PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1515389
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1515389
Used Car Market size was valued at USD 30,678.89 Million in 2023, expanding at a CAGR of 14.5% from 2024 to 2032.
The used car market refers to the sector of the automotive industry focused on the sale and purchase of pre-owned vehicles. This market includes a wide range of vehicles that vary in age, condition, make, and model. It encompasses transactions through various channels such as dealerships, private sales, auctions, and online platforms. The market is characterized by diverse pricing and financing options, offering cost-effective alternatives to new cars. Factors such as vehicle depreciation, economic conditions, and consumer preference for affordability drive the dynamics of the used car market. It plays a crucial role in providing accessible transportation solutions to a broad segment of the population.
Used Car Market- Market Dynamics
Increased demand for used cars, fueled in part by consumers' inability to purchase new vehicles to propel market demand
The used car market has experienced a notable expansion in recent years, buoyed by heightened price competitiveness among emerging players, a standout aspect within the industry. A key driver of this growth has been the increased demand for used cars, fueled in part by consumers' inability to purchase new vehicles. This trend has been further bolstered by substantial investments from industry participants aimed at expanding their dealership networks. These networks have served to enhance the branding and availability of used cars in the market. Notably, online sales channels have emerged as pivotal drivers of growth, with auto marketplaces providing consumers with convenient access to a wide array of vehicles at their fingertips. This confluence of factors has led to a significant surge in demand for used cars, underpinned by factors like affordability, increased availability, rising demand for personal mobility, and the advent of various online platforms aimed at organizing the market. For instance, in 2019, eBay Inc. introduced a new eBay Motors application, further streamlining the online buying and selling process for used cars.
Used Car Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 14.5% over the forecast period (2024-2032)
Based on Vehicle Type segmentation, the hybrid was predicted to show maximum market share in the year 2023
Based on Fuel Type segmentation, petrol was the leading type in 2023
Based on Vendor Type segmentation, organized was the leading type in 2023
Based on Distribution Channel segmentation, offline was the leading type in 2023
Based on Car Size segmentation, Compact Car was the leading type in 2023
Based on region, North America was the leading revenue generator in 2023
The Global Used Car Market is segmented based on Vehicle Type, Fuel Type, Vendor Type, Car Size, Distribution Channel and Region.
The market is divided into three categories based on Fuel Type: Diesel, Petrol and Others. The petrol segment secured the largest market share in 2023, attributed to the waning popularity of diesel vehicles prompted by governmental discouragement. Conversely, the other segment is poised for significant growth over the forecast period. In developing nations, there's been a notable uptick in the sale of CNG-powered vehicles in the used car market. Stringent emission standards for gasoline, natural gas, liquefied petroleum gas, and ethanol vehicles, coupled with concerns over excessive NOx emissions from diesel engines, have contributed to the decline in diesel vehicle sales and the concurrent rise of alternative fuel markets.
The market is divided into two categories based on Vendor Type: Organized and Unorganized. In 2023, the organized segment emerged as the dominant force in the market, boasting the highest revenue share throughout the forecast period. This phenomenon is primarily driven by the increasing presence of franchised dealers within the market landscape. The influx of new players and the emergence of innovative retail models have also played pivotal roles in propelling market growth. According to the National Automobile Dealers Association (NADA), franchised dealers in the U.S. reported higher gross profits from used vehicle sales compared to independent dealers. Additionally, organized vendors benefit from heightened consumer brand loyalty across all age demographics. While the market boasts numerous dealers globally, developed countries like the U.S., Germany, and the UK witness top players like CarMax Business Services, LLC, and Asbury Automotive Group commanding more than half of the market's volume share.
Used Car Market- Geographical Insights
This market boasts a geographically diverse customer base, with representation from North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further segmented by participating nations. North America took the lead in 2023, commanding the largest revenue share in the market. The region's used car market offers a diverse array of vehicles, ranging from contemporary models equipped with modern features to vintage classics, catering to a wide spectrum of preferences and budgets.
In the dynamic Used Car Market, major players deploy diverse strategies to maintain their positions. Strategic partnerships with dealerships, online platforms, or automotive finance firms enhance market reach and customer access. Acquisitions of regional or specialized used car dealerships enable companies to broaden their geographic footprint and cater to specific customer segments effectively. Moreover, investments in digital platforms and data analytics empower firms to personalize customer experiences, optimize pricing strategies, and streamline inventory management. These multifaceted approaches help organizations navigate the competitive landscape, ensuring sustained relevance and profitability in the ever-evolving used car market.
In June 2023, Jardine Cycle & Carriage Limited, the investment arm of HK-based Jardine Matheson, partnered with Southeast Asian car marketplace Carro. This alliance aims to strengthen both companies' market positions and enhance & improve their customer experiences.
In 2020, Volkswagen announced a significant investment in the used car market through collaborations with its used-car chain, Das WeltAuto, and various used car platforms. Mainstream automakers such as Maruti Suzuki, M&M Mahindra, and Toyota have also expanded their presence in this market with their pre-owned car sales networks like True Value, First Choice Wheels, and U Trust, respectively.
GLOBAL USED CAR MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Alibaba.com.
CarMax Enterprise Services, LLC
Asbury Automotive Group
TrueCar, Inc.
Scout24 SE
Lithia Motor Inc.
Group 1 Automotive, Inc.
eBay.com
Hendrick Automotive Group
AutoNation.com
Others