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The automotive dealer management system market size is expected to reach US$ 9.50 billion by 2031 from US$ 4.28 billion in 2023. The market is estimated to record a CAGR of 10.5% from 2023 to 2031. The integration of generative Artificial Intelligence (AI) in dealer management businesses is likely to remain a key market trend.
Automotive Dealer Management System Market Analysis
The global automotive dealer management system market is experiencing significant growth owing to the rising technological advancements in the automotive industry. The rising use of digital technologies across the world enabled automakers to apply sophisticated solutions. The dealer management system is an ideal option for automotive firms that handle spare parts inventories and repair orders. The system uses customer relationship management (CRM) and business intelligence technologies to monitor manufacturer and customer connections. Several auto dealers also use this system to handle inventory and sales information. The dealer management system simplifies interactions among consumers, dealers, and original equipment manufacturers (OEMs). The system fulfils the specific requirements of automobile retail business. Many organizations use inorganic and organic techniques to grow the business of their dealer management system company in the automobile market. In June 2023, HBS Systems, Inc. collaborated with Record360 to speed up the inspection process, eliminate damage claims, and manage their assets. Record360 and HBS Systems, Inc. collaborated to optimize equipment inspection procedures utilizing NetView ECO dealer management software.
Automotive Dealer Management System Market Overview
An automotive dealer management system (DMS) is designed specifically for car dealers and large equipment manufacturers in the automotive industry. It is a comprehensive suite of tools that helps dealers in managing various aspects of their business on a single integrated platform. A DMS allows dealers to monitor and manage their entire operation from a single interface, automating tasks and tracking metrics for maximum efficiency. In addition, it consolidates all the tools and functions required by dealerships, including finance, sales, workshops, parts, inventory, and administration components, into a single platform. A DMS facilitates effective communication and collaboration between different departments, ensuring that all areas of the dealership business work together seamlessly. With a strong DMS, dealers can accelerate the sales process and provide an enhanced buying experience for customers.
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Automotive Dealer Management System Market: Strategic Insights
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Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Automotive Dealer Management System Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Automotive Dealer Management System Market Drivers and Opportunities
Technological Advancements in Automotive Industry
The desire for simplified operations, effective inventory management, and smooth and integrated sales processes at automobile dealerships drive the requirement for dealer management solutions. Automotive dealer management systems are used for lead management and sales analytics. Additionally, the solutions provide dealership staff with real-time information, allowing them to respond swiftly to client questions, handle transactions efficiently, and manage inventory properly. It helps them increase productivity and enhance customer experience. Automotive dealer management systems improve CRM by allowing dealers to track client contacts, manage leads, and offer tailored services. As a result, they can offer better consumer experience and gain consumer loyalty.
Companies are widely integrating their services with a dealer management system. In March 2024, General Motors partnered with auto supplier Magna and consultancy firm Wipro Limited to launch a virtual market place called SDVerse for buyers and sellers of automotive software. The new B2B platform is expected to effectively serve as an automotive app store for automotive software developers to hock their wares to car manufacturers and other potential customers. General Motors claims SDVerse will overcome current inefficiencies in the shopping and implementation of embedded vehicle software while providing a transparent storefront that buyers and sellers can trust.
Advent of Autonomous Vehicles
The global automobile industry is undergoing a massive paradigm change as the number of connected and autonomous cars grows. The adoption rate of dealer management systems in transportation and logistics applications is predicted to grow rapidly due to the rising popularity of autonomous cars since it allows for a quick analysis of vehicle performance and inefficiencies. The growing inclination toward autonomous automobiles is attributed to technological improvements, customer desire for fully automated vehicles, affordability, and safety. Automakers are increasing their spending on developing self-driving passenger cars, commercial buses and trucks, and robot taxis. This, in turn, is expected to offer lucrative opportunities for the automotive dealer management system market growth during the forecast period.
Automotive Dealer Management System Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Automotive Dealer Management System Market analysis are component, industry vertical, deployment, and organization size.
- Based on component, the automotive dealer management system market is bifurcated into software and services. The software segment held a larger market share in 2023.
- Based on application, the market is segmented into inventory management, appointment scheduling, customer relationship management, dealer tracking, and others. The customer relationship management segment held the largest market share in 2023.
- Based on deployment, the automotive dealer management system market is bifurcated into cloud-based and on-premise. The cloud-based segment held a larger share of the market in 2023.
Automotive Dealer Management System Market Share Analysis by Geography
- The automotive dealer management system market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe and APAC.
- North America is projected to hold the largest share in the global automotive dealer management system market from 2023 to 2031. The region captures a noteworthy global market share owing to high investments in automation and software and the growing number of dealership management companies in the region. Automakers and auto part dealers largely use automotive DMS to manage and maintain orders. Auto dealers leverage the capability of modern DMS to increase the productivity and efficiency of their dealerships. Many system providers are developing their existing DMS to receive more contact certifications from automotive manufacturers. In July 2023, CDK Global Inc. received an official certification as a DMS provider from BMW Group Canada, including BMW and MINI retailers. CDK Global Inc. serves as a leading CRM provider for the BMW and MINI Canadian network. The partnership with auto manufacturers can strengthen CDK Global Inc.'s position in the US and Canadian markets.
Automotive Dealer Management System Market Report Scope
Automotive Dealer Management System Market News and Recent Developments
The automotive dealer management system market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the automotive dealer management system market are listed below:
- Dominion DMS announced a strategic partnership with Gather, the auto industry's first and only identity and insurance verification and transfer system. The collaboration incorporates Gather's revolutionary technology and Dominion DMS's flagship product, VUE, a cloud-core dealer management system. The integration of Gather’s innovative technology with VUE by Dominion DMS represents a significant milestone in the automotive industry. Together, these solutions empower dealerships to enhance operational efficiency, streamline processes and deliver an exceptional customer experience
(Source: Dominion, Press Release, May 2024)
- CDK announced the extension of its agreement with Group 1 Automotive, a Fortune 300 automotive retailer with 203 dealerships located in the US and the UK, to provide its US franchise locations with the CDK Dealership Xperience, an open and integrated cloud-native platform that modernizes how dealers sell service cars and operate their businesses in a digital world.
(Source: CDK, Press Release, May 2024)
Automotive Dealer Management System Market Report Coverage and Deliverables
The "Automotive Dealer Management System Market Size and Forecast (2021–2031)" provides a detailed analysis of the Market covering the areas mentioned below:
- Automotive dealer management system market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Automotive dealer management system market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Automotive dealer management system market analysis covering key market trends, global and regional framework, major players, regulations, and recent Market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the automotive dealer management system market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
Asia Pacific is anticipated to grow with the highest CAGR over the forecast period 2024-2031.
The automotive dealer management system (DMS) market was valued at US$ 4.28 billion in 2023 and is projected to reach US$ 9.50 billion by 2031; it is expected to grow at a CAGR of 10.5% during 2023–2031.
Integration of Generative AI in dealer management business is the future trends of the automotive dealer management system (DMS) market.
Rising technological advancement in automotive industry and growing demand for streamlined operations are the driving factors impacting the automotive dealer management system (DMS) market.
The North America held the largest market share in 2023, followed by Europe and Asia Pacific.
The key players, holding majority shares, in automotive dealer management system (DMS) market includes CDK Global LLC, Wipro, Oracle, SAP SE, Automate, Dominion, Dealerbuilt, Tekion, PBS System Inc., and Autosoft Inc.
The List of Companies - Automotive Dealer Management System (DMS) Market
- SAP SE
- Cox Automotive
- Tekion Corp
- DealerBuilt
- Dominion DMS LLC
- CDK Global Inc
- Wipro Ltd
- GaragePlug Inc.
- Oracle Corp
- Autosoft, Inc.
- Jeal Computer Services Pty Ltd
- Aspire Systems
- Nextlane
- AutoManager
- SECL Group Corporation
- PBS Systems
- Gemini Systems
- Excellon Software Pvt. Ltd.
- Auto/Mate, LLC
- Quorum Information Technologies Inc
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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