Used Cars Market size is set to cross USD 2 trillion and shipment to reach 185 million units by 2028, according to a new research report by Global Market Insights Inc.
Expanding internet services that help customers buy & sell used cars efficiently is driving the industry growth. The integration of advanced technologies into online platforms to sell used cars enhances the overall market share. It is a fully transparent digital platform with a unique range of integrated on-demand trading services for customers to buy vehicles seamlessly & securely.
The COVID-19 pandemic moderately impacted the used cars market revenue in 2020. Industry participants experienced substantial losses in 2020 impelled by stringent lockdown measures and travel restrictions imposed by government administrations. The industry gained traction in 2021 owing to the surging trend of personal mobility to minimize health risks posed by public transport services. The market is increasing in 2022 as OEMs are empowering dealers to seamlessly sell & acquire vehicles through online channels. For instance, in March 2022, AutoScout24 acquired AUTOproff, a B2B platform for used cars based in Europe.
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Analyst view: “Growing demand for SUVs in the Asia Pacific region will accelerate the market for used cars. The increasing usage of digital technologies in online used car platforms will also augment the market growth.”
The rising demand for SUVs with powerful transmission systems
The used cars market is witnessing significant growth propelled by the availability of SUVs with enhanced safety features & robust designs. The Europe SUV segment is expected to register a CAGR of around 3% through 2028. The growing population of individuals inclined toward off-road activities is also augmenting the market demand as SUVs offer more ground clearance in rugged terrains. Over 8 million used SUVs were sold in North America in 2020.
Browse key industry insights spread across 250 pages with 463 market data tables and 31 figures & charts from the report, “Used Cars Market Size By Vehicle Type (Hatchback, Sedan, SUV), By Fuel Type (Gasoline, Diesel, Hybrid/Electric), By Sales Channel (Peer-to-peer, Franchised Dealers, Independent Dealers), By End-use (Personal, Commercial), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
Increasing adoption of economical used cars with diesel engines
The North America diesel engine used cars market held nearly 25% of the revenue share in 2021 as they offer a high fuel economy led by the compression-ignition system. Economical used cars with diesel engines also offer higher efficiency & torque that enable an enhanced acceleration capacity with reduced fuel consumption. The integration of diesel engines into used cars increases their efficiency and power output. The diesel engine meets the Environmental Protection Agency (EPA) guidelines regarding fuel standards & emissions, supporting the market expansion.
Growing penetration of peer-to-peer sales platforms
The market value of the Europe peer-to-peer segment reached about USD 100 billion in 2021. The segment is growing due to the proliferation of various online platforms, such as Alibaba, eBay, and OLX, where consumers can buy & sell automobiles without dealer assistance. Peer-to-peer platforms provide consumers with more transparent pricing and assist them in avoiding any additional or unexpected expenses, thereby boosting the industry statistics.
Rising digitalization in the North America
The North America used cars market is set to expand at above 6% gains till 2028 credited to the surging trend of digitalization supported by government initiatives, enabling the integration of Artificial Intelligence (AI) and big data. The National AI Initiative Act of 2020 accelerates AI research & application with the aim of ensuring the effective use of AI in the U.S. public and private sectors.
Increasing focus on innovative product delivery channels forms a key strategy
Market players are enabling customers to save time & money by eliminating the need for dealerships and online platforms. Customers choose the day & time that is convenient for them to select their used cars from the automobile vending machine. For instance, in November 2021, Carvana unveiled its 43-vehicle capacity automobile vending machine. Customers can browse an inventory of approximately 55,000 used cars for sale, obtain auto financing or utilize the car loan calculator, buy, trade in, and schedule vehicle pickups.
The prominent used cars market leaders include Asbury Automotive Group Inc., AutoScout24, CarMax Inc., Carvana, Cox Automotive Inc. (Autotrader), Arnold Clark Automobiles Ltd., Group 1 Automotive Inc., Emil Frey AG, Inchcape Group, Maruti Suzuki India Ltd. (True Value), TrueCar, Inc., Uxin Group Lithia Motors Inc., Lookers PLC, Mahindra First Choice Wheels Ltd., Mobile.de, and AutoNation Inc.