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The marketplace conditions of the used vehicle marketplace are impacted by a myriad of components that form the buying and selling styles of used vehicles. One of the primary drivers is the financial environment, as consumers frequently flip to used vehicles at some stage in periods of financial uncertainty.
Additionally, technological trends contribute to market situations, as more recent functions and innovations in vehicles quickly turn out to be old, prompting customers to improve to the modern-day models. This, in flip, floods the used vehicle marketplace with older fashions, affecting their prices and demand.
The availability and value of financing options similarly impact the conditions, with on-hand credit leading to escalated demand for used vehicles. Consumer alternatives additionally shape the market, with shifts in traits influencing the varieties of used vehicles in call for. The situation of used vehicles plays a pivotal part in market situations.
Well-maintained motors with a detailed service record regularly command higher prices and appeal to greater customers. Conversely, vehicles with a history of injuries or poor protection may also face demanding situations in finding consumers and might be a situation to charge depreciation. Government rules and guidelines associated with emissions, safety requirements, and incentives for electric motors also impact the market situations of used vehicles.
Changes in regulations can impact the resale price of positive motors and may drive customers closer to models that comply with modern-day requirements. A part of online platforms within the used vehicle marketplace has grown considerably, transforming the situations of purchasing and selling. Online marketplaces offer clients a broader variety of options, escalated transparency, and handy access to records, affecting conventional brick-and-mortar dealerships.
In the give up, the market conditions of the used vehicle market are complex and multifaceted, impacted by monetary situations, technological traits, customer preferences, vehicle situations, authorities rules, online systems, and international delivery chain conditions. As these components continue to conform, the situations of the used vehicle marketplace will adapt for this reason, growing a condition and ever-changing panorama for consumers and sellers alike.
Used Vehicle Market Highlights:
Used Vehicle Market Overview:
The used vehicle market industry is projected to grow from USD 775.97 Billion in 2022 to USD 1355.95 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 8.30% during the forecast period (2024 - 2030). Used cars Market size was valued at USD 716.5 billion in 2021. rising internet penetration, which makes information on Used Car easily available and surging demand for off-lease Used Car among franchises are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Used Vehicle Market Trends
Increasing need for car subscription services to boost market growth
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 Car market. However, unorganized sales of Used Car and a lack of regularization hamper the growth of the global market. Moreover, the advent of automotive 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 Car market.
Further, a rising middle class and India's young population are two key factors driving this massive growth over the next five years. This is also fueled by the fact that India's disposable income has steadily increased over the years. According to the report, factors such as technology-driven transparency, convenience, transaction simplicity, and so on will also contribute to this projected growth. The average car age has decreased by 33% from six years in the fiscal year 2010-2011 to four years in the fiscal year 2021-2022.
Further, the role of online sales has become a critical growth factor in the market. Online sites in auto marketplaces have played an essential role in bringing access to consumers with a single touch. A combination of such developments created a significant upsurge in the demand for Used Car. In addition, the factors such as affordability, the availability of Used Car, and the hike in the need for personal mobility, and the emergence of various online players to organize the market has enhanced the Used Car market CAGR across the globe in the recent years.
However, the rise in competition in the market and the threat of new entries are the factors that boost the growth of the Used Car dealership business. The reliable & add on service/quality has changed the perspective of consumers toward the Used Car business driving the growth of the used vehicle market revenue.
Used Vehicle Market Segment Insights:
Used Vehicle Type Insights
The Used Vehicle Market segmentation, based on vehicle type, includes hatchback, sedan, and SUV. The SUV’s segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. High ground clearance, sturdy vehicle and powerful engine are the factors that is dominating the SUV segment. However, sedan is the fastest-growing category due to growing adoption of EV and hybrid technology.
Used Car Fuel Type Insights
The Used Vehicle Market segmentation, based on fuel type, includes petrol, diesel, and others. The petrol segment dominated the market in 2021 and is projected to be the faster-growing segment to the Used Car market revenue. This is attributed to the declining usage of diesel vehicles as the government discourages the purchase of used diesel vehicles. However, others is the fastest-growing category over the forecast period. In developing countries, CNG powered vehicles have also shown a sustainable upsurge in Used Car volume sales. Hence, increasing inventory for CNG-based SUVs positively impacts the market growth.
Used Vehicle Distribution Channel Insights
The Used Vehicle Market data has been bifurcated by distribution channel into franchised dealer, independent dealer, and others. The franchised dealer segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Franchised dealers with support from OEM involvement in certification and marketing programs, online inventory pooling, and access to high-quality contracts are in a strong position. However, independent dealer is the fastest-growing category over the forecast period due to the entry of new players in the market and new retail models.
Figure 1: Used Vehicle Market, by Distribution Channel, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Used Vehicle Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. Asia-Pacific used vehicle market accounted for USD 314.54 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the increasing sales of the Used Car in China, India, and other Asian countries. With more players entering the market, Used Car industry in this region is transitioning from an unorganized, setup where transactions occur via roadside garage mechanics, small brokers, and between car owners - to an organized system. Moreover, China used vehicle market held the largest market share, and the India used vehicle market was the fastest growing market in the Asia-Pacific region.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: Used Vehicle Market Share By Region 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe used vehicle market accounts for the second-largest market share due to the rising consumer preference for luxury vehicles and the country's youth preference for market leaders. Further, the Germany used vehicle market held the largest market share, and the UK used vehicle market was the fastest growing market in the European region
The Asia-Pacific used vehicle market is expected to grow at the fastest CAGR from 2022 to 2030. Some car dealers provide a rich array of advanced technology-enabled tools, which include mobile-based applications, a virtual online showroom, cloud services for lead management systems, tracking sales performance, and digital marketing support. Moreover, China used vehicle market held the largest market share, and the India used vehicle market was the fastest growing market in the Asia-Pacific region
Used Vehicle Key Market Players & Competitive Insights
Major market players are spending a lot of money on R&D to increase their product lines, which will help the used vehicle market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Used Car industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the global Used Car industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. The used vehicle market major player such as CarMax Business Services LLC (US), Manheim (US), Autotrader Inc. (US), and others are working to expand the market demand by investing in research and development activities.
The Volvo Group is a Swedish multinational manufacturing corporation headquartered in Gothenburg. While its core activity is the production, distribution and sale of trucks, buses and construction equipment, Volvo also supplies marine and industrial drive systems and financial services. In 2016, it was the world's second-largest manufacturer of heavy-duty trucks. In September, 2022, Volvo plans to expand its certified Used Car business across India by early 2024, with this segment accounting for up to one-third of total volume. Volvo operates its pre-owned car business globally through the 'Selekt' platform, which it recently launched in India with two dealerships.
Also, CarTrade.com is an Indian online auto classifieds platform serving as a marketplace for users interested in buying and selling new and Used Car. Headquartered in Mumbai, the company also owns other vehicle trading platforms such as CarWale, BikeWale, CarTradeExchange and AutoBiz, the omnichannel marketplace Shriram Automall and the vehicle inspection company Adroit Inspection. In November 2022, The CarTrade Tech-owned company now intends to open many more locations by the end of 2023. Furthermore, CarWale abSure is working on a slew of new product initiatives to improve the process of digital vehicle buying and selling through collaborations with OEMs, Banks, NBFCs, Dealers, Insurance companies, and other ecosystem players.
List of the Key Companies in the Used Vehicle market includes
- Asbury Automotive Group Inc.
- TrueCar, Inc.
- AutoNation, Inc.
- Mahindra First Choice Wheels Ltd.
- Big boy Toyz ltd
- Group1 Automotive Inc.
- Lithia Motors, Inc.
- CarMax Business Services, LLC
- Hendrick automotive group
- vehicle24 services private limited, among others
Used Vehicle Industry Developments
August 2022: Lexus, which is owned by Toyota, has launched its Lexus Certified Programme in the Indian market. Lexus India hopes that by launching this initiative, existing Lexus vehicle owners will be able to get a higher resale value for their vehicles, while also making Lexus models more accessible and affordable to new customers.
August 2021: Audi India announced its plan to expand Audi Approved Plus showrooms from 7 to 14 by the end of 2021, which will back up pre-owned sales, along with the 40-plus workshops countrywide.
August 2021: Mahindra First Choice Wheels (MFCW) and CamCom, an AI-powered visual inspection solutions company, partnered to offer the ability to inspect cars using AI. With this partnership, Mahindra can inspect and make damage assessments for vehicles.
Used Cars Market Segmentation:
Used Cars Market Type Outlook
- Hatchback
- Sedan
- SUV
Used Cars Market Fuel Type Outlook
- Petrol
- Diesel
- Others
Used Cars Market Distribution Channel Outlook
- Franchised dealer
- Independent dealer
- Others
Used Cars Market Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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