USED CAR MARKET INSIGHTS
The global used cars market size was valued at USD 1,788.32 Billion in 2021 and it is projected to reach a value of USD 2,358.21 Billion by 2030, growing at a CAGR of 5.4% over the forecast period. COVID-19 pandemic led semiconductor shortage and low supply of new passenger cars is driving the used car market growth.
The used car industry is highly diversified in nature, it comprises both unorganized and organized sectors. The organized sector in the used car industry includes dealerships, online portals & advertising platforms. The sudden increase in demand for Used cars has led to the demand and supply gap, resulting in a significant price hike of as much as 40%. The demand for loans & finance services in used cars is boosted drastically post-pandemic. However, it is expected that the price bubble might burst as soon as the supply of new vehicles normalizes, leading to falling in prices of used cars as much as 30%-35% by end of 2022.
Global Used Cars Market, 2022 & 2030 (USD Billion)
COVID-19 Impact on used cars market
- COVID-19 pandemic led to a shortage of semiconductor chips, therefore the production of new passenger cars is substantially hit leading to a shortage in supply. Due to the low supply, extended delivery timelines of new cars, the new car buyers are moving towards the used cars market to fulfill their need for a vehicle temporarily. However, there is a significant shortage of used vehicles in the market leading to a massive price increase of used vehicles.
- The main reason for this situation is considered to be a series of events such as the COVID-19 pandemic that led to the shutting down of auto manufacturing units, thus the automakers canceled orders from suppliers expecting low demand in the future. However, the demand rose drastically after 1st wave was over, which led to a crunch in the supply of semiconductors worldwide.
- Analysts predict that the price erosion led by this demand/supply gap might lead the U.S. economy towards great inflation & unstable economy.
- The used car price increased by as much as 40% in developed countries such as U.S., UK, Germany, Canada, and Japan.
Based on car type the market has been segmented into SUV, hatchback, and sedan cars. The used SUV market is anticipated to grow at the fastest CAGR of 6.2% between 2022-2030. The SUVs are the most preferred choice by buyers as they provide better driving comfort, mileage, sitting capacity, and performance. The hatchback segment accounted for the largest market size in 2021, accounting for around 39% market share in the used cars market.
The used car market can be segmented based on propulsion type into diesel, petrol, and electric. The used petrol cars segment dominated the market in 2021, however, the electric segment is anticipated to grow at the highest CAGR over the forecast period. Electric cars are eco-friendly, economic and offer better value for money compared to fuel-based cars. The demand for the used EV market is anticipated to triple by 2030, at a CAGR of 36% between 2022 to 2030.
By sales channel, the used car market has been segmented into online and offline segments. The online segment is expected to gain significant used car market share by 2030. Currently, the offline segment that includes dealerships, direct sales is dominating the used car market. An increase in internet & smartphone penetration, availability of used car auction platforms and apps is anticipated to boost the demand for online used car sales in the upcoming few years.
Global Used Car Market (%), By Region, 2021
By region, the used car market report covers North America, Europe, Asia Pacific, and the Rest of the World segments. North America used car market dominated the global market with 41% market share in 2021. Asia Pacific region is the fastest-growing region as the demand for used cars in developing countries such as China, India, Indonesia is growing significantly due to the growing population. Europe used cars market is anticipated to grow at a moderate pace in the next few years.
The report includes in-depth market estimates & forecasts for the below-mentioned segments for the study period of 2018 to 2030 in terms of value as well as volume-
- Used Car Market, By Car Type (USD Billion; Million Units; 2018-2030)
- Used Car Market, By Propulsion Type (USD Billion; Million Units; 2018-2030)
- Used Car Market, By Sales Channel (USD Billion; Million Units; 2018-2030)
- Used Car Market, By Geography (USD Billion; Million Units; 2018-2030)
- North America (U.S., Canada, Mexico)
- Europe (U.K., Germany, France, and Rest of Europe)
- Asia Pacific (Japan, China, India, South Korea, and Rest of Asia Pacific)
- Rest of the World
KEY PLAYERS COVERED IN THE REPORT
The report includes detailed company profiles of the below-mentioned top used car companies in 2022.
- Asbury Automotive Group
- AutoNation Inc.
- CarMax Business Services, LLC
- Cox Automotive
- eBay Inc.
- Group 1 Automotive Inc.
- Hendrick Automotive Group
- LITHIA Motor Inc.
- Scout24 AG
- TrueCar, Inc.
|Base Year for Estimation||2021|
|Segments Covered In The Report||
What’s included in the report?
- Qualitative Insights
- Porter Five Forces Analysis
- SWOT Analysis
- Industry Value Chain Analysis
- Company Ranking Analysis, 2021
- Penetration & Growth Prospects Mapping
- COVID-19 Impact Analysis & Future Perspective
- Technology Development Roadmap
- Strategic Initiatives & Market Trends
- Quantitative Insights
- Global, Regional and Country Level Used Cars Volume (Million Units) & Value (USD Billion), 2018-2030
- Company Financial Analysis
Who should buy this report?
- Used Car Dealers
- Automotive Analysts & Consultants
- Automotive journalist
Frequently Asked Questions (FAQ)
- What is the used car market size in 2021?
As per Adviz Research, The used car market was valued at USD 1,788.32 Billion in 2021 and it is expected to reach a market size of USD 2,358.21 Billion by 2030.
- What is the CAGR for the market?
The market is expected to grow at a CAGR of 5.4% between 2022 to 2030.
- Which is the largest market for used cars?
North America is the largest used cars market with 41% market share in 2021.
- Which are the leading used car companies?
AutoNation Inc., CarMax Business Services, LLC, and Cox Automotive are leading used car companies.