We see the companies in this report as disruptors in the space focusing on software and technologies 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.
- Dealership management system market to reach $10.6bn by 2027 from $7.7bn in 2021 at a 5.5% CAGR driven by growing in avestment in the sector, rising acceptance of cloud technology, and moving from paperwork to automation
- Digitization of auto lending and car rental process to create a seamless experience and to increase customer loyalty
- Since 2019, customer acquisition and relationship management players have raised total funding of $1.2bn in 17 deals
- During H1’22, the automotive retail software space experienced massive consolidation with 8 disclosed deals (up 100% y-o-y) including the acquisition of CDK Global by Brookfield Business for $8.3bn and the acquisition of ADESA’s U.S. physical auction business by Carvana for $2.2bn
- The fixed operations technology segment is yielding the highest forward EV / revenue multiples of 13.9x & 8.6x in 2022E & 2023E respectively followed by dealership management yielding EV / revenue multiples of 4.4x & 3.9x