PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485801
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1485801
Online Car Buying Market size was valued at USD 415,234.23 Million in 2023, expanding at a CAGR of 11.8% from 2024 to 2032.
Online car buying refers to the process of purchasing a vehicle over the internet, without the need to visit a physical dealership. This process typically involves researching, browsing, selecting, financing, and sometimes even arranging delivery of a vehicle entirely online. Increasing digitalization and advancements in technology have facilitated smoother online car buying experiences, including virtual showrooms, augmented reality, and online financing options. However, concerns about online security and the risk of fraud or scams may deter potential buyers from engaging in online car purchases. Furthermore, the online car buying market presents opportunities for market expansion by reaching customers in new geographic regions and demographics.
Online Car Buying Market- Market Dynamics
The rapid adoption of E-Commerce and technological advancements in the automotive sector increasing the adoption of online car buying market
The rapid adoption of e-commerce and technological advancements in the automotive sector are indeed driving significant growth in the online car buying market. For instance, in December 2022, the pre-owned vehicles market has been witnessing significant growth owing to rising prices of new cars and supply chain shortages leading to extended waiting periods. Similarly in November 2023, Amazon announced to start selling Hyundai automobiles online early next year, marking a significant step into the automotive retail industry. Furthermore, the emergence of online used car/bike platforms has further given a boost to the sector. The new rules mandate several reforms that would ensure transparency and help identify authorised dealers. Online platforms offer convenience for consumers to browse, compare, and purchase vehicles from the comfort of their homes. This convenience factor is particularly appealing in today's fast-paced world.
Online Car Buying Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 11.8% over the forecast period (2024-2032)
Based on vehicle type segmentation, SUV was predicted to show maximum market share in the year 2023
Based on category segmentation, pre-owned vehicles were the leading type in 2023
Based on distribution Channel segmentation, OEMs were the leading type in 2023
Based on region, North America was the leading revenue generator in 2023
The Global Online Car Buying Market is segmented based on Vehicle Type, Propulsion Type, Distribution Channel, Category, and Region.
The market is divided into three categories based on vehicle type: Compact SUVs/Crossovers offer a blend of versatility, comfort, and often better fuel efficiency compared to larger SUVs and compact SUVs are favored by many online car buyers. The dominance of SUV vehicle types in online car buying varies depending on factors such as market trends, consumer preferences, and regional differences.
The market is divided into two categories based on category: Generally, used cars tend to have a strong presence on online platforms due to their lower prices and broader selection. However, new cars also have a substantial online presence, especially with manufacturers and dealerships offering virtual showrooms, customization options, and online purchasing tools.
Online Car Buying Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
Together, North America and Europe control a whopping 60% of the world market, making them the dominant regions. Their individual and significant contributions and growth paths offer a thorough grasp of this rapidly expanding business. Local quirks also influence the market. For example, SUVs, electric cars, and pickup trucks are very common in the United States. According to recent data, over 4 million SUVs and trucks were sold online in North America in 2023, making up over 55% of total online auto sales in the region. Electric vehicles make up a lower percentage of all vehicles, but they are expanding at a rapid rate 45% YoY increase indicates that the online market for green vehicles is looking promising.
The key players analyzed in the online car buying market include AutoNation, Inc., Cargurus, Inc., CarsDirect, Cars.com, Inc., Group1 Automotive Inc., Hendrick automotive group, Lithia Motors, Inc. and TrueCar, Inc. Online platforms are offered by both large automakers and startups, creating a highly competitive sector. Customers now have access to more car alternatives, transparent pricing, and better services as a result of this competition. Difficulties include the requirement for a smooth transition from the virtual to the real-world purchasing experience, trust difficulties, and worries about the veracity of online car listings. Possibilities include growing services such as internet lending and building client confidence with open and honest dealings.
In February 2024, Zoomcar, a leading marketplace for car sharing in emerging markets and CARS24, India's leading AutoTech platform for pre-owned cars have inked a strategic partnership to empower local hosts in their car-sharing entrepreneurial journey.
In March 2023, Zoomcar announced a partnership with car buying platform ACKO which will offer savings on new purchases and enhance earnings potential.
GLOBAL ONLINE CAR BUYING MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Asbury Automotive Group, Inc.
AutoNation, Inc.
Cargurus, Inc.
CarsDirect
Cars.com, Inc.
Cox Automotive Inc
Group1 Automotive Inc.
Hendrick automotive group
Lithia Motors, Inc.
TrueCar, Inc.
Others