ID: MRFR/AM/6147-HCR | February 2021 | Region: Global | 135 pages
Used Vehicle Market is projected to be worth USD USD~2,000 Billion by 2027, registering a CAGR of 7% during the forecast period (2021 - 2027), The market was valued at USD USD~2,000 Billion in 2020.
The used vehicle market is highly fragmented yet beneficial for a majority of the dealers across the globe to consolidate their stand in the market with the aid of online sales channels and organized sales methods. Automakers have taken an initiative by collaborating with e-commerce dealers to promote the market growth. Sales of quality goods and the initiative of leading brands convince the customers to purchase used vehicles or new ones online.
It is estimated that compact size entry-level cars will have the largest share in the global market value. Higher production rates and significant inventories play a major role in better supply chain management. Recently many automotive makers have realized the market value of the used cars or vehicles, hence they actively involve in the used vehicle dealerships to further shift the consumer attitude towards purchasing used vehicles. We can expect several new entrants in the market with strategic partnerships in the forecast period.
Due to COVID 19, the used vehicle market has experienced a great industry just like the automotive industry. Because of the pandemic consumers prefer to commute to places with their private vehicles. As the pandemic has incurred a significant economic downfall, there has been a financial disparity across the countries, which might hamper the consumers purchasing the new vehicles.
COVID 19 has affected the industries in three main ways: Production line and demand for the product, disruption in market and supply chain, and financial impact. This has majorly affected the production of new vehicles and cars, which in turn has helped in the market growth. COVID 19 has also reduced the purchasing power of the consumers due to the negative impact on the economy, this has made the consumers prefer used vehicles and cars over new vehicles. In addition to that, the necessity of personal vehicles for safety has pushed the market value.
A few decades now, the used vehicle market value is surging, realising this growth a few startups have shown interest in building the interest of the consumers and helping them to change the attitude towards used cars and vehicles. In the year 2019, a startup company valued at about USD 1 billion invented a technology to create a digital recognition of the vehicle with documents listed, readily available for the consumer’s view.
A deeper analysis of the vehicle s significant for any vehicle purchasing. A new invention named ‘virtual lift’ allows the consumer to have a scan of the undercarriage of the vehicle before purchase, this aspect makes the inspection process more transparent for the consumer and adds credibility. The value of the used vehicles relies on the nature and mobility of the vehicle, this aspect is also considered in the inspection.
Across India, it is noted that people in the rural areas have started to commute by their two-wheelers over public transportation. A similar trend is noted in the countries like the UK and the US, where the consumers have shifted to personal commuting rather than public transport.
Concerning the cars, the depreciation rate is typically higher. The depreciation rate goes up to 30% by the first year of purchase. Even for commercial vehicles, the depreciation rates are higher and range about 30-35% in developing countries and densely populated countries like India. This has given the consumers a chance to afford 1-3-year-old vehicles at many affordable costs.
The growth of the internet has boosted the demand for used vehicles among consumers who are deprived of relevant information. The Internet offers organized dealers to grow their market at a high pace. Car subscription services offer consumers to afford personal vehicles without financial commitments. With the help of subscription services, consumers can use vehicles with monthly fees that cover insurance, maintenance, and roadside assistance.
Online platforms in several countries aid the Used vehicle market value. Reputed companies and rand collaborating with the online platforms have assured for the consumers to opt for the used vehicles instead of spending on new ones. Recently automotive industries have understood the value and have been actively involving in the growth of the market. In the year 2020, a leading online platform in the US has reported a 43% sales increase. Rapid urbanization and social acceptance of purchasing used vehicles have doubled the growth of the market size.
Key players of India have recently realized the potential of the market value. With the strategies and influence of the internet, the market size has raised 1.4 times that of the new vehicles market. The revision of GST (Goods and Service Tax) rates on the used cars have increased from 28% to 43% has also affected the growth of the market size.
The Used vehicle market size was valued at USD 1332.2 billion in the year 2019 and continues to grow bigger in the forecast period. The compound annual growth rate was valued at a CAGR of 5.5% globally because of the impact created by the automotive market. According to SIAM (Society of Indian Automobile Manufacturers), the share of the market accounts for about 18% in the past years, however, the sales value during the pandemic has increased and was not considered in the analysis.
Global market size of Used vehicle is estimated to account for CAGR 1.64% growth and estimated to reach 1917.35 billion by the year 2027. Considering the rapid growth of the market new members are expected to enter the market in the upcoming years. Dealers using the online platforms helps to grow the market value. leading online platform in India has informed that about 1.6 million used luxury cars are listed in their catalog.
By Vehicle Type
By Vehicle Age
By Vendor Type
By Propulsion Type
By Market Type
The Singaporean government has granted tax exemption for battery-operated and electric vehicles to promote the Used vehicle market value. Hence the demand growth of the vehicles that use ethanols and methanols are surging and are expected to grow without any disruptions.
In the countries like Denmark, UK, US, the third-party dealers collaborate with the automotive makers to scale up the subscription offers. Dealers provide the automotive makers with the software providing the documents necessary for the purchasing and for further analysis of the attitude of the customers towards purchasing the used vehicles to promote the market growth.
This report has covered the revenue growth globally but also at local and regional levels. The report includes:
The Used vehicle market can be segmented based on vehicle type, vehicle age, vendor type, and propulsion type.
By Vehicle Type
By Vehicle Age
By Vendor Type
By Propulsion Type
|Market Size||2027: USD~2,000 Billion|
|CAGR||7% CAGR (2020-2027)|
|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 5.61%.
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).