Global Used Car Market Future Outlook to 2027-COVID-19 Impact Assessment and Growth Opportunities

Global Used Car Market Future Outlook to 2027-COVID-19 Impact Assessment and Growth Opportunities

Executive Summary

Scope of the Study

Makreo Research has published a study titled "Global Used Car Market Future Outlook to 2027-COVID-19 Impact Assessment and Growth Opportunities" published by Makreo Research and Consulting. The report delves deeply into various parameters such as market size, segmentation, value chain analysis, and industry cause and effect analysis. The study includes market dynamics that provide an understanding of industry opportunities, driving forces, major challenges impeding growth, and an analysis of future opportunities that may help market players capitalise on untapped business potential in the specific geography.

Market Performance

The Global Used Car market revneue in 2020 crossed USD 1,400 billion mark however impact of COVID and economy turmoil impacted used car demand across all the regions. In 2020, the global market experienced a decline of 4% as compared to the average year on year growth. The market is expected to grow at CAGR of 4% from 2022-2027. The spike in CAGR is expected owing to expected economy rebound.

Global Economic Performance: The global economy is expected to grow at a 5.9% annual rate in 2021 and a 4.9% annual rate in 2022. Slower growth will be apparent in most regions, owing primarily to the fading of fiscal support and riled demand tailwinds. However, in some regions, particularly South Asia (including India) and Japan, growth rates in 2022 are expected to exceed those in 2021, owing to delayed recoveries as these economies were more affected by the delta wave in 2021. Global COVID-19 case numbers have reached all-time highs during Jan 2022 due to the Omicron variant

COVID-19 Impact: The virus outbreak had a negative impact on the used car industry due to the implications of global lockdown. Furthermore, the COVID-19 epidemic has wreaked havoc on the automotive sector. Consumers are predicted to choose private transportation in the midst of the pandemic. However, due to budget limits, passengers are likely to opt for used cars as a result of the financial differences. Furthermore, in this pandemic moment, virtual reality, online, or digitally generated sales leads buy new cars.

Market Segmentation

By Vehicle Type: There are three types of used cars on the market: SUVs, Hatchbacks, and Sedans. The SUV industry generated the majority of revenue. Most owners and intenders prefer mid-variant models to top-variant models worldwide; SUVs account for 38% of the market, followed by sedans, hatchbacks, and other vehicles. Upgrades are popular, and SUVs are the preferred vehicle. In the face of increased disposable income, consumers are exhibiting interest in upgrading their vehicles.

By Distribution Channel: The used car market is segmented into franchised dealer, organized dealer, and unorganized dealer by distribution channel. Unorganized independent dealers, with 58% of the market, were followed by franchised dealers and organized independent dealers in 2021. Furthermore, the growth of unorganized independent dealers in the used car market is encouraged by low prices and easy financing. As a result, the used car industry offers low prices and requires less legal documentation.

By Vendor Type: In 2021, the organised vendor segment accounted for the largest market share. This is due to the market's growing number of franchised dealers. The entry of new competitors and innovative retail models into the industry has also been a major driver of market expansion. Over the projected period, the organised vendor segment is expected to increase rapidly. In the coming years, the segment is expected to account for more than two-thirds of the market.

By Sales Type: In Global Used Car Market Offline platform accounts for the major share. However, over time, the internet sales channel segment is likely to develop significantly. The market has become more competitive as online platforms for vendors and buyers have developed. Furthermore, dealers benefit from the internet availability of information such as prices, reviews, and specs, which leads to tremendous growth.

Performance by Region

The Asia Pacific region accounts for the largest market share of 35% in global used car market, this is because used automobile sales in China, India, and other Asian countries have increased. Owing to a growth in the number of organized organizations offering used automotive trading services, China has expanded its market presence in the Asia Pacific region. Some Indian car dealers offer smartphone applications, a virtual online showroom, cloud services for lead management systems, sales performance monitoring, and digital marketing support, to name a few modern technology-enabled options. China is the region's largest market, and it, together with other developing nations like as India and Indonesia, is expected to drive the region's market expansion.

Europe is the world's second-largest market. Despite the fact that the Covid-19 had a significant impact on Europe's used car business, the volume of used car sales was unaffected, with only Italy reporting a double-digit reduction. Germany, Spain, and the UK all saw decreases of less than 10%, and the French used vehicle market even rebounded to beat its previous year's total.

The North American region is already well-established. Over 91.55% of households in 2020 had access to at least one automobile, up from 90.82% in 2015. In 2021, the used vehicle market in the US provided a significant boost to an already suffering auto sector. Used automobile sales remained strong despite rising prices. As a result, the market is increasing gradually.

While the LAMEA region is still a developing market, used automobiles are in great demand due to the country's high costs and short ownership periods, as well as a lack of public transportation and the presence of a sizeable non-native population. Demand is predicted to grow in the coming years.

Global Used Car Structure

By Type

SUV

Sedan

Hatchback

By Distribution

Unorganized Independent Dealer

Organized Independent Dealer

Franchised Independent Dealer

By Vendor

Organized

Unorganized

By Sales

Offline

Online

Companies covered in the Global Used Car Market Report:

• Third Party Logistics Market
• AutoNation Inc
• Lithia Motors, Inc.
• Maruti True Value
• Group 1 Automotive Inc.
• Cazoo, Ltd.
• CarGurus Inc.
• Cars24
• CarTrade.com

• How used car market is performing in the global market and what is the expected future growth?
• What is the share contribution of North America is global used car market?
• Which is the leading region in used car market globally and also the most promising country for future growth?
• Who are the key players in the global used car market?
• What are the market driving forces that are helping the industry growth and what are the key challenges ahead?
• Which is the dominant car type in the global used car market having maximum shares?
• What was the impact of COVID-19 over the used car demand in 2020 and what impact has it left over the future industry growth?
• What are the key variables responsible for Global used car pricing?