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The global used car market was valued at USD 1.9 trillion in 2022, growing at a CAGR of 5.9% from 2023 to 2032. The market is expected to reach USD 3.3 trillion by 2032. The used car market has grown significantly over the past few years because of the pricing competition among new market competitors and the inability of a sizeable portion of customers to purchase a new car. Furthermore, the companies operating in the used car market are fortifying their network of dealerships by investing in various locations to seize a larger portion of the local clientele and create a foothold in the industry.
Cars classified as used were driven and owned by one or more individuals before being offered for sale. These vehicles could be older, more seasoned, or more contemporary, low-mileage models. Used cars are usually sold through dealerships, individual vendors, and online marketplaces. For consumers looking to cut costs, they might be a more cost-effective option than purchasing a brand-new car. Buyers should proceed cautiously when buying a used car, as the car's history, condition, and maintenance requirements may differ significantly from those of a new car. Among various used automobiles are sedans, SUVs, trucks, crossovers, sports cars, vans, and convertibles. Sedans are the most common type of used automobile, and families prefer pickups and SUVs for hauling and transportation. Because of their many applications, used cars are a popular choice for many people. They can be used for personal mobility, as a family's second car, or as transportation to work or school. Used cars can also be utilised for business travel, particularly by startups or small businesses that must deliver goods or provide services. Car rental companies and taxi services occasionally purchase older vehicles to expand their fleets since they can be less costly and easier to maintain than new cars. Used cars could be a wonderful option for those who enjoy off-road travel or collecting vintage automobiles. A broad range of individuals favour used cars because of their affordability and dependability.
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In August 2022, Toyota owns Lexus and has recently introduced the Lexus Certified Programme in the Indian market. By starting this programme, Lexus India intends to increase the value of their vehicles for current owners and increase the accessibility and affordability of Lexus models for prospective buyers.
In August 2021, with the help of CamCom, a provider of AI-powered visual inspection solutions, and Mahindra First Choice Wheels (MFCW), it will be possible to inspect cars with AI. Mahindra can inspect and evaluate vehicle damage owing to this agreement.
In August 2021, Mercedes-Benz India announced the launch of 'Marketplace,' a 'direct customer to customer' selling platform offering a range of advantages to buyers and sellers of high-end, previously owned vehicles.
High cost of new cars- The car market has seen increased demand for cutting-edge technologies like climate control, power steering, and anti-lock brakes. As a result, new cars are now more expensive. Furthermore, the price increase in 2019—driven primarily by mainstream passenger car segments—indicates the challenges with affordability in the new market. Used car sales have increased in the automotive industry compared to new cars, as used cars are affordable and cheaper than new ones. This is expected to drive the market's growth.
Absence of stringent laws- The need for more stringent regulations and laws controlling the purchase of used cars will hinder the used car market's expansion. In most cases, stolen cars are sold in black markets at cheaper rates. Due to these reasons, people are hesitant to purchase used cars, hindering market’s growth.
An increasing number of automakers and used car sellers- Since funding for used car purchases is easily accessible, the European used car market's revenue surpassed USD 500 billion in 2021 and is expected to increase gradually. Europe is the world's largest vehicle producer, and the manufacturing sector is the region's greatest private investment in R&D. The European Commission promotes worldwide technology standardisation and R&D spending to maintain its technological superiority globally and boost regional automobile sector competitiveness. Local used car businesses provide a variety of tech-enabled alternatives, such as virtual internet portals and smartphone applications, for monitoring automobile performance. Thus, the increased number of automakers is expected to provide growth opportunities for the market during the forecast period.
The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific emerged as the largest global used car market, with a 41.3% market revenue share in 2022.
The primary reason for this is the rise in demand for used cars in developing nations like South Korea, China, India, and many more. A growing population, easy affordability, an increase in discretionary income, a low rate of vehicle ownership among millennials due to the expensive cost of vehicles, and a low population-to-car ratio are further reasons for the expansion of the used car market in the region.
Asia Pacific Region Used Car Market Share in 2022 - 41.3%
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The vehicle type segment is divided into electric, conventional, and hybrid. The conventional segment dominated the market, with a market share of around 38% in 2022. Compact, mid-size, and SUV cars all fell into this category, which held the largest percentage of the segment. There is also a growing need for an alternative to traditional gasoline-powered vehicles because of rising pollution levels and worries about climate change. As a result, the used electric car industry has experienced tremendous development.
The vendor type segment is divided into unorganized and organized. The organized segment dominated the market, with a market share of around 60% in 2022. The organized vendor segment has been growing owing to the increased number of franchised dealers, new retail models, and new competitors.
The fuel type segment is divided into petrol, diesel, and others. The petrol segment dominated the market, with a market share of around 41% in 2022. This can be explained by the fact that fewer people are using diesel cars since the government forbids buying used diesel cars.
The size segment is divided into SUV, mid-sized, and compact car. The SUV segment dominated the market, with a market share of around 45% in 2022. Other car market categories have suffered due to the SUV segment's influence on the shifting market conditions. SUVs, which provide size and capacity without sacrificing compactness compared to off-road vehicles, are currently regarded by many consumers as the best cars to drive in different areas.
Report Description:
| Attribute | Description |
|---|---|
| Market Size | Revenue (USD Trillion) |
| Market size value in 2022 | USD 1.9 Trillion |
| Market size value in 2032 | USD 3.3 Trillion |
| CAGR (2023 to 2032) | 5.9% |
| Historical data | 2019-2021 |
| Base Year | 2022 |
| Forecast | 2023-2032 |
| Region | The regions analyzed for the market are Asia Pacific, Europe, South America, North America, and Middle East & Africa. Furthermore, the regions are further analyzed at the country level. |
| Segments | Vehicle Type, Vendor Type, Fuel Type, Size |
As per The Brainy Insights, the size of the used car market was valued at USD 1.9 trillion in 2022 to USD 3.3 trillion by 2032.
The global used car market is growing at a CAGR of 5.9% during the forecast period 2023-2032.
Asia Pacific emerged as the largest used car market.
This study forecasts global, regional, and country revenue from 2019 to 2032. The Brainy Insights has segmented the global used car market based on the below-mentioned segments:
Global Used Car Market By Vehicle Type:
Global Used Car Market By Vendor Type:
Global Used Car Market By Fuel Type:
Global Used Car Market By Size:
Global Used Car Market By Region:
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