Dublin, Aug. 07, 2024 (GLOBE NEWSWIRE) -- The "The US Vehicle Auction Market: Analysis By Volume, Type, Distribution Channel, Size, Trends and Forecast up to 2029" report has been added to ResearchAndMarkets.com's offering.
The US vehicle auction market in 2023 was valued at US$3.32 billion. The value of the market is expected to reach US$4.13 billion by 2029. On the other hand, the US vehicle auction market's volume has reached 13.84 million units in 2023. The market is anticipated to grow at a CAGR of approx. CAGR of 3.7% over the projected period of 2023-2028.
The continuously elevating popularity of online auctions is converting into more competition. Multiple VC-backed startups have emerged in recent years providing dealers app-based auction platforms with much lower fees than their physical counterparts. These companies have also lowered the barrier to entry given an asset-light balance sheet (cars could be sold off a dealer's lot), use of "gig workers" for inspection and ship vehicles, and even shared logistics platforms. Some of the strategies among key players in the market for vehicle auction are mergers, acquisitions, collaborations, launching online websites.
Looking ahead, the market is expected to continue growing due to the ongoing digital transformation, which will further streamline auction processes and enhance customer experiences. Moreover, the steady influx of vehicles from rental car companies, fleet operators, and lease expirations will sustain high inventory levels.
Economic factors, such as potential recessions and fluctuating consumer confidence, might also drive more buyers towards cost-effective used vehicles. As electric vehicles (EVs) become more prevalent, their eventual introduction into the secondary market will add a new dimension to vehicle auctions, attracting both traditional and new buyers.
Market Segmentation Analysis:
By Type: The report provides the bifurcation of the market into two segments based on the type: Whole Car and Salvage Vehicle.
In 2023, the whole car held the highest share of the market. Also, the whole car is expected to be the fastest-growing segment in the forecasted period, owing to factors such as the rise in popularity of online car auction sites. Since inventory on an online auction site is available 24/7 and covers a larger geographic area, bidding instances have increased for popular car makes and thus, on an aggregate level, caused their general resale value to increase.
Furthermore, off-lease vehicles and fleet cars entering the auction market have provided a steady supply of relatively new and well-maintained cars, attracting more buyers. Dealers also find whole car auctions advantageous for sourcing inventory at competitive prices, which they can then resell at a profit. Thus, this combination of increased demand, improved accessibility, and reliable supply has significantly boosted the market for whole cars in vehicle auctions.
By Distribution Channel: The whole car auction market volume has been further analyzed based on the distribution channels: Online and Physical.
In 2023, the online whole car auction segment held the highest share of the market and is expected to be the fastest-growing segment in the forthcoming years. The shift towards digital platforms has made vehicle auctions more accessible and convenient for both buyers and sellers.
Online auctions eliminate geographical barriers, allowing participants from different locations to bid on vehicles without the need for travel. This wider reach significantly expands the potential buyer base. Technological advancements, such as high-quality images, detailed vehicle descriptions, and virtual inspections, have enhanced buyer confidence in making remote purchases.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 88 |
| Forecast Period | 2024 - 2029 |
| Estimated Market Value (USD) in 2024 | $3.44 Billion |
| Forecasted Market Value (USD) by 2029 | $4.13 Billion |
| Compound Annual Growth Rate | 3.7% |
| Regions Covered | United States |
Market Dynamics
Growth Drivers
- Increasing Vehicle's Average Life
- Growing Internet Users
- Rise in Vehicle Crashes
- Hike in Revenue Per Car Auctioned Pricing
- Strong International Demand
Challenges
- Fluctuations in the Supply of Used Vehicles
- Vulnerability to Economic Conditions
- Fraudulent Activities in Online Auctions
Market Trends
- Integration of Online Auction and Artificial Intelligence (AI)
- Increasing Growth of Electric Vehicles (EVs)
- Increasing Popularity of Subscription Services
- Environmental and Regulatory Considerations
- Extensive Use of Data and Analytic Capabilities to Streamline Operation
- Change in Consumer Behavior
Competitive Landscape: The US vehicle auction market is highly consolidated. The key players in the US vehicle auction market are:
- Openlane, Inc. (ADESA)
- Copart Inc.
- ACV Auctions Inc.
- RB Global, Inc. (Insurance Auto Auctions Inc.)
- E Automotive Inc. (EBlock)
- eBay, Inc. (eBay Motors)
- COX Automotive, Inc. (Manheim, Inc.)
- Capital Auto Auction
- Cars & Bids
- General Auction Company
- A Better Bid Car Auctions
- AutoBidMaster
For more information about this report visit https://www.researchandmarkets.com/r/wn7c96
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