
Study Period | 2019 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Historical Data Period | 2019 - 2023 |
CAGR | 4.00 % |
Market Concentration | Low |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
US Automotive Dealership Market Analysis
The United States Automotive Dealership Market is expected to register a CAGR of greater than 4% during the forecast period.
The United States automotive dealership landscape is underpinned by extensive infrastructure and high vehicle accessibility, with the country boasting the world's longest road network at 6.8 million kilometers. As of March 2023, approximately 75% of the US population reported having access to their own vehicle, with an additional 19% having access to company or family cars. This widespread motorization has created a robust foundation for car dealership operations, with 16,839 franchised light-vehicle dealers recording sales of 7.66 million vehicles in 2023, demonstrating the market's significant scale and reach.
The industry is experiencing a dramatic shift toward digital transformation, exemplified by the groundbreaking partnership announced between Amazon and Hyundai in November 2023, which will enable online vehicle sales through Amazon's platform starting in 2024. This collaboration represents a significant evolution in automotive retail, allowing customers to complete their entire car-buying journey online, from selection to financing, with the option for local auto dealership pickup or delivery. The integration of digital solutions is reshaping traditional dealership models, with many retailers adopting omnichannel strategies to meet evolving consumer preferences.
The transition to electric vehicles is catalyzing significant changes in dealership operations and capabilities. In California, franchised dealerships demonstrated remarkable adaptation, increasing their share of the new retail BEV market from 23.2% in the first half of 2022 to 32.8% in the first half of 2023. This shift requires substantial investments in infrastructure, training, and customer education, as dealerships evolve to support the growing electrification trend. The transformation extends beyond sales to include specialized service capabilities and charging infrastructure installation services.
The automotive dealership sector is undergoing significant modernization in its service and maintenance operations, with over 281,434 auto repair and maintenance centers recorded as of February 2023, marking a 1.2% increase from the previous year. This expansion is particularly crucial given that the average age of light vehicles in operation has reached 12.2 years, necessitating more sophisticated maintenance capabilities and technological integration in service departments. Dealerships are increasingly investing in advanced diagnostic equipment, specialized training programs, and digital service management systems to enhance operational efficiency and customer satisfaction.
US Automotive Dealership Market Trends
New Motor Vehicle Demand in the Automotive Dealership Market
The United States automotive dealership market is experiencing robust growth driven by strong new vehicle sales, with car sales reaching 15.5 million units in 2023, marking an impressive 11.6% increase from 2022. This positive momentum is supported by improved vehicle deliveries, enhanced supply levels, and increased manufacturer incentives across the country. The extensive network of 16,773 franchised light-vehicle dealers has successfully capitalized on this demand, generating substantial revenue exceeding $1.2 trillion from light automobile sales while processing over 265 million repair orders, demonstrating the comprehensive nature of dealership operations beyond just vehicle sales.
The market is witnessing significant transformation with the rising demand for electric vehicles, particularly in the battery electric vehicle (BEV) segment. Franchised dealerships have made remarkable progress in capturing the BEV market, with sales nearly doubling to reach 259,728 units in 2022, representing a 35.2% share of the total new BEV market. This trend is further accelerated by strategic partnerships and expansion initiatives, as evidenced by the groundbreaking collaboration between Amazon and Hyundai announced in November 2023, which will enable online vehicle sales through Amazon's platform starting in 2024, revolutionizing the traditional dealership model while maintaining the crucial role of local dealerships in vehicle delivery and customer service.
Pre-Owned Car Demand to Fuel Automotive Dealerships Market Growth
The pre-owned vehicle segment has emerged as a significant growth driver for automotive dealerships, supported by a robust network of 26,528 used car dealerships across the United States, translating to approximately eight dealers per 10,000 residents. The sector has demonstrated remarkable resilience and growth potential, with employment in used car dealerships increasing by 10.6% compared to the previous year, reaching 173,860 individuals. This expansion is further supported by strategic initiatives from major industry players, as exemplified by AutoNation's ambitious plan to establish more than 130 AutoNation USA stores nationwide by 2026, including the recent inauguration of AutoNation USA Charleston, a 31,500-square-foot facility creating approximately 30 new employment opportunities.
The industry's growth is characterized by significant investments in both physical infrastructure and digital capabilities, enabling dealers to provide comprehensive solutions for evolving consumer preferences. Major players are enhancing their market presence through strategic expansions and acquisitions, as demonstrated by HGreg.com's acquisition of established car retailers in the Greater Los Angeles area, enabling the company to expand its inventory of quality pre-owned vehicles while streamlining its omnichannel car buying journey. This trend is further supported by the increasing adoption of digital platforms and innovative business models that combine traditional dealership strengths with modern technology-driven solutions.
Increasing Auto Repair and Maintenance Establishments to Fuel Market Demand
The automotive service and maintenance sector has emerged as a crucial driver for dealership growth, with the United States hosting approximately 281,434 auto repair and maintenance centers as of February 2023, representing a 1.2% increase from the previous year. This expansion is supported by a skilled workforce of over 665,000 automotive service technicians as of 2022, who provide essential expertise in diagnosis, repairs, maintenance, and parts replacement. The growth in service establishments is particularly significant given the increasing average age of vehicles in the United States, which reached 12.2 years in 2023, creating sustained demand for maintenance and repair services.
The sector's growth is further amplified by strategic expansions and investments in service infrastructure, as exemplified by recent industry developments. In August 2023, Tint World Automotive Styling Centers announced a strategic expansion agreement for six new locations in North and South Carolina, broadening their service offerings across electrical and electronics, tires and wheels, batteries, and other auto accessories. Additionally, major equipment manufacturers are strengthening their service infrastructure, as demonstrated by BendPak Inc.'s opening of a new 90,000-square-foot facility in Alabama in June 2023, nearly doubling their East Coast logistics and distribution capabilities to support the growing service sector.
Segment Analysis: By Type
Finance and Insurance Segment in US Automotive Dealership Market
The finance and insurance segment continues to dominate the US automotive dealership market, holding approximately 33% market share in 2024. This segment's prominence is driven by the growing complexity of vehicle financing options and increasing demand for comprehensive insurance coverage. The segment's strength is further bolstered by rising vehicle prices, which have compelled more customers to seek financing solutions. Dealerships have enhanced their F&I offerings with digital tools and platforms to streamline the financing process, while also expanding their insurance product portfolios to include extended warranties, gap insurance, and maintenance plans. The integration of advanced technology in F&I operations has improved efficiency and customer experience, contributing to its market leadership position.

Parts and Services Segment in US Automotive Dealership Market
The parts and services segment is emerging as the fastest-growing segment in the US automotive dealership market, with a projected growth rate of approximately 6% during 2024-2029. This robust growth is primarily driven by the increasing average age of vehicles on American roads, which has reached 12.2 years, creating a higher demand for maintenance and repair services. The segment's expansion is further supported by the growing complexity of modern vehicles, requiring specialized diagnostic equipment and trained technicians. Dealerships are investing in advanced service centers, implementing digital service scheduling systems, and expanding their parts inventory management capabilities to capitalize on this growth opportunity. The rise in electric vehicle adoption has also prompted dealerships to upgrade their service capabilities, including specialized EV maintenance training and equipment.
Remaining Segments in US Automotive Dealership Market
The new car dealership and used vehicle dealership segments continue to play vital roles in the overall market dynamics. The new car dealership segment benefits from continuous technological advancements and the introduction of electric and hybrid vehicles, while maintaining strong relationships with manufacturers. The used vehicle segment has evolved significantly with the integration of digital platforms and certified pre-owned programs, providing customers with more reliable options. Both segments have embraced digital transformation, implementing virtual showrooms and online purchasing capabilities to enhance customer experience. These segments complement each other and the broader market by offering diverse vehicle options across different price points and preferences.
Segment Analysis: By Retailer
Franchised Retailer Segment in US Automotive Dealership Market
The franchise dealership segment dominates the United States automotive dealership market, commanding approximately 63% of the market share in 2024. These retailers operate under manufacturers' brands and standards, offering authorized sales, service, and aftermarket support for specific automotive brands. The segment's strength is driven by its comprehensive network of 16,839 franchise dealership light-vehicle dealers across the country, offering vehicles from major manufacturers like General Motors, Toyota, and Ford. The segment is projected to grow at around 5% during 2024-2029, supported by increasing demand for electric vehicles, with franchise dealership significantly boosting their BEV sales and securing over 35% of the total new vehicle BEV market. The growth is further bolstered by these retailers' ability to provide comprehensive services including financing, maintenance, certified pre-owned vehicles, and warranty claims processing, making them a preferred choice for consumers seeking reliable and authorized automotive services.
Non-Franchised Retailer Segment in US Automotive Dealership Market
The independent dealership segment plays a crucial role in the United States automotive dealership market by providing consumers with a broader selection of vehicles and competitive pricing options. These independent dealerships operate outside the manufacturer-franchised network, procuring vehicles from various sources like auctions, trade-ins, and private sellers. The segment's growth is driven by its flexibility in inventory selection, ability to offer competitive pricing, and focus on the used vehicle market. The National Independent Automobile Dealers Association (NIADA) represents approximately 40,000 licensed used car dealers, demonstrating the segment's significant presence in the market. These retailers have adapted to changing consumer preferences by implementing digital solutions and offering transparent pricing models, making them an attractive option for price-conscious consumers seeking alternatives to traditional franchised dealerships.
Segment Analysis: By Vehicle Type
Passenger Cars Segment in United States Automotive Dealership Market
The passenger cars segment continues to dominate the United States automotive dealership market, commanding approximately 85% market share in 2024. This substantial market position is attributed to the segment's large-scale domestic production capabilities, with more than thirteen major car manufacturers operating production facilities across the country. The segment's strength is further reinforced by the growing popularity of luxury car dealership and premium cars, coupled with the increasing adoption of electric vehicles through franchise dealership. For instance, in the California automotive dealership market, new registrations for battery electric vehicles (BEVs) at franchise dealership experienced significant growth in 2023, with dealerships expanding their share of the state's new retail BEV market to nearly 33%. The segment's robust performance is also supported by the extensive network of franchised dealerships, which successfully leverage their established brand recognition and comprehensive service offerings to maintain their market leadership position.
Commercial Vehicles Segment in United States Automotive Dealership Market
The commercial vehicle dealership segment is projected to exhibit the highest growth rate in the United States automotive dealership market, with an expected CAGR of approximately 6% during the forecast period 2024-2029. This accelerated growth is driven by the expanding commercial transportation sector and the increasing demand for logistics services across the country. The segment's growth trajectory is further supported by the robust auto manufacturing industry, which injects over USD 1 trillion into the economy annually through auto sales and servicing. The advancement in electric commercial vehicles has also created new opportunities, with major players like Volvo Trucks North America expanding their certified EV dealership network across the United States and Canada. Additionally, the growing penetration of commercial vehicles in various industries, coupled with the increasing focus on fleet modernization and the adoption of advanced technologies, continues to drive the segment's expansion in the automotive dealership market.
US Automotive Dealership Industry Overview
Top Companies in United States Automotive Dealership Market
The automotive retail landscape in the United States is characterized by a mix of established national chains and regional players demonstrating strong market presence through diverse operational strategies. Companies are increasingly focusing on digital transformation initiatives, implementing advanced online retail platforms and virtual showroom experiences to enhance customer engagement and streamline the purchase process. Strategic expansion through acquisitions and greenfield developments remains a key growth driver, with dealers actively pursuing opportunities in high-growth metropolitan areas. Market leaders are investing heavily in service infrastructure, including collision centers and maintenance facilities, while simultaneously expanding their used vehicle operations to capture additional market segments. The industry is witnessing increased emphasis on customer experience enhancement through personalized financing solutions, comprehensive after-sales services, and integrated digital platforms that enable seamless transactions across multiple channels.
Consolidation and Strategic Growth Drive Market
The United States automotive dealership market exhibits a moderately fragmented structure, with a mix of large national chains and numerous independent operators competing across different regions. Major players are predominantly publicly traded companies with significant financial resources, enabling them to pursue aggressive expansion strategies and invest in technological infrastructure. The market has witnessed considerable consolidation through mergers and acquisitions, particularly as larger groups seek to expand their geographical footprint and achieve economies of scale in operations, inventory management, and marketing initiatives. These consolidation trends have been further accelerated by the need for substantial investments in digital infrastructure and the increasing complexity of automobile distribution operations.
The competitive dynamics are characterized by intense rivalry among established players, with franchised dealers holding a dominant position due to their strong relationships with manufacturers and access to new vehicle inventory. Regional players maintain their competitive edge through deep local market knowledge and strong community relationships, while larger groups leverage their scale advantages in areas such as financing, inventory management, and marketing. The market has seen increased participation from digital-first retailers who are challenging traditional dealership models through innovative online sales platforms and efficient delivery mechanisms, forcing established players to adapt their strategies and enhance their digital capabilities.
Innovation and Adaptation Key to Success
Success in the automotive dealership market increasingly depends on dealers' ability to adapt to changing consumer preferences and technological advancements while maintaining operational efficiency. Market leaders are focusing on developing omnichannel retail experiences that seamlessly integrate online and offline touchpoints, while investing in data analytics capabilities to better understand customer behavior and optimize inventory management. The implementation of advanced customer relationship management systems and digital marketing strategies has become crucial for maintaining competitive advantage, as has the development of value-added services such as extended warranties, maintenance packages, and financial products.
Future market success will be heavily influenced by dealers' ability to navigate regulatory changes, particularly those related to electric vehicle adoption and emissions standards, while maintaining strong relationships with manufacturers and adapting to evolving distribution models. Companies that can effectively balance traditional dealership operations with digital innovation while maintaining strong customer relationships and operational efficiency will be best positioned for growth. The increasing importance of used vehicle retail operations and after-sales services as profit centers requires dealers to develop comprehensive strategies that address these segments while maintaining flexibility to adapt to market changes and consumer preferences.
US Automotive Dealership Market Leaders
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Penske Automotive Group
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Hendrick Automotive Group
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Auto Nation Inc.
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Group 1 Automotive Inc.
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Lithia Motors Inc.
- *Disclaimer: Major Players sorted in no particular order

US Automotive Dealership Market News
- July 2022: Lithia & Driveway (LAD) continued its US expansion by buying nine dealerships in southern Florida and one in Nevada, which are expected to add nearly USD 1 billion in annual revenue for the company. LAD also announced its expansion in Las Vegas, Nevada, with the addition of Henderson Hyundai and Genesis. With this purchase, LAD becomes the sole owner of the Hyundai and Genesis stores in the greater metro area.
- March 2022: Group1 Automotive Inc. announced that it completed a USD 2.0 billion five-year revolvings syndicated credit facility with 21 financial institutions that will expire in March 2027 and can be expanded to USD 2.4 billion total availability. The six manufacturer-affiliated finance companies are Mercedes-Benz Financial Services USA LLC, Toyota Motor Credit Corporation, BMW Financial Services NA LLC, American Honda Finance Corporation, VW Credit Inc., and Hyundai Capital America Inc.
- January 2022: Penske Automotive Group expanded its presence in the Austin/Round Rock market in Texas with the grand opening of the Honda Leander. The new dealership, located in Leander, Texas, is the retailer's 14th Honda store overall and is its ninth dealership in the market.
- January 2022: Sonic Automotive Inc., one of the nation's largest automotive retailers, acquired Sun Chevrolet in Chittenango, New York. Sonic also acquired Caputo's three used car locations in December 2021. The Chittenango location was the only new car dealership.
US Automotive Dealership Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Industry Attractiveness - Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value USD billion)
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5.1 By Type
- 5.1.1 New Vehicle dealership
- 5.1.2 Used Vehicle dealership
- 5.1.3 Parts and Services
- 5.1.4 Finance and Insurance
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5.2 By Retailer
- 5.2.1 Franchised Retailer
- 5.2.2 Non-Franchised Retailer
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5.3 By Vehicle Type
- 5.3.1 Passenger Cars
- 5.3.2 Commercial Vehicles
6. COMPETITIVE LANDSCAPE
- 6.1 Vendor Market Share
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6.2 Company Profiles
- 6.2.1 Group 1 Automotive Inc.
- 6.2.2 AutoNation Inc.
- 6.2.3 Penske Automotive Group
- 6.2.4 Lithia Motors Inc.
- 6.2.5 Hendrick Automotive Group
- 6.2.6 Asbury Automotive Group Inc.
- 6.2.7 Larry H. Miller Dealerships
- 6.2.8 Ken Garff Automotive Group
- 6.2.9 Staluppi Auto Group
- 6.2.10 Sonic Automotive Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
US Automotive Dealership Industry Segmentation
A car dealership, or car dealer, is a business that sells new or used cars, at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It can also carry a variety of certified pre-owned vehicles. Car dealerships employ automobile salespeople to sell their automotive vehicles, provide maintenance services for cars, and employ automotive technicians to stock and sell spare automobile parts. They also process warranty claims. The US automotive dealership market has been segmented by type (new vehicle dealership, used vehicle dealership, parts and services, and finance and insurance), retailer (franchised retailer and non-franchised retailer), and vehicle type (passenger cars and commercial vehicles). The market size and forecast for each segment have been calculated based on value (USD billion).
By Type | New Vehicle dealership |
Used Vehicle dealership | |
Parts and Services | |
Finance and Insurance | |
By Retailer | Franchised Retailer |
Non-Franchised Retailer | |
By Vehicle Type | Passenger Cars |
Commercial Vehicles |
US Automotive Dealership Market Research FAQs
What is the current United States Automotive Dealership Market size?
The United States Automotive Dealership Market is projected to register a CAGR of greater than 4% during the forecast period (2025-2030)
Who are the key players in United States Automotive Dealership Market?
Penske Automotive Group, Hendrick Automotive Group, Auto Nation Inc., Group 1 Automotive Inc. and Lithia Motors Inc. are the major companies operating in the United States Automotive Dealership Market.
What years does this United States Automotive Dealership Market cover?
The report covers the United States Automotive Dealership Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the United States Automotive Dealership Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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United States Automotive Dealership Market Research
Mordor Intelligence provides a comprehensive analysis of the automotive dealership industry. We leverage decades of expertise in automotive retail research and consulting. Our extensive report covers the full spectrum of car dealership operations. This includes traditional franchise dealership networks and independent dealership businesses. The analysis encompasses key segments such as new car dealership, used car dealership, and luxury car dealership sectors. It offers detailed insights into automobile distribution patterns and car sales trends. The report, available as an easy-to-download PDF, examines the evolution of automotive distribution channels and vehicle sales dynamics across the United States.
Stakeholders in the automotive franchise landscape benefit from our detailed examination of car trading patterns and automobile sales metrics. The report offers valuable insights for businesses operating in various segments. This ranges from commercial vehicle dealership operations to specialized automotive showroom facilities. Our analysis covers both motor dealership networks and vehicle retail operations. It provides actionable intelligence for strategic decision-making. The comprehensive coverage includes emerging trends in car retail practices, technological innovations in vehicle dealership operations, and evolving consumer preferences. These factors shape the future of auto dealerships across the country.