Used Car Market size was over USD 980.2 billion in 2023 and is anticipated to exceed USD 2519.5 billion by the end of 2036, growing at over 7.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of used car is estimated at USD 1083.6 billion.
The market expansion is driven by diverse consumer needs and preferences for used cars across different regions and economic conditions. There is a growing demand for used cars due to their affordability, lower depreciation rates than new cars, and availability in well-maintained condition with modern features. According to Research Nester analysis, on average nearly 60% of global consumers are most likely to consider purchasing used cars. Moreover, economic conditions such as fluctuations in new car prices, interest rates, and disposable income levels can influence consumers to opt for used cars as a more economical choice.
Growth Drivers
Challenges
Base Year |
2023 |
Forecast Year |
2024-2036 |
CAGR |
7.9% |
Base Year Market Size (2023) |
USD 980.2 billion |
Forecast Year Market Size (2036) |
USD 2519.5 billion |
Regional Scope |
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Vendor Type (Organized, Unorganized)
Organized segment is projected to dominate over 75.1% used car market share by 2036. The segment growth is augmented by the advent of online marketplaces across the world. Statistics show that e-commerce platforms and online marketplaces account for more than 45% of all online purchases.
The rise of online marketplaces has facilitated communication between buyers and sellers, increasing the effectiveness of the used automobile buying and selling process as it makes it possible to search for models and cars by price, type, model, and year. In addition, growing numbers of automotive brands are switching from licensing to franchising since it has enormous potential to innovation and grow quickly in the future. Due to its thorough inspections and warranties, franchising is one of the most popular and dynamic business growth options. This makes the franchise model the best choice for used cars since these dealers provide unmatched dependability and quality assurance for their vehicles, which customers can rely on.
Furthermore, buyers can now readily and efficiently access the market owing to the growth of organized marketplaces, such as original equipment manufacturers (OEMs) dealerships. Used automobile dealerships operated by OEMs offer cost-effective and professionally managed services, catering to sophisticated and picky consumers who want the best value without compromising on quality.
Fuel Type (Diesel, Petrol, Hybrid/Electric)
By the end of 2036, petrol segment is expected to capture around 65.0% used car market share attributed to the rising consumption of petrol in the transportation industry. Currently, internal combustion engines (ICEs) power more than 95% of worldwide transportation, while liquid fuels derived from petroleum provide over 90% of the energy for such transportation.
Petrol-based engines are generally less expensive than other engine types which may drive consumers to prefer petrol-based used cars. Fuel-powered cars are also quieter, require less maintenance, and possess a cheaper initial cost than EVs and diesel vehicles.
Size (Compact Car, Mid-Sized, SUV)
The SUV segment is set to garner notable revenue propelled by the growing demand preference for spacious cars. SUVs are the most popular models in the new and used car markets. The market demand for SUVs is primarily driven by their higher ground clearance, easy access and exit, high engine power, off-road capability, improved vision, and superior safety. SUVs are also popular due to their safety and off-road capability, among other factors. According to the International Energy Agency estimates, SUV sales amounted to 48% of all cars sold globally in 2023.
Our in-depth analysis of the global market includes the following segments:
Vehicle Type |
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Vendor Type |
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Fuel Type |
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Size |
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Sales Channel |
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APAC Market Statistics
Asia Pacific region in used car market is anticipated to dominate revenue share of over 55.1% by 2036 on account of growing urbanization and rising disposable income in the region. With more people migrating to cities in search of better employment opportunities and improved quality of life, there is an increasing demand for affordable and convenient alternatives.
Used cars are a less expensive alternative to new cars, making them a popular option among consumers who commute to work every day. Thus, a growing urban population is driving an increasing demand for used cars especially in densely populated places where public transport is limited or unreliable. Asia's urban population was estimated to be 52% in 2020. It is predicted that the region's urban population share will continue to rise steadily over the coming years, reaching more than 65 percent by 2050.
In terms of volume sales, China is the market leader in the Asia-Pacific region for used cars as people are receiving subsidies to sell their old cars. Particularly, in 2021, there were over 15 million used cars sold in China. Besides this, the export of used cars from China is growing progressively, which may augment the market revenue.
The used car market in Japan is expected to expand owing to the surging export of old cars. For instance, Japan exported over 1.20 million old cars in 2022 compared to around 1 million the year before. The Japanese market is also predicted to grow significantly as a result of increased digitization and companies' ability to provide immersive purchasing experiences remotely. Furthermore, the expansion of value-added service offerings and the number of financing providers offering credit for used cars are expected to significantly boost the market in the region.
Pre-owned automobiles are becoming more and more popular among Indian car purchasers driven by a mix of technological breakthroughs, shifting customer preferences, and economic considerations. Additionally, the market for used cars in India is predicted to increase due to the increasing demand for premium vehicles. Auto dealers claim that since owners of luxury cars usually sell their vehicles after a year or two and upgrade to newer models, the demand for used luxury cars has surged by 36–42% annually.
North America Market Analysis
The North America region will also register enormous market revenue in the used car market owing to the growing expansion of the online retail industry. The use of cutting-edge technologies such as cloud computing has propelled the dynamic e-commerce market in the region to extraordinary growth. As a result, the area is seeing a boom in the number of websites where used automobiles can be bought and sold.
The United States market has expanded steadily over the last few years, propelled by several important factors including economic factors, the costly nature of new autos, and growing concerns regarding affordability.
In Canada, the market has flourished recently, as used car insurance costs are typically lower, which enables individuals to save a substantial amount of money. Moreover, the adoption of advanced technology by tech-savvy young people, the advent of e-commerce marketplaces, and various organizations' aggressive advertising methods are all driving up demand for used cars sold through online platforms.
The market for used cars is likely to grow as a result of the expansion of major players in this industry, who are making agreements, working together, growing, and joining ventures to support the industry's growth, and implementing new strategies to remain competitive.
Author Credits: Saima Khursheed
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