Used car market 2023-2027: A descriptive analysis of five forces model, market dynamics, and segmentation – Technavio

NEW YORK, Jan. 18, 2023 /PRNewswire/ — According to Technavio, the global used car market size is estimated to grow by USD 703.33 billion from 2022 to 2027. The market is expected to grow at a CAGR of 6.7% during the forecast period. Moreover, the growth momentum will accelerate. APAC will account for 41% of the growth of the global market during the forecast period. 

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Global used car market – Five forces

The global used car market is fragmented, and the five forces analysis covers– 

• Bargaining power of buyers 
• The threat of new entrants
• Threat of rivalry
• Bargaining power of suppliers
• Threat of substitutes
• For interpretation of Porter’s five forces model – buy the report!

Global used car market – Customer landscape

The report includes the market’s adoption lifecycle, from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global used car market – Segmentation assessment

Segment overview

Technavio has segmented the market based on vehicle type (compact car, SUV, and mid-size) and channel (organized and unorganized).

• The compact car segment will grow at a significant rate during the forecast period. The compact segment in the market is driven by the increasing specifications of compact cars and the rising need for personal mobility. In the current scenario of increasing traffic congestion, compact cars are easier to drive than large cars. Also, they emit significantly fewer harmful gases and are, therefore, witnessing high adoption. Moreover, the fluctuating prices of fuel and the growing preference for fuel-efficient personal mobility solutions drive the compact car segment in the global market. 

Geography Overview

By geography, the global used car market is segmented into APAC, North America, Europe, Middle East and Africa, and South America. The report provides actionable insights and estimates the contribution of all regions to the growth of the global used car market.

• APAC is estimated to account for 41% of the growth of the global market during the forecast period. APAC is home to some of the largest automotive markets in the world. In APAC, the high demand for four-wheelers, especially in China, is contributing to revenue generation in the regional market. In addition, the growing popularity of used car retailing in emerging markets, such as India, is driving the growth of the regional market. 

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Global used car market – Market dynamics

Key factor driving market growth

• The declining ownership cycle of vehicles among urban consumers in emerging countries is notably driving the market growth. The ownership duration of cars is shortened owing to new technological advances in automotive which attract customers to buy new cars. 
• The factors determining the prices of used cars are the number of years the vehicle was driven, the distance driven, and the number of damages caused due to accidents and other faults.
• In India, a used car having no major faults can fetch up to 70% of its actual price after one year of ownership and about 62% of its actual price after three years of ownership.
• Such convincing values encourage car owners to sell their cars at the earliest convenience to get back most of the car value. Hence, these factors will drive market growth during the forecast period. 

Leading trends influencing the market 

• Growing demand for car subscription services is an emerging trend in the market. The alternative to owning or leasing a vehicle is a car subscription. 
• These consumers are allowed to use a car for an all-inclusive monthly fee, which includes roadside assistance, insurance, and maintenance. Such programs also allow the subscriber to change cars at a notice of a few days. 
• Several such services are provided by various auto manufacturers in major regions across the globe.
• Additionally, consumers that find high-priced cars unaffordable due to their high cost of ownership or leasing prefer such car subscription services to get the experience of driving a luxury car. 

Major challenges hindering market growth

• The increase in the number of on-demand taxi operators is a major challenge impeding the market. Owing to the financial constraints of some users on-demand taxi services have emerged as a convenient alternative to purchasing a new car. 
• On-demand taxi services provide convenient and comfortable means of transport as well as save time and energy on finding suitable parking. 
• On-demand taxi operators are also focusing on introducing on-demand bike taxis to tap into more customer segments. Hence, these factors will hinder the global market growth during the forecast period. 

Drivers, trends, and challenges have an impact on market dynamics, which can impact businesses. Find more insights in a sample report!

What are the key data covered in this used car market report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the used car market between 2023 and 2027
• Precise estimation of the used car market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the used car industry across APAC, North America, Europe, Middle East and Africa, and South America
• A thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of used car market vendors

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The electric car rental market is estimated to grow at a CAGR of 12.64% between 2022 and 2027. The size of the market is forecast to increase by USD 11,246.65 million. This report extensively covers market segmentation by type (economy cars and luxury cars), distribution channel (offline and online), and geography (Europe, North America, APAC, South America, and Middle East and Africa).

The used car market share in the US is expected to increase by 3.91 million units from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 1.98%. Furthermore, this report extensively covers used car market segmentation in the US by product (mid size, full size, and compact size) and distribution channel (third-party channel sales and OEM channel sales). 

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Table of Contents:

1 Executive Summary

• 1.1 Market Overview 
• Exhibit 01: Executive Summary – Chart on Market Overview
• Exhibit 02: Executive Summary – Data Table on Market Overview
• Exhibit 03: Executive Summary – Chart on Global Market Characteristics
• Exhibit 04: Executive Summary – Chart on Market by Geography
• Exhibit 05: Executive Summary – Chart on Market Segmentation by Vehicle Type
• Exhibit 06: Executive Summary – Chart on Market Segmentation by Channel
• Exhibit 07: Executive Summary – Chart on Incremental Growth
• Exhibit 08: Executive Summary – Data Table on Incremental Growth
• Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

• 2.1 Market ecosystem 
• Exhibit 10: Parent market
• Exhibit 11: Market Characteristics

3 Market Sizing

• 3.1 Market Definition 
• Exhibit 12: Offerings of vendors included in the market definition

• 3.2 Market segment analysis 
• Exhibit 13: Market segments

• 3.3 Market size 2022

• 3.4 Market outlook: Forecast for 2022-2027 
• Exhibit 14: Chart on Global – Market size and forecast 2022-2027 ($ billion)
• Exhibit 15: Data Table on Global – Market size and forecast 2022-2027 ($ billion)
• Exhibit 16: Chart on Global Market: Year-over-year growth 2022-2027 (%)
• Exhibit 17: Data Table on Global Market: Year-over-year growth 2022-2027 (%)

4 Historic Market Size

• 4.1 Global used car market 2017 – 2021 
• Exhibit 18: Historic Market Size – Data Table on Global used car market 2017 – 2021 ($ billion)

• 4.2 Vehicle type Segment Analysis 2017 – 2021
• Exhibit 19: Historic Market Size – Vehicle type Segment 2017 – 2021 ($ billion)

• 4.3 Channel Segment Analysis 2017 – 2021 
• Exhibit 20: Historic Market Size – Channel Segment 2017 – 2021 ($ billion)

• 4.4 Geography Segment Analysis 2017 – 2021 
• Exhibit 21: Historic Market Size – Geography Segment 2017 – 2021 ($ billion)

• 4.5 Country Segment Analysis 2017 – 2021 
• Exhibit 22: Historic Market Size – Country Segment 2017 – 2021 ($ billion)

5 Five Forces Analysis

• 5.1 Five forces summary 
• Exhibit 23: Five forces analysis – Comparison between 2022 and 2027

• 5.2 Bargaining power of buyers 
• Exhibit 24: Chart on Bargaining power of buyers – Impact of key factors 2022 and 2027

• 5.3 Bargaining power of suppliers 
• Exhibit 25: Bargaining power of suppliers – Impact of key factors in 2022 and 2027

• 5.4 Threat of new entrants 
• Exhibit 26: Threat of new entrants – Impact of key factors in 2022 and 2027

• 5.5 Threat of substitutes 
• Exhibit 27: Threat of substitutes – Impact of key factors in 2022 and 2027

• 5.6 Threat of rivalry 
• Exhibit 28: Threat of rivalry – Impact of key factors in 2022 and 2027

• 5.7 Market condition 
• Exhibit 29: Chart on Market condition – Five forces 2022 and 2027

6 Market Segmentation by Vehicle Type

• 6.1 Market segments 
• Exhibit 30: Chart on Vehicle Type – Market share 2022-2027 (%)
• Exhibit 31: Data Table on Vehicle Type – Market share 2022-2027 (%)

• 6.2 Comparison by Vehicle Type 
• Exhibit 32: Chart on Comparison by Vehicle Type
• Exhibit 33: Data Table on Comparison by Vehicle Type

• 6.3 Compact car – Market size and forecast 2022-2027
• Exhibit 34: Chart on Compact car – Market size and forecast 2022-2027 ($ billion)
• Exhibit 35: Data Table on Compact car – Market size and forecast 2022-2027 ($ billion)
• Exhibit 36: Chart on Compact car – Year-over-year growth 2022-2027 (%)
• Exhibit 37: Data Table on Compact car – Year-over-year growth 2022-2027 (%)

• 6.4 SUV – Market size and forecast 2022-2027
• Exhibit 38: Chart on SUV – Market size and forecast 2022-2027 ($ billion)
• Exhibit 39: Data Table on SUV – Market size and forecast 2022-2027 ($ billion)
• Exhibit 40: Chart on SUV – Year-over-year growth 2022-2027 (%)
• Exhibit 41: Data Table on SUV – Year-over-year growth 2022-2027 (%)

• 6.5 Mid size – Market size and forecast 2022-2027
• Exhibit 42: Chart on Mid size – Market size and forecast 2022-2027 ($ billion)
• Exhibit 43: Data Table on Mid size – Market size and forecast 2022-2027 ($ billion)
• Exhibit 44: Chart on Mid size – Year-over-year growth 2022-2027 (%)
• Exhibit 45: Data Table on Mid size – Year-over-year growth 2022-2027 (%)

• 6.6 Market opportunity by Vehicle Type 
• Exhibit 46: Market opportunity by Vehicle Type ($ billion)

7 Market Segmentation by Channel

• 7.1 Market segments 
• Exhibit 47: Chart on Channel – Market share 2022-2027 (%)
• Exhibit 48: Data Table on Channel – Market share 2022-2027 (%)

• 7.2 Comparison by Channel 
• Exhibit 49: Chart on Comparison by Channel
• Exhibit 50: Data Table on Comparison by Channel

• 7.3 Organized – Market size and forecast 2022-2027
• Exhibit 51: Chart on Organized – Market size and forecast 2022-2027 ($ billion)
• Exhibit 52: Data Table on Organized – Market size and forecast 2022-2027 ($ billion)
• Exhibit 53: Chart on Organized – Year-over-year growth 2022-2027 (%)
• Exhibit 54: Data Table on Organized – Year-over-year growth 2022-2027 (%)

• 7.4 Unorganized – Market size and forecast 2022-2027
• Exhibit 55: Chart on Unorganized – Market size and forecast 2022-2027 ($ billion)
• Exhibit 56: Data Table on Unorganized – Market size and forecast 2022-2027 ($ billion)
• Exhibit 57: Chart on Unorganized – Year-over-year growth 2022-2027 (%)
• Exhibit 58: Data Table on Unorganized – Year-over-year growth 2022-2027 (%)

• 7.5 Market opportunity by Channel 
• Exhibit 59: Market opportunity by Channel ($ billion)

8 Customer Landscape

• 8.1 Customer landscape overview 
• Exhibit 60: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

• 9.1 Geographic segmentation 
• Exhibit 61: Chart on Market share by geography 2022-2027 (%)
• Exhibit 62: Data Table on Market share by geography 2022-2027 (%)

• 9.2 Geographic comparison 
• Exhibit 63: Chart on Geographic comparison
• Exhibit 64: Data Table on Geographic comparison

• 9.3 APAC – Market size and forecast 2022-2027
• Exhibit 65: Chart on APAC – Market size and forecast 2022-2027 ($ billion)
• Exhibit 66: Data Table on APAC – Market size and forecast 2022-2027 ($ billion)
• Exhibit 67: Chart on APAC – Year-over-year growth 2022-2027 (%)
• Exhibit 68: Data Table on APAC – Year-over-year growth 2022-2027 (%)

• 9.4 North America – Market size and forecast 2022-2027
• Exhibit 69: Chart on North America – Market size and forecast 2022-2027 ($ billion)
• Exhibit 70: Data Table on North America – Market size and forecast 2022-2027 ($ billion)
• Exhibit 71: Chart on North America – Year-over-year growth 2022-2027 (%)
• Exhibit 72: Data Table on North America – Year-over-year growth 2022-2027 (%)

• 9.5 Europe – Market size and forecast 2022-2027
• Exhibit 73: Chart on Europe – Market size and forecast 2022-2027 ($ billion)
• Exhibit 74: Data Table on Europe – Market size and forecast 2022-2027 ($ billion)
• Exhibit 75: Chart on Europe – Year-over-year growth 2022-2027 (%)
• Exhibit 76: Data Table on Europe – Year-over-year growth 2022-2027 (%)

• 9.6 Middle East and Africa – Market size and forecast 2022-2027 
• Exhibit 77: Chart on Middle East and Africa – Market size and forecast 2022-2027 ($ billion)
• Exhibit 78: Data Table on Middle East and Africa – Market size and forecast 2022-2027 ($ billion)
• Exhibit 79: Chart on Middle East and Africa – Year-over-year growth 2022-2027 (%)
• Exhibit 80: Data Table on Middle East and Africa – Year-over-year growth 2022-2027 (%)

• 9.7 South America – Market size and forecast 2022-2027
• Exhibit 81: Chart on South America – Market size and forecast 2022-2027 ($ billion)
• Exhibit 82: Data Table on South America – Market size and forecast 2022-2027 ($ billion)
• Exhibit 83: Chart on South America – Year-over-year growth 2022-2027 (%)
• Exhibit 84: Data Table on South America – Year-over-year growth 2022-2027 (%)

• 9.8 US – Market size and forecast 2022-2027
• Exhibit 85: Chart on US – Market size and forecast 2022-2027 ($ billion)
• Exhibit 86: Data Table on US – Market size and forecast 2022-2027 ($ billion)
• Exhibit 87: Chart on US – Year-over-year growth 2022-2027 (%)
• Exhibit 88: Data Table on US – Year-over-year growth 2022-2027 (%)

• 9.9 China – Market size and forecast 2022-2027
• Exhibit 89: Chart on China – Market size and forecast 2022-2027 ($ billion)
• Exhibit 90: Data Table on China – Market size and forecast 2022-2027 ($ billion)
• Exhibit 91: Chart on China – Year-over-year growth 2022-2027 (%)
• Exhibit 92: Data Table on China – Year-over-year growth 2022-2027 (%)

• 9.10 Germany – Market size and forecast 2022-2027
• Exhibit 93: Chart on Germany – Market size and forecast 2022-2027 ($ billion)
• Exhibit 94: Data Table on Germany – Market size and forecast 2022-2027 ($ billion)
• Exhibit 95: Chart on Germany – Year-over-year growth 2022-2027 (%)
• Exhibit 96: Data Table on Germany – Year-over-year growth 2022-2027 (%)

• 9.11 UK – Market size and forecast 2022-2027
• Exhibit 97: Chart on UK – Market size and forecast 2022-2027 ($ billion)
• Exhibit 98: Data Table on UK – Market size and forecast 2022-2027 ($ billion)
• Exhibit 99: Chart on UK – Year-over-year growth 2022-2027 (%)
• Exhibit 100: Data Table on UK – Year-over-year growth 2022-2027 (%)

• 9.12 France – Market size and forecast 2022-2027
• Exhibit 101: Chart on France – Market size and forecast 2022-2027 ($ billion)
• Exhibit 102: Data Table on France – Market size and forecast 2022-2027 ($ billion)
• Exhibit 103: Chart on France – Year-over-year growth 2022-2027 (%)
• Exhibit 104: Data Table on France – Year-over-year growth 2022-2027 (%)

• 9.13 Market opportunity by geography 
• Exhibit 105: Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

• 10.1 Market drivers

• 10.2 Market challenges

• 10.3 Impact of drivers and challenges 
• Exhibit 106: Impact of drivers and challenges in 2022 and 2027

• 10.4 Market trends

11 Vendor Landscape

• 11.1 Overview

• 11.2 Vendor landscape 
• Exhibit 107: Overview on Criticality of inputs and Factors of differentiation

• 11.3 Landscape disruption 
• Exhibit 108: Overview on factors of disruption

• 11.4 Industry risks 
• Exhibit 109: Impact of key risks on business

12 Vendor Analysis

• 12.1 Vendors covered 
• Exhibit 110: Vendors covered

• 12.2 Market positioning of vendors 
• Exhibit 111: Matrix on vendor position and classification

• 12.3 Alibaba Group Holding Ltd 
• Exhibit 112: Alibaba Group Holding Ltd – Overview
• Exhibit 113: Alibaba Group Holding Ltd – Business segments
• Exhibit 114: Alibaba Group Holding Ltd – Key offerings
• Exhibit 115: Alibaba Group Holding Ltd – Segment focus

• 12.4 Asbury Automotive Group Inc. 
• Exhibit 116: Asbury Automotive Group Inc. – Overview
• Exhibit 117: Asbury Automotive Group Inc. – Business segments
• Exhibit 118: Asbury Automotive Group Inc. – Key offerings
• Exhibit 119: Asbury Automotive Group Inc. – Segment focus

• 12.5 AutoNation Inc. 
• Exhibit 120: AutoNation Inc. – Overview
• Exhibit 121: AutoNation Inc. – Business segments
• Exhibit 122: AutoNation Inc. – Key offerings
• Exhibit 123: AutoNation Inc. – Segment focus

• 12.6 Berman Auto Group 
• Exhibit 124: Berman Auto Group – Overview
• Exhibit 125: Berman Auto Group – Product / Service
• Exhibit 126: Berman Auto Group – Key offerings

• 12.7 CarMax Inc. 
• Exhibit 127: CarMax Inc. – Overview
• Exhibit 128: CarMax Inc. – Business segments
• Exhibit 129: CarMax Inc. – Key news
• Exhibit 130: CarMax Inc. – Key offerings
• Exhibit 131: CarMax Inc. – Segment focus

• 12.8 DriveTime Automotive Group Inc. 
• Exhibit 132: DriveTime Automotive Group Inc. – Overview
• Exhibit 133: DriveTime Automotive Group Inc. – Product / Service
• Exhibit 134: DriveTime Automotive Group Inc. – Key offerings

• 12.9 eBay Inc. 
• Exhibit 135: eBay Inc. – Overview
• Exhibit 136: eBay Inc. – Product / Service
• Exhibit 137: eBay Inc. – Key news
• Exhibit 138: eBay Inc. – Key offerings

• 12.10 Group 1 Automotive Inc. 
• Exhibit 139: Group 1 Automotive Inc. – Overview
• Exhibit 140: Group 1 Automotive Inc. – Business segments
• Exhibit 141: Group 1 Automotive Inc. – Key offerings
• Exhibit 142: Group 1 Automotive Inc. – Segment focus

• 12.11 Hendrick Automotive Group 
• Exhibit 143: Hendrick Automotive Group – Overview
• Exhibit 144: Hendrick Automotive Group – Product / Service
• Exhibit 145: Hendrick Automotive Group – Key offerings

• 12.12 Hertz Global Holdings Inc. 
• Exhibit 146: Hertz Global Holdings Inc. – Overview
• Exhibit 147: Hertz Global Holdings Inc. – Business segments
• Exhibit 148: Hertz Global Holdings Inc. – Key offerings
• Exhibit 149: Hertz Global Holdings Inc. – Segment focus

• 12.13 Lithia Motors Inc. 
• Exhibit 150: Lithia Motors Inc. – Overview
• Exhibit 151: Lithia Motors Inc. – Business segments
• Exhibit 152: Lithia Motors Inc. – Key offerings
• Exhibit 153: Lithia Motors Inc. – Segment focus

• 12.14 Penske Corp. 
• Exhibit 154: Penske Corp. – Overview
• Exhibit 155: Penske Corp. – Product / Service
• Exhibit 156: Penske Corp. – Key offerings

• 12.15 Scout24 AG 
• Exhibit 157: Scout24 AG – Overview
• Exhibit 158: Scout24 AG – Business segments
• Exhibit 159: Scout24 AG – Key offerings
• Exhibit 160: Scout24 AG – Segment focus

• 12.16 Sonic Automotive Inc. 
• Exhibit 161: Sonic Automotive Inc. – Overview
• Exhibit 162: Sonic Automotive Inc. – Business segments
• Exhibit 163: Sonic Automotive Inc. – Key offerings
• Exhibit 164: Sonic Automotive Inc. – Segment focus

• 12.17 Toyota Motor Corp. 
• Exhibit 165: Toyota Motor Corp. – Overview
• Exhibit 166: Toyota Motor Corp. – Business segments
• Exhibit 167: Toyota Motor Corp. – Key news
• Exhibit 168: Toyota Motor Corp. – Key offerings
• Exhibit 169: Toyota Motor Corp. – Segment focus

13 Appendix

• 13.1 Scope of the report

• 13.2 Inclusions and exclusions checklist 
• Exhibit 170: Inclusions checklist
• Exhibit 171: Exclusions checklist

• 13.3 Currency conversion rates for US$ 
• Exhibit 172: Currency conversion rates for US$

• 13.4 Research methodology 
• Exhibit 173: Research methodology
• Exhibit 174: Validation techniques employed for market sizing
• Exhibit 175: Information sources

• 13.5 List of abbreviations 
• Exhibit 176: List of abbreviations

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