The Global online used car market was valued at USD 28.19 billion in 2022 and is projected to reach a market size of USD 75 billion by the end of 2030. Over the forecast period of 2023-2030, the market is projected to grow at a CAGR of 15%.
Industry Overview
The second-hand car that is up for sale is referred to as a used car. Used cars are sold through a variety of channels, including franchise and independent car dealers, rental car agencies, auctions, private party sales, and leasing offices. Due to the high cost of cars and the associated maintenance costs, millennials buy fewer cars overall. Additionally, because millennials tend to be cost-conscious, they frequently choose second-hand automobiles for vacation. Additionally, the high cost of new automobiles prevents many people from purchasing them, which increases demand for older cars. This opens the door for various investments by sector players to set up their dealership network in the market.
The market for used automobiles is estimated to develop as a result of factors including the high price of new cars, worries about affordability, and increased demand from franchises, leasing offices, and car dealers for off-lease cars and subscription services. The expansion of the international market is, however, hampered by the unstructured used automobile transactions and the absence of regularisation. In addition, the emergence of e-commerce and online technologies, a steady rise in organized/semi-organized sales in developing nations, an increase in the global market for electric vehicles, and the demand for car-sharing services are all predicted to present lucrative opportunities for the expansion of the used-car market.
Additionally, the importance of internet sales has grown to be a crucial industry development component. Online car markets have been crucial in enabling consumers to access products with a single touch. The market for second-hand automobiles has increased as a result of a number of these changes. The market has expanded as a consequence of several causes like affordability, the availability of used automobiles, the rise in demand for personal mobility, and the appearance of numerous internet players to organise the market. For instance, Ebay Inc. introduced a new eBay Motors application in 2019 to improve the online procedure for selling and buying old cars.
The growth of the used car sales market will be driven by high new vehicle prices and increasing affordability concerns.
The demand for cutting-edge technologies in cars, such power steering, temperature control, anti-lock braking, and others, has surged over the last few years, according to the automotive industry. This has caused the cost of new automobiles to increase as a result. Furthermore, the price increases in 2019 that were driven by popular passenger vehicle classes are a hint of problems with affordability in the emerging market. Additionally, rising auto costs are returning to the second-hand market. As a result, the automotive sector has seen more used car sales than new vehicle sales, which is estimated to enhance demand for used automobiles in the near future.
Rise in demand for off-lease cars & subscription service by the franchise, leasing offices, and car dealers
The danger of new entrants into the market and increased competition are the main drivers of the used vehicle dealership industry's expansion. Consumer perceptions of the used car industry have evolved as a result of the reliability and added services/quality. Franchised dealers are also well-positioned to gain from the expansion of the used vehicle market thanks to support from OEM engagement in certification and marketing programmes, online inventory pooling, and access to high-quality contracts. In addition, demand for vehicle subscription services, which let customers use cars on a monthly basis in exchange for payments that cover maintenance, insurance, and roadside assistance, has increased recently.
The growth of the used car market is hampered by the unorganised players. The unorganised businesses dominate the used automobile industry in nations like India, China, Thailand, Brazil, and Mexico. Furthermore, the unorganised players do not provide any kind of guarantee for used autos. Additionally, some vendors engage in dishonest tactics like repainting and dent removal on accident-damaged automobiles in order to conceal their damage and get an artificially inflated value, which makes potential buyers wary of purchasing second hand cars. Therefore, the increased rate of fraud and the bigger market share held by unorganised dealers pose a danger to the expansion of the used automobile industry.
Lack of regularization will challenge the market growth
The seller is crucial to the used car dealer because without the owner's consent, the dealer cannot acquire vehicles to serve their clientele. After a while, the market will run out of new automobiles if new car sales decline. Additionally, the pandemic has significantly disrupted the car business. After the epidemic, customers are predicted to choose private transportation. As a result, the used car market is totally dependent on replacement buyers, auto owners selling their vehicles, and used car imports, which raise a lot of questions about how much supply will be available to meet demand. These elements are thus anticipated to limit the expansion of the used automobile industry in the near future.
|
REPORT METRIC |
DETAILS |
|
Market Size Available |
2022 - 2030 |
|
Base Year |
2022 |
|
Forecast Period |
2023 - 2030 |
|
CAGR |
15% |
|
Segments Covered |
By Vehicle Type, Fuel Type and Region |
|
Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
|
Regional Scope |
North America, Europe, APAC, Latin America, Middle East & Africa |
|
Key Companies Profiled |
Alibaba.com, AsburyAutomotive Group, AutoNation Inc., CarMax Business Services, LLC, Cox Automotive, eBay Inc., Group 1 Automotive Inc., Hendrick Automotive Group, LITHIA Motor Inc., Scout24 AG, TrueCar, Inc., Car24, OLX Cars, Ouickr Cars |
Segmentation Analysis
In terms of shipments, the conventional car sector held a proportion of more than 40.0% in 2021. In addition to the hybrid vehicle, the electric vehicle category is anticipated to see a high CAGR throughout the projection period. Used electric car pricing have remained affordable for customers over the past several years, which has been a major contributor in the growth of the electric vehicle market. Used electric car costs have historically been less expensive than used hybrid vehicle pricing, according on price analyses from the previous several years. Used EV sales have increased significantly as a result of electric vehicle characteristics including technology-driven performance, which, in the luxury car market, serve as a status symbol and promote sustainability.
Large inventories of conventional gasoline automobiles provide a variety of options at a reasonable cost. The greatest percentage of all vehicle sizes, including small, mid-size, and SUV automobiles, belonged to this group of vehicles. Furthermore, there is a high demand for alternatives to traditional gasoline-powered vehicles because to growing worries over climate change and rising pollution. Consequently, the market for second-hand electric vehicles has seen notable expansion.
In 2021, the fuel category had the highest volume share (almost 40.0%). As the government forbids the acquisition of second-hand diesel automobiles, this is credited to the decline in the use of diesel vehicles. Over the projection period, the others category is anticipated to have considerable expansion. Used car volume sales for CNG-powered vehicles have also increased over time in emerging nations.
One of the factors contributing to the decline in diesel vehicle sales is the emission regulations for compression ignition (diesel) and positive ignition (gasoline, NG, LPG, and ethanol) vehicles. Additionally, the reduction in sales of vehicles with diesel engines and the growth of the alternative market might be linked to the high NOx emissions from diesel engines. Compared to passenger automobiles powered by diesel, the pollution regulation for gasoline-powered vehicles is less strict. Furthermore, a sizable customer base has been drawn to petrol automobiles in recent years, and it is anticipated that this trend will continue in the years to come. These cars have a refined engine, respectable fuel efficiency, and powerful top-end performance. A further element propelling the petrol market is the rising supply of SUVs powered by gasoline.
In terms of shipments, Asia Pacific held the greatest market share of over 35.0% in 2021, mostly as a result of the rapidly increasing demand for used cars in China. Over the projection period, Asia Pacific is anticipated to see the greatest CAGR growth. This is explained by the rise in used automobile sales in China, India, and other Asian nations. Due to the declining growth in recent years, the North American area maintained a sizeable market share in 2021 and is anticipated to see consistent growth going forward.
China has increased its market share in the Asian market due to the growth of organised businesses offering used automobile trading services in the Asia Pacific area. Some Indian auto dealers provide a wide range of cutting-edge technology-enabled solutions, such as mobile applications, an online showroom that functions as a virtual showroom, cloud services for lead management systems, the ability to track sales success, and assistance with digital marketing. Additionally, the level of development in the Indian used automobile market offers the customer base fantastic potential. Indonesia, Malaysia, Indonesia, South Korea, and other emerging nations in the area have demonstrated tremendous market potential.
Alibaba.com
Asbury Automotive Group
AutoNation Inc.
CarMax Business Services, LLC
Cox Automotive
eBay Inc.
Group 1 Automotive Inc.
Hendrick Automotive Group
LITHIA Motor Inc.
Scout24 AG
TrueCar, Inc.
Car24
OLX Cars
Ouickr Cars
Due of the global COVID-19 epidemic, countries had to temporarily reduce their desire for both new and used automobiles. Additionally, the global economic recession has a negative impact on consumers, which lowers automobile sales, but individuals all over the world have started avoiding public transportation due to the danger of infection and to preserve social distance. Additionally, the majority of people worldwide want to purchase automobiles following the lockout. There is a trend in preference away from taxis and public transit toward private automobiles, for instance, as per the cars24 research, which found that customers prefer to use private cars and less public transportation.
The used car market has experienced a huge increase in sales in some countries due to factors like a decline in income, a lack of money, and a rise in preference for private cars to maintain social distance, which is estimated to positively impact the used car industry during the COVID-19 outbreak even though some automotive companies are struggling as a result of the pandemic.
NOTABLE HAPPENINGS IN THE GLOBAL ONLINE USED CAR MARKET IN THE RECENT PAST:
Service Launch: - In 2020, To provide a fantastic used vehicle online purchasing experience, Asbury Automotive Group announced the debut of its end-to-end digital retailing system dubbed Clicklane.
Business Collaboration: - In 2020, Volkswagen announced a significant investment in the used automobile market through a partnership between its own used car chain, Das WeltAuto, and several used car platforms.
Product Launch: - In 2019, Ebay Inc. introduced a new eBay Motors application to improve the online procedure for selling and buying old cars.
Global automotive lighting refers to all vehicle lighting systems, from headlamps that illuminate the road to taillights that communicate movements. They guarantee motorists and other road users alike safety, visibility, and style. While taillights frequently use LEDs for improved visibility, headlights are available in a variety of technologies, including LED and laser. Interior illumination, DRLs, and signal lights all have a role to play. This market, which was estimated to be worth $33.64 billion in 2022, is anticipated to rise to $67.39 billion by 2030 because of laws, luxury tastes, safety concerns, and technological developments like OLED taillights and adaptive headlights. Anticipate a future dominated by intelligent, connected, personalized, and sustainable lighting systems that enhance the safety, efficiency, and aesthetic appeal of automobiles.
Car lighting works its magic to provide safety, visibility, and style. Headlights cut through the night, taillights express intent, and interiors shine with comfort. The billion-dollar global business is expected to rise due to consumer demand for high-end experiences, safer roads, and cutting-edge technology. Imagine dynamic messages being painted by taillights, headlights that adjust to the road, and interiors that customize their atmosphere. Driven by technological advancements like linked systems and laser beams, this future is calling. Anticipate even more visually attractive, environmentally friendly, and intelligent lighting to illuminate the way ahead, making cars safer, more efficient, and unquestionably cooler.
In the market for automobile lighting, safety is the driving force behind demand from the public and laws. While automated high beams smoothly react to traffic, adaptive headlights modify their beams so as not to blind other people. With visually striking displays, dynamic taillights convey intentions for braking and turning. Beyond these developments, integrated pedestrian identification and lane departure alerts will soon make roads safer and brighter for everyone.
Luxurious automobile lighting creates a distinct visual identity that goes beyond simple illumination. Personalized interior lighting customizes the driving experience by setting the mood with a range of colours and intensities, while intricate designs and distinctive DRLs modify exteriors. As you approach your automobile at night, welcoming lights lead the way, resulting in an interior that is perfectly lit. Not only is this symphony of light aesthetically pleasing, but it also stands as a tribute to luxury. Upcoming developments like gesture-controlled lighting and holographic displays promise to further enhance the experience.
The worldwide automotive lighting market is undergoing a significant transition towards energy-efficient solutions, as environmental concerns gain prominence. LED technology is leading the way, providing a ray of hope for the environment and drivers alike. LED lights beam brighter and use a lot less energy than conventional halogen lamps. There are some tangible advantages to this. For drivers, this translates to increased fuel economy, which lowers petrol prices and lessens reliance on fossil fuels. Greater air quality and a reduction in the transport sector's contribution to climate change are the results of reduced overall emissions.
Although the global automotive lighting business is booming, there are still unknowns. Difficulties impede growth even as innovation propels it with eye catching features like laser beams and adaptable headlights. These technologies are luxury items due to their high cost and difficult integration, which puts producers' abilities to the test. The worldwide patchwork created by unclear legislation limits the potential of innovation. Durability issues persist, particularly when complex systems are subjected to challenging conditions. Ultimately, a lot of drivers still don't fully understand how these improvements can help them. Together, we can overcome these obstacles. The keys to reducing costs are improved production, more seamless integration, and unified regulations. Their full potential can be realized by educating customers about the safety, efficiency, and aesthetic value of these lighting wonders. By working together, we can pave the way for an even brighter and safer future for vehicle lighting.
It is made possible by advanced LED technology, which gives drivers the ability to customize their illumination for the highest level of comfort and flair. Consumers that care about the environment want greener products, and vehicle lighting complies. While solar- and self-powered lighting technologies offer a future powered by clean energy, energy-efficient LEDs lower pollution. The advent of connected lighting systems heralds a new age. Envision automobiles interacting with infrastructure and one another to minimize accidents and enhance traffic efficiency. Integrated headlights with pedestrian recognition provide unmatched safety, while dramatic taillights with eye-catching displays alert onlookers to your intentions. The possibilities are endless in the future. Gesture-controlled interior illumination, holographic displays projected onto the road, and even light fixtures with self-healing capabilities.
Due to laws requiring safety features like headlights, taillights, and brake lights, exterior lighting presently holds the most market share in the vehicle lighting industry. The dominance of this market is partly attributed to advancements in safety-focused technologies such as adaptive headlights and daytime running lights. The market value of external lighting is increased by the quick adoption of technology like LED bulbs and laser lights, which improve performance and aesthetics. Conversely, the interior lighting market is expected to increase at the fastest rate in the upcoming years. Innovations like ambient lighting and technology breakthroughs like LED and OLED displays, driven by consumer demand for comfort and personalisation, open new possibilities. The spread of sophisticated interior lighting systems is further driven by the growing emphasis on safety and the expansion of the luxury car market.
The worldwide vehicle lighting market is currently dominated by halogen because of its more affordable price, advanced technology, and useful illumination. With its dependable supply chain and affordable option for manufacturers and cost-conscious customers, halogen holds the biggest market share. The fastest-growing market right now is LEDs, which are predicted to shortly overtake halogen. The rapid expansion of LEDs is driven by their higher efficiency, longer lifespan, flexibility in design, and technological breakthroughs including enhanced brightness. Because LEDs use less energy and produce fewer emissions and better fuel economy, they are becoming more and more popular in the changing automotive lighting market.
Passenger automobiles rule the worldwide automotive lighting market. The sheer number of passenger cars produced which surpasses that of business vehicles and fuels the need for lighting systems is the primary cause of this popularity. The growing demand for personal automobiles in developing nations is a result of rising disposable income, which in turn drives the rise of the passenger car market. The importance that consumers place on safety and aesthetics elements helps to drive market expansion. But in the upcoming years, the market for electric and hybrid cars is expected to develop at the quickest rate. The exponential rise of the worldwide electric car market, which is still expanding and shows no signs of slowing down, is what is driving this surge. Specialised lighting solutions are required since electric and hybrid vehicles have different lighting requirements because of their specific functionality and design aesthetics.
Most lighting systems sold nowadays are sold by OEMs (Original Equipment Manufacturers), primarily because manufacturers pre-install lighting systems in new cars. But in the next years, the aftermarket is expected to develop at the quickest rate. This spike in demand for replacement parts, especially lighting systems, can be linked to several variables, one of them being the average age of cars. The industry is expanding because of consumers' growing desire to personalise their cars with aftermarket lighting upgrades such LED upgrades and decorative lighting. The availability and affordability of technologies like adaptive headlights and laser lights in the aftermarket, together with other advancements in lighting technology, are driving demand even more. Moreover, the growing market for electric cars (EVs).
Throughout the forecast period, Asia Pacific is anticipated to be the automotive lighting market with the highest profitability. Over the past few years, Asia Pacific countries like China and India have seen notable increases in automotive manufacturing and sales, primarily in the medium-to premium luxury car segment. Asia Pacific is predicted to see an increase in the manufacturing of passenger cars, with India experiencing the strongest growth rate. Depending on the state of the national economy, the area offers a suitable selection of both high-end and cheap cars. For instance, there is a substantial demand for halogen, Xenon/HID, and LED since China and India produce more economy and mid-range automobiles. On the other hand, luxury car adoption rates are greater in South Korea and Japan, where LED lighting is the norm.
A brief shadow was thrown by COVID-19 over the worldwide automotive lighting market. Production was stopped by lockdowns and supply chain disruptions, while luxury lighting upgrades were shelved by consumers on a tight budget. Resources became scarce, and R&D stagnated. Still, the market is recovering thanks to resurgent demand and rearranged priorities. While energy-efficient LEDs are being pushed towards adoption by sustainability, safety concerns are driving interest in features like pedestrian detection and adaptive headlights. The digital push of the epidemic creates opportunities for intelligent, networked lighting systems that may interact with infrastructure and other cars. Ultimately, the industry is positioned to shine brighter, focused on safety, sustainability, and a connected future, even though the pandemic dimmed its brilliance.
A development collaboration between OSRAM Continental and REHAU aims to incorporate lighting into external components, providing automobile manufacturers with innovative lighting options that improve functionality and design flexibility. For rear combination lamps, Hella unveiled a revolutionary lighting innovation called Hella FlatLight technology. A Memorandum of Understanding (MoU) was signed by Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a division of Motherson Group, and Marelli Automotive Lighting to investigate a technology collaboration focused on intelligently lighted external body components. Valeo debuted their revolutionary 360° lighting system at the Shanghai Auto Show. This technology surrounds the car with a band of light, projecting instantaneous, clear signs that other drivers can see from a distance. Pedestrians, cyclists, and scooter riders are especially susceptible to these signals
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
Specify your preferred Countries, Segments, or timeframes
Unlock Country Level Outlook, Trends, Cross-country Comparability, or supply Chain Variations.
Analyst Support
Every order comes with Analyst Support.
Customization
We offer customization to cater your needs to fullest.
Verified Analysis
We value integrity, quality and authenticity the most.
