Global Used Vehicle Market Outlook to 2027

Global Used Vehicle Market Outlook to 2027

The report provides a comprehensive analysis of the potential of Global Used Vehicle industry. The report covers an overview and genesis of the industry, and market size in terms of a number of used vehicles sold.

Its market segmentations include by type of Market Structure, by Type of Vehicle, by Age of vehicle, by kms Driven and by region; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to Ken Research estimates, due to the impact of COVID-19, there has been a substantial decrease in the denominator (new vehicle sales) while the numerator, i.e. The pre-owned vehicle market, has been relatively stable. The Global used vehicle market is currently at $ 1.25 Tn and is expected to exceed $ 2.5 Tn by 2027.
The share of organized sector is more than the unorganized sector in the global used vehicle market due to higher preference and trust in organized players in the market.
People prefer vehicles that are around five years old as they are less likely to need expensive replacements at this age.
With the rise in preference for online retailing, the online segment is expected to witness significant growth, however, a large number of customers prefer offline stores while purchasing used vehicles to ensure and check the vehicle physically. Therefore, the offline segment of the market is anticipated to dominate the market during the forecast period.

Key Trends by Market Segment:

By Kms Driven

Vehicles with average mileage of 81,000-100,000 Km are expected to dominate the industry in the future. Along with mileage, consumers preference for good condition, which would be crucial factor for used vehicle sales.

By Age of Vehicle, 2022

Upper-or Middle-Income Families, Working Professionals, and other groups prefer used vehicles that are 8-10 years old.

Competitive Landscape

The global used vehicle industry is largely unorganized due to the preference of consumers towards stand-alone local, independent dealers or the ones located in used car exchanges, along with peer-to-peer sales, facilitated by online auto-classified platforms. The used vehicle market has witnessed the entry of various online classified portals and marketplaces in recent years. These players follow various different business models and aim to harness the untapped potential of the industry. Few players include True Vehicle, Inc, Lithia Motors, Inc., Group 1 Automotive, Inc., The HERTZ Corporation etc.

Future Outlook

Dealerships are expected to introduce their own official website/platforms to showcase their used vehicle inventory. Online auto portals are expected to venture into omni-channel experiences & offer varied services such as vehicle subscription. Value-added services such as vehicle inspection, financing options, insurance, ownership transfer & more is expected to be a focus area for used vehicle dealers to provide a hassle-free experience to the buyers.

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