Dealer Management System Market Size Worth $10+ Billion by 2027 | Rising Adoption of Cloud Technology - Growth Report by The Insight Partners

The global dealer management system market size was valued at USD 6.98 billion in 2019 and is projected to reach USD 10.02 billion by 2027; it is expected to grow at a CAGR of 6.8% during 2020–2027.

New York, Jan. 03, 2023 (GLOBE NEWSWIRE) -- The Insight Partners published recent research study on “Dealer Management System Market Size, Share, Growth, Trends and Global Forecasts to 2027 - COVID-19 Impact and Global Analysis By Deployment (On-Premise and Cloud) and Application (Automotive, Mining, Construction, Agriculture, and Others)”; the global dealer management system market demand is fuelled by integration of artificial intelligence to revolutionize dealer management business, increasing integration of different management systems and growing advancements in automotive industry.

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Global Dealer Management System Market Study, Size, Share, Segmentations and Regional Scope:

Market Size Value in USD 6.98 Billion in 2019
Market Size Value by USD 10.02 Billion by 2027
Growth rate CAGR of 6.8% from 2020-2027
Forecast Period 2020-2027
Base Year 2020
No. of Pages 142
No. of Tables 56
No. of Charts & Figures 71
Historical data available Yes
Segments covered Deployment and Application
Regional scope North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country scope US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina
Report coverage Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Global Dealer Management System Market – Competitive Landscape:

Autosoft, Inc.; BIT Dealership Software, Inc.; CDK Global, Inc.; e-Emphasys Technologies Inc.; and Evopos Ltd are some of the key market players operating in the global dealer management system market. The listing of key players is derived by considering multiple factors such as overall revenue, current dealer management system product portfolio, geographical reach, new product launches, market initiatives, investment in technology upgradation, partnerships, and other market related activities. In addition to these players, there are several other important players operating in the dealer management system ecosystems which were studies analyzed during the course of this market research study, such as, Adam Systems, Cox Automotive, DealerBuilt, Dominion Enterprises, and Integrated Dealer Systems among others. Further, on January 2017, Cox Automotive introduced ‘Performance Management’ and ‘Business Intelligence’ tools to boost dealership management systems (DMS).

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Dealership management systems enable auto dealers to fulfill the demands, such as swift and reliable purchases and services for customers. Additionally, the system helps to meet customer requirements by coordinating products and services and ensuring the dealers are ready and equipped to offer the parts required for repairs. Therefore, it simplifies the repair and maintenance services and inventory management. Besides, it allows seamless handling of financial reporting, payroll services, and cash flow management. The system integrates a suite of finest technologies, such as Customer Relationship Management (CRM), business intelligence and reporting, and inventory management. Auto dealers across the world are procuring dealer management systems for enhanced inventory management, customer conversions, and customer retention, along with a remote help desk. The increasing investments in the dealer management system, mounting adoption of cloud technology, and a shift from paperless work to automation are driving the growth of the dealer management system market. However, security concerns due to the lack of cybersecurity measures might hinder the market growth. Moreover, the rising demand for better inventory management, improved sales tracking, enhanced CRM, improved commission and insurance calculation, and technological advancements in dealer management systems, such as Artificial Intelligence (AI) and data analytics, would surge the global market growth during the forecast period. Real-time visibility, simplified business operations, and engaging customer communication are positively influencing the growth of the global dealer management system market.

Growing advancements in automotive industry and increasing integration of different management systemsdrives the growth of the global dealer management system market. advent of autonomous vehicles is among the major factors that are anticipated to bolster the market growth during the forecast period. However, the growing security concerns may hinder the market growth.

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Impact of COVID-19 Pandemic on Dealer Management System Market Growth:

North America is at the forefront of adopting and developing new technologies, mainly due to favorable government policies to boost innovations, presence of a huge industrial base, and high purchasing power of people, especially in developed countries such as the US and Canada. Hence, any disruption in the growth of industries is expected to hamper the economic growth of the region. Presently, the US is the world’s worst-affected country due to the COVID-19 outbreak, with 25,817,939 confirmed cases and 436,051 deaths, as per the WHO data.

The pandemic situation compelled many countries to impose lockdown in 2020, which ravaged businesses in these countries and lead to the discontinuation of auto dealership operations. Dealer management systems help auto dealers to stay updated regarding the current market trends and changes. Thus, slump in the businesses of dealers also slightly hindered the growth of the dealer management systems market in 2020. However, as stated by Forbes, despite these conditions, dealerships in certain US states continued their operations, with formal permission from the US government to run the business during the pandemic as it is one of the crucial businesses, especially for the transport industry.

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Key Findings of Study:

The global dealer management system market is segmented into five major regions—North America, Asia Pacific (APAC), Europe, the Middle East and Africa (MEA), and South America (SAM). In 2019, North America led the market, followed by Europe and APAC.

Significant strategic initiatives by several industry players are observed in the market; for instance, in January 2021, CDK Global, Inc. introduced Neuron, a Big Data platform connected to Fortellis automotive commerce exchange. The Neuron is designed to convert high volumes of industry information into actionable insights for dealers, original equipment manufacturers (OEMs), and third-party software developers. Further, in November 2020, Integrated Dealer Systems (IDS) launched Service360 to help dealers revolutionize their service and reduce repair event cycle time (RECT). The IDS Service360 is an end-to-end service solution that integrates seamlessly with the IDS Astra G2 dealership management system.

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