SAN FRANCISCO, Sept. 14, 2020 /PRNewswire/ -- The global used car market size is expected to reach USD 2,150.6 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 5.5% over the forecast period. Rising technological advancements such as the implementation of digital technology in market and the use of artificial intelligence to improve online buying experience are expected to boost the market demand over the forecast period. Furthermore, the growing adoption of used electric and hybrid cars has become one of the noticeable trends in the last few years. The increased number of new Electric Vehicle (EV) and hybrid cars registered over the last few years is now flowing through into the market. For instance: European countries such as Germany, the U.K., Spain, and Austria have registered significant volume sales for petrol, EVs, and hybrid vehicles.
Key suggestions from the report:
Digitally generated leads with online sales channels are expected to attain prominence, and the brick and mortar/offline dealerships are expected to remain under severe pressure due to the COVID outbreak
The organized dealership is expected to withstand the demand for a used car and eventually expected to hold a major market share
Data analytics tools and artificial intelligence are assisting non-banking financial companies to bring ineffectiveness in the underwriting process. Used car dealers with this opportunity are tying up with the financial agencies, and this process will further help to make loans easily available for customers
The Asia Pacific market for used cars is expected to have significant growth over the forecast period, majorly due to the increasing supply base and demand for affordable used cars
The key market players are Alibaba Group (Alibaba.com); Asbury Automotive Group; Cox Automotive; TrueCar, Inc.; Hendrick Automotive Group; Group 1 Automotive Inc.; and eBay Inc.
Globally, the growth of online sales channels also changed the overall consumption of the used cars. As online automotive retailing accounts for the small percentage of total used car sales, there is a significant growth potential for this segment. Moreover, automotive dealers use their websites as a sales and marketing generation channel to drive buyers to the showroom floor where the consumers complete the purchase. However, nowadays, consumers are looking for eCommerce options for the entire purchase. Also, there is a rise in the number of digital sellers such as Vroom; Carvana Inc.; eBay Motors; and Shift Technologies Inc. that specifically cater to online vehicle buyers, and increase the competitiveness of the market.
Escalating investment in the SUV segment is also one of the key reasons which cater to the demand traction in the market. Luxury brands have invested in launching vehicles in the SUV segment to add to their existing sports collection inventory. With the availability of supply chain network of second-hand cars in the market, there is huge traction expected in terms of volume sales in the market. Additionally, the significant change in people transporting habits such as opting for individual mobility with own vehicle are expected to create great upsurge in the market.
Further, the COVID-19 outbreak will increase the demand for compact and mid sizes cars at affordable prices. With the fear of getting infected, people are opting for private transportations rather than public transportation. This is one of the key driving factors for the used car sales in this pandemic period and aftermath. Furthermore, one of the notable phenomena emerging nowadays is the sales of petrol vehicles as fossil fuels are cheaper with the outbreak. Also, the impact of COVID-19 is visible in the on the automotive industry with the sales surge in the market for used cars despite plummeted growth in the new car sales segment. Majority of the customers are looking for more affordable means of transport that would be safe, and reasonable to buy (both ergonomically and economically). With employment uncertainties and variable cash flows in the economies, individuals would prefer used cars over new cars.
Grand View Research has segmented the global used car market based on vehicle type, vendor type, fuel type, size, sales channel, and region:
Used Car Vehicle Type Outlook (Shipment, Million Units; Revenue, USD Billion, 2016 - 2027)
Used Car Vendor Type Outlook (Shipment, Million Units; Revenue, USD Billion, 2016 - 2027)
Used Car Fuel Type Outlook (Shipment, Million Units; Revenue, USD Billion, 2016 - 2027)
Used Car Size Outlook (Shipment, Million Units; Revenue, USD Billion, 2016 - 2027)
Used Car Sales Channel Outlook (Shipment, Million Units; Revenue, USD Billion, 2016 - 2027)
Used Car Regional Outlook (Shipment, Million Units; Revenue, USD Billion, 2016 - 2027)
Car Rental Market – Global car rental market size was valued at USD 88.2 billion in 2018 and is expected to register a CAGR of 5.1% over the forecast period.
Shared Mobility Market – Global shared mobility market size was valued at USD 104.95 billion in 2017. It is anticipated to expand at a CAGR of over 25% from 2018 to 2025.
On-Demand Transportation Market – Global on-demand transportation market size was valued at USD 75.0 Billion in 2017 and is anticipated to expand at CAGR of 19.8% from 2018 to 2025.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.