Online Car Buying Market by Class type and Geography - Forecast and Analysis 2022-2026

The online car buying market share is expected to increase by USD 214.41 million from 2021 to 2026, and the market’s growth momentum will accelerate at a CAGR of 12.4%.

This online car buying market research report provides valuable insights into the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the online car buying market segmentations by Class Type (pre-owned and new vehicle) and Geography (North America, Europe, APAC, South America, and Middle East and Africa). The online car buying market report also offers information on several market vendors, including American City Business Journals Inc., Asbury Automotive Group Inc., AutoNation Inc., CarGurus Inc., CarMax Inc., Cars & 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, and TrueCar Inc., among others.

What will the Online Car Buying Market Size be During the Forecast Period?

Download Report Sample to Unlock the Online Car Buying Market Size for the Forecast Period and Other Important Statistics

 

Online Car Buying Market: Key Drivers, Trends, and Challenges

The research studied the historical data considered for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the global online car buying market.

Key Online Car Buying Market Driver

The increasing adoption of e-commerce and technological advancements in online channels are key factors driving the global online car buying market growth. Technological advancements such as the development of smartphones and rising Internet penetration are spurring the use of e-commerce applications to boost the sales of businesses, while the introduction of hybrid and electric vehicles has changed the buyers' position in the global online car buying market. With the aid of online technology, consumers are learning more about the vehicle, the on-road prices of new automobiles, residual value, third-party profit margins, and other factors for used cars.  Additionally,  growing urbanization, an increase in Internet connectivity, and the growth of the telecom industry have made it possible for the general public to access information much more easily. Online car dealers are increasingly using these factors to advertise their vehicles and disseminate information about them. The sale process has been streamlined on web platforms, which also makes it possible for more stakeholders to sell and acquire used cars. Thus, the growing e-commerce industry and the increasing adoption of technological advancements by vendors will propel the growth of the global online car buying market during the forecast period.

Key Online Car Buying Market Trend

Easy online financing will fuel the global online car buying market growth. Financing options are widely available on many car-buying websites, which encourages customers to get preapproval for loans before they even start looking for cars on their websites. According to a survey, 71% of customers choose to finance through the site where they purchased their car. These customers are highly satisfied with the financing options available on car-buying websites. Hassle-free loan applications and favorable interest rates attract more customers to opt for online financing options. For instance, AutoNation Inc. provides hassle-free auto financing options for every customer according to his or her needs and requirements. The company offers a wide range of finance programs that makes auto financing simple and clear. To provide a variety of financing and leasing alternatives, AutoNation has partnered with hundreds of banks in the US. Owing to such easy financing options, customers are attracted to online car-buying options. Thus, the availability of hassle-free and paperless online auto finance provided by car-buying websites will fuel the growth of the global online car buying market during the forecast period.

Key Online Car Buying Market Challenge

Limited customer awareness and acceptance in semi-urban and rural areas are the major challenges to the global online car buying market growth. Buying a car online is still an urban concept despite its prevalence and its numerous advantages. The acceptance of buying a car through online channels is low in semi-urban and rural areas. Buying cars online has not penetrated a large portion of the population, particularly in developing countries such as India. In emerging economies, including India, China, and Indonesia, a car is considered a status symbol. Thus, customers in such countries generally prefer to buy a car through physical stores where they can physically inspect the features of the car. For the middle-class population, buying a car is a major investment, and they mostly prefer buying through offline physical stores. Thus, limited consumer awareness and low acceptance in semi-urban areas will impede the growth of the global online car buying market during the forecast period.

This online car buying market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global online car buying market as a part of the global automotive market under the global automobiles and components industry. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the online car buying market during the forecast period.

Who are the Major Online Car Buying Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• 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.

This statistical study of the online car buying market encompasses successful business strategies deployed by key vendors. The online car buying market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.

The report on the global online car buying market contains comprehensive market knowledge and an in-depth vendor landscape add-on to an analysis of the key vendors.

Online Car Buying Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the online car buying market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

The value chain of the global automotive market includes the following core components:

• Inputs
• Inbound logistics
• Operations
• Outbound logistics
• Marketing and sales
• Service
• Support activities
• Innovation

The report has further elucidated other innovative approaches being followed by service providers to ensure a sustainable market presence.

Which are the Key Regions for Online Car Buying Market?

For more insights on the market share of various regions Request PDF Sample now!

46% of the market’s growth will originate from North America during the forecast period. The US and Canada are the key markets for the online car buying market in North America. Market growth in this region will be slower than the growth of the market in other regions.

The increasing adoption of e-commerce and technological advancements in online channels will facilitate the online car buying market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID-19 Impact and Recovery Analysis

The outbreak of COVID-19 in 2020 positively impacted the growth of the online car buying market in North America. The pandemic resulted in the shutdown of showrooms and other car dealer outlets, which spurred consumers to purchase vehicles online. Owing to the pandemic, online shopping gained prominence, and customer buying behavior also changed. The pandemic has compelled many customers to buy cars online. For several car retailers in North America, the switch to digital retail proved to be profitable. Additionally, the majority of consumers favor online channels to purchase both new and used cars, which is anticipated to boost the growth of the online car buying market in North America during the forecast period. This trend is expected to continue during the forecast period due to rising Internet penetration and the growing e-commerce industry.

What are the Revenue-generating Class Type Segments in the Online Car Buying Market?

To gain further insights on the market contribution of various segments Request a PDF Sample

The online car buying market share growth in the pre-owned segment will be significant during the forecast period. Pre-owned was the largest segment of the global online car buying market and will continue to remain the largest segment during the forecast period owing to increasing demand for second-hand cars in developing economies such as India. The majority of consumers prefer online channels to buy pre-owned cars. The increased popularity of used automobiles, particularly among young people who can afford and easily obtain them through online channels, will augment the growth of the pre-owned segment during the forecast period

This report provides an accurate prediction of the contribution of all the segments to the growth of the online car buying market size and actionable market insights on the post-COVID-19 impact on each segment.

 

Online Car Buying Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 12.4%
Market growth 2022-2026	$214.41 million
Market structure	Fragmented
YoY growth (%)	12.0
Regional analysis	North America, Europe, APAC, South America, and the Middle East and Africa
Performing market contribution	North America at 46%
Key consumer countries	US, Canada, China, Japan, UK, and Germany
Competitive landscape	Leading companies, Competitive Strategies, Consumer engagement scope
Key companies profiled	American City Business Journals Inc., Asbury Automotive Group Inc., AutoNation Inc., CarGurus Inc., CarMax Inc., Cars & 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, and TrueCar Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

What are the Key Data Covered in this Online Car Buying Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive online car buying market growth during the next five years
• Precise estimation of the online car buying market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the online car buying industry across North America, Europe, APAC, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of online car buying market vendors

We can help! Our analysts can customize this report to meet your requirements. Get in touch