Market Size of United States Automotive Dealership Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | > 4.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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US Automotive Dealership Market Analysis
The US automotive dealership market is expected to reach USD 257.3 billion, registering a CAGR of above 4% over the next five years.
The COVID-19 pandemic harmed the growth of the US automotive dealership market as the shutdown and lockdown of manufacturing activities and dealerships of major OEMs resulted in a halt in demand in the first half of 2020. However, as restrictions eased by the end of the year, the recovery of key franchised and non-franchised dealers across the country in the wake of growing new and used car sales helped the market regain its momentum.
As the automotive industry expands, substantial investments in new technologies, such as connected cars, electric cars, autonomous cars, etc., by major manufacturers are expected to support the market's growth in the medium term. In addition, the growing presence of automotive dealers, coupled with consumer inclination towards a hassle-free buying experience, is anticipated to further enhance the market growth in the coming years.
For instance, according to NADA's mid-year 2022 report, the nation's 16,752 franchised light-vehicle dealers sold 6.8 million light-duty vehicles, and total light-vehicle dealership sales stood at USD 618 billion. In addition, in 2021, motor vehicle parts stores and automobile dealers witnessed an increase in revenue of around 23% over the previous year. US motor vehicle and part dealers generated revenue of almost USD 1.53 trillion from retail trade.
However, factors such as inventory shortages are caused by numerous supply chain disruptions. Also, the growing preference of consumers for online purchases over showroom experience poses challenges for market growth. Despite such challenges, technological advancements in dealer management systems, such as Artificial Intelligence (AI), cloud computing, data analytics, etc., are expected to further propel demand in the market.
For instance, in June 2022, Advanced Business Computers of America Inc. (ABCoA), a software-as-a-service company entrenched in the used car industry and known for Deal Pack® and cyclCRM, announced new and revolutionary dealer management software (DMS) called DST Dealership Sales Tools.
Further, factors such as the launch of standalone stores, the adoption of omnichannel retail strategies, and the growing consumer interest in certified used cars, coupled with the active expansion of the dealership network in the country by key OEMs, are expected to support the growth of the market in the future.
