New and used vehicles can be purchased in a variety of ways in North America, whether through franchised car dealerships, original equipment manufacturer (OEM) agency sales channels, or third-party online marketplaces. The need for an online marketplace came into focus in the early months of the COVID-19 pandemic as many companies selling cars did not offer fully digital services and OEMs had to temporarily close physical dealerships to the public.
Consumers’ demand for more buying choices and intra-brand competition among dealerships drive the growth of online marketplaces, which facilitate the sale of new cars between a variety of brands’ dealers and car buyers. A marketplace partnership can help automakers and dealerships expand their reach to a wider customer base.
The emerging market still has potential for evolution with the development of more value-added, customer-oriented digital services. For example, some marketplaces do not yet allow seller and buyer interaction through a chat interface. Marketplace providers will have to focus on digitalizing their web portals for all aspects of the customer journey, including vehicle tours, configuration, digital signature, and the ability to facilitate transactions digitally.
Millennials and Generation Z made up more than 40% of the North American population in 2021. As they become the largest car-buying group,
they will expect a seamless and digital purchase journey. With high-speed 5G internet becoming more common, marketplace providers will be
able to offer metaverse experiences that include sophisticated augmented and virtual reality that can superimpose images on a real-world view or simulate a 3D image.
The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the
Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in an industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned.
Author: Jagadeesh Chandran
Strategic Imperative
Strategic Imperative (continued)
Growth Environment
Growth Environment (continued)
Frost Radar™: North American New Car Online Marketplaces
Frost Radar™: Competitive Environment
Frost Radar™: Competitive Environment (continued)
Frost Radar™: Competitive Environment (continued)
Auto123
AutoCatch
Autotrader
CarGurus
Carpages
Cars.com
CarSaver
CarsDirect
eBay Motors
TrueCar
Strategic Insights
Significance of Being on the Frost Radar™
Frost Radar™ Empowers the CEO’s Growth Team
Frost Radar™ Empowers Investors
Frost Radar™ Empowers Customers
Frost Radar™ Empowers the Board of Directors
Frost Radar™: Benchmarking Future Growth Potential
Frost Radar™: Benchmarking Future Growth Potential
Legal Disclaimer
Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform
Growth Index
Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.
- Market Share (previous 3 years)
This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years. - Revenue Growth (previous 3 years)
This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™. - Growth Pipeline
This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities. - Vision and Strategy
This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision? - Sales and Marketing
This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.
Innovation Index
Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.
- INNOVATION SCALABILITY
This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. - RESEARCH AND DEVELOPMENT
This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. - PRODUCT PORTFOLIO
This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. - MEGATRENDS LEVERAGE
This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. - CUSTOMER ALIGNMENT
This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.
Significance of Being on the Frost Radar™
Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.
- GROWTH POTENTIAL
Your organization has significant future growth potential, which makes it a Company to Action. - BEST PRACTICES
Your organization is well positioned to shape Growth Pipeline™ best practices in your industry. - COMPETITIVE INTENSITY
Your organization is one of the key drivers of competitive intensity in the growth environment. - CUSTOMER VALUE
Your organization has demonstrated the ability to significantly enhance its customer value proposition. - PARTNER POTENTIAL
Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.
Speak directly with our analytics experts for tailored recommendations.
Purchase includes:
- Report download
- Growth Dialog™ with our experts
Growth Dialog™
A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
- Companies to Action
Impacting your company's future growth potential.
| Deliverable Type | Frost Radar |
|---|---|
| Author | Jagadeesh Chandran |
| Industries | Automotive |
| No Index | No |
| Is Prebook | No |
| Podcast | No |
| WIP Number | K881-01-00-00-00 |
Frost Radar™: North American New Car Online Marketplaces, 2023
A Benchmarking System to Spark Companies to Action - Innovation that Fuels New Deal Flow and Growth Pipelines
30-Dec-2022
North America
Frost Radar
