Global Used Car Market Extends at a Healthy CAGR of 6.17% by 2030

Introduction

Used automobiles are sold through various channels, including franchise and independent car dealers, rental car agencies, auctions, private party sales, and leasing offices. The high cost of new vehicles also discourages many consumers from buying them, which raises the market for used vehicles. Due to reasons including the high cost of new cars, concerns about affordability, and rising demand from franchisees, leasing offices, and car dealers for off-lease vehicles and subscription services, the market for used cars is predicted to grow.

Market Dynamics

High Cost of Vehicle and Affordability Concern Drives the Global Market

The car industry has been witnessing increased demand for advanced vehicle features such as power steering, climate control, and anti-lock braking systems. This has led to an addition in the price of new cars. Moreover, the price increase in 2019, led by mainstream passenger car segments, poses a sign of affordability challenges in the new market. An increase in vehicle prices is returning to the used market. Therefore, the automotive market has witnessed increased used vehicle sales compared to new vehicles. This is expected to fuel the demand for used vehicles shortly.

Growth of E-commerce and Online Technologies Creates Tremendous Opportunities

People can now access information much more efficiently due to advancements in the telecom industry, increased internet connectivity, and rising urbanization. Owners of used cars use these components to share information about their vehicles and advertise them swiftly. This online platform has shortened sales, enabling more parties to sell and buy cars.

Regional Analysis

Asia-Pacific is the largest global used car market shareholder and is expected to grow at a CAGR of 9.3% during the forecast period. Demand for various vehicle types, from entry-level petrol to high-end diesel, is increasing in Asia-Pacific. Strict government regulations on old automobiles, urbanization, rising fuel prices, and technology developments in the used car sector significantly impact the used car market globally. Additional factors influencing the expansion of the used car industry include an increase in population, simple affordability, an increase in discretionary income, low vehicle ownership rates among millennials due to high vehicle expenses, and a decrease in the population-to-car ratio.

Europe is anticipated to grow at a CAGR of 10.2% during the forecast period. It is anticipated that the European used car market will continue to rule and grow significantly during the projection period due to the increased popularity of shared mobility. The major forces driving the expansion of the used car market in Europe are low pricing and a rise in demand for cab-hailing services.

North America is expected to experience an increase in demand for used cars compared to other regions because countries like the U.S., Canada, and Mexico have one of the highest rates of used car sales. It is anticipated that the market for used vehicles in North America will grow dramatically due to the high cost of new cars. The North American used car market is predicted to grow significantly throughout the forecast period due to rising internet usage, online tools for buying or researching used automobiles, warranties offered on pre-owned vehicles, and various purchase alternatives.

Key Highlights

• The global used car market was valued at USD 1,503 billion in 2021. It is projected to reach USD 2,755 billion by 2030, growing at a CAGR of 6.17% during the forecast period (2022-2030).
• Based on vehicle type, the global used car market is bifurcated into hatchbacks, sedans, and SUVs. The SUV segment is the highest contributor to the market and is expected to grow at a CAGR of 7.8% during the forecast period.
• Based on fuel type, the global used car market is bifurcated into petrol, diesel, and others. The petrol segment owns the highest market share and is expected to grow at a CAGR of 7.9% during the forecast period.
• Based on distribution channels, the global used car market is bifurcated into franchised dealers, independent dealers, and others (private sales, offline, online). The franchised dealer segment is the highest contributor to the market and is expected to grow at a CAGR of 8.9% during the forecast period.
• Asia-Pacific is the largest global used car market shareholder and is expected to grow at a CAGR of 9.3% during the forecast period.

Competitive Players

1. Asbury Automotive Group Inc
2. Autonation Inc.
3. Big Boy Toyz Ltd.
4. Carmax Business Services LLC
5. Cars24 Services Private Limited
6. Group1 Automotive Inc.
7. Hendrick Automotive Group
8. Lithia Motors Inc.
9. Mahindra First Choice Wheels Ltd
10. Truecar Inc.

Recent Developments

Recent Developments

• May 2024 - The auto assemblers in Pakistan are requesting that the government implement policy changes to ensure an equitable playing field between locally produced vehicles and imported used cars. They contend that the current tax structure provides an unfair advantage to imported used cars.

Segmentation

1. By Vehicle Type
   1. Hatchback
   2. Sedan
   3. SUV
2. By Fuel Type
   1. Petrol
   2. Diesel
   3. Others
3. By Distribution Channel
   1. Franchised Dealer
   2. Independent Dealer
   3. Others (Private Sales, Offline, Online)
4. By Size
   1. Mid-Size
   2. Compact
   3. SUVs