Automotive Finance Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2024 to 2032

Description

The Global Automotive Finance Market was valued at USD 323.3 billion in 2023 and is forecasted to grow at 6.2% CAGR from 2024 to 2032. This growth is primarily driven by increasing consumer demand for vehicles, particularly electric and hybrid models. As environmental awareness and sustainability become more significant, many consumers opt for eco-friendly vehicles, which often come with higher price tags. This shift emphasizes the need for accessible financing solutions to help make these advanced technologies more affordable. In response, lenders offer customized financing options, including attractive incentives and terms tailored specifically for electric and hybrid vehicle purchases.

The rise of online car buying platforms has transformed the automotive sales environment, leading to an uptick in demand for automotive financing. Many consumers now prefer digital transactions due to their convenience and efficiency, often seeking quick financing solutions to facilitate their purchases. These platforms streamline the purchasing journey, enabling users to examine financing options, evaluate interest rates, and arrange loans from the comfort of their homes, thus making financing an integral part of the online car-buying process. The automotive finance market can be categorized into segments based on vehicle type, including new and used vehicles.

In 2023, the new vehicle segment dominated the market, accounting for over 86% of the total share. This segment is expected to surpass USD 489.3 billion by 2032, driven by advancements in vehicle technology, such as connected cars and enhanced safety systems. These innovations contribute to higher market values, prompting consumers to seek financing options to cover increased prices. Features like real-time navigation and integrated entertainment systems significantly enhance vehicle appeal.

Market Scope
Start Year	2023
Forecast Year	2024-2032
Start Value	$323.3 Billion
Forecast Value	$554.1 Billion
CAGR	6.2%

From a provider perspective, the automotive finance market comprises banks, credit unions, captive finance companies, non-banking financial companies (NBFCs), and online lenders. In 2023, banks held around 34% of the market share by offering a variety of financing solutions, including leases, loans, and subscription services. These diverse options cater to the varied needs and preferences of customers, with leasing particularly appealing to those seeking lower monthly payments and the flexibility to drive new vehicles regularly. In the United States, the automotive finance market held 84% share in 2023, with projections indicating it will exceed USD 179.6 billion by 2032. As the economy improves and consumer confidence grows, more individuals are inclined to make significant purchases like vehicles.This increased optimism often leads to a greater willingness to seek financing, as buyers feel more secure in their financial situations and job stability. Consequently, rising vehicle sales will generate a corresponding demand for financing solutions, as many consumers look for loans or rents to control their budgets efficiently.

Product Code: 11750

Chapter 1 Methodology & Scope

1.1 Research design
- 1.1.1 Research approach
- 1.1.2 Data collection methods
1.2 Base estimates and calculations
- 1.2.1 Base year calculation
- 1.2.2 Key trends for market estimates
1.3 Forecast model
1.4 Primary research & validation
- 1.4.1 Primary sources
- 1.4.2 Data mining sources
1.5 Market definitions

Chapter 2 Executive Summary

2.1 Industry 360° synopsis, 2021 - 2032

Chapter 3 Industry Insights

3.1 Industry ecosystem analysis
- 3.1.1 Automotive manufacturers
- 3.1.2 Financial institutions
- 3.1.3 Dealerships
- 3.1.4 Captive finance companies
- 3.1.5 Technology providers
- 3.1.6 End-user
3.2 Supplier landscape
3.3 Profit margin analysis
3.4 Technology & innovation landscape
3.5 Key news & initiatives
3.6 Regulatory landscape
3.7 Impact forces
- 3.7.1 Growth drivers
  - 3.7.1.1 Rising expansion of financial services
  - 3.7.1.2 Increasing adoption of e-commerce
  - 3.7.1.3 Technological advancements in the financing process
  - 3.7.1.4 Growing electric and hybrid vehicle sales
- 3.7.2 Industry pitfalls & challenges
  - 3.7.2.1 Growing regulatory compliance
  - 3.7.2.2 Increasing market competition
3.8 Growth potential analysis
3.9 Porter's analysis
3.10 PESTEL analysis

Chapter 4 Competitive Landscape, 2023

4.1 Introduction
4.2 Company market share analysis
4.3 Competitive positioning matrix
4.4 Strategic outlook matrix

Chapter 5 Market Estimates & Forecast, By Vehicle, 2021 - 2032 ($Bn)

5.1 Key trends
5.2 New vehicle
5.3 Used vehicle

Chapter 6 Market Estimates & Forecast, By Provider, 2021 - 2032 ($Bn)

6.1 Key trends
6.2 Banks
6.3 Credit unions
6.4 Captive finance
6.5 NBFCs
6.6 Online lenders

Chapter 7 Market Estimates & Forecast, By Finance, 2021 - 2032 ($Bn)

7.1 Key trends
7.2 Loan
7.3 Lease

Chapter 8 Market Estimates & Forecast, By End Use, 2021 - 2032 ($Bn)

8.1 Key trends
8.2 Individuals
8.3 Business

Chapter 9 Market Estimates & Forecast, By Region, 2021 - 2032 ($Bn)

9.1 Key trends
9.2 North America
- 9.2.1 U.S.
- 9.2.2 Canada
9.3 Europe
- 9.3.1 UK
- 9.3.2 Germany
- 9.3.3 France
- 9.3.4 Spain
- 9.3.5 Italy
- 9.3.6 Russia
- 9.3.7 Nordics
9.4 Asia Pacific
- 9.4.1 China
- 9.4.2 India
- 9.4.3 Japan
- 9.4.4 South Korea
- 9.4.5 ANZ
- 9.4.6 Southeast Asia
9.5 Latin America
- 9.5.1 Brazil
- 9.5.2 Mexico
- 9.5.3 Argentina
9.6 MEA
- 9.6.1 UAE
- 9.6.2 South Africa
- 9.6.3 Saudi Arabia

Chapter 10 Company Profiles

10.1 Ally Financial
10.2 American Honda Finance Corporation
10.3 Bank of America Auto Loans
10.4 BBVA USA (now part of PNC Bank)
10.5 Capital One Auto Finance
10.6 Chase Auto
10.7 Credit Acceptance Corporation
10.8 Ford Credit
10.9 GM Financial
10.10 Honda Financial Services
10.11 Hyundai Capital America
10.12 Nissan Motor Acceptance Corporation (NMAC)
10.13 PNC Bank Auto Loans
10.14 Santander Consumer USA
10.15 SunTrust Bank (now part of Truist)
10.16 TD Auto Finance
10.17 Toyota Financial Services
10.18 US Bank Auto Loans
10.19 Wells Fargo Auto
10.20 Westlake Financial Services