Consumers will increasingly turn to the industry's online VIN-search websites to check a car's history
Los Angeles, CA (PRWEB) April 19, 2013
The Vehicle History Report Providers industry gathers and distributes information about a used vehicle's past for consumers and dealers buying and selling used cars. According to IBISWorld industry analyst Matthew MacFarland, “Reports are typically produced by running a vehicle's unique vehicle identification number (VIN) against the company's database of information built from data purchased from insurers, state motor vehicle and police departments, manufacturers and dealers.” Two major brands, Carfax and AutoCheck, have far more name recognition than competitors, but a number of competitors that operate exclusively online and for consumers exist.
During the past five years, the industry has followed the trends of the larger used car sales industry. “History reports are typically bought when a used car dealer's customer is interested in a specific vehicle, or when that consumer wants to check a vehicle's history personally,” says MacFarland. As such, economic trends that influence consumer spending behavior have determined the industry's performance. During the past five years, stagnant per capita disposable income and lower car sales led revenue to decline at an annualized rate of 1.0% to $516.2 million in 2013. Since the recession, tentative improvements in the US economy since 2010 have helped raise consumer purchasing power, to the industry's benefit. Revenue is expected to increase about 1.7% in 2013.
The Vehicle History Report Providers industry has a medium level of concentration, with the top two firms in the industry making up 45.4% of its market share. Aside from major players Carfax and Experian, no other firms come close to having a substantial market share. There are 72 other companies in the industry, mostly small online startups. Carfax's breadth of historical information and Experian's scale, as well as both companies' strong brand recognition and customer loyalty, make it difficult for smaller, newer companies to compete effectively. As a result, this industry's market share concentration has increased over the past five years.
While this small industry contracted during the past five years, with enterprise and employee numbers falling slightly, its fairly high profit levels—estimated at 24.5% of revenue in 2013—are expected to attract more internet-based and mobile app companies in the coming years. As more consumers become comfortable selling and buying cars over the internet, VIN-search websites of major companies and startups alike will become more important. Meanwhile, wider economic recovery is forecast to pad consumers' wallets and drive an increase in auto sales. While rising used car prices brought about by low supply will limit industry growth, revenue is still projected to rise during the five years to 2018.
For more information, visit IBISWorld’s Vehicle History Report Providers in the US industry report page.
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IBISWorld Industry Report Key Topics
Industry firms provide detailed vehicle history reports to consumers and businesses. These reports include information about the vehicle's accident history and usually include an estimated current value. This industry excludes auto repair facilities, shops and independent mechanics that can inspect a vehicle and provide information on its history.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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