Used Car Market Research Report: By Sector (Unorganized, Organized), Vehicle Type (Medium, Small, Large), Propulsion (Internal Combustion Engine, Electric), Sales Medium (Offline, Online) - Global Industry Analysis and Growth Forecast to 2030

  • Published: July 2020
  • Report Code: AT11810
  • Available Format: PDF
  • Pages: 139

Market Outlook

The used car market size is expected to increase from 115.2 million units in 2019 to 275.3 million units by 2030, advancing at a CAGR of 8.7% during 2020–2030. The growth can be attributed to the rising demand for off-lease vehicles by leasing offices, franchises, and car dealers and surging popularity of car subscription services.

The rapid spread of coronavirus has had a substantial impact on the automotive industry, with a slowdown in the demand for old and new vehicles. The impact of the market sentiment and global economic conditions has a direct impact on the business of market players. Moreover, the volatile material costs, ban on the export and import imposed by several economies to control the COVID-19 spread, and keen competition among peers will result in a dip in the business for all major players in the used car industry.

Used Car Market Outlook

Unorganized Sector To Sell Used Cars in Larger Numbers

The unorganized category of the sector segment generated the higher revenue in 2019. This was due to the large share of unorganized players in emerging economies, including India, Mexico, Thailand, China, Brazil, and India. Moreover, owing to the weak regulatory environment for used car selling and buying, the used car market of emerging nations is projected to observe the continued dominance of unorganized players in the future.

Electric Cars To Be Adopted at Faster Pace

The electric category is expected to register the faster growth in the coming years, under segmentation by propulsion. The surge in the adoption of electric vehicles can be owed to their eco-friendly property. With the rising awareness about green products and electrification of powertrain systems and vehicles, consumers will shift toward electric cars.

Offline Category Generating Higher Revenue

The market is categorized into offline and online under the sales medium segment. In 2019, the offline category held the larger share due to the high consumer preference for purchasing a used car from a known dealer. Moreover, it is imperative for customers to physically see it, take a test drive, and go through several options before purchasing a used car.

North America To Record Largest Used Car Sales

North America generated the highest revenue in 2019 because Canada and the U.S. are two of the most-prominent markets for used cars in the world. The toughening government regulations related to more-organized operations are also benefitting the used car market growth here. Further, the digital revolution is altering the retail scenario of used cars and bringing in more digital companies, such as Fair Financial Corp., Vroom Inc., and Carvana Co.

Latin America, Middle East, & Africa (LAMEA) To Be Fastest-Growing Market

The LAMEA region is expected to witness the fastest growth in the coming years. Regional emerging economies, such as Argentina, Brazil, and Mexico, are providing growth opportunities to the players in the market for used cars, as the purchasing power of the people of these countries is surging. Additionally, the increasing number of partnerships between online distributors and automobile producers, financial institutions, and dealerships are generating shared value through data, such as new-model reselling patterns and customer preferences. Therefore, the emerging nations in LAMEA are the prime markets to invest in, primarily due to high growth opportunities and favorable operating conditions.

Used Car Market Regional Analysis

Market Consolidation and Partnerships Are Major Trends

In recent years, there has been a significant surge in the number of partnerships and collaborations among online solution providers, system providers, original equipment manufacturers (OEMs), and other stakeholders. With these collaborations, companies are gaining access to the existing knowledge of their partners and increase their portfolio by adding an attractive range of services and car models. This major used car market trend plays a vital role in fueling the penetration of such vehicles.

For example, in January 2020, CarMax Inc. (CarMax) entered into a partnership with Inc. (Edmunds), with the former investing $50.0 million to gain a minority stake in the latter. Through this strategic relationship, CarMax Inc. is expected to strengthen its new omnichannel experience that allows consumers to purchase a car on their terms. Buyers can choose between home or in-store experience or a combination of both the methods.

Used Car Market Growth Drivers

Flourishing Organized Sector Driving Used Car Demand

The market for used cars in countries such as Mexico, India, China, and Brazil has always been dominated by unorganized players. These countries have primarily had individuals who try to sell and buy a car. Since the stakeholders are individuals and not organizations, it has been difficult to establish trust between them. Unlike these unorganized players, organized players are providing free servicing and free towing at the dealership, along with the used cars. These services help in attracting customers toward their dealerships and building trust between buyers and sellers.

Advent of E-Commerce and Online Technologies Are Boosting Market Growth

The emergence of online and e-commerce technologies is another key factor driving the used car market. The rapid urbanization, widening internet connectivity, and developments in the telecom sector have allowed for a much-better information flow among people. These factors are being rapidly used by used car owners to advertise their vehicles and spread the details about them. This smoothens the sales process and enables more stakeholders to sell and buy cars online. The supply side of this market has more weightage than the demand side, and the easy availability of internet connections has made it easier for people to advertise their used cars effectively, thereby increasing the overall supply..

Used Car Market Report Coverage
Report Attribute Details
Historical Years 2014-2019
Forecast Years 2020-2030
Base Year (2019) Market Size 115.2 Million Units
Forecast Period (2020-2030) CAGR 8.7%
Report Coverage Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Analysis, Companies’ Strategical Developments, Product Benchmarking, Company Profiling
Market Size by Segments By Sector; By Vehicle Type; By Propulsion; By Sales Medium; By Geography
Market Size of Geographies U.S., Canada, Germany, France, Italy, U.K., Japan, China, India, South Korea, Brazil, Mexico, Argentina
Secondary Sources and References (Partial List) International Council on Clean Transportation (ICCT), International Road Transport Union (IRU), Japan Automobile Manufacturers Association (JAMA), New Zealand Used Car Industry Association (Inc.), Organisation Internationale des Constructeurs d'Automobiles (OICA), Society of Automotive Engineers (SAE), Society of Indian Automobile Manufacturers (SIAM)


Market Players Launching New Products and Services to Gain Competitive Edge

The used car market is highly fragmented, with the presence of numerous global players with a large number of unorganized local players. In recent years, the major players in the market have taken several strategic measures, such as product launches, partnerships, and facility expansions, to gain a competitive edge. For instance, in January 2020, TrueCar Inc. launched a new consumer experience, in response to the changing consumer needs in a digital world. The company now offers more flexibility to buyers looking for price clarity and convenience. The company also expanded its product offerings to include vehicle discovery tools, an upgraded used car experience, and a feature on its website which allows visitors to choose how many certified dealers they want to connect with.

In June 2019, Group 1 Automotive Inc. launched the online vehicle purchasing platform in the U.S., AcceleRide, which allows customers to purchase a new or used vehicle online. AcceleRide provides customers with the convenience of uploading all the required information digitally, without ever having to visit a dealership.

In March 2019, Droom Technology Pvt. Ltd. launched an internet of things (IoT)-enabled ECO Smart device that connects with a car’s on-board diagnostic (OBD) II port and integrates with the car’s sensors, hardware modules, data transmitters, control units. This IoT-enabled ECO Smart device allows the customer to track the car's performance, health, and damage factors.

The Key Players in Used car Market include:

  • CarMax Inc.
  • Penske Automotive Group Inc.
  • Lithia Motors Inc.
  • Group 1 Automotive Inc.
  • Droom Technology Pvt. Ltd.
  • Pendragon PLC
  • Asbury Automotive Group Inc.
  • Sonic Automotive Inc.
  • Cox Automotive Inc.
  • AutoNation Inc.
  • Emil Frey Classics AG
  • Emirates Auction L.L.C.
  • Fair Financial Corp.
  • Hendrick Automotive Group
  • Latamautos México S. de RL de CV
  • Mahindra First Choice Wheels Ltd.
  • Maruti Suzuki India Ltd.
  • TrueCar Inc.
  • Trusty Cars Pte. Ltd.
  • Vroom Inc.

Used Car Market Size Breakdown by Segment

The research offers size of the global used car market for the period 2014–2030.

Based on Sector

  • Unorganized
  • Organized

Based on Vehicle Type

  • Medium
  • Small
  • Large

Based on Propulsion

  • Internal Combustion Engine (ICE)
  • Electric

Based on Sales Medium

  • Offline
  • Online

Geographical Analysis

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    •  Italy
    • France
  • APAC
    • China
    •  Japan
    • India
    • South Korea
    • Mexico
    • Brazil,
    • U.A.E.
Frequently Asked Questions About This Report
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