The dealer management system (DMS) sector is projected to expand from US$ 7.92 billion in 2022 to US$ 18.20 billion by 2030, reflecting a compound annual growth rate (CAGR) of 11.0% during the period from 2022 to 2030.
The increasing demand for dealer management systems within the automotive sector enables users to efficiently oversee a network of dealers.
This system is equipped with a variety of features that assist automotive dealers in minimizing expenses by optimizing their business operations. Dealer management systems enable automotive dealers to monitor their vehicle inventory, including details such as model, pricing, availability, and specifications. This capability allows dealers to effectively manage their stock and make informed decisions regarding restocking or selling vehicle models. The growth of the automotive industry is driving the adoption of dealer management systems among dealers throughout the forecast period. According to the International Energy Agency (IEA), electric vehicle (EV) sales surged by 10 million in 2022, with China leading the market, accounting for 60% of global EV sales. The country aims to double its EV sales by 2025. The rising sales of EVs worldwide are further propelling the demand for dealer management systems among automotive dealers. These systems aid dealers in managing customer data, tracking leads, and automating the sales process, thereby enhancing their appeal and driving market growth.
Furthermore, numerous automobile manufacturers, including BMW, Tesla, Ford, Hyundai, Toyota, Nissan, and Mercedes-Benz, are implementing dealer management systems to optimize their business processes. These manufacturers incorporate DMS into their operations to manage parts and accessory inventories, ensuring that the necessary components are available for repairs and customizations. Such factors contribute positively to the growth of the dealer management system market.
Additionally, the expansion and advancements in the transportation and logistics sectors are increasing the demand for cloud-based dealer management systems among automotive dealers. The transportation and logistics industry utilizes DMS to manage various business operations, including accounting, invoicing, and financial transactions related to vehicle sales and services. The automotive sector has experienced significant technological advancements over the past few decades, including the integration of artificial intelligence (AI), the Internet of Things (IoT), and cloud computing. These innovations have transformed the industry positively. Dealer management systems serve as an ideal solution for car dealerships that need to manage spare parts inventory and work orders. The integration of customer relationship management (CRM) and business intelligence technologies within these systems allows for effective tracking of manufacturer and customer relationships, further boosting the dealer management system market. Many car dealerships depend heavily on DMS to monitor their inventory and sales, which collectively drives the global adoption of cloud-based dealer management systems.
In Europe, the region is technologically advanced, particularly due to the high adoption rates of innovative technologies in countries like Germany, the UK, France, Spain, Italy, and Russia. In Germany, the dealer management system market is fueled by substantial investments from enterprises and the necessity to efficiently manage and maintain business operations. DMS is employed to streamline sales processes and effectively manage inventory. The system aids sales teams in managing customer information, tracking leads, and enhancing the overall customer experience. Germany is recognized as the fastest-growing market for electric cars, with over 194,000 cars sold in 2020, an increase of 63,000 from 2019, and projections indicating that the country will have 10 million EVs on the road by 2030. Growing environmental concerns are driving consumer demand for EVs, which in turn is creating a need for dealer management systems among EV manufacturers to oversee the entire delivery process. Car manufacturers and dealers in Germany are adopting these systems to eliminate manual tasks and enhance overall efficiency. Enterprises in this region are investing in DMS to strengthen customer relationships, manage stock, analyze sales trends, and strategize their business operations, which are expected to propel the dealer management system market.
In the UK, businesses are seeking solutions that cater to local needs in emerging markets while also providing a comprehensive view of their international dealer networks. The increasing consumer demand for EVs in the UK is driving the dealer management system market. According to the Society of Motor Manufacturers and Traders (SMMT), registrations of plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs) reached 34,712 in July 2023. This growing demand for EVs is further stimulating the dealer management system market. DMS assists EV dealers in enhancing operational efficiency, managing inventory, and ultimately improving customer experiences. Automotive dealer management software connects original equipment manufacturers (OEMs), dealers, distributors, automobile companies, and customers on a unified platform, providing a seamless operational experience. Consequently, dealer management systems are specifically designed to enhance and streamline enterprise business strategies. Vendors are developing DMS that accommodates multiple currencies and languages on a single platform. In the UK, OEM dealers are initiating omnichannel pilots that blend offline and online sales, creating a significant demand for a comprehensive system capable of effectively managing an omnichannel business strategy, which positively influences the growth of the dealer management system market.
The dealer management system market in France is driven by the increasing number of enterprises transitioning from legacy software to advanced cloud-based solutions. Additionally, many small and medium enterprises are moving away from manual data management via spreadsheets to adopting dealer management systems. This notable shift has opened up opportunities for the dealer management system market. The French government is actively promoting and investing in startups to foster the development of new technologies that enhance business operations. For example, in June 2023, French President Emmanuel Macron initiated an investment of US$ 6.3 million in French startups and scale-up companies to advance the technology sector. The growing investment in emerging technologies encourages key players to develop or adopt cloud and AI-based dealer management systems, creating further opportunities in the dealer management system market.
Key players in the dealer management system market include e-Emphasys Technologies Inc., ANNATA Ehf, DealerBox SAS, Hitachi Solutions Ltd, Irium Software SAS, CDK Global, Constellation Software, DealerTrack Inc., Tekion Corp, and XAPT Software Consulting LLC. Several other significant players in the dealer management system market were analyzed during this research study to provide a comprehensive view of the market and its ecosystem. The dealer management system market report offers detailed insights that assist key players in strategizing their growth.