Summary
Automotive Dealer Management System Market Research Report By Deployment (On-Premise, Cloud-Based), By Component (Software and Services), By Application (Sales Management, Finance and Insurance (F&I) Management, Parts Inventory Management, Service Management and Customer Relationship Management (CRM)), By Dealership Type (Passenger Car Dealerships, Commercial Vehicle Dealerships, Two-Wheelers Dealerships and Off-Highway Vehicle Dealerships), By End User (Franchise Dealerships and Independent Dealerships) Forecast to 2032
Market Overview
The global automotive dealer management system market was valued at USD 5,706.37 million in 2023, and it is expected to rise at a compound annual growth rate (CAGR) of 7.87% over the forecast period, reaching USD 11,179.07 million by 2032. DMS systems are vital for increasing operational efficiency, controlling dealership operations, and improving customer satisfaction. These systems provide a single platform for handling all areas of dealership operations, such as sales, inventory, financing, and customer interactions. As car dealerships strive to streamline their processes and adapt to the changing digital world, the use of modern DMS solutions is becoming a strategic imperative.
The increased complexity of automotive retail environments, which requires more sophisticated management solutions, is driving market expansion. Modern DMS solutions include real-time data analytics, integrated CRM, and advanced reporting capabilities. These capabilities help dealerships obtain insights into market trends, optimize inventory levels, and improve sales methods. Furthermore, the integration of cloud-based DMS solutions is gaining popularity, as it provides scalability, flexibility, and cost-efficiency. This trend to cloud technology enables dealerships to access their systems from any location, facilitating remote management and decreasing the requirement for on-premises hardware.
Market Segment insights
The worldwide automotive dealer management system market is divided into two segments based on component type: software and services.
The market is divided into two segments based on deployment: cloud and on-premise.
The market is divided into five applications: sales management, finance and insurance (f&i) management, parts inventory management, service management, and customer relationship management (CRM).
The global automotive dealer management system market is divided into four segments based on dealer type: passenger car dealerships, commercial vehicle dealerships, two-wheeler dealerships, and off-highway vehicle dealerships.
The market is divided into two segments based on end users: franchise dealerships and independent dealerships.
Regional insights
The market is divided into five regions: North America, Europe, Asia Pacific, South America, and the Middle East and Africa. North America is predicted to have the biggest market share in 2023, followed by Europe and Asia-Pacific. The Automotive Dealer Management System Market in North America is expanding as automotive dealers use modern technologies such as cloud computing and artificial intelligence. Europe is also an important market for Automotive Dealer Management Systems, as numerous major automakers have their headquarters there. The APAC region is predicted to experience the fastest growth in the Automotive Dealer Management System Market during the forecast period, owing to an increase in the number of automotive dealerships and rising car demand in the region. South America and MEA are relatively small markets for Automotive Dealer Management Systems, but they are likely to rise steadily during the projection period.
Major Players
CDK Global LLC, Dealertrack, Inc., Tekion Corp., Wipro, Incadea, Reynolds & Reynolds, Oasis Auto Complete Systems, VinSolutions Inc., Oracle, GaragePlug Inc., Aspire Systems, and Autosoft Inc. are among the key players in the Automotive Dealer Management System market.
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Table of Contents
TABLE OF CONTENTS
1 EXECUTIVE SUMMARY ............................................................................................................... 24
1.1 MARKET ATTRACTIVENESS ANALYSIS ........................................................................................................... 26
1.1.1 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY COMPONENTS ....................................... 27
1.1.2 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY DEPLOYMENT ........................................ 28
1.1.3 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY APPLICATION ........................................ 29
1.1.4 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY DEALER TYPE ......................................... 30
1.1.5 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY END-USERS ............................................ 31
1.1.6 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY REGION .................................................. 32
2 MARKET INTRODUCTION ............................................................................................................ 34
2.1 DEFINITION .................................................................................................................................................................. 34
2.2 SCOPE OF THE STUDY .............................................................................................................................................. 34
2.3 RESEARCH OBJECTIVE ............................................................................................................................................ 34
2.4 MARKET STRUCTURE .............................................................................................................................................. 35
2.5 KEY BUYING CRITERIA ............................................................................................................................................ 36
3 RESEARCH METHODOLOGY ...................................................................................................... 37
3.1 OVERVIEW .................................................................................................................................................................... 37
3.2 DATA FLOW .................................................................................................................................................................. 39
3.2.1 DATA MINING PROCESS ................................................................................................................................. 39
3.3 PURCHASED DATABASE: ......................................................................................................................................... 40
3.4 SECONDARY SOURCES: ............................................................................................................................................ 41
3.4.1 SECONDARY RESEARCH DATA FLOW: ............................................................................................................. 42
3.5 PRIMARY RESEARCH: ............................................................................................................................................... 43
3.5.1 PRIMARY RESEARCH DATA FLOW: ................................................................................................................. 44
3.5.2 PRIMARY RESEARCH: NUMBER OF INTERVIEWS CONDUCTED ......................................................................... 45
3.5.3 PRIMARY RESEARCH: REGIONAL COVERAGE .................................................................................................. 45
3.6 APPROACHES FOR MARKET SIZE ESTIMATION: ........................................................................................... 46
3.6.1 CONSUMPTION & NET TRADE APPROACH ....................................................................................................... 46
3.6.2 REVENUE ANALYSIS APPROACH ..................................................................................................................... 46
3.7 DATA FORECASTING................................................................................................................................................. 47
3.7.1 DATA FORECASTING TECHNIQUE .................................................................................................................... 47
3.8 DATA MODELING ........................................................................................................................................................ 48
3.8.1 MICROECONOMIC FACTOR ANALYSIS: ............................................................................................................ 48
3.8.2 DATA MODELING: ........................................................................................................................................... 49
3.9 TEAMS AND ANALYST CONTRIBUTION ........................................................................................................... 51
4 MARKET DYNAMICS .................................................................................................................... 53
4.1 INTRODUCTION ........................................................................................................................................................... 53
4.2 DRIVERS ......................................................................................................................................................................... 54
4.2.1 INCREASING DEMAND FOR OPERATIONAL EFFICIENCY IN DEALERSHIPS ......................................................... 54
4.2.2 RISING COMPLEXITY OF AUTOMOTIVE RETAIL OPERATIONS AND INVENTORY MANAGEMENT ......................... 56
4.3 RESTRAINTS ................................................................................................................................................................ 57
4.3.1 HIGH INITIAL INVESTMENT COSTS FOR DMS IMPLEMENTATION ..................................................................... 57
4.3.2 COMPLEX INTEGRATION WITH EXISTING DEALERSHIP SYSTEMS ..................................................................... 58
4.4 OPPORTUNITY ............................................................................................................................................................. 59
4.4.1 INCREASING ADOPTION OF CLOUD-BASED DMS SOLUTIONS ........................................................................... 59
4.4.2 EXPANSION OF AUTOMOTIVE E-COMMERCE AND ONLINE SALES CHANNELS ................................................... 60
4.5 CHALLENGES ............................................................................................................................................................... 61
4.5.1 DATA SECURITY AND PRIVACY CONCERNS FOR SENSITIVE CUSTOMER INFORMATION .................................... 61
4.5.2 LACK OF STANDARDIZED DMS SOLUTIONS ACROSS VARIOUS REGIONS ........................................................... 62
4.6 TRENDS .......................................................................................................................................................................... 62
4.6.1 RISE IN USE OF AI FOR PREDICTIVE MAINTENANCE AND ANALYTICS ............................................................... 62
4.6.2 EXPANSION OF MOBILE AND TABLET-BASED DMS APPLICATIONS FOR DEALERSHIPS ..................................... 63
4.7 IMPACT ANALYSIS OF COVID-19 .......................................................................................................................... 64
4.7.1 IMPACT ON AUTOMOTIVE INDUSTRY .............................................................................................................. 64
4.7.2 IMPACT ON AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET ............................................................... 64
4.7.3 . IMPACT ON DEALERS AND OEMS .................................................................................................................. 65
4.7.4 IMPACT ON GLOBAL ECONOMIES ................................................................................................................... 65
4.7.5 MARKET RECOVERY ANALYSIS ....................................................................................................................... 66
5 MARKET FACTOR ANALYSIS ...................................................................................................... 67
5.1 VALUE CHAIN ANALYSIS ....................................................................................................................................... 67
5.1.1 VENDOR AND SUPPLIER NETWORK ................................................................................................................. 67
5.1.2 DISTRIBUTION AND INTEGRATION .................................................................................................................. 68
5.1.3 SUPPORT AND MAINTENANCE........................................................................................................................ 68
5.1.4 END-OF-LIFE AND REPLACEMENT.......................................... 69
5.2 PORTER’S FIVE FORCES MODEL.................................................... 70
5.2.1 THREAT OF NEW ENTRANTS ....................................................... 70
5.2.2 BARGAINING POWER OF SUPPLIERS................................. 71
5.2.3 THREAT OF SUBSTITUTES......................................................... 71
5.2.4 BARGAINING POWER OF BUYERS.............................................. 71
5.2.5 INTENSITY OF RIVALRY.................................................................. 71
5.3 REGULATORY OUTLOOK................................................................... 72
5.4 MARKET SWOT ANALYSIS....................................................................... 73
5.4.1 STRENGTHS ................. 73
5.4.2 WEAKNESSES .............. 73
5.4.3 OPPORTUNITIES ........... 73
5.4.4 THREATS .................... 74
5.5 MARKET PESTEL ANALYSIS.............................................. 75
5.5.1 POLITICAL FACTORS......................................................................... 75
5.5.2 ECONOMIC FACTORS........................................................................ 75
5.5.3 SOCIAL FACTORS.............................................................. 75
5.5.4 TECHNOLOGICAL FACTORS.................................................... 75
5.5.5 ENVIRONMENTAL FACTORS ............................................................. 76
5.5.6 LEGAL FACTORS....................................................... 76
5.6 CASE STUDIES .......................... 76
5.6.1 MODERNIZING AUTOMOTIVE DEALER MANAGEMENT SYSTEMS WITH WIPRO AND AWS ................................... 76
5.6.1.1 BACKGROUND AND CHALLENGES.................................... 76
5.6.1.2 SOLUTION DEVELOPMENT.................................................... 76
5.6.1.3 OUTCOMES AND BENEFITS.................................................... 77
6 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY COMPONENTS ....... 79
6.1 INTRODUCTION ....................... 79
6.2 SOFTWARE ............................... 80
6.3 SERVICE ...................................... 80
7 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY DEPLOYMENT ........ 81
7.1 INTRODUCTION ......................... 81
7.2 CLOUD ......................................... 82
7.3 ON-PREMISE .............................. 82
8 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY APPLICATION......... 83
8.1 INTRODUCTION ........................ 83
8.2 SALES MANAGEMENT ............. 84
8.3 FINANCE AND INSURANCE (F&I) MANAGEMENT........ 84
8.4 PARTS INVENTORY MANAGEMENT............................................... 84
8.5 SERVICE MANAGEMENT............................................................. 85
8.6 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) ..................................................................................... 85
9 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY DEALER TYPE ........ 86
9.1 INTRODUCTION ....................... 86
9.2 PASSENGER CAR DEALERSHIPS........................................................ 87
9.3 COMMERCIAL VEHICLE DEALERSHIPS..................................... 87
9.4 TWO-WHEELERS DEALERSHIPS..................................................... 87
9.5 OFF-HIGHWAY VEHICLE DEALERSHIPS.......................... 88
10 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY END-USERS ........... 89
10.1 INTRODUCTION ......................... 89
10.2 FRANCHISE DEALERSHIPS................................................................... 90
10.3 INDEPENDENT DEALERSHIPS.................................................... 90
11 GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET, BY REGION .................. 91
11.1 OVERVIEW .................................. 91
11.2 NORTH AMERICA ..................... 93
11.2.1 US............................... 97
11.2.2 CANADA ....................... 99
11.2.3 MEXICO ...................... 101
11.3 EUROPE ....................................... 103
11.3.1 UK .............................. 108
11.3.2 GERMANY ..................... 110
11.3.3 FRANCE ...................... 112
11.3.4 ITALY .......................... 114
11.3.5 SPAIN ......................... 115
11.3.6 AUSTRIA ...................... 117
11.3.7 NETHERLANDS ............ 119
11.3.8 BELGIUM ..................... 121
11.3.9 SWEDEN ..................... 123
11.3.10 DENMARK ................... 124
11.3.11 NORWAY ..................... 126
11.3.12 POLAND ...................... 128
11.3.13 PORTUGAL .................. 129
11.3.14 TURKEY ....................... 131
11.3.15 REST OF EUROPE ........... 133
11.4 ASIA PACIFIC ............................. 135
11.4.1 CHINA ......................... 139
11.4.2 JAPAN .......................... 141
11.4.3 INDIA .......................... 143
11.4.4 SOUTH KOREA .............. 144
11.4.5 AUSTRALIA ................... 146
11.4.6 SINGAPORE ................. 148
11.4.7 MALAYSIA ................. 149
11.4.8 REST OF ASIA-PACIFIC.............................................................. 151
11.5 MIDDLE EAST & AFRICA............................................................................. 153
11.5.1 SAUDI ARABIA .............. 157
11.5.2 UAE ............................ 159
11.5.3 QATAR ........................ 160
11.5.4 SOUTH AFRICA ............ 162
11.5.5 REST OF MIDDLE EAST & AFRICA............................................. 164
11.6 SOUTH & CENTRAL AMERICA.................................................... 167
11.6.1 BRAZIL ........................ 171
11.6.2 ARGENTINA ................. 173
11.6.3 CHILE ......................... 174
11.6.4 REST OF SOUTH & CENTRAL AMERICA.............................. 177
12 COMPETITIVE LANDSCAPE......................................... 179
12.1 COMPETITIVE OVERVIEW................................................................. 179
12.2 MAJOR PLAYERS IN THE GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET . 179
12.3 COMPETITIVE BENCHMARKING............................................... 180
12.4 LEADING PLAYERS IN TERMS OF THE NUMBER OF DEVELOPMENTS IN GLOBAL AUTOMOTIVE DEALER MANAGEMENT SYSTEM MARKET................. 181
12.5 KEY DEVELOPMENTS & GROWTH STRATEGIES.......... 182
12.5.1 CONTRACTS AND AGREEMENTS.............................................. 182
12.5.2 PRODUCT LAUNCH/PRODUCT DEVELOPMENT........... 182
12.5.3 EXPANSION/ACQUISITION/PARTNERSHIP.................... 183
13 COMPANY PROFILES................................................. 184
13.1 CDK GLOBAL LLC ...................... 184
13.1.1 COMPANY OVERVIEW.................................................................... 184
13.1.2 FINANCIAL OVERVIEW................................................................ 184
13.1.3 PRODUCTS/SERVICES OFFERED.......................................... 184
13.1.4 KEY DEVELOPMENTS......................................................... 185
13.1.5 SWOT ANALYSIS ......... 185
13.1.6 KEY STRATEGIES ......... 186
13.2 DEALERTRACK, INC. ............... 187
13.2.1 COMPANY OVERVIEW.............................................................. 187
13.2.2 FINANCIAL OVERVIEW............................................................. 187
13.2.3 PRODUCTS OFFERED.............................................................. 187
13.2.4 KEY DEVELOPMENTS.................................................... 187
13.2.5 SWOT ANALYSIS................................................................ 188
13.2.6 KEY STRATEGIES.................................................................... 188
13.3 TEKION CORP. .............................. 189
13.3.1 COMPANY OVERVIEW.................................................................. 189
13.3.2 FINANCIAL OVERVIEW........................................................................ 189
13.3.3 PRODUCTS OFFERED...................................................................... 189
13.3.4 KEY DEVELOPMENTS....................................................... 189
13.3.5 SWOT ANALYSIS ......... 190
13.3.6 KEY STRATEGIES .......... 190
13.4 WIPRO................ 191
13.4.1 COMPANY OVERVIEW ..................................................................... 191
13.4.2 FINANCIAL OVERVIEW................................................................... 191
13.4.3 PRODUCTS OFFERED................................................................. 192
13.4.4 KEY DEVELOPMENTS................................................................. 192
13.4.5 SWOT ANALYSIS..................................................................... 192
13.4.6 KEY STRATEGIES ............................................................................. 193
13.5 INCADEA............. 194
13.5.1 COMPANY OVERVIEW......................................................................... 194
13.5.2 FINANCIAL OVERVIEW................................................................. 194
13.5.3 PRODUCTS OFFERED.............................................................. 194
13.5.4 KEY DEVELOPMENTS...................................................................... 194
13.5.5 SWOT ANALYSIS......................................................................... 195
13.5.6 KEY STRATEGIES ................................................................................ 195
13.6 REYNOLDS & REYNOLDS............................................................... 196
13.6.1 COMPANY OVERVIEW............................................................... 196
13.6.2 FINANCIAL OVERVIEW............................................................ 196
13.6.3 PRODUCTS OFFERED..................................................................... 196
13.6.4 KEY DEVELOPMENTS............................................................... 196
13.6.5 SWOT ANALYSIS ......... 197
13.6.6 KEY STRATEGIES ......... 197
13.7 OASIS AUTO COMPLETE SYSTEMS................................. 198
13.7.1 COMPANY OVERVIEW................................................................... 198
13.7.2 FINANCIAL OVERVIEW................................................... 198
13.7.3 PRODUCTS/SERVICES OFFERED.......................................... 198
13.7.4 KEY DEVELOPMENTS.............................................................. 198
13.7.5 SWOT ANALYSIS ..................................................................... 199
13.7.6 KEY STRATEGIES ............ 199
13.8 VINSOLUTIONS INC ................... 200
13.8.1 COMPANY OVERVIEW............................................................................. 200
13.8.2 FINANCIAL OVERVIEW........................................................... 200
13.8.3 PRODUCTS OFFERED................................................................... 200
13.8.4 KEY DEVELOPMENTS........................................................ 200
13.8.5 SWOT ANALYSIS ........... 201
13.8.6 KEY STRATEGIES ......... 201
13.9 ORACLE .................................... 202
13.9.1 COMPANY OVERVIEW....................................................... 202
13.9.2 FINANCIAL OVERVIEW................................................. 202
13.9.3 PRODUCTS OFFERED........................................................ 203
13.9.4 KEY DEVELOPMENTS.......................................................... 203
13.9.5 SWOT ANALYSIS .......... 204
13.9.6 KEY STRATEGIES .......... 204
13.10 GARAGEPLUG INC ...................... 205
13.10.1 COMPANY OVERVIEW......................................................... 205
13.10.2 FINANCIAL OVERVIEW................................................................. 205
13.10.3 PRODUCTS OFFERED....................................................................... 205
13.10.4 KEY DEVELOPMENTS................................................................. 205
13.10.5 SWOT ANALYSIS.................................................................................. 206
13.10.6 KEY STRATEGIES .......... 206
13.11 ASPIRE SYSTEMS ...................... 207
13.11.1 COMPANY OVERVIEW................................................................. 207
13.11.2 FINANCIAL OVERVIEW.......................................................... 207
13.11.3 PRODUCTS OFFERED........................................................... 207
13.11.4 KEY DEVELOPMENTS ................................................................. 207
13.11.5 SWOT ANALYSIS..................................................................... 208
13.11.6 KEY STRATEGIES............................................................ 208
13.12 AUTOSOFT INC. ......................... 209
13.12.1 COMPANY OVERVIEW........................................................ 209
13.12.2 FINANCIAL OVERVIEW........................................................ 209
13.12.3 PRODUCTS OFFERED............................................................... 209
13.12.4 KEY DEVELOPMENTS........................................................ 209
13.12.5 SWOT ANALYSIS............................................................. 210
13.12.6 KEY STRATEGIES..................................................................... 210
13.13 KARMAK, INC. ............................ 211
13.13.1 COMPANY OVERVIEW........................................................... 211
13.13.2 FINANCIAL OVERVIEW...................................................... 211
13.13.3 PRODUCTS OFFERED.............................................................. 211
13.13.4 KEY DEVELOPMENTS................................................................ 211
13.13.5 SWOT ANALYSIS........................................................................ 212
13.13.6 KEY STRATEGIES.................................................................. 212
13.14 DOMINION ENTERPRISES............................................................ 213
13.14.1 COMPANY OVERVIEW...................................................... 213
13.14.2 FINANCIAL OVERVIEW.......................................................... 213
13.14.3 PRODUCTS OFFERED..................................................... 213
13.14.4 KEY DEVELOPMENTS................................................................. 213
13.14.5 SWOT ANALYSIS ......... 214
13.14.6 KEY STRATEGIES ......... 214
13.15 DEALERSOCKET ........................ 215
13.15.1 COMPANY OVERVIEW........................................................... 215
13.15.2 FINANCIAL OVERVIEW......................................................... 215
13.15.3 PRODUCTS OFFERED ...................................................................... 215
13.15.4 KEY DEVELOPMENTS.......................................................... 215
13.15.5 SWOT ANALYSIS...................................................................................... 216
13.15.6 KEY STRATEGIES................................................................. 216
14 APPENDIX........ 217
14.1 REFERENCES ............................ 217