The global online car buying market reached a size of USD 357 Billion in 2024 and is forecasted to grow to USD 795 Billion by 2033. Exhibiting a CAGR of 9.3% during the forecast period 2025-2033, the market is fueled by convenience, accessibility, transparency, digitalization, evolving consumer preferences, and competitive pricing.
STUDY ASSUMPTION YEARS
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
ONLINE CAR BUYING MARKET KEY TAKEAWAYS
- Current Market Size: USD 357 Billion in 2024
- CAGR: 9.3% during 2025-2033
- Forecast Period: 2025-2033
- The market growth is driven by the increasing internet accessibility and exclusive online car deals.
- SUVs represent the largest vehicle segment due to their versatility and popularity.
- Petrol-powered vehicles dominate the propulsion type market.
- Pre-owned vehicles account for the largest category segment because of cost savings and transparency.
- North America holds the largest regional market share.
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MARKET GROWTH FACTORS
The online car buying market is experiencing strong growth driven by the convenience and accessibility offered by online platforms. Buyers can save time and effort by bypassing traditional dealerships and researching a wide array of vehicles from home. This is further enhanced by the availability of internet connectivity beyond business hours and the ability to access dealerships outside geographical restrictions, benefitting even remote populations. The World Bank's 2021 report cites that around 3.4 billion people live in rural areas, emphasizing the platform's accessibility impact.
Technological advancements significantly contribute to market growth. Artificial intelligence-driven chatbots, augmented reality (AR), and virtual showrooms enhance user engagement and streamline the buying process. These digital tools enable buyers to virtually explore vehicles, test colors and combinations, and receive guided assistance with financing choices, improving the overall consumer experience.
Changing consumer behavior also plays a pivotal role. Younger generations, highly accustomed to digital engagements, appreciate the transparency and ability to compare features and prices online. Additionally, the COVID-19 pandemic catalyzed online adoption as lockdowns and social distancing measures limited physical dealership visits. Competitive pricing and cost efficiency further fuel demand, as online platforms reduce overhead costs and increase pricing transparency, offering consumers advantageous deals.
MARKET SEGMENTATION
Breakup by Vehicle Type:
- Hatchback: Compact vehicles with a rear door opening upwards, favored by urban dwellers for practicality and affordability.
- Sedan: Traditional design vehicles with separate trunks, popular among families and commuters, offering advanced safety and tech features.
- SUV: Largest segment, known for toughness, spaciousness, and versatility, suitable for families and outdoor enthusiasts.
- Others: Not specified in source.
Breakup by Propulsion Type:
- Petrol: Largest share, valued for smooth performance and affordability.
- Diesel: Known for fuel efficiency and towing power, growing at a CAGR of 3.2% (2024-2032).
- Others: Not specified in source.
Breakup by Category:
- Pre-Owned Vehicle: Leading segment, attractive for cost savings and transparency.
- New Vehicle: A Growing segment with access to the latest models and customization options.
Breakup by Region:
- North America: Largest market, driven by tech-savvy consumers and widespread online platforms.
- Asia Pacific: Rapid growth due to rising population and income.
- Europe: Strong growth with interest in eco-friendly vehicles.
- Latin America: Emerging market with a growing e-commerce culture.
- Middle East and Africa: Nascent adoption with varied regional differences.
REGIONAL INSIGHTS
North America dominates the online car buying market, led by the United States and Canada. The region showcases significant growth due to tech-savvy consumers valuing convenience and transparency, extensive vehicle selections online, and home delivery options. The COVID-19 pandemic accelerated market adoption significantly. North America holds the largest market share globally, reflecting its lead in digital automotive commerce.
RECENT DEVELOPMENTS NEWS
- December 2, 2020: Asbury Automotive Group Inc. launched Clicklane, a digital communication platform enhancing online car purchasing within their store network, developed with Gubagoo.
- November 15, 2022: AutoNation Inc. acquired approximately 6.1% of TrueCar, a digital automotive marketplace, reinforcing its commitment to emerging technologies and customer experience.
- November 7, 2023: CarGurus Inc. completed the acquisition of CarOffer, a technology solutions provider for vehicle buying and selling, to expand its automotive market presence.
KEY PLAYERS
- Asbury Automotive Group
- AutoNation
- CarGurus, Inc.
- CarMax Enterprise Services, LLC
- Cars and Bids LLC
- Cars.com
- CarsDirect.com
- Carvana
- Group 1 Automotive, Inc.
- Hendrick Automotive Group
- Lithia Motors
- Miami Lakes Automall
- TrueCar, Inc
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