Used Car Market

The global Used Car Market is valued at USD 1654.8 Billion in 2022 and is projected to reach a value of USD 2759.3 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 6.6% between 2023 and 2030.

Premium Insights

The growing need for reasonably priced transportation options is the main factor behind the used automobile market's present notable expansion. The National Automobile Dealers Association (NADA) recently released data showing a 15% increase in used automobile sales in the US over the previous year. There are a number of contributing variables to this rise. First, many people are looking for affordable alternatives to new cars as a result of the COVID-19 pandemic's economic effects. Furthermore, the availability of online markets and platforms for the purchase and sale of Used Car has facilitated communication between buyers and sellers, increasing market activity. Concerns about sustainability are also impacting consumer behavior; a growing number of people are choosing old cars since they are a more ecologically friendly alternative. This development is consistent with people's increasing awareness of carbon footprint reduction. The appeal of this sector is further enhanced by the ongoing improvements in Used Car quality and dependability brought about by advancements in automotive technology.

• The combination of rising new car prices and an increasing preference for affordable, pre-owned vehicles is a driving force for the global Used Car market during the projection period from 2023 to 2030.
• The organized segment will continue to assert its dominance by vendor type, capturing the largest market share globally throughout the forecast period 2023 to 2030.
• In 2022, North America exhibited its market prowess, achieving the highest revenue share of over 30%.
• The Asia Pacific region is poised for remarkable growth, displaying a noteworthy Compound Annual Growth Rate (CAGR) between 2023 and 2030.

Top Market Trends

1. The growing availability of used electric vehicles (EVs) is one significant trend that is still present in the Used Car industry. An increasing number of pre-owned electric vehicles (EVs) are hitting the market as EV adoption rises. The demand of consumers for environmentally friendly transportation and the falling cost of secondhand electric vehicles are the driving forces behind this trend. The market for secondhand electric cars is anticipated to grow over the next several years due to government incentives and enhanced infrastructure for charging.
2. The persistence of online sales platforms' dominance is another noteworthy development. Nowadays, buyers favor the ease of looking at, contrasting, and buying Used Car online. Digital marketplaces have emerged as a result of this change, allowing customers to conduct deals and access large inventory without physically visiting dealerships. This trend is probably going to continue, changing the face of traditional car retail.
3. Manufacturer and dealership-certified pre-owned (CPO) programs are becoming more and more well-liked. These programs offer fully examined and restored secondhand cars with warranties, giving purchasers piece of mind. Buyers of Used Car are drawn to Certified Pre-Owned (CPO) vehicles due to their trustworthiness and dependability, which provides an extra degree of security to the transaction. This pattern in the Used Car industry indicates an increasing focus on customer happiness and quality.

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Economic Insights

Economic insights have had a tremendous impact on the Used Car industry, with the COVID-19 epidemic serving as a primary driver of change. At first, the market saw a steep drop in sales as lockdown measures and economic uncertainty curtailed consumer purchasing. The National Automobile Dealers Association (NADA) reports that used automobile sales fell by 30% in the first half of 2020. But as the pandemic continued, it had both beneficial and detrimental effects. Positively, the recession made many customers look for less expensive ways to get about, which increased the market for used automobiles. Sales then rebounded as a result, and the cost of several used automobile models increased. Further driving the industry was the trend toward remote work and the preference for private automobiles over public transportation. The production of new automobiles was hampered by supply chain interruptions and a scarcity of semiconductor chips, which increased demand for secondhand cars. In conclusion, COVID-19 first presented difficulties for the used automobile industry, but in the end, it raised the need and changed customer preferences, creating a volatile but robust market environment.

Market Segmentation

The Global Used Car Market is segregated into the below-mentioned segments as:The global Used Car market can be categorized into Vehicle Type, Vendor Type, Fuel Type, Size, Sales Channel, Region. The Used Car market can be categorized into Hybrid, Conventional, Electric based on Vehicle Type. The Used Car market can be categorized into Organized, Unorganized based on Vendor Type. The Used Car market can be categorized into Petrol, Diesel, Other Fuel Types based on Fuel Type. The Used Car market can be categorized into Compact, Mid-size, SUVs based on Size. The Used Car market can be categorized into Online, Offline based on Sales Channel. The Used Car market can be categorized into North America, Europe, Asia Pacific, Latin America, Middle East & Africa based on Region.

Based on Vehicle Type

EVs to Witness Fastest Used Car Sales Owing to Increasing Demand

In 2022, in the automobile industry, electric cars (EVs) are the most popular product right now and due to which the demand for used EV cars to grow over the coming years. This demand is the result of numerous important causes. First and foremost, there has been a notable trend towards electric vehicles due to growing concerns about environmental sustainability and the need to cut carbon emissions. The popularity of EVs is being further boosted by government incentives and subsidies offered globally to encourage the use of EVs. Furthermore, improvements in battery technology have enhanced the performance and range of electric vehicles, alleviating some of the original worries expressed by buyers. Moreover, EVs are now more feasible for everyday usage due to the convenience of home charging and the growth of the charging infrastructure. The development of infrastructure, government assistance, technological breakthroughs, and environmental concerns have brought electric vehicles to the forefront of the automobile industry.

Based on Vendor Type

Organized Vendors to Determine Wider Sales Owing to Increased Business Operability

In 2022, when it comes to marketplaces, people primarily choose structured enterprises. This is mostly because of the advantages they provide in terms of dependability, openness, and quality. Organizations that follow the rules uphold uniform procedures and frequently offer warranties or guarantees to inspire trust in their customers. Customers can more easily address any difficulties because they have established mechanisms for customer service and assistance. Organized companies also frequently make branding and marketing investments, which help to increase customer recognition and trust. Customers may favor the structured sector due to its dependability and consumer protection as opposed to disorganized enterprises, which may not offer these benefits.

Based on Fuel Type

Petrol-Based Fuel Vehicles to Widen their Footprint Due to Widespread Sales

In 2022, in the automotive industry, gasoline is the fuel product that is most frequently used. Multiple variables lead to its widespread use. First off, vehicles with gasoline engines are well-known for being adaptable and fitting for a variety of vehicle kinds, such as cars, motorbikes, and even certain hybrids. Second, as compared to diesel engines, gasoline engines often operate more smoothly and quietly. Third, convenience for customers is ensured by the fact that gasoline is typically more widely accessible at gas stations across the globe. Furthermore, despite worries about total carbon emissions, petrol engines are sometimes seen as being more environmentally benign than their diesel counterparts, particularly when it comes to urban air quality. Lastly, improvements in fuel efficiency and performance brought about by developments in petrol engine technology, such as direct injection and turbocharging, have further cemented petrol's market supremacy.

Based on Size

SUVs to Accommodate a Wider Sales Graph Owing to Greater Interior Space

In 2022, the most popular products in the automotive market are SUVs or sport utility vehicles. There are multiple primary reasons for their widespread use. First of all, families and individuals looking for greater interior space and cargo capacity frequently choose SUVs due to their adaptable and roomy interior. Secondly, a commanding view of the road is provided by their elevated seating posture, which many drivers find appealing for visibility and safety. Third, SUVs may be used in a variety of weather and road situations since they frequently have four-wheel or all-wheel drive choices. Furthermore, a sense of protection and safety is enhanced by their substantial size and sturdy design. Last but not least, a large selection of SUV models—from compact to full-size—meet a variety of consumer tastes and guarantee the brand's continued supremacy in the market.

Based on the Sales Channel

Online Platforms to Interact with Consumers with a Larger Scale Owing to Increased Functionality Aimed at Sales

In the contemporary market, online platforms to take the lead as the primary means of interaction over the upcoming years. This change is justified for a number of strong reasons. First of all, customers can browse, compare prices, and access a wide range of goods and services from the comfort of their homes or while they're on the go with the unmatched convenience that online platforms offer. Secondly, the plethora of online evaluations and information empowers customers to make well-informed choices, thereby augmenting their overall purchasing encounter. Thirdly, the COVID-19 pandemic has reinforced the dominance of the internet market by hastening the use of online buying due to safety concerns. Furthermore, a lot of people prefer using online platforms because of their ease of use for doorstep delivery and their access to international markets.

Based on Region

North America to Dominate Global Sales Owing to a Well-Established Infrastructure

The automotive market's greatest sales are linked to North America. Numerous factors contribute to this region's dominance, such as a sizable and affluent population, a firmly established automotive sector, and a culture that highly values owning a personal automobile. Particularly in North America, the United States and Canada have a long history of automobile ownership and a wide-ranging network of auto dealerships and manufacturing plants. The region's status as a vital market is further cemented by the presence of significant automakers there.

The market is expanding quickly in the Asia Pacific area. The main cause of this expansion is the rising affluence of people living in nations like China and India, which has increased demand for automobiles. Furthermore, the Asia Pacific area gains from its status as a significant worldwide center for car manufacturing, as numerous automakers establish production plants in the region to serve both local and foreign consumers. It is anticipated that this increase will continue as the region's emerging economies continue to prosper economically and urbanize.

Competitive Landscape

A wide range of competitors fighting for market share define the competitive landscape of the industry. Reputable automakers with a broad range of vehicle types and technology, including Toyota, Volkswagen, and General Motors, continue to have a strong global presence. Tech behemoths like Tesla have upended the industry with their cutting-edge electric cars. Furthermore, NIO and other recent entrants are becoming more popular in the electric vehicle market. Meanwhile, the retail side is changing due to online demands like AutoTrader and CarGurus. Startups and local businesses add to the market's dynamic by encouraging fierce rivalry and innovation among industry participants.

The key players in the global Used Car market include - Alibaba.com (China), Asbury Automotive Group (U.S.), AutoNation Inc. (U.S.), CarMax Business Services LLC (U.S.), Cox Automotive (U.S.), eBay Inc. (U.S.), Group 1 Automotive Inc. (U.S.), Hendrick Automotive Group (U.S.), LITHIA Motor Inc. (U.S.), Scout24 AG (Germany), TrueCar Inc. (U.S.) among others.

Recent Market Developments

• Porsche officially announced in June 2022 that it will open a used automobile dealership in India on June 8, 2022, under the Porsche Approved sub-division. The Porsche Center Kochi in Kerala will serve as the launch pad for this new venture.
• November 2022: By the end of 2023, the company, which CarTrade Tech owns, plans to build many more facilities. Additionally, CarWale abSure is collaborating with OEMs, banks, NBFCs, dealers, insurance companies, and other ecosystem stakeholders on a number of innovative product initiatives aimed at enhancing the digital car purchasing and selling process.
• By early 2024, Volvo intends to have a third of its volume come from its certified used-car sector, which it will start in September 2022 and spread throughout the country. Volvo uses the 'Selekt' platform, which it just introduced in India with two dealerships, to run its Used Car business worldwide.

Segmentation of the Global Used Car Market