New York, USA, Oct. 27, 2021 (GLOBE NEWSWIRE) -- According to a newly published report by Research Dive, the global used car market is expected to generate $1,970.0 billion in revenue and grow at a healthy CAGR of 6.8% over the forecast period from 2021-2028.
As per our analysts, the depreciation of the resale value of new vehicles is a vital factor estimated to fuel the growth of the used cars market during the analysis period. Due to the low resale value of new vehicles, the willingness of opting for used cars is increased among people for more practical solutions. Besides, the increasing number of organized dealers in developing nations is expected to reinforce the growth of the market by 2028. However, the lack of financing or opting for expensive financing like loans from banks may restrict the growth of the market during the forecast period.
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Segments of the Market
The report has divided the market into various segments based on vehicle type, fuel type, distribution channel, and region.
Vehicle Type: SUV Sub-Segment to be Most Profitable
The SUV sub-segment is estimated to generate a revenue of $790.2 billion and is predicted to dominate the used cars market throughout the analysis period. The growing acceptance of SUVs, the increasing need for premium vehicles in developed nations, and the increasing disposable income of the global population are further expected to fortify the growth of the sub-segments over the forecast timeframe.
Fuel Type: Petrol Sub-Segment to be Most Lucrative
The petrol sub-segment is predicted to generate a revenue of $915.1 billion and is anticipated to hold the largest market share during the forecast period. This is mainly because petrol is more affordable and the increased suitability for people to opt for base variant petrol vehicles is further expected to aid the growth of the used cars market sub-segment during the analysis period.
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Distribution Channel: Independent Dealer Sub-Segment to Have the Maximum Market Share
The independent dealer sub-segment is projected to garner a revenue of $1181.60 billion and is predicted to hold the largest market share during the forecast period. This is because the independent dealers have a huge supply of used cars in terms of age, running conditions, and variants of the vehicles, this further is expected to bolster the used car market sub-segment over the forecast period.
Region: The North America Region to Have Enormous Growth Opportunities
The North American region is predicted to generate a revenue of $654.6 billion and is expected to continue with a steady growth during the forecast period. This region has a well-established infrastructure in the organized segment of the used cars market, which is further expected to boost the growth of the market throughout the analysis period.
Covid-19 Impact on the Market
The Covid-19 pandemic has had a moderate impact on the global used cars market. During the pandemic, people preferred to opt for used cars as a mode of travel and transport instead of investing heavy bucks on purchasing a new cars. In addition, the rising imbalance of demand and supply of new vehicles and shortage of semiconductor chips that are used in automobiles, are some major factors that supported the steady growth of the used cars market.
The Key Players of the Market
The major key players of the market include
- AutoNation, Inc
- Pendragon PLC
- Cox Automotive
- THE HERTZ CORPORATION
- CarMax Business Services, LLC
- Hendrick Automotive Group
- Group 1 Automotive, Inc
- TrueCar, Inc
- Asbury Automotive Group, Inc.
- Lithia Motors, Inc., and many others.
These key players are immensely working on different development strategies and business tactics such as merger and acquisition, or partnership and collaboration to acquire a leading position in the global industry.
For instance, recently, in March 2021, Volkswagen Passenger Cars India, a leading car manufacturing company in India with a wide range of variants, announced its collaboration with Frost & Sullivan, a research and consulting firm which helps clients accelerate the growth of their respective businesses. The main perspective of this collaboration is to boost the market of pre-owned cars or used cars by giving more emphasis on consumer’s demographics and expectations, growth trends of used cars, usage of value-added services such as certification, warranty, etc., choice of purchases through online or offline and many more used cars market driving factors.
In addition, the report also presents a variety of aspects of the fertilizer market, such as SWOT analysis, product portfolio, key strategic moves, and business and financial performance.
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More about Used Cars Market:
- Partnerships, Product Launches, and Business Expansion Strategies by Market Players such as CarMax, Asbury Automotive Group, and AutoNation to Propel the Growth of the Global Used Cars Market
- How do Used Cars Aid Individuals to Fulfill Their Dreams and Meet Daily Chores?
