Auto Dealer Software Market Report Overview
-
Request a Free Sample to learn more about this report
The global auto dealer software market size was 15930 million in 2021 and market is projected to touch USD 33654.6 million by 2031, exhibiting a CAGR of 7.7% during the forecast period.
The COVID-19 pandemic has been unprecedented and staggering, with the Auto Dealer Software market experiencing higher/lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.
Auto dealership software is used to help many dealerships perform their normal tasks related to sales operations, service operations, financial activities, and many other activities. These functions are interdependent, thus the software's operation needs to be precise and organized.
Rising technology advancements, higher sales tracking, better inventory management, better customer relationship management, and increased simplicity of commission and insurance calculation are key factors anticipated to propel the growth of the worldwide auto dealer software market. Transport and logistics have seen an increase in the demand for cloud-based Auto Dealer Software, and it is anticipated that this trend will continue over the projected period.
COVID-19 Impact: COVID-19 pandemic has influenced the market growth Globally
To stop the global COVID-19 pandemic from spreading, people are taking social isolation precautions like self-isolation, quarantining, or working from home. The downturn of the economy will affect all sectors given that the present financial crisis is being likened to the financial crisis of 2008. The IT sector, however, is expected to experience less regrowth than other sectors because work-from-home laws have kept it operating. Additionally, auto dealers would like to hasten the pandemic-affected market growth. This would increase consumer demand for auto dealer software.
Latest Trends
"Automotive software market will benefit from the future potential of 5G and AI"
The quick shift in architectures and design requirements has an effect on the need for software. The user experience of automobile software requires wireless connectivity. Numerous telecom firms are focusing on the development of 5G as a solution to increase the security and efficiency of car software. A high-tech connectivity platform is required because cars are developing into network-aware, software-defined, and extremely connected data-sending vehicles. By realizing, both these implications and the issues they provide for the automotive industry, the adoption of connected cars can be accelerated. Autonomous vehicles and automotive software would tremendously benefit from 5G due to their capacity to connect quickly. As an illustration, the EU and South Korea have decided to work together to create 5G, investing respectively USD 782 million and USD 1.5 billion in regional 5G projects. The 5GIC 5G research facility in the United Kingdom has been given approval for funding in the amount of USD 78 million.
Auto Dealer Software Market Segmentation
-
Request a Free Sample to learn more about this report
- By Type Analysis
According to type, the market can be segmented into DSM Software, CRM Software, marketing software, others. DSM software is anticipated to be the leading segment.
- By Application Analysis
Based on application, the market can be divided into web-based software, installed software. Web-based software will be the dominating segment.
Driving Factors
"Market for automotive software will grow as linked car services become more widely used"
The connected car ecosystem's stakeholders now have more chances to generate income thanks to the rising number of connected vehicles. To take advantage of the opportunity to make money, several non-automotive participants have rushed into the race of linked automobiles and autonomous driving. Modern vehicles are not mechanically propelled machines. They currently make up about 40% of electronic information, and over 60% is predicted for them in the upcoming decades. The majority of the electronic content will include domain controllers, consolidated ECUs, HMIs, and AI for cutting-edge automotive applications like ADAS, telematics, engine management systems, etc. For these applications to operate correctly, a considerable amount of code must be written. These applications are becoming more complex day by day as automobiles get more technologically sophisticated. As a result, systems require more coding to be coded, which raises the demand for embedded software. Thus, the market for automotive software is being driven by the rising number of connected vehicles.
"Utilizing mobile platforms to grow the market"
In recent years, the increase in mobile usage has multiplied. Software firms are investing in creating a mobile application due to the simplicity of use and flexibility afforded by mobile platforms. Additionally, same trend has been seen in the auto dealer software sector. Renault introduced new mobile software in 2017 to increase consumer interaction. Additionally, this app connects directly to Renault Connect, the company's software for auto dealers, which integrates the dealers into the process. The global dealer management system market is expanding as a result of expanding developments in the automobile industry and expanding integration of various management systems. One of the key developments that is likely to support market growth during the forecast period is the introduction of autonomous vehicles.
Restraining Factors
"Lack of interconnected infrastructure is a major barrier to market expansion "
The expansion of the automotive software sector is being hindered by the expensive infrastructure needed for 5G and wireless communication. The significant investment needed to create the essential cloud, IoT, and data analytics software interaction platforms will continue to be a major concern. For connected cars and ADAS solutions to update their software and add new content, quick, flexible, and simple methods are needed. The challenge has become more obvious as upgrades demand speedy connectivity options, which developing countries are still struggling to develop. Over-the-air software updates get priority over all other types of upgrades. Additionally, without adequate connectivity solutions, manufacturers are introducing new apps and services, ranging from traffic alert notifications to emergency calling services.
Auto Dealer Software Market Regional Insights
-
Request a Free Sample to learn more about this report
"Automotive software market in Asia Pacific is anticipated to have the greatest market share throughout the forecasted period"
An increase in demand for connected services, notably in Japan, China, and South Korea, is driving the Asia Pacific automotive software industry. Due to the fact that most vehicles are produced there, it is the largest market. The market is larger since there are more automobiles produced in the region even if there is much less adoption of automotive software than in Europe and North America. The region's major automakers are concentrating on creating and improving cutting-edge software solutions to support dependable, secure, and performance-driven automotive applications. They are joined by software suppliers and system integrators in this effort. Asia Pacific nations are concentrating on producing both vehicles and automotive parts. For instance, the Chinese government is working on "Made in China 2025," which supports domestic automakers in their competition with other global automakers. This will make it possible to integrate cutting-edge technologies, including ADAS, linked services, autonomous driving, infotainment, powertrain management, V2X vehicle diagnostics, and telematics, among others. The region's demand for automotive software is fueled by the services.
Key Industry Players
"Key Players Focus on Partnerships to Gain a Competitive Advantage "
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.
List of Market Players Profiled
- Cox Automotive (U.S.)
- CDK Global (U.S.)
- Reynolds and Reynolds (U.S.)
- RouteOne (U.S.)
- Dominion Enterprises (U.S.)
- DealerSocket (U.S.)
- Internet Brands (U.S.)
- Wipro (U.S.)
- Epicor (U.S.)
- Yonyou (china)
- ELEAD1ONE (U.S.)
- TitleTec (U.S.)
- ARI Network Services (U.S.)
- WHI Solutions (U.S.)
- Infomedia (Australia)
- MAM Software (U.K.)
Report Coverage
This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.
REPORT COVERAGE | DETAILS |
---|---|
Market Size Value In |
US$ 15930 Million in 2021 |
Market Size Value By |
US$ 33654.6 Million by 2031 |
Growth Rate |
CAGR of 7.7% from 2021 to 2031 |
Forecast Period |
2024-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
-
What value is the Auto Dealer Software market expected to touch by 2031?
Based on our research the Auto Dealer Software market is expected to reach USD 33654.6 million in 2031.
-
What CAGR is the Auto Dealer Software market expected to exhibit by 2031?
The Auto Dealer Software market is expected to exhibit a CAGR of 7.7% by 2031.
-
Which are the driving factors of the Auto Dealer Software market?
Rising technology advancements, combined with higher sales tracking, better inventory management, better customer relationship management, and greater convenience in commission and insurance calculation, are key factors anticipated to propel the expansion of the worldwide auto dealer software market.
-
Which are the top companies operating in the Auto Dealer Software market?
The top key players in the Auto Dealer Software market are Cox Automotive, CDK Global, Reynolds and Reynolds, RouteOne, Dominion Enterprises, DealerSocket, Internet Brands, Wipro, Epicor, Yonyou, ELEAD1ONE, TitleTec, ARI Network Services, WHI Solutions, Infomedia, MAM Software.