle owner or repair technician access to the status of the various vehicle sub-systems. The amount of diagnostic information available via OBD has varied widely since its introduction in the early 1980s versions of onboard vehicle computers. Early versions of OBD would simply illuminate a malfunction indicator light (MIL) or "idiot light" if a problem was detected, but would not provide any information as to the nature of the problem. Modern OBD implementations use a standardized digital communications port to provide real-time data in addition to a standardized series of diagnostic trouble codes, or DTCs, which allow a person to rapidly identify and remedy malfunctions within the vehicle.
What is OBD2?
In short, OBD2 is your vehicle's built-in self-diagnostic system.
You've probably encountered OBD2 already:
Ever noticed the malfunction indicator light on your dashboard?
That is your car telling you there is an issue. If you visit a mechanic, he will use an OBD2 scanner to diagnose the issue.
To do so, he will connect the OBD2 reader to the OBD2 16 pin connector near the steering wheel.
This lets him read OBD2 codes aka Diagnostic Trouble Codes (DTCs) to review and troubleshoot the issue.
OBD2 history
OBD2 originates from California where the California Air Resources Board (CARB) required OBD in all new cars from 1991+ for emission control purposes.
The OBD2 standard was recommended by the Society of Automotive Engineers (SAE) and standardized DTCs and the OBD connector across manufacturers (SAE J1962).
From there, the OBD2 standard was rolled out step-by-step:
1996: OBD2 made mandatory in USA for cars/light trucks
2001: Required in EU for gasoline cars
2003: Required in EU also for diesel cars (EOBD)
2005: OBD2 was required in US for medium duty vehicles
2008: US cars must use ISO 15765-4 (CAN) as OBD2 basis
2010: Finally, OBD2 was required in all heavy duty vehicles
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