Technavio, a leading global technology research and advisory company, has released its report of the used car market in the United States. According to Technavio, there will be an incremental growth of 3.91 million units in the U.S. between 2021-2025.
Based on the report, market growth is expected to accelerate at a compound annual growth rate (CAGR) of 1.98 per cent. However, the COVID-19 pandemic caused a negative impact on the consumer discretionary sector, and the industry is expected to register a low growth rate compared to the global GDP growth.
There is optimism across the sector however, as several factors provide growth opportunities within the market. These include increasing technological innovations in passenger vehicles, the increasing number and influence of websites dedicated to selling used vehicles, and the reduced ownership cycle.
While the success of websites dedicated to selling used cars will remain one of the primary market drivers, there are concerns across the industry that increased import duties on used vehicles may negatively affect market growth.
