Dealer Management System Market is expected to reach US$ 18.20 billion by 2030

Growing Technological Advancements in Automotive Industry Drives Dealer Management System Market Growth

According to our latest study on “Dealer Management System Market Forecast to 2030 – Global and Regional Share, Trends, and Growth Opportunity Analysis – by Deployment and Equipment Type,” the dealer management system market size was valued at US$ 7.92 billion in 2022 and is expected to reach US$ 18.20 billion by 2030; it is estimated to record a CAGR of 11.0% from 2022 to 2030.

Dealer management systems enable auto and equipment dealers to fulfill customer demands for swift and reliable purchases and services. The system also helps to meet customer requirements by coordinating products and services and ensuring the dealers are ready and equipped to offer the parts required for repairs. Therefore, it simplifies the repair and maintenance services and inventory management process. It allows seamless handling of financial reporting, payroll services, and cash flow management. The system integrates various advanced technologies, including customer relationship management (CRM), inventory management, and business intelligence and reporting. Auto dealers across the world are procuring dealer management systems for enhanced inventory management, customer retention, and customer conversions. 3

Advent of Autonomous Vehicles to Offer Lucrative Opportunities for Dealer Management System Market Growth During Forecast Period

The global automotive industry is witnessing a huge paradigm shift due to the rising number of connected vehicles and autonomous vehicles. In transportation and logistics applications, the adoption rate of the dealer management system is expected to increase rapidly due to the growing popularity of autonomous vehicles, as it helps analyze vehicle’s performance and inefficiencies in a short duration. The growth trajectory of fully autonomous cars is largely anticipated to depend upon numerous parameters, including technological advancements, consumer demand for fully automated cars, pricing, and safety. There is a rise in investments by auto companies to develop autonomous vehicles in the passenger category, commercial buses & trucks category, and Robo taxis. For instance, FERNRIDE, a leading autonomous electric trucking company in Germany, raised ~US$ 31 million in Series A funding to fast-track the transition toward automated and sustainable logistics. The company had already integrated automated trucks into the operations of enterprises, such as BSH Hausgeräte GmbH, DB Schenker, HHLA, and Volkswagen, over the past year. Similarly, in March 2022, Oxbotica and Goggo Network, two autonomous vehicle firms, entered a partnership to promote driverless delivery in Europe.

The partnership was formed to combine the former’s autonomous driving software with Goggo’s middle- and last-mile delivery operations across sectors such as food delivery, grocery, and fast-moving commercial goods (FMCG). Additionally, automobile manufacturers across the globe are working on developing autonomous cars to enhance consumer traveling experiences. Moreover, increasing government initiatives to reduce traffic congestion drive the demand for autonomous vehicles across the globe. For instance, in 2023, the UK government revealed a plan to invest US$ 121.5 million to introduce autonomous vehicles (self-driving cars). The expansion of autonomous vehicles increases the demand for dealer management systems among automakers to streamline the delivery transaction. Thus, the advent of autonomous vehicles is expected to create numerous opportunities for vendors to provide efficient and advanced dealer management systems to dealers in the coming years.

Europe holds a significant share of the dealer management system market. Germany, France, the UK, and Italy are among the major countries contributing to the growth of the Europe dealer management system market. In August 2023, the European Commission announced its plan to invest US$ 189.4 million in cutting-edge digital technologies and research. The region also established a Horizon Europe Program to boost collaborative research in artificial intelligence, robotics, and new materials. The evolution of AI-based dealership management system support auto dealers to enhance efficiency and customer experience. AI is used to analyze data and predict trends and customers' buying patterns that help dealers to make better decisions. For instance, AI analyses of sales data support dealers to predict demand for specific vehicles and optimize inventory management accordingly. Further, the cloud-based dealer management system is in high demand in the region, as the cloud-based system is easier to use and can be accessed 24/7 from anywhere. There is a high demand for solutions, offered by dealer management system market players, having advanced features such as scalability, accessibility, and integration with legacy systems, along with an increased use of artificial intelligence (AI) across various industry verticals in the region. This has created an opportunity for dealer management system market players to effectively cater to product demand and strengthen their position in the market.

Segmental Overview

The dealer management system market is segmented on the basis of deployment, equipment type, and geography. Based on deployment, the dealer management system market is divided into on-premise and cloud. Based on equipment type, the dealer management system market is categorized into automobile, agricultural & forestry machinery, construction equipment, gardening equipment, heavy trucks, material handling & lifting equipment, mining equipment, and others. Geographically, the dealer management system market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).

Competitive Landscape and Key Developments

e-Emphasys Technologies Inc., ANNATA Ehf, DealerBox SAS, Hitachi Solutions Ltd, Irium Software SAS, CDK Global, Constellation Software, DealerTrack Inc., Tekion Corp, and XAPT Software Consulting LLC are among the key dealer management system market players profiled during the dealer management system market study. Various other dealer management system market players are introducing new product offerings to contribute to the dealer management system market size proliferation. Several other important dealer management system market players were also analyzed during this market research to get a holistic view of the global market and its ecosystem. The leading dealer management system market players focus on feature upgrades, expansion and diversification, collaboration, and acquisition strategies, which enable them to grab new business opportunities.

• In August 2023, Tekion Corp partnered with Dealerware to automate repair order tracking by promoting self-service check-in to automotive dealers. The partnership supports Dealerware by integrating Tekion Corp’s cloud-based dealer management system to streamline the entire automotive ecosystem. The system simplifies the overall service scheduling experience, including loaner vehicle reservations, and saves time for customers and service department employees at check-in of vehicles.
• In July 2023, CDK Global Inc became an official provider of dealer management systems with BMW Group Canada. This helped CDK Global Inc to strengthen its partnership with the auto manufacturer and become a leading customer relationship management provider for the BMW and MINI Canadian network. CDK Global Inc had previously partnered with Hyundai Auto Canada to provide exclusive end-to-end digital retailing and a preferred dealer management system. The partnership supports Hyundai Auto Canada to manage its dealer network of more than 200 rooftops across Canada.

Contact Us
 
Phone: +1-646-491-9876
Email Id: sales@theinsightpartners.com