The global used vehicle market was valued at $828.24 billion in the historical period ending in 2019 and is projected to reach $1,355.15 billion by 2027, registering a CAGR of 8.3% from 2020 to 2027. By vehicle type, the SUV segment was the highest revenue contributor in 2019, accounting for $338.61 billion, and is estimated to reach $533.39 billion by 2027, registering a CAGR of 7.80% during the forecast period.
A used car is a second-hand vehicle that is available for resale. Various outlets such as franchise and independent car dealers, rental car companies, auctions, private party sales, and leasing offices sell used vehicles.
Due to restrictions by the government on the manufacturing and transportation sectors, the activated carbon canister market is facing severe problems in both production and transportation. The pandemic has harmed the automotive activated carbon canister market size for 2020; a significant deviation is noticed in the growth of automotive activated carbon canister manufacturers due to coronavirus. Automotive activated carbon canister system is an evolving sector that is hampered due to an ongoing pandemic. All types of production and installation across the affected countries had been shut down and all the market operations have disrupted during the pandemic. Nevertheless, due to the increasing consumption power of consumers during the pandemic and the increase in sales of vehicles, including light commercial vehicles and passenger vehicles, the market is now on an upward trend due to consumer concerns about safety.
Moreover, most people across the globe are planning to buy vehicles post lockdown. For instance, according to the vehicle24 report, consumers prefer to use a private vehicle and less public transportation; therefore, there is a shift in preference from cabs and public transport to private vehicles. Although some automotive companies are struggling due to the pandemic, the used vehicle market has seen a massive jump in sales in some countries due to reasons such as a fall in income, shortage in money, and an increase in preference for a private vehicle to maintain social distancing, which is expected to affect the used vehicle industry positively during the COVID-19 outbreak.
Factors such as the high cost of new vehicles, concerns regarding affordability, rise in demand for off-lease vehicles & subscription service by the franchise, leasing offices, and car dealers are observed to boost the growth of the used vehicle market. However, unorganized sales of used vehicles and a lack of regularization hamper the growth of the global market. Moreover, the advent of e-commerce & online technologies, steady increase in organized/semi-organized sales in emerging countries, rise in electric vehicle business across the globe, and demand for car-sharing services are expected to offer lucrative opportunities for the growth of the used vehicle market.
The used vehicle dealer is dependent on the seller because the dealer doesn't get the vehicle to cater to their customers unless the owner doesn't sell it in the market. If the sales of the new vehicle decrease, the market will be short of supply after some time. Further, the pandemic has placed the automotive industry at significant disruption. Therefore, the used vehicle market is entirely dependent on the replacement buyer, car owners to sell their vehicles, and used vehicle imports which creates lots of uncertainty in terms of getting supply to cater to the market demand. Thus, these factors are expected to hinder the growth of the used vehicle market shortly.
Over the past few years, the automotive industry has witnessed increased demand for advanced features in vehicles, such as power steering systems, climate control systems, anti-lock braking systems, and others. This, in turn, has led to a rise in the price of the new vehicles. Moreover, the price increase in 2019 led by mainstream passenger car segments poses a sign of affordability challenges in the new market. Furthermore, an increase in vehicle prices is making its way back to the used market. Therefore, the automotive market has witnessed an increase in the number of sales of used vehicles as compared to new vehicle sales; this is anticipated to fuel the demand for used vehicles shortly.
The used vehicle market is segmented based on the following:
By Vehicle Type
By Fuel Type
By Distribution Channel
Currently, in most countries, the unorganized car business has many shares, which further does not have inventory and dominance over C2C sales in an unorganized manner. The market for used vehicles in countries such as Mexico, India, China, and Brazil has always been dominated by unorganized players. Unlike these unorganized players in emerging countries, organized players provide free servicing and free towing at the dealership, along with the used vehicles business expansions in countries. These services help attract customers to their dealerships and build trust between buyers and sellers. For instance, TrueCar, Inc. has launched TrueCar Military. TrueCar Military offers exclusive incentives and benefits for active duty service members of the U.S. armed forces, veterans, military retirees, and families. Moreover, there is an increase in demand for electric vehicles due to the need for pollution control systems and the implementation of stringent emission standards. Such a rise in the need for vehicles eventually leads old vehicle owners to sell their vehicles in the market, further boosting the growth of the used vehicles market.
The key players operating in the used vehicle market include the ones mentioned below:
The rise in competition in the market and the threat of new entries are the factors that boost the growth of the used vehicle dealership business. The reliable & add-on service/quality has changed consumers' perspective toward the used vehicle business. In addition, franchised dealers with support from OEM involvement in certification and marketing programs, online inventory pooling, and access to high-quality contracts are in a solid position to benefit from the growth in the used vehicle market. Moreover, there has been a rise in the demand for vehicle subscription services in the last few years which allows consumers to use a vehicle every month by paying monthly fees, including maintenance, insurance, and roadside assistance. Furthermore, rapid change in technology or introducing new models of vehicles at short intervals allows customers to sell or exchange their old vehicles for new vehicles. Such value for money benefits has led to the growth of the used vehicle industry in the coming years.
The unorganized players in the used vehicle market limit the market growth. In India, China, Thailand, Brazil, and Mexico, the unorganized players hold the larger share in the used vehicle market. In addition, the unorganized players do not offer any warranty on pre-owned vehicles. Moreover, few sellers also perform malpractices such as re-painting and dent removal for accidental vehicles to hide their damage and get a false inflated value, creating fear among the buyers of buying a used vehicle. Therefore, a higher rate of malpractices and hold of the larger market share by unorganized dealers threaten the growth of the used vehicle market. For instance, in a recent interview CEO of Mahindra First choice, a leading used vehicle sales company in India, said that unorganized players in the used vehicle market pose a threat to consumer protection. In India, the organized sector holds only a 12-15% market share, whereas the 8 to 10% margin is not equally rewarding compared to the U.S. market. Thus, unorganized players are creating a threat to the used vehicle market.
The used vehicle market study presents an analytical depiction of the used vehicle market analysis along with the current trends and future estimations to depict the imminent investment pockets for the continuous period in 2027. The overall market potential in the global market is determined to understand the profitable trends to gain a stronger foothold. The global market report presents information related to key drivers, restraints, and market opportunities with a detailed impact analysis. The current market analysis puts forward the used vehicle market size is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency. The report covers porter's five forces analysis illustrates the potency of the buyers and suppliers in the used vehicle industry.
|CAGR||5% CAGR (2022-2030)|
|Forecast Period||2022 to 2030|
|Historical Data||2019 & 2020|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Technology, By Application, By Vehicle type, By EndMarket|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||CarMax Business Services, LLC (US), Manheim (US), Autotrader, Inc. (US), HERTZ CAR SALES (US), Cox Automotive, Inc. (US), Sun Toyota (US), Alibaba Group (China), eBay (US), PenskeCars (US), TrueCar, Inc. (US), Autonation (US), and Vroom, Inc. (US)|
|Key Market Opportunities||
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
In the near future, the market expansion will take place at a rate of 5%.
Rising internet penetration and expansion of the global automotive industry ensure that the market value will increase significantly by the end of the forecast timeframe.
The renowned companies in the market are HERTZ CAR SALES (US), Sun Toyota (US), eBay (US), Cox Automotive, Inc. (US), Vroom, Inc. (US), TrueCar, Inc. (US), PenskeCars (US), Autotrader, Inc. (US), Autonation (US), Manheim (US), Alibaba Group (China), CarMax Business Services, LLC (US), and others.
Increasing economic status and the booming automotive industry back the market growth in MEA and South America.
The propulsion-based segments covered in the report are internal combustion engine (ICE) as well as electric vehicle (EV).