Key Highlights

• The used car market was valued at USD 2,048.8 billion in 2023, and it will rise to USD 3776.1 billion, powering at an 8.9% CAGR, by 2030.
• The rising organized sector is a major factor driving the industry growth. In emerging economies like India, Mexico, China, and Brazil, the industry has historically been led by unorganized sector players.
• Most transactions have been completed by individual people trying to purchase as well as sell their cars.
• As the parties involved are not organizations, it has been difficult to find trust among the parties involved.
• This pushes the industry toward the organized sector, such as original equipment manufacturers and large automotive dealerships like Cars24 Services Pvt. Ltd., CarMax Inc., Carvana Co., and CarGurus Inc.
• With the participation of OEMs and various other organized sectors rises, customers are now more encouraged to purchase second-hand cars because of the greater sense of reliability and trust.
• The rising need for these vehicles in developing nations is a major opportunity in the industry. China and India have observed a rise in the disposable salary of people.
• This has allowed a large count of people, who were previously not able to buy a car, to own one now.

Market Insights

North America accounted for the largest share of the industry in 2023, of approximately 50%. This is primarily because of the rising sales of used cars in Canada and the U.S. and the high price of new cars in the continent.

APAC is likely to advance at the fastest compound annual growth rate, of 9.5%, in the years to come.

This can be because of the increasing need for used cars in India and China, and the rising count of organized firms providing used vehicle trading services in this region.

The organized category will advance significantly at approximately 9.2% CAGR during this decade.

Several new car dealers are entering this market and appealing consumers with various trade-in packages, because of the constantly decreasing profitability in the new car sector and the aging of automobiles on the road.

The unorganized category was the largest contributor to the industry in 2023, with approximately 70% share.

This can be ascribed to the existence of many unorganized players in Thailand, India, Mexico, China, and Brazil.

The medium category was the largest contributor to the industry in 2023, with approximately 50% share.

This can be because of the better accessibility of high-quality, less-driven used vehicles and the increasing purchasing power of customers in emerging economies.

The offline category led the industry in 2023, with approximately 75% share. This can be attributed to the customers' strong fondness for purchasing second-hand cars from trustworthy dealers.

In 2023, the ICE category accounted for the largest share of the industry.

The need for used ICE-driven cars is high in the developing nations in LATAM and APAC due to the increased average age of these automobiles.

The used car industry is fragmented owing to the existence of some major players.

Major players are taking strategic steps such as partnerships, mergers & acquisitions, and business expansions.

Source: P&S Intelligence