Global Car Auction Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Car Auction Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Car auction is a method of selling vehicles based on an auction system. Car auctions sell cars of varying makes, models, and conditions to the highest bidders. An auction can be held at a physical location, online, or both. Bidding may be restricted to licensed car dealers or be open to the public.

Market Overview:

The latest research study on the global Car Auction market finds that the global Car Auction market reached a value of USD 19239.67 million in 2022. It’s expected that the market will achieve USD 24813.36 million by 2028, exhibiting a CAGR of 4.33% during the forecast period.

Market demand has changed

The COVID-19 pandemic has had a significant impact on the demand for car auctions. With the economic uncertainty brought about by the pandemic, many people have been holding off on making large purchases, including cars. This has led to a decrease in demand for vehicles, which has in turn affected the number of cars being auctioned off. In addition to the decrease in demand for cars, the pandemic has also affected the supply chain for the car auction industry. Production shutdowns and shipping delays have led to a decrease in the number of vehicles available for auction. This has further impacted the demand for car auctions. Furthermore, the pandemic has also affected the types of vehicles that are in demand. With many people working from home and travel restrictions in place, there has been a decrease in demand for commuter cars.

COVID-19 influenced the way of car auction

The COVID-19 pandemic has accelerated the trend towards online car auctions, which were already growing in popularity before the outbreak. With social distancing measures in place and restrictions on public gatherings, many auction houses have turned to online platforms to conduct their auctions. Online auctions offer a number of benefits, including convenience and accessibility for bidders, the ability to reach a wider audience, and reduced costs for auction houses. They also allow for social distancing measures to be observed, which is important in preventing the spread of the virus. As a result of the pandemic, many auction houses have invested in technology and infrastructure to support online auctions, including live streaming and online bidding platforms. This has led to an increase in online bidding and a decrease in in-person bidding.

Diversification of inventory

Auction houses have diversified their inventory to attract a wider range of buyers, which has helped to increase demand for auctioned vehicles. Luxury cars are one example of a type of vehicle that has become increasingly popular at auctions. Many buyers are looking for a good deal on a high-end vehicle, and auctions offer a way to purchase luxury cars at a fraction of their retail price. Classic cars are another type of vehicle that has become popular at auctions. Many collectors and enthusiasts attend auctions to purchase rare or vintage vehicles that are difficult to find elsewhere. Commercial vehicles, such as vans and trucks, are also being sold at auctions. These vehicles are often purchased by businesses that are looking to upgrade their fleets or by individuals who need a work vehicle.
By offering a wider range of vehicles, auction houses are able to attract a broader range of buyers, which can help to increase demand and drive up prices. This can be beneficial for both buyers and sellers, as buyers are able to find a wider range of vehicles to choose from, while sellers are able to reach a larger audience of potential buyers.

Supervision in automobile sales industry

Participants in the vehicle sales industry are subject to, and may be required to expend funds to ensure compliance with a variety of laws, regulations, and ordinances. These include, without limitation, land use ordinances, business and occupational licensure requirements and procedures, vehicle titling, sales, and registration rules and procedures, and laws and regulations relating to the environment, anti-money laundering, anti-corruption, exporting, and reporting and notification requirements to agencies and law enforcement relating to vehicle transfers. Many of these laws and regulations are frequently complex and subject to interpretation, and failure to comply with present or future regulations or changes in interpretations of existing laws or regulations may result in impairment or suspension of enterprise's operations and the imposition of penalties and other liabilities.
At various times, enterprise may be involved in disputes with local governmental officials regarding the development and/or operation of its business facilities. Enterprise may be subject to similar types of regulations by governmental agencies in new markets. In addition, new legal or regulatory requirements or changes in existing requirements may delay or increase the cost of opening new facilities, may limit the base of vehicle buyers, may decrease demand for the vehicles, and may adversely impact the ability to conduct business.

Region Overview:

China had the highest growth rate of all regions in 2022.

In 2022, the share of the Car Auction market in United States stood at 38.51%.

Company Overview:

Copart is one of the major players operating in the Car Auction market, holding a share of 16.73% in 2023.

Copart

Copart is a provider of online auctions and vehicle remarketing services targeted primarily at insurance companies, car dealerships, fleet operators, and vehicle rental companies. The majority of the vehicles sold through Copart's services are either damaged or recovered stolen vehicles. Copart principally sells to vehicle dismantlers, rebuilders, used vehicle importers and exporters and the general public. The company generates revenue from fees paid by vehicle sellers and buyers and/or purchasing and reselling vehicles on its own account.

Manheim

Manheim is a provider of wholesale vehicle auction services to automotive dealerships, banks, car rental agencies and auto manufacturers The company engages in a range of wholesale services, including decisions, buying and selling, floor planning, logistics, assurance and reconditioning. enabling commercial clients to increase their profits and efficiencies in their used vehicle operations.

Segmentation Overview:

Whole Car Auction: These auctions sell used vehicles that are still in good condition and can be driven off the lot by the buyer.

Salvage Auctions: Salvage auctions offer vehicles determined to be a total loss (aka totalled) by insurance companies. The damage can come from an accident, flood, fire, or another previous-owner incident that makes the car deemed too expensive to repair by insurance companies.

The Whole Car Auction segment by type showed a value growth of 10.54% in 2022.

Among different product types, Salvage Auctions segment is anticipated to contribute the largest market share in 2028.

Application Overview:

Online car auctions allow buyers and sellers to participate in the auction process from anywhere in the world, as long as they have an internet connection.

Offline car auctions are conducted at physical auction sites, where buyers and sellers can participate in the auction process in person.

By application, the Offline segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Car Auction market covered in Chapter 3:

Worldwide Auctioneers
Bonhams
Gooding & Company
RM Sotheby's
ADESA
ACV Auctions
Auto Auction Mall
Barrett-Jackson
Copart
BCA Group
Insurance Auto Auctions, Inc.
Manheim 
The Mecum Auction Company

In Chapter 4 and Chapter 14.2, on the basis of types, the Car Auction market from 2018 to 2029 is primarily split into:

Whole Car Auction
Salvage Auctions

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Car Auction market from 2018 to 2029 covers:

Online
Offline

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)