The global used vehicle market is anticipated to grow by US$857.1 billion from 2024-2028 thanks largely to the number of new models being launched, according to technology research and advisory company Technavio.
In its latest update, the company said the market is estimated to grow at a compound annual growth rate or CAGR of nearly 7.56% during this period. They foresee a trend towards a greater demand for car subscription services, though Technavio also suggested that a boost in car-sharing services also poses a challenge — particularly for auto retailers.
“The used car market is experiencing shifts due to changing consumer preferences and economic factors,” said the company in a news release. “In some markets, such as China, the rise of car-sharing services has led to a decline in car ownership as consumers opt for more cost-effective alternatives to personal mobility.”
Technavio said this trend is driven by the “high percentage of time a private car spends parked” and the “cost savings from shared maintenance and usage.” (Car-sharing services in China have a use rate of up to 60%, versus the estimated 93% a private car spends unused.)
On the auto retail side, the company said franchise dealers and OEM involvement in used vehicles sales are growing trends — overall — not just in China. And that the segment is expanding, although challenges remain around transparency and maintaining consumer trust.
“Transparent vehicle history reports are crucial for ensuring the reliability and trustworthiness of used vehicles,” said Technavio, later adding that overall the used car market requires “continuous innovation and adaptation to meet the evolving needs of customers.”
