The global Online Car Buying Market size reached USD 390.4 billion in 2025 and is projected to grow to USD 836.4 billion by 2034, with a CAGR of 8.80% from 2026 to 2034. Growth is driven by increasing convenience, transparency, digitalization in the automotive industry, evolving consumer behavior, and competitive pricing. The market benefits from technological innovations such as AI chatbots, AR, and virtual showrooms, enhancing user engagement.

Study Assumption Years

  • Base Year: 2025

  • Historical Years: 2020-2025

  • Forecast Period: 2026-2034

Online Car Buying Market Key Takeaways

  • The global online car buying market size was USD 390.4 Billion in 2025.

  • The market is expected to grow at a CAGR of 8.80% over the forecast period 2026-2034.

  • SUV segment holds the largest market share due to its adaptability and spaciousness.

  • Petrol propulsion type dominates the market owing to its smooth performance and affordability.

  • Pre-owned vehicles represent the leading category, driven by affordability and transparency.

  • North America accounts for the largest regional market share.

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Market Growth Factors

The global online car buying market is growing strongly, supported by the rising preference for online transactions. Consumers appreciate the convenience of avoiding dealership visits, the ability to research specifications and prices at their own pace, and access to a wide selection of vehicles beyond their geographical limits. According to the World Bank 2021 report, around 3.4 billion people lived in rural areas, benefiting from the accessibility of online car buying platforms which serve even regions without physical dealerships.

Technological advancements are pivotal market growth drivers. Innovations like AI-driven chatbots, augmented reality (AR) showrooms, and virtual assistants streamline the buying process and enhance customer engagement. Buyers can virtually inspect vehicles and experiment with features in real-time. The digitalization of the automotive industry allows automakers and dealers to adopt user-friendly websites and mobile apps to facilitate convenient online purchases with features such as financing options and home delivery.

Changing consumer preferences further fuel market demand. Younger generations, highly familiar with digital platforms, prefer the transparency and control provided by online buying. The COVID-19 pandemic accelerated adoption due to lockdowns limiting in-person dealership visits, thus promoting safer and more convenient digital alternatives. Additionally, cost-efficiency and competitive pricing available through online platforms, enabled by lower overhead and dealer competition, attract budget-conscious buyers. Tools like finance calculators and bidding options enhance price transparency and empower consumers to make informed financial decisions.

Market Segmentation

Breakup by Vehicle Type:

  • SUV: Largest market segment; valued at USD 826.2 billion (2023 forecast), with a CAGR of 4.5% from 2024 to 2032. SUVs offer durability, higher ground clearance, and versatile passenger and cargo space, appealing to families and outdoor enthusiasts.

  • Hatchback: Compact, practical, and economical, popular among urban and young drivers. The segment is witnessing growth in hybrid and electric models.

  • Sedan: Traditional design with separate trunks, favored for comfort and advanced safety and infotainment technology.

Breakup by Propulsion Type:

  • Petrol: Holds the largest market share. Known for smooth, responsive performance and lower upfront costs. According to the US EIA (2022), gasoline accounted for 57% of transportation energy use and 45% of petroleum use.

  • Diesel: Known for fuel efficiency and torque, appealing for commercial and heavy-duty applications. The global diesel engine industry reached USD 229.0 billion in 2023, with a forecast CAGR of 3.2% from 2024 to 2032.

Breakup by Category:

  • Pre-Owned Vehicle: Largest segment driven by affordability, wide variety, transparent vehicle history reports, and user reviews enhancing buyer confidence.

  • New Vehicle: Growing segment offering latest models, customization options, and convenience through virtual configuration and home delivery.

Regional Insights

North America leads the global online car buying market, accounting for the largest share. The US and Canada markets benefit from tech-savvy consumers, established e-commerce platforms, and accelerated growth due to COVID-19 driving digital adoption. The presence of home delivery and extensive vehicle selections bolster the region's dominance. Europe and Asia Pacific follow with growing adoption driven by digitalization, population size, and rising disposable incomes.

Recent Developments & News

  • December 2, 2020: Asbury Automotive Group Inc. launched Clicklane, a technology ecosystem enabling complete online car buying and selling, developed in partnership with Gubagoo.

  • November 15, 2022: AutoNation Inc. acquired approximately 6.1% stake in TrueCar, a prominent digital marketplace within the automotive sector, demonstrating commitment to emerging technologies.

  • November 7, 2023: CarGurus Inc. completed acquisition of CarOffer, a technology solution provider facilitating vehicle buying and selling, expanding CarGurus’ 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

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