increasing number of new models of cars launched due to high competition is driving the Used Car Market
Technavio analyzes that the Used Car Market is expected to grow at a CAGR of 7.56% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 857.1 billion.There are various factors that contribute to the growth of the market. The used car market is experiencing a significant influx of new model cars due to intensifying competition among automobile manufacturers. This trend is driven by the constant need to innovate and offer consumers the latest features and technologies. As a result, the pre-owned car market is becoming increasingly dynamic, providing buyers with a wider range of options to choose from. This competitive landscape is advantageous for consumers seeking high-quality, relatively affordable used cars.
The compact car segment in the global used car market is experiencing significant growth, driven by advanced imaging technologies and virtual vehicle inspections facilitating informed purchasing decisions. Sustainability is a key trend, with eco-friendly vehicles, such as hybrid and electric cars, gaining popularity due to their reduced greenhouse gas emissions and contribution to mitigating air pollution. Fuel prices and fuel efficiency are critical factors influencing the market, with compact cars offering an attractive alternative to larger vehicles, especially amidst oil price fluctuations. Tax incentives and rebates further incentivize the adoption of compact cars, particularly in regions like APAC and Europe, which dominate the compact car segment. The expansion of fast-charging infrastructure and accessible financing options further bolsters market growth. Popular used compact cars include the Fiat Panda and Volkswagen Golf, reflecting the segment's increasing appeal due to its balance of affordability, efficiency, and environmental consciousness.
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Used Car Market Segmentation
As per our research findings, here are some of the key competitors that are leading the industry
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The used car market caters to a diverse consumer base seeking personal transportation solutions. Modern used vehicles offer durability and reliability, enhanced by safety features such as adaptive cruise control and lane-keeping assistance. Transparent buying processes on e-commerce platforms ensure trust through vehicle history reports and advanced imaging technologies. Industry applications include environmental concerns, with prices and inventory accessible online for convenient transactions. Infotainment systems add to the appeal, making used cars a popular choice for many.
The global automobile manufacturing industry encompasses corporations producing passenger cars, commercial vehicles, and all-terrain vehicles. Notably, this sector excludes manufacturers of motorcycles, scooters, e-bikes, trikes, and three-wheelers. According to Technavio, market expansion will be influenced by the adoption of advanced technologies, such as electronic components, enhanced safety systems, autonomous driving capabilities, emission standardization, and electronic fuel control for improved fuel efficiency. These features cater to the evolving consumer preferences for eco-friendly, fuel-efficient, and durable vehicles. The diverse consumer base, driven by the need for personal transportation and the convenience of online platforms, is increasingly turning to e-commerce platforms for transparent buying processes and modern used vehicle offerings.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
Technavio Research
Jesse Maida
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