Mathilde Carlier
Research Expert covering transportation and logistics
Online car sales worldwide - statistics & facts
Amid the pandemic, restrictions on retail openings for non-essential businesses encouraged auto dealers to digitalize and succumb to the broader trend of growing e-commerce and a preference for personal travel. As of 2021, global automotive e-commerce was valued at a market size of 38.67 billion U.S. dollars and is forecast to spike in the next ten years, up by a compound annual growth rate of 17.5 percent to around 176.24 billion U.S. dollars in 2031. The online automotive aftermarket is also expected to record strong growth. This rise in popularity has been benefiting online automotive marketplaces worldwide, with Cazoo being forecast to record a compound annual growth rate of 209 percent between 2020 and 2022
The market is not just expanding on computers but also on smartphones, with mobile apps accounting for a significant portion of digital sales. In a 2022 survey, close to 23 percent of respondents mentioned making their automotive online purchases through their mobile phone. Partly because of this ease of access to the market, there are many new entrants from outside the conventional car dealer business, including Amazon Vehicles or China's Autohome platform. Meanwhile, manufacturers of new vehicles have held an online presence for many years and have further digitalized their purchasing services.
The U.S. automotive e-commerce market reported a rapid annual sales growth of over 30 percent year-over-year in February 2022, illustrating the potential of online vehicle and vehicle part sales. However, while consumers recognize the benefits of automotive e-commerce, trust in online marketplaces remains low in the U.S. Online retailers, including online dealerships and automakers, fare better. This is partly due to their established popularity among customers.
The more established online used vehicle market helps boost the global automotive e-commerce
Used vehicle dealers accelerated their efforts to offer digital services. CarMax, Carvana, and Auto1 were among the leading online car retailers in 2021, with CarMax reporting over 31.9 billion U.S. dollars in global revenue for the fiscal year that ended February 28, 2022.The market is not just expanding on computers but also on smartphones, with mobile apps accounting for a significant portion of digital sales. In a 2022 survey, close to 23 percent of respondents mentioned making their automotive online purchases through their mobile phone. Partly because of this ease of access to the market, there are many new entrants from outside the conventional car dealer business, including Amazon Vehicles or China's Autohome platform. Meanwhile, manufacturers of new vehicles have held an online presence for many years and have further digitalized their purchasing services.
Consumers' trust mitigates the benefits of e-commerce in online platforms
Buying cars online offers several advantages over in-person dealerships. Among other things, it is perceived as more convenient for consumers, as it facilitates a flexible car buying experience. Consumers also highlighted the ease of use of e-commerce in six countries surveyed in October 2021, partly due to how accessible online buying platforms are to customers. These benefits of online shopping were even more appreciated by consumers throughout the COVID-19 pandemic when three-quarters of customers intending to purchase a car in the U.S. stated they were considering a contactless delivery of test-drive vehicles important during the pandemic.The U.S. automotive e-commerce market reported a rapid annual sales growth of over 30 percent year-over-year in February 2022, illustrating the potential of online vehicle and vehicle part sales. However, while consumers recognize the benefits of automotive e-commerce, trust in online marketplaces remains low in the U.S. Online retailers, including online dealerships and automakers, fare better. This is partly due to their established popularity among customers.
