Global Used Car Market Size and Forecast to 2027-COVID-19 Impact Assessment and Growth Opportunities

Overview

Executive Summary 
The Global Used Car market revenue crossed USD 1,500 billion in 2021 and is expected to register a CAGR of 3.9% by 2027. In terms of regional contribution, Asia-Pacific accounted for the largest market share in the Global Used Car market driven by highly populated countries (China and India) and rising income levels. Europe is predicted to grow at a healthy rate between 2021 and 2027, even after the strong hit of Covid-19 that also impacted Europe's second-hand automobile industry. Organized market account for the largest pie in the global used car market and this segment is gradually expanding.

COVID-19 Impact: The virus outbreak had a negative impact on the used car industry due to the implications of the 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.

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.

Industry Segmentation
By Vehicle Type: The used car market by vehicle type is segmented into SUVs, Hatchbacks, and Sedans. The SUV segment has 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 by distribution channel is segmented into the franchised dealer, organized dealer, and unorganized dealer by distribution channel. Unorganized independent dealers account for the largest share of the market followed by franchised dealers and organized independent dealers. 

By Vendor Type: This part of the report is segmented into organized and unorganized markets. Some of the leading players in the global used car market are CarMax Business Service, AutoNation Inc, Group1 Automotive Inc, Cazoo Ltd., CarGurus, Mahindra First Choice, and CarTrade.Com.

By Sales Type: In the Global Used Car Market by sales, type discusses online and offline sales. The market has become more competitive as online platforms for vendors and buyers have developed. Furthermore, dealers benefit from the internet's availability of information such as prices, reviews, and specs, which leads to tremendous growth.

Performance by Region
Asia Pacific: 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: The used-car business in Europe was booming in 2019, around 7.9 million used cars were sold in Europe. While the coronavirus outbreak has had an impact on sales, the long-term picture remains positive. 

North America: 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. 

LAMEA: 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.

Scope of the Study
The synopsis is based on the recently published report titled "Global Used Car Market Future Outlook to 2027-COVID-19 Impact Assessment and Growth Opportunities" by Makreo Research and Consulting Firm. 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 capitalize on untapped business potential in the specific geography.

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