Dealer Management System Market Size was valued at USD 8.8 Billion in 2022. The Dealer Management System market industry is projected to grow from USD 9.31 Billion in 2023 to USD 14.62 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2023 - 2032). Rising car sales, technological developments, digitalization transition, and regulatory adherence are the key market drivers boosting the expansion of the market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Market CAGR for dealer management system is being driven by the growing requirement for automotive dealer management systems based on the cloud. A software platform used by dealers to manage vehicle inventory, customer data, deals, credit reports, and paperwork printing is commonly referred to as the automobile dealer management system. Through the use of real-time data, a dealer management system gives dealers the resources they need to manage their businesses successfully. By managing every financial component and keeping an eye on everything from a single interface, the dealers are able to do away with daily inefficiencies. By gathering data and locating missing sections, the technology also aids in improving decision-making. Car dealerships are able to satisfy consumer demand for prompt and dependable sales and services because to this approach.
Additionally, these industries have seen a rise in the demand for cloud-based car dealer management systems, and it is expected that this trend will continue during the projection period. In addition to the aforementioned industries, the marine and motorsports sectors present the automotive dealer management system market with a number of potential prospects. The market for automobile dealer management systems is expanding due to the presence of another application in the construction sector. In the last several years, there has been a notable increase in the industry's adoption of cloud-based automobile dealer management systems.
In terms of customization flexibility, automotive dealer management systems can be very sophisticated and are typically quite expensive. The industry's current car dealer management systems are being adjusted for web and mobile platforms in light of technological improvements. Adoption of DMS is driven by the need for integrated solutions that provide several functionalities on a single platform. Dealerships are looking for all-in-one integrated systems that handle reporting, financing, CRM (Customer Relationship Management), sales, and inventory management.
For instance, the IEA estimates that sales of electric vehicles (EVs) rose by 10 million in 2022 compared to 2021. China is the world's largest EV market, making up 60% of all EV sales worldwide. By 2025, the nation intends to double the number of EVs sold. Increased sales of electric vehicles (EVs) encourage auto retailers to use dealer management systems. Thus, result in driving the Dealer Management System market revenue.
The Dealer Management System market segmentation, based on Deployment includes On-premise, and Cloud. The cloud segment dominated the market. The cloud-based software products are less expensive than the on-premise software; moreover, excellent network infrastructure in developed countries also encourages the adoption of cloud-based software.
Figure1: Dealer Management System Market, by Deployment, 2022&2032(USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The Dealer Management System market segmentation, based on Equipment Type, includes Automobile, Agricultural & Forestry Machinery, Construction Equipment, Gardening Equipment, Heavy Trucks, Material Handling & Lifting Equipment, Mining Equipment, and Others. The automobile category generated the most income. Automotive dealers can effectively manage their inventories and make corrective decisions about replenishing or selling car models by using dealer management to maintain their vehicle inventory, which includes model availability, pricing, and specifications.
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Dealer Management System market area will dominate this market, because of the high rate of adoption of cutting-edge technology items in this area, as well as because of the area's increasing GDP and rate of urbanization.
Further, the major countries studied in the market report are The US, German, France, the UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil.
Figure2: DEALER MANAGEMENT SYSTEM MARKET SHARE BY REGION 2022 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Europe Dealer Management System market has the second-largest portion of the market, because of the rising fleet vehicle sales in this area. Further, the German Dealer Management System market had the biggest market share, and the UK Dealer Management System market was the European market with the quickest rate of growth.
The Asia-Pacific Dealer Management System Market is anticipated to expand between 2023 and 2032 at the quickest CAGR. This is because of this region's increasing GDP and rate of urbanization. Moreover, China’s Dealer Management System market had the biggest market share, and the Indian Dealer Management System market was the Asia-Pacific region's fastest-growing market.
Leading market players are putting a lot of money on R&D to expand their product lines, which will help Dealer Management Systems' market, expand even more. Additionally, market players are engaging in a range of calculated initiatives to increase their worldwide presence, with important market developments involving the introduction of new products, contracts, M&A transactions, increased investment, and cooperation with other enterprises. To grow and endure in an increasingly cutthroat and dynamic market, Dealer Management System industry must provide reasonably priced goods.
Manufacturing locally is one of the primary business techniques used by manufacturers to cut operational costs in the Dealer Management System industry to help customers and expand the market segment. In recent years, the Dealer Management System industry has provided some of the biggest benefits to medicine. Major players in the Dealer Management System market, including e-Emphasys Technologies Inc., ANNATA Ehf, DealerBox SAS, Hitachi Solutions Ltd, Irium Software SAS, CDK , Constellation Software, and others, are engaging in research and development activities in an effort to boost market demand.
CDK Inc. is a multinational firm that serves the heavy truck, heavy equipment, automotive, and recreational industries by supplying technology and data. Although the company's products are distributed in over 100 countries and it has 37 sites across 25 nations, the majority of its clients are in the US. According to total revenue, the company came in at number 911 on the Fortune 1000 list of the biggest US corporations in 2020. In April 2022, A deal for $8.3 billion was reached for CDK 's acquisition by Brookfield Business Partners and institutional investors.
Hitachi, Ltd. is a worldwide conglomerate of Japanese origin that was established in 1910. The company specializes in a wide range of products, such as financial systems, digital systems, healthcare products, railway systems, power and renewable energy solutions, and more. Namihei Odaira established it in 1910 as a division of the Kuhara Mining Plant in Hitachi, Ibaraki, that produced electrical machinery. In 1920, the corporation was founded independently and went by its current name. In November 2020, It said that, in line with the reorganization plan, three of the last listed businesses, Hitachi Metals and Hitachi Construction Machinery, will probably be split out from the firm.
June 2023: DealerBox SAS and Electric Way collaborated to oversee the car delivery procedure. Electric Way benefits from DealerBox SAS's automotive cloud solution for internal procedures such automobile sales, purchases, registration, and transportation.
December 2022: Hyundai Auto Canada and CDK Inc. teamed to offer preferred dealer management system and unique end-to-end digital commerce. The collaboration helps Hyundai Auto Canada oversee its dealer network, which consists of more than 200 rooftops nationwide.
October 2022: ANNATA Ehf purchased Biztup in order to enhance the capabilities of its cloud-based business solution and increase its worldwide footprint. By providing clients in Europe with solutions and services, the company hopes to increase its footprint.
On-premise
Cloud
Automobile
Agricultural & Forestry Machinery
Construction Equipment
Gardening Equipment
Heavy Trucks
Material Handling & Lifting Equipment
Mining Equipment
Others
US
Canada
Germany
France
UK
Italy
Spain
Rest of Europe
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 8.8 Billion |
| Market Size 2023 | USD 9.31 Billion |
| Market Size 2032 | USD 14.62 Billion |
| Compound Annual Growth Rate (CAGR) | 5.80% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Deployment, Equipment Type, and Region |
| Geographies Covered | North America, Europe, AsiaPacific, and the Rest of the World |
| Countries Covered | The US, German, France, UK, Canada, Italy, Spain, India, Australia, South Korea, China, Japan, and Brazil |
| Key Companies Profiled | Â e-Emphasys Technologies Inc., ANNATA Ehf, DealerBox SAS, Hitachi Solutions Ltd, Irium Software SAS, CDK , Constellation Software |
| Key Market Opportunities | regional growth in the automobile retail industry and the worldwideization of dealership networks |
| Key Market Dynamics | Rapid technological advancement is transforming DMS offerings by utilizing data analytics, cloud computing, and artificial intelligence (AI). |
Frequently Asked Questions (FAQ) :
In 2022, dealer management system sales were projected to be valued USD 8.8 billion.
From 2023 to 2032, It is anticipated that the market will grow at a 5.80% compound annual growth rate (CAGR).
North America held the most market share worldwide.
The leading companies in the market are e-Emphasys Technologies Inc., ANNATA Ehf, DealerBox SAS, Hitachi Solutions Ltd, Irium Software SAS, CDK , Constellation Software.
In 2022, the market was dominated by the Cloud category.
In the market, automobiles held the most share.
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