2023 DMS Market Report by
DealerTech Nerd

Our 2022 DMS Market Report is the first of its kind, providing market and competitive intelligence on the US DMS industry.

The report touches on the DMS category within the entire DealerTech segment, core DMS functions and layered apps, DMS vendors and solutions, DMS vendor revenues based on estimated market share and average dealer spend, DMS total addressable market (TAM), as well as DMS market forces and future trends of the industry, among others.

Readers will take away critical insights into the current and trending DMS market. The report offers detailed descriptions complemented with comprehensive data points that may assist:

01

Executives from dealerships and OEMs in DMS decision-making

02

Software leaders in their DMS go-to-market and product strategy

03

Researchers and investors in DMS market and vendor assessments

Key Findings

  • The DealerTech segment for dealership software in the US is $7 Bil. strong.
  • Eight DealerTech value clusters with 40 categories are compassing solutions from 800+ vendors for all dealership departments.
  • The DMS category for franchised car dealers in the US spans over ten providers resulting in a $1.4 Bil market size.
  • The significance of a DMS is reflected in its price as the DealerTech solution with the highest monthly spend (~$6,300 pm per site).
  • ~80% of the US DMS market share is captured by three providers: CDK Global, Dealertrack DMS, and The Reynolds and Reynolds Company (R&R).
  • The market disruptor Tekion is valued at more than $3.5 Bil.
  • The DMS evolves from a system-of-record to an engagement tool.
  • DMS providers can be categorized into Dealer (Software) Advocates, Auto Retail Enablers, and Mobility Economy Accelerators.
  • The DMS category is expected to grow by 6.7% CAGR until 2027, adding $541 Mil. to the market ($1.9 Bil. In total).
  • Future DMS decisions are increasingly unpredictable as the DMS will be serving more than just dealers: OEMs, DSPs, and Non-Saas.
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  • Value Clusters and DealerTech Categories
  • Monthly Dealer Spending per DealerTech Category
  • DMS Purpose and Value-Add
  • DMS in North America vs. the Rest of the World
  • DMS Core and Layered App
  • DMS Revenue Elements
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  • Top 10 DMS Vendors
  • Market Share Estimates
  • DMS Vendor Price Overview
  • High-Level Solution Comparison
  • DMS Vendor SWOTs
  • Recent Acquisitions by DMS providers
  • Strategic Map and competitive matrix
  • Highlights of Tekion, CDK Global, Cox Automotive, R&R, and others
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  • Dealer SaaS Investment
  • DMS Total Addressable Market (TAM)
  • DMS Stickiness in Strategic Accounts (Top 25)
  • Dealer DMS Decision Points
  • DMS Switching Costs
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  • DMS Evolution
  • Recode Initiatives
  • DMS Product Lifecycle Implications
  • DMS Integration & Network Effects
  • PESTL
  • Porter’s 5 Forces (threat of new entrants incl. barriers of entry, DMS substitutes, DMS vendor bargaining power, dealer bargaining power, competitive rivalry)
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  • DMS Outlook based on Current Trends (EVs, Covid-19)
  • DMS Trends
  • 2027 DMS Revenue Predictions (ARPA, ARR)
  • Next-Gen DMS Outlook

Key Words:

  • CDK Global Drive
  • Cox Automotive
  • Dealertrack DMS
  • The Reynolds and Reynolds Company (R&R) Ignite
  • Tekion Automotive Retail Cloud (ARC)
  • Solera
  • Auto/Mate
  • Autosoft GO
  • PBS v10
  • DealerBuilt ceDMS LightYear
  • Dominion Dealer Solutions VUE
  • Quorum XSellerator
  • DMS Market Share
  • DMS ARR, ARPA
  • Layered Apps
  • PESTL
  • Porter’s 5 Forces
  • Covid-19
  • Electric Vehicles (EV)