Dublin, March 28, 2023 (GLOBE NEWSWIRE) -- The "Auto Finance Market By Vehicle Type, By Vehicle Age, By Purpose, By Loan Provider: Global Opportunity Analysis and Industry Forecast, 2021-2031" report has been added to ResearchAndMarkets.com's offering.
'Auto Finance Market,' the auto finance market was valued at $1.9 trillion in 2021, and is estimated to reach $5627.9 billion by 2031, growing at a CAGR of 11.5% from 2022 to 2031.
Auto finance services aim to provide funds to customers who are willing to purchase or lease car. Global technological advancement has also created demand for automotive financing sector significantly in the last few years. Technologies such as block chain, digital payments systems, and online mobile banking system are the most prominent technologies used by financial institutions today to provide the best automotive financial services to their client.
Key factors driving the growth of the Auto finance market include the emergence of online automotive finance applications and increasing the vehicle prices, the adoption of digital technologies for automotive financing Digitization is the process of converting data or information into a digital format with the adoption of advanced technology. It plays very important role in the financial sector owing to growing need among the auto financing providers for providing enhanced customer services and to improve the security of the customer.
Furthermore, SaaS also helps financial institutes to offer digital service to their customers and saves time on the financial process, which propels the growth of the market. In addition, rise in demand for digital transformation technology in the financial institutions and growing dependency of various banks on SaaS solutions drives the growth of the market.
In addition, market players across the globe are adopting various advanced technology such as blockchain technology, big data, and artificial intelligence to increase the productivity with minimal resource utilized drives the growth of the market.
The market also offers growth opportunities to the key players in the market. BFSI companies are increasing investment in machine learning and AI solutions to transform financial institute's management for providing enhanced services to the end users and to automate the necessary solutions.
In addition, with rising complexity and competition in the BFSI market, the demand for industry-specific solutions increased to meet the goals of the companies and AI-based financial solutions are helping Fintech and other industries to enhance their security and upsurge their revenue opportunity, which is driving the growth of the market.
Furthermore, the adoption of technology by developing countries has had profound effects on their economies, such as reducing the national costs of production, establishing standards for quality, and allowing individuals to communicate from a distance.
Moreover, increasing investments in AI and machine learning offer the potential to transform the area of automation for time-consuming, mundane processes, and offering a far more streamlined and personalized customer experience, which is enhancing the growth of the market.
In addition, major financial institutes such as Bank of America, JPMorgan, and Morgan Stanley, are investing heavily in ML technologies to develop automated investment advisors and train systems to detect flags such as money laundering techniques and for other fraud cases, which in turn is expected to provide lucrative opportunity for the growth of the market.
The key players profiled in the study include Ally Financials Inc., Bank of America, Capital One Financial Corporation, Chase Auto Finance, Ford Motor Company, General Motors Financial Company, Inc., Mercedes-Benz Mobility, Novuna, Toyota Financial Services and Volkswagen Finance Private Limited.
The players in the market have been actively engaged in the adoption various Strategies such as acquisition, and partnership to remain competitive and gain advantage over the competitors in the market.
For instance, in January 2021, Volkswagen Finance acquired a majority stake in KUWY Tech for an undisclosed sum, KUWY is an instant lending digital platform and through this acquisition, Volkswagen Finance Pvt Ltd will grow its new & used car business through KUWY's pan India network on car financing.
Key Market Insights
By vehicle type, the passenger vehicle segment was the highest revenue contributor to the market, and is estimated to reach $ 3,610 million by 2031, with a CAGR of 10.5%. However, the commercial vehicle segment is estimated to be the fastest growing segment with the CAGR of 13.8% during the forecast period.
By vehicle age, the new vehicle, segment dominated the global market, and is estimated to reach $ 1,040.21 million by 2031, with a CAGR of 10.6%. However, the health used vehicle segment is expected to be the fastest growing segment with the CAGR 12.5% during the Auto finance Market Forecast.
Based on region, North America was the highest revenue contributor, accounting for $ 484.22 million in 2021, and is estimated to reach $ 1,324.25 million by 2031, with a CAGR of 10.8%.
Market dynamics
Drivers
- Increase in the vehicle prices
- Adoption of digital technologies for automotive financing
- The emergence of online automotive finance applications
Restraints
- High competition and market saturation
- The emergence of rideshare services and the surge in debts from various borrowers
Opportunities
- Enactment of technologies in existing product lines and untapped potential of emerging economies
Key Market Players
- Ally Financials Inc.
- Bank of America Corporation
- JPMorgan Chase & Co.
- Mercedes-Benz Mobility
- Ford Motor Company
- Novuna
- Toyota Financial Services
- Capital One Financial Corporation
- General Motors Financial Company, Inc.
- Volkswagen Finance Private Limited
Key Market Segments
By Vehicle Age
- New Vehicles
- Used Vehicles
By Vehicle Type
- Passenger Vehicles
- Commercial Vehicles
By Purpose
- Loan
- Leasing
By Loan Provider
- Banks
- OEMs
- Credit Unions
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- South Korea
- India
- Australia
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
For more information about this report visit https://www.researchandmarkets.com/r/20ph8y
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