NEW YORK, Oct. 6, 2021 /PRNewswire/ -- The global used cars market is estimated to observe prominent growth in the forecast period, due to the growing acceptance of used cars across the globe. The North America region is estimated to foresee dominant growth by 2028.
Research Dive in its latest published report estimates that the Global Used Cars Market will generate $1,970.0 billion by 2028 and grow at a CAGR of 6.8% during the forecast period from 2021 to 2028.
In the recent years, new cars and other vehicles are witnessing a depreciation in its resale value across the world. As a result, the acceptance of used cars is increasing at a rapid pace globally and the number of used cars buyers has increased significantly. In addition, the number of organized car dealers is increasing in the developing countries due to the rising demand for affordable second-hand cars. All these factors are projected to foster the global used cars market growth during the forecast period. However, the lack of regulatory measures in the ale & transfer of used car ownership and the high costs required for maintaining used cars are the factors expected to limit the market growth in the projected timeframe.
COVID-19 Impact on the Used Cars Market
The COVID-19 pandemic has moderately impacted the global used cars market growth during the pandemic. The adequate impact on the used cars market share and size is majorly due to the adoption of new methods of operation by companies in the used cars industry, such as the use of online channels for selling cars. For instance, Carvana, a leading e-commerce company that sells used cars online, witnessed an increase in sale of 37% in 2020 compared to 2019. Also, many small online used car dealers saw significant increase in their sales during the pandemic period. These factors have positively impacted the global used cars market.
The report segments the global market into vehicle type, fuel type, distribution channel, and region.
Based on vehicle type, the SUV sub-segment is expected to generate a revenue of $790.2 billion by 2028 and witness significant growth during the analysis period. This is majorly due to increasing disposable income of people and the rising need for premium vehicles in the developed nations across the globe.
Based on fuel type, the petrol sub-segment is expected to garner a revenue of $915.1 billion by 2028 and hold a dominating share in the global industry in the analysis period. This significant growth of the sub-segment is mainly due to the affordability of petrol cars compared to its counterparts such as diesel. In addition, petrol vehicles are suitable base variant cars for a price sensitive buyer.
Based on distribution channel, the franchised dealer sub-segment is projected to garner a revenue of $788.4 billion by 2028 and observe the fastest growth during the forecast period. This is mainly due to several advantages of buying a car from franchised dealer such as high quality service, the presence of regulatory measures by government for registration of used vehicles, and the implementation of the guidelines to prevent environmental pollution.
Based on region, the North America used cars market size was $404.2 billion in 2020 and is expected to dominate in the global industry over the forecast period. This is mainly due to the existence of well-established infrastructure in the organized segment of used cars industry. According to the National Automobile Dealers Association about 33% of the used vehicles were sold through the organized sector in 2020. These factors are expected to boost the regional market growth by 2028.
These players are focusing on mergers, service launches, strategic collaborations, and used cars market trends to gain a strong position.
In August 2021, Lithia and Driveway, an American automotive retailer, announced its expansion into the Canada used cars market through a new strategic partnership with Pfaff Automotive Partners, the Toronto-based retailer of automobiles and accessories.
They are focusing on advanced product developments and merger & acquisition. These are some of the strategies conducted by the startups as well as established business organizations.
Research Dive is a market research firm based in Pune, India. Maintaining the integrity and authenticity of the services, the firm provides the services that are solely based on its exclusive data model, compelled by the 360-degree research methodology, which guarantees comprehensive and accurate analysis. With an unprecedented access to several paid data resources, team of expert researchers, and strict work ethic, the firm offers insights that are extremely precise and reliable. Scrutinizing relevant news releases, government publications, decades of trade data, and technical & white papers, Research dive deliver the required services to its clients well within the required timeframe. Its expertise is focused on examining niche markets, targeting its major driving factors, and spotting threatening hindrances. Complementarily, it also has a seamless collaboration with the major industry aficionado that further offers its research an edge.