The online car buying market allows consumers to browse new and used vehicle listings online, configure their ideal vehicle, calculate loan/financing options, and purchase or lease a vehicle entirely from the comfort of their home. This end-to-end digital car buying experience provides cost and time savings to consumers while allowing automakers and dealerships to reach more customers nationally.
The Global Online Car Buying Market is estimated to be valued at US$ 328.90 Billion in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the online car buying market are American City Business Journals Inc., Asbury Automotive Group Inc., AutoNation Inc., CarGurus Inc., CarMax Inc., Cars and Bids LLC, Cars.com Inc., Cars24 Services Pvt. Ltd., CarSoup of Minnesota Inc., Carvago, Carvana Co., Cox Enterprises Inc., eBay Inc., Edmunds.com Inc., Hendrick Automotive Group, Lithia Motors Inc., MH Sub I LLC, Miami Lakes Automall, TrueCar Inc.
Growing demand from millennials and Gen Z consumers
The Online Car Buying Market Trends process provides a convenient, hassle-free experience for tech-savvy millennials and Gen Z consumers who research, compare options, and make big purchases online. As these demographic groups constitute a larger share of the automotive buyer market, demand for digital car buying options is growing.
Expanding into new international markets
Established online car buying platforms based in the US and Europe are strengthening their international presence. Companies are partnering with local dealerships in populous markets such as India, Brazil, and Southeast Asia to tap the rapid growth of the middle class in emerging economies and meet the increasing demand for personal vehicles.
Market Key Trends
Integration of virtual and augmented reality
Leading online car buying market size and trends platforms are incorporating VR and AR try-before-you-buy technologies that enable customers to experience and test drive a vehicle virtually before making a purchase. This offers another layer of convenience while helping buyers make informed decisions. The trend of immersive digital vehicle previews is gaining traction and driving further engagement on online auto sales websites and mobile apps.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is low in the online car buying market since it requires high initial investments to build an online platform and significant expertise to list inventory across brands.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of multiple options online allowing buyers to easily compare prices and negotiate deals.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as original equipment manufacturers and dealers have control over inventory but depend on online platforms for reaching a wider customer base.
Threat of new substitutes: The threat of new substitutes is low as purchasing cars requires a large monetary commitment limiting alternatives to other modes of personal transportation.
Competitive rivalry: The competitive rivalry is high among major online automotive portals and dealerships trying to gain market share through brand promotions, discounts, and add-on services.
Geographical Regions
North America is expected to dominate the online car buying market holding the largest share in terms of value during the forecast period. This is attributed to the high internet penetration and the presence of major industry players in countries like the US and Canada promoting online sales platforms.
The Asia Pacific region is projected to witness the fastest growth in the market due to the rising middle-class population, increasing disposable incomes, and growth of e-commerce in developing economies such as China and India driving purchases online.
About Author - Ravina Pandya
Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals. LinkedIn Profile