The Global Used Car Market Growth, COVID-19 impact and Forecast (2021-2025)
Global used car market is segmented based on vendor type as Organized and Unorganized; based on sales channel type as Online and Offline; based on vehicle type as Hatchback, Sedan and SUV; based on geography as APAC, Europe, North America, and ROW.
Introduction
A used vehicle, or secondhand vehicle, or pre-owned vehicle, is a vehicle that was previously owned by one or more retail owners. Used vehicles are sold through traditional walk-in used car stores, online platforms, and independent vehicle dealers. Furthermore, franchises, including social media and online used-car companies, help people buy and sell used cars
Demand for the vehicle subscription services has been rising in the last few years. A vehicle subscription service is an alternative to owning or leasing a vehicle. By opting for a subscription service for a vehicle, a consumer can use a vehicle on a monthly basis by paying a monthly fees, which includes maintenance, insurance, and roadside assistance.
The increased preference for personal mobility due to safety concerns amid the Covid-19 pandemic has led to supply constraints in the used car market, as people are holding on to their cars longer.
Table of Contents
Market Overview
The global electric truck market is expected to grow to $1837.03 billion by 2025 at a CAGR of 5.5%
With the increase in car ownership, the global used car industry has entered a period of rapid development.
APAC is the fastest-growing segment of the used car market, expected to showcase a CAGR of over 20% through 2021. The region is expected to increase its market shares swiftly and is likely to compete with the Americas by the end of the forecast period,
The Americas occupied a majority of 48% of the global used car market in 2020.
Key Trends
One of the major trends being witnessed in the used car market is collaborations and partnerships among different system providers, original equipment manufacturers (OEMs), online providers, and other stakeholders.
Most of the transactions have been made by individual people trying to buy and sell a car. Since the parties involved are individuals and not organizations, it has been hard to establish trust between them.
Key Market Players
Major global players have an edge over other smaller players due to their superior business models and increased number of pre-owned car retail outlets. The market is dominated by global vendors like Hertz car sales, Penske cars, Emil Frey, Pendragon PLC, and Maruti Suzuki True Value.
Growth Drivers and Challenges
Customers get value for money, which is expected to be a major factor that drives the used vehicle market.
An increase in the number of automobile manufacturers operating in the used vehicle market and an increasing number of online vehicle dealerships has changed the customer's perception about the quality of used cars.
Moreover, rapid change in technology or the introduction of new models of vehicles at short intervals allows customers to sell or exchange their old vehicle with a new vehicle.
The primary issue with the used car market is the sheer lack of organized players. Unorganized and Semi-Organized participants take up almost 53% of the total market share.
C2C (Consumer To Consumer) sales take up 32%, leaving the organized sector with only about 15% market share.
The primary issue with the used car market is the sheer lack of organized players. Unorganized and Semi-Organized participants take up almost 53% of the total market share.
C2C (Consumer To Consumer) sales take up 32%, leaving the organized sector with only about 15% market share.