Automotive Dealer Management System Market size is predicted to register USD 17 billion by the end of 2035, growing at a CAGR of 17% in the forecast period i.e., 2023 – 2035. In the year 2022, the industry size of automotive dealer management was USD 5 billion. The expansion of this market can be attributed to the high demand for automobiles worldwide. In the year 2022, approximately 67 million units of cars were sold all over the world which is comparatively more than in 2021 where the unit sale was around 65 million units.
Furthermore, the automotive dealer management system has made it easy to make massive amounts of data and form reports out of them. This report consists of the number of people visiting the site and their preference for automotive. The system utilizes this data to assist businesses in developing campaigns, using social media, and monitoring results. Data allows companies to determine which marketing strategies are most effective and whether the message they are putting out there is being received favorably.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023 – 2035 |
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CAGR |
~17% |
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Base Year Market Size (2022) |
~USD 5 billion |
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Forecast Year Market Size (2035) |
~USD 17 billion |
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Regional Scope |
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Component (Software, Services)
The services segment is expected to dominate the global automotive dealer management system market by the end of 2035. This segment is expected to continue to grow as it includes numerous services such as consulting, maintenance, and support. All these services ensure that DOS Solution runs smoothly. Therefore, the acceptance of DMS by automotive dealers is likely to increase, which will further drive the market growth of car dealer management systems.
The software sector is also expected to see significant growth in the coming years. The software takes into account inventory, warranty claims, vehicle prices, etc. to ensure all work is done properly.
Deployment (Cloud-based, On-premises)
The cloud-based segment is expected to dominate the market by registering a growth of 60% in the upcoming years. This is because more and more car dealers are adopting cloud-based solutions due to low initial costs and ubiquitous access. It has cutting-edge features such as automation and analytics. For instance, approximately 67% of car dealers worldwide believe the use of artificial intelligence (AI) is having a positive impact on their operations due to the increasing amount of data generated by dealers, manufacturers, and cars.
In the coming year, the shift to digitalization and increased use of mobile devices by automotive customers and dealers is expected to further fuel the rise of his cloud-based DMS solutions.
Our in-depth analysis of the global market includes the following segments:
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Component
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Deployment |
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Application |
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End-Use Industry |
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North American Market Forecast
The automotive dealer management system market in the North America region is expected to witness growth of 30% in the projected period on the account of existence of major automakers in the region. The United States followed by Canada is North America’s largest automotive market. Moreover, with the surge in demand for automotive, the market in the region is expected to grow steadily as a result of the industry’s upsurging adoption of cutting-edge technology, there is an increasing demand for integrated software solutions.
Moreover, the automotive industry in the North American region is a well-developed network of automotive dealers. The region is home to major automotive manufacturers and has a high vehicle ownership rate.
APAC Market Statistics
The Asia Pacific automotive dealer management system market is set to observe significant market growth during the time period between 2023 – 2035. The growth of this market can be ascribed on the account of high demand for electric vehicles in the region. Around 59% population in the APAC region prefers purchasing hybrid vehicles. Therefore, the demand for automotive dealer management systems is expected to grow in the future.
Many countries in the Asia Pacific region such as China, and India, are actively promoting digitalization and smart technologies across industries. Automotive dealerships are adopting dealer management system solutions as part of their digital transformation efforts to streamline operations, improve customer experience, and leverage data-driven insights for decision-making. Moreover, with the rise in e-commerce and digital platforms, customers in Asia Pacific have become more demanding and expect a seamless experience when interacting with automotive dealerships.
Key Players
Author Credits: Harshita Srivastava, Saima Khursheed
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