Used Vehicle Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The market for used vehicles is a promising one, and the market is expected to grow steadily. It is expected to reach $500 billion by 2035. The compound annual growth rate for this market from 2025 to 2035 is 1.9 percent. This growth is attributed to several factors, such as the growing need for cost-effective mobility, the growing trend of vehicle ownership in emerging economies, and the technological development of vehicles, which makes the used cars more durable and reliable. Moreover, the trend towards the digitalization of the vehicle-buying and selling platforms will also play a major role in the market. Carvana and Vroom, for example, have revolutionized the buying and selling of used cars. The strategic alliances between automobile manufacturers and technology companies will also have a positive impact on the market. These factors will help shape the future of the market.

Regional Market Size

Regional Deep Dive

The used-car market is experiencing dynamic growth in many regions, driven by factors such as the growing demand for cheap mobility, the rise of e-commerce platforms and the increasing demand for sustainable products. In North America, the market is characterised by a high availability of vehicles and a strong resale culture. In Europe, the trend is towards the increasing use of electric and hybrid vehicles. In the Asia-Pacific region, digitalisation is driving the vehicle-sales industry forward, while the Middle East and Africa are benefiting from the diversification of their economies and seeing a growing interest in used vehicles. Latin America is a special mixture of economic challenges and opportunities, which are influencing the demand for used vehicles.

Europe

• The European Union's Green Deal is influencing the used vehicle market by promoting the sale of electric and hybrid vehicles, with incentives for consumers to purchase greener options.
• Major automotive players like Volkswagen and BMW are investing in certified pre-owned programs to enhance consumer trust and provide quality assurance in the used vehicle market.

Asia Pacific

• The rapid growth of e-commerce in countries like China and India is leading to an increase in online used vehicle sales, with platforms like Droom and OLX Autos gaining significant traction.
• Government initiatives aimed at reducing pollution are encouraging the purchase of used electric vehicles, with subsidies and incentives being offered to consumers.

Latin America

• Economic fluctuations in Latin America are driving consumers towards the used vehicle market as a more affordable alternative, with countries like Brazil and Argentina seeing increased demand.
• The rise of mobile payment solutions is facilitating transactions in the used vehicle market, making it easier for consumers to purchase vehicles through digital platforms.

North America

• The rise of online platforms such as Carvana and Vroom has revolutionized the used vehicle buying experience, allowing consumers to purchase vehicles entirely online, which is reshaping traditional dealership models.
• Regulatory changes in emissions standards are pushing consumers towards more fuel-efficient and electric used vehicles, with companies like Tesla leading the charge in the electric vehicle segment.

Middle East And Africa

• The used vehicle market in the Middle East is being shaped by the influx of expatriates, leading to a high demand for affordable pre-owned vehicles, particularly in countries like the UAE and Saudi Arabia.
• Innovative financing options and trade-in programs are being introduced by local dealerships to attract buyers, with companies like Al-Futtaim Motors leading the way in the UAE.

Did You Know?

“In the United States, nearly 40 million used vehicles are sold each year, which is more than double the number of new vehicles sold.” — National Automobile Dealers Association (NADA)

Segmental Market Size

The secondary market for used cars plays a crucial role in the auto industry and is currently experiencing strong growth, bolstered by several factors. The rising price of new cars, the increasing popularity of the used car, and the consumers’ preference for the low cost and value of used cars have all combined to make the used car more attractive than ever. Regulations promoting sustainability and lower emissions have also prompted consumers to consider used cars as a viable option. Used cars have been around for a long time, and in North America, CarMax and Vroom are leading the way in the industry with their digitally based sales and streamlined buying process. Used cars are primarily used for retail sales through dealers and digital platforms, but also for trade-ins and auctions. The emergence of the digital era and the shift in retailing brought about by the COVID-19 epidemic have accelerated growth. Further technological developments, such as vehicle history reports and digital financing, have boosted confidence in the secondary market. The market for certified used cars is expected to grow, thereby shaping the market.

Future Outlook

The world used-car market will grow steadily from 2024 to 2035, with a CAGR of 1.9%. This growth is due to a number of factors, including the increasing need for inexpensive transportation, especially among younger consumers and first-time buyers. As the price of new cars increases, used cars are likely to become a more popular alternative, and their share of total vehicle sales is expected to rise to over 40% in 2035 from 35% in 2024. Moreover, technological developments and changing preferences will have a major impact on the used-car market. The use of digital platforms for buying and selling used cars is expected to improve the market’s transparency and accessibility, thereby enhancing consumers’ trust. And the growing importance of sustainability and the environment is expected to increase demand for certified used cars, as consumers try to reduce their carbon footprint. In addition, the government’s support for the adoption of electric vehicles is expected to boost the number of used electric vehicles on the market, further increasing the variety of used-car choices. In response to these trends, the used-car market will continue to evolve and become an important part of the automobile industry.