Global Online Car Buying Market Report 2025-2033: Propulsion Trends Show Rapid Shift Toward Hybrid and Electric Types

The global Online Car Buying Market reached a size of USD 357 Billion in 2024 and is forecasted to expand to USD 795 Billion by 2033, growing at a CAGR of 9.3% during 2025-2033. This expansion is propelled by factors such as digitalization in the automotive sector, changing consumer preferences, enhanced cost efficiency, and the convenience offered by online platforms. The market benefits from improved transparency, accessibility, and evolving user engagement technologies like AR and AI.

Study Assumption Years

Base Year: 2024
Historical Year/Period: 2019-2024
Forecast Year/Period: 2025-2033

Online Car Buying Market Key Takeaways

The global online car buying market size was valued at USD 357 Billion in 2024.
The market is expected to grow at a CAGR of 9.3% from 2025 to 2033.
The forecast period for the market is 2025-2033.
Growth is driven by convenience and accessibility, transparency, digitalization, changing consumer behavior, and competitive pricing.
SUVs hold the largest vehicle-type segment in the market.
Petrol-powered vehicles dominate the propulsion type segment.
The pre-owned vehicle category represents the leading market share.
North America leads the regional market share globally.

Sample Request Link:
https://www.imarcgroup.com/online-car-buying-market/requestsample

Market Growth Factors

The online car buying market is witnessing vigorous growth due to its unparalleled convenience and accessibility. Buyers can avoid multiple trips to physical dealerships, save time and energy, and access detailed specifications, pricing, and reviews from the comfort of home. This platform allows for research beyond geographic limitations, benefiting even remote areas with no physical dealerships. The availability of online transactions outside routine business hours enables consumers to make decisions at their own pace, encompassing around 3.4 billion rural inhabitants globally as per the World Bank 2021.

Transparency and the wealth of information available online are pivotal drivers. Consumers seeking openness can access detailed car features, prices, and user reviews, enabling swift and informed decision-making. Tools on many websites calculate monthly payments and financing options, assisting buyers in effective financial planning. This abundance of data equips users to select vehicles that best fit their needs and budgets, enhancing buyer confidence in online purchases.

Technological advancements are significantly bolstering the market. Artificial intelligence-driven chatbots, augmented reality, and virtual showrooms improve user engagement, making the buying process smoother and more immersive. AR technology allows buyers to visualize different car colors and models in real-time. Moreover, AI-powered virtual assistants guide users through queries, financing, and other purchase stages. The pandemic accelerated online engagement, with consumers adapting to digital buying in favor of safety and efficiency. Alongside, competitive pricing models online often undercut traditional dealership costs by saving overheads and offering transparent bidding tools.

Market Segmentation

By Vehicle Type:

SUV: Represents the largest segment by market share due to versatility, spaciousness, and availability of various sizes, including compact and full-size models. SUVs appeal to families and outdoor enthusiasts valuing robust and adaptable vehicles.
Hatchback: Known for compactness and versatility, popular among urban dwellers and young drivers. The segment is seeing a rise in hybrid and electric hatchbacks.
Sedan: Offers traditional design with a separate trunk, favored by families and commuters. Includes compact to full-size models with advanced safety and infotainment features.

By Propulsion Type:

Petrol: Holds the dominant market share, known for smooth performance and affordability compared to alternatives like electric vehicles. Petrol vehicles are widely used in light-duty transportation, accounting for 57% of transportation sector energy in the US in 2022.
Diesel: Noted for higher fuel efficiency and torque at lower RPMs, popular among commercial and heavy-duty vehicle users. The diesel engine market grew by USD 229 billion in 2023 with a CAGR forecast of 3.2% from 2024 to 2032.

By Category:

Pre-Owned Vehicle: Largest segment, propelled by affordability and accessibility via online platforms offering detailed vehicle histories and transparent listings.
New Vehicle: Increasingly popular due to access to the latest models and the ability to customize vehicles online, facilitating streamlined purchases without physical dealership visits.

Regional Insights

North America leads the online car buying market, representing the largest regional share. The U.S. and Canada drive growth with well-established e-commerce car platforms, tech-savvy consumers, and the widespread availability of home delivery. The COVID-19 pandemic further accelerated online car purchases as safer alternatives to dealership visits became preferred, feeding the rapid adoption and expansion of online car buying services.

Recent Developments & News

December 2, 2020: Asbury Automotive Group Inc. launched Clicklane, a digital communication ecosystem enhancing the online car buying and selling experience, developed in collaboration with Gubagoo.
November 15, 2022: AutoNation Inc. acquired about 6.1% of TrueCar, reinforcing its commitment to emerging technologies and customer experiences.
November 7, 2023: CarGurus Inc. completed the acquisition of CarOffer, a technology solutions provider for vehicle buying and selling, to strengthen its market capabilities.

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

Get a Custom Market Research Report for Your Business:
https://www.imarcgroup.com/request?type=report&id=4876&flag=E

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

Contact Us
IMARC Group,
134 N 4th St. Brooklyn, NY 11249, USA
Email: sales@imarcgroup.com
Tel No: (D) +91 120 433 0800
United States: +1-201971-6302

IMARC Group is a global management consulting firm that helps the world's most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

This release was published on openPR.