We see the companies in this report as disruptors in the space focusing on emerging technologies such as artificial intelligence and the connected cars segment that provide improved customer experiences and build sustainable relationships for key differentiators. Consumer online expectations are rising and acting as a catalyst for change across the automotive industry.
Our report highlights several trends that global leaders are executing on – we expect to see a divergence in financial performance and market share between those making aggressive investments and expansion in technology now versus those who hesitate.
- Global dealership management system market to reach $14.7BN by 2033, growing at a CAGR of 5.5% from 2023 driven by growing investment in the sector, rising acceptance of cloud technology, and rising adoption of connected cars
- Rising adoption of artificial intelligence in the automotive dealership CRM space to enhance customer engagement
- Automotive industry is increasingly investing in digital transformation across the value chain including in manufacturing, marketing, sales, and financing
- Increased popularity of vehicle subscription model projected to grow strongly by 2029 driven by various factors including financial flexibility and adaptability as well as option to upgrade vehicles more frequently
- During H1’23, the automotive retail software space experienced significant consolidation with 15 disclosed deals (up 67% y-o-y) including the acquisition of IAA by Ritchie Bros. for $7.3BN and the acquisition of RepairSmith by AutoNation for $190MM
- The peer-to-peer & subscription technology segment is yielding the highest forward EV / revenue multiples of 7.4x and 4.9x for 2023E and 2024E revenue, respectively, followed by dealership management yielding EV / revenue multiples of 4.6x and 6.9x