Global Automotive Fintech Market Size Study & Forecast, by Vehicle Type (Passenger Cars and Commercial Vehicles), By Propulsion (ICE and Electric), By Industry (Auto Finance, Connected Vehicle, Auto Insurance, and Auto Rental and Leasing), and Regional An

Global Automotive Fintech Market Size Study & Forecast, by Vehicle Type (Passenger Cars and Commercial Vehicles), By Propulsion (ICE and Electric), By Industry (Auto Finance, Connected Vehicle, Auto Insurance, and Auto Rental and Leasing), and Regional Analysis, 2023-2030

Global Automotive Fintech Market is valued approximately at USD XX billion in 2022 and is anticipated to grow with a healthy growth rate of more than XX% over the forecast period 2023-2030. Automotive fintech refers to the innovative use of technology to provide diverse financial services to both customers and major entities within the automotive sector. This comprehensive term encompasses a wide range of financial activities within the automotive industry. The emergence of financial technology primarily stemmed from collaborative efforts between banks and original equipment manufacturers (OEMs) to offer customers unique and tailored vehicle financing solutions. This sector is expanding owing to its digital footprint into areas such as insurance, rental, leasing, and beyond. The rapid growth and extensive acceptance of fintech within the automotive sector is attributed to the significant demand for its services. This market growth has been further propelled by the integration of IoT (Internet of Things) and wireless technologies across various industries. For example, the introduction of in-vehicle payments, on-demand transportation services, and pay-per-mile insurance exemplify the extensive coverage of fintech in the automotive domain. Key factors driving this widespread adoption include the increasing adoption of connected vehicle technologies, the rise of subscription-based vehicle ownership models, the surge in online vehicle purchasing platforms, and the growing presence of captive lenders in the automotive sector. These developments collectively contribute to the widespread adoption and pervasive use of fintech in the modern automotive landscape.

In addition, the demand for connected vehicle technologies like in-vehicle payments and telematics is constantly rising, which is driving market expansion across the globe. As per Statista, in 2020, the global market for in-vehicle payments accounted for USD 100 million, which is projected to reach to USD 1,000 million by 2023. The increasing adoption of in-vehicle payment systems is fueling demand for Automotive Fintech by offering convenience to consumers, integrating seamlessly with digital wallets, enhancing overall customer experience, fostering partnerships between OEMs and financial institutions, and providing valuable data for personalized financial services. This trend highlights a shift towards digital and integrated financial solutions within the automotive sector, driving the need for innovative fintech offerings tailored to in-vehicle payments. Leading automotive companies are actively enhancing the communication channels between vehicles and infrastructure to facilitate seamless data exchanges. Accordingly, prominent players in the financial industry are collaborating with automotive giants to introduce innovative technologies, with in-vehicle payment systems being a prime example. Furthermore, the integration of telematics modules in various vehicles is significantly improving vehicle health monitoring and enabling efficient vehicle and fleet maintenance. For instance, in July 2022, Edelweiss General Insurance's announced the introduction of the Switch mobile telematics-based vehicle insurance in India. This fully digitalized policy, accessible via a mobile app, leverages telematics to assess driver behaviors and other factors, ultimately reducing vehicle ownership costs for customers. Thus, these aforementioned factors are propelling the growth of Automotive Fintech Market during the estimated period. Moreover, the rising inclination toward integration of digital technologies in the automotive industry, as well as growing popularity of on-demand transportation present various lucrative opportunities over the forecast years. However, the high risk associated with security hacks and data breaches and the competition from traditional financial institutions are challenging the market growth throughout the forecast period of 2023-2030.

The key regions considered for the Global Automotive Fintech Market study include Asia Pacific, North America, Europe, Latin America, and Middle East & Africa. North America dominated the market in 2022 with largest market share owing to the high adoption of technology and financial services. Furthermore, the region's growing reliance on auto financing, availability of vehicle rental and leasing options and widespread use of connected vehicle technology are also key factors driving the demand for financial technology services during the forecast period of 2023-2030. Whereas, Asia Pacific is expected to grow at the highest CAGR over the forecast years. The robust demand for vehicles, rising inclination towards vehicle rental and leasing services, growing presence of major automotive industry players, as well as growing consumer preference for connected services are significantly propelling the market demand across the region.

Major market players included in this report are:
General Motors Company (U.S.)
Toyota Motor Corporation (Japan)
Uber Technologies, Inc. (U.S.)
Ola Cabs (India)
Ally Financial Inc. (U.S.)
Banco Santander, S.A. (Spain)
Tesla, Inc. (U.S.)
Honda Motor Co., Ltd. (Japan)
Hertz Global Holdings, Inc. (U.S.)
Europcar Mobility Group S.A. (France)

Recent Developments in the Market:
 In May 2023, Car Karlo Mobility Technologies LLP, an Indian start-up, announced the debut of its self-driven car rental services in Pune, India, with the goal of securing a portion of the expanding Indian car rental market.
 In April 2023, CarDekho unveiled its specialized fintech platform named Rupyy, focused on providing auto financing solutions for both consumers and retailers in the automotive sector. The company emphasized that the entire financing process would be digital, offering users seamless and convenient loan approvals.
 In March 2023, Mercedes Benz and Visa disclosed their partnership to introduce in-car payments in Germany, starting with selected models. Users can make purchases using a fingerprint sensor integrated into the car, enhancing payment convenience while on the road.
 In January 2021, AutoFi launched a new business division dedicated to providing financing services with enhanced flexibility for automobile consumers. This new division, called 'lending as a service,' focused on optimizing and simplifying the entire financing process for consumers, aiming to offer more streamlined and convenient solutions.

Global Automotive Fintech Market Report Scope:
 Historical Data – 2020 - 2021
 Base Year for Estimation – 2022
 Forecast period - 2023-2030
 Report Coverage - Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
 Segments Covered - Vehicle Type, Propulsion, Industry, Region
 Regional Scope - North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments & countries in recent years and to forecast the values to the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within countries involved in the study.

The report also caters detailed information about the crucial aspects such as driving factors & challenges which will define the future growth of the market. Additionally, it also incorporates potential opportunities in micro markets for stakeholders to invest along with the detailed analysis of competitive landscape and product offerings of key players.

The detailed segments and sub-segment of the market are explained below:

By Vehicle Type:
Passenger Cars
Commercial Vehicle

By Propulsion:
ICE
Electric

By Industry:
Auto Finance
Connected Vehicle
Auto Insurance
Auto Rental and Leasing

By Region:

North America
U.S.
Canada

Europe
UK
Germany
France
Spain
Italy
ROE

Asia Pacific
China
India
Japan
Australia
South Korea
RoAPAC

Latin America
Brazil
Mexico

Middle East & Africa
Saudi Arabia
South Africa
Rest of Middle East & Africa

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