Used Cars Market revenue worth over $1.5 Trillion by 2027
Published Date: April 5, 2021 Authors: Preeti Wadhwani, Prasenjit Saha
Used Cars Market size is expected to surpass USD 1.5 trillion by 2027, according to a new research report by Global Market Insights, Inc.
Rapid increase in the emergence of online platforms coupled with increasing internet penetration will drive the used cars industry revenue. According to the data published by World Bank, the number of internet users in Brazil increased from 67.4% of country’s total population in 2017 to 70.4% in 2018.
The substantial increase in urbanization, globally will generate new opportunities for the market. Growing inclination toward migrating in urban areas coupled with increasing trend of vehicle ownership will augment the used cars market demand. Growing adoption of cars for personal mobility in urban areas will assist the market growth through 2027.
Rapid increase in vehicular emissions has directed various governments across the globe to impose emissions regulations, posing a threat to market growth.
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Analyst view: “Increasing demand for hatchback vehicles in the Asia Pacific region will accelerate the market for used cars. The upward market trend of digitalization in online used car platforms will also drive the industry share.”
The used cars market saw a significant decline in the first half of 2020 due to the emergence of COVID-19 pandemic in many countries. The slowdown in the automobile market can also be accounted for this decline. However, the pandemic also propelled consumer interests in personal mobility owing to the eminent health risks posed by public transport services. This caused a spike in the sales of used cars post June 2020, improving the market statistics. The demand for used cars is expected to witness an upward market trend over the coming years.
The demand for SUVs will proliferate during the forecast timeline
In 2020, over 8 million used SUVs were sold in North America. The rapid increase in the sales of used SUVs is significantly accountable for the high market revenues. Several benefits of SUVs, such as enhanced safety, robust design, and ability to navigate diverse terrains, are contributing to their growing market representation. Introduction of crossovers and refurbished SUVs is also augmenting the market size.
Browse key industry insights spread across 250 pages with 415 market data tables & 24 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), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increasing adoption of diesel engines will propel the market demand
The Europe diesel used vehicle segment held around 25% of the used cars market share in 2020 on account of high fuel economy as compared to gasoline fuel. The integration of diesel engines into vehicles increases their efficiency and power output. Diesel fuel is capable of accommodating more energy in every gallon compared to gasoline, which makes it more affordable and economical. It also offers higher efficiency and torque that guarantees enhanced acceleration capacity with reduced fuel consumption. The increasing adoption of diesel pick-up trucks will support the industry size in North America and Europe.
Rising online platforms will fuel the used cars market revenue
The North America peer-to-peer segment is set to grow at 4.5% CAGR through 2027 driven by the proliferation of various online platforms such as OLX, Alibaba, and eBay, where users can buy and sell their vehicles without assistance from any dealer. The proliferation of websites and smartphone applications where buyers can conveniently communicate with sellers will enhance the peer-to-peer sales of used cars.
Growing demand for used cars in the commercial segment to spur the demand
The Canada commercial used vehicle segment accounted for over 10% market share in 2020. The positive market outlook of the travel and tourism industry will provide several opportunities for rental service providers to offer vehicles on a rental basis. These service providers prefer to acquire used cars in their fleets to reduce the capital investments in new cars. The proliferation of car rental and subscription service providers will support the industry statistics for used cars.
Changing vehicle ownership patterns in Europe will support the market expansion
The Europe used cars market is likely to witness a steady growth at a CAGR of about 2% during 2021 to 2027. The rising disposable income in low income groups in France, Germany, the UK, and Italy is anticipated to support the regional market. The increasing disposable income of the working class will enhance the vehicle ownership index in the region, thereby supporting the market size.
The companies are focusing on integration of advanced technologies into their online platforms and used cars to gain an edge over the competitors and enhance their service offerings. The key players operating in the used cars market include Asbury Automotive Group Inc., Arnold Clark Automobiles Ltd., CarMax Inc., Emil Frey AG, Carvana, Group 1 Automotive Inc., Mahindra First Choice Wheels Ltd., Maruti Suzuki True Value, and Lookers PLC.