Automotive Dealer Management System Market is expected to reach US$ 9.50 Billion by 2031

Integration of Generative AI in Dealer Management Business to Fuel Automotive Dealer Management System Market Growth During Forecast Period

According to our latest study, “Automotive Dealer Management System Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Application, Deployment, and Geography," the market was valued at US$ 4.28 billion in 2023 and is expected to reach US$ 9.50 billion by 2031; it is estimated to record a CAGR of 10.5% from 2023 to 2031. The report includes growth prospects owing to the current automotive dealer management system market trends and their foreseeable impact during the forecast period.

The automotive industry is experiencing a significant transformation owing to changing consumer preferences and rapid technological advancements. As the demand for streamlined operations and enhanced customer experiences continues to grow, automotive DMS have emerged as crucial tools for dealerships. These comprehensive software solutions can automate and streamline various business processes, enabling dealerships to improve efficiency, increase profitability, and deliver exceptional customer service.

Automotive Dealer Management System Market Analysis — by Geography

Source: The Insight Partners Analysis

Automotive dealer management software can connect original equipment manufacturers (OEMs), automobile companies, dealers, distributors, and customers with a seamless and efficient operation. It improves efficiency, enhancing customer experience and decision-making. These cost-effective software provide a flexible support system. A software for car dealers includes various features such as inventory management systems, customer data, paperwork, credit reports, and car sales, all on one platform. Dealership management software improves operational efficiency by automating manual tasks. Additionally, an automotive DMS can automate inventory management functions such as updating prices and generating reports, thus reducing the likelihood of errors.

The global automotive dealer management system (DMS) market is witnessing significant growth due to various factors. One of the main drivers is the surge in automotive sales across the world, which is attributed to the growing customer desire for individually owned vehicles and advancements in the automotive sector. According to the International Organization of Motor Vehicle Manufacturers, global automobile sales reached 92.7 million units in 2023. The introduction of electric and alternative fuel cars is also expected to contribute to the increased demand for automobiles in the coming years. The automotive dealer management system market is witnessing rapid growth in various regions. For example, in China, the automotive sector is booming due to factors such as urbanization, increasing disposable incomes, and high adoption of electric vehicles. This has compelled dealerships to seek superior DMS solutions to improve operational efficiency and enhance the client experience.

The automotive sector is critical to Europe's prosperity. The automobile sector employs 13.8 million people in Europe, accounting for 6.1% of total EU employment. Direct production of motor vehicles employs 2.6 million people, accounting for 8.5% of total EU manufacturing employment. Europe is one of the world's top makers of automobiles, and the industry represents the greatest private investor in research and development (R&D). Furthermore, Germany, France, the UK, and Italy are among the major countries contributing to the European automotive dealer management system market growth.  

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; and Quorum Information Technologies Inc., are among the key players profiled in the automotive dealer management system market report. Several other major players were also studied and analyzed during the market study to get a holistic view of the market and its ecosystem.

The report includes the automotive dealer management system market forecast by component, deployment, application, and geography from 2021 to 2031. Based on component, the market is bifurcated into software and services. By deployment, the market is bifurcated into on-premises and cloud. Based on application, the global automotive dealer management system market is segmented into inventory management, appointing scheduling, customer relationship management, dealer tracking, and others.

The geographic scope of the automotive dealer management system market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.

North America held a major automotive dealer management system market share in 2023. The Asia Pacific automobile dealer management system market growth is driven by the increasing need for enhanced and accessible inventory management; improved sales monitoring, CRM, and commission and insurance calculation; and technological advancements in the automotive sector. The technology in automobile DMS is evolving with the integration of artificial intelligence (AI) to enhance the system's data analytics capabilities. Furthermore, key players operating in the automotive dealer management system market in Asia Pacific are pursuing strategic initiatives to expand their business.

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