by The online car buying market allows consumers to purchase new and used cars online through an e-commerce platform. Key advantages of online car buying include ability to research various models, trim levels, negotiate prices, apply for financing, and purchase a vehicle without visiting a dealership. The need for online platforms has increased as they provide a hassle-free buying experience where consumers can browse inventory, get actual prices and complete the entire purchase from the comfort of their home.
The Global online car buying market is estimated to be valued at US$ 751.83 Bn 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 Growth 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. The online platform allows key players to reach a wider customer base globally and improve sales.
The key opportunities in the online car buying market include increasing millennials preference for online shopping and reduced need for visiting dealerships. The COVID-19 pandemic has further accelerated digital transformation and renewed consumer interest in contactless purchase experience.
The increasing internet penetration and shift towards online shopping are driving the global expansion of online car buying market. Key players are focused on expanding into international markets and targeting countries with fast growing internet usage. The widespread adoption of smartphones along with the emergence of new online platform providers are supporting the market’s growth worldwide.
Market Drivers
The growing shift towards contactless buying is a major driver for the online car buying market. The COVID-19 pandemic outbreak has prompted consumers to avoid visiting crowded areas like dealerships and focus on digital shopping channels. The convenience and flexibility offered through online platforms is attracting more customers preferring hassle-free transactions. The ability to compare multiple options from the comfort of one’s home and seamless purchase process is expected to drive higher adoption of online car buying over the forecast period.
PEST Analysis
Political: The automotive industry is regulated by government policies and regulations regarding vehicle emissions, safety standards and tariffs which impact the online car buying market. Changes in these policies directly impact the demand and supply in this market.
Economic: A rise in the disposable incomes and purchasing power of customers contributes to increased spending on big-ticket items like vehicles. Growth in the number of online shoppers also drives demand in the online car buying market.
Social: Younger customers who are tech-savvy and comfortable with online shopping are major contributors to the online car buying market. Consumers prefer the convenience of researching, selecting and purchasing a vehicle online from the comfort of their home.
Technological: Integration of virtual reality, artificial intelligence and advanced data analytics enables customers to access high-quality visualizations and receive personalized recommendations online matching their specifications and budget. Online sellers also use these technologies to manage their inventory, sales and customer service more effectively.
In terms of value, the online car buying market is concentrated in developed regions like North America and Europe which account for over 60% share due to high internet penetration, digital adoption and spending power of consumers.
The Asia Pacific region is expected to be the fastest growing market during the forecast period owing to a rapidly expanding middle class, increasing car ownership in populous nations like China and India, and growing internet usage on mobile devices in the region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
