The automotive dealer management system market was valued at approximately US$ 4.28 billion in 2023 and is projected to grow to US$ 9.50 billion by 2031, reflecting a compound annual growth rate (CAGR) of 10.5% during the period from 2023 to 2031.

The market for automotive dealer management systems is divided into five key regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. In 2023, North America held the largest share of the automotive dealer management system market, followed closely by Europe and the APAC region.

In the United States, the demand for dealer management systems is on the rise, driven by a growing number of technologically advanced companies such as Tesla, Ford Motor Co., and General Motors Co., which are eager to invest in cutting-edge technology. According to the National Automobile Dealer Association (NADA), in 2023, there were 16,835 franchised light-duty vehicle dealers that collectively sold 15.5 million vehicles. The total sales from light-vehicle dealerships exceeded $1.2 trillion, reflecting the increasing demand for new light vehicles. This surge in demand for light-duty vehicles is a significant factor propelling the automotive dealer management system market. These systems enable auto dealers to efficiently manage the entire vehicle buying and selling process. Additionally, automotive manufacturers are ramping up their investments in dealer management systems that come equipped with a variety of features, including order management, sales tracking, customer relationship management (CRM), and financial management.

Cloud-based automotive dealer management system (DMS) solutions are hosted on remote servers and can be accessed via the Internet. The popularity of cloud-based systems is rising due to their cost-effectiveness and flexibility. These solutions allow dealerships to access their data from virtually anywhere, making them an attractive option. They are also economical, as they eliminate the need for significant upfront investments in hardware or software. In response to the increasing demand for cloud-based software, many DMS vendors are now offering cloud solutions. Notable providers in this space include Cirrus Solutions, OneDealer, CDK Global, and Focus Softnet FZ LLC. Furthermore, numerous automotive dealers globally are experimenting with cloud-based DMS solutions. For instance, in February 2023, Inchcape announced its plans to conduct due diligence and testing of the Tekion cloud-based DMS, which it intends to implement across its dealer network in the UK. Such initiatives are contributing to the growth of the automotive dealer management system market, particularly within the cloud segment.

Key players in the automotive dealer management system market include 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. These companies are profiled in this market analysis.

The overall size of the automotive dealer management system market has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative data related to the market size of automotive dealer management systems. This research process also aids in providing an overview and forecast of the market across all segments. Additionally, numerous primary interviews have been carried out with industry stakeholders to validate the data and gain deeper analytical insights. This includes discussions with industry experts such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders who specialize in the automotive dealer management system sector.