LONDON--(BUSINESS WIRE)--The global used car market is expected to post a CAGR of nearly 7% during the period 2018-2022, according to the latest market research report by Technavio. However, the growth momentum of the market is expected to decelerate due to a decline in the year-over-year growth.
A key factor driving the growth of the market is the increasing number of new models of cars launched due to high competition. Determinants such as the rising income and the subsequent increase in the purchasing power of households, the cheap availability of credit payment options, and the high rate of automotive technological advancements drive consumers to purchase newer models of cars. The decrease in car ownership cycle signifies the increased buying power of car customers. Moreover, most existing car owners prefer purchasing an upgraded version of the car that they already own. Hence, OEMs are launching cars that have advanced features at competitive pricing to increase their market share and keep pace with the competition. This increasing number of new models of cars is expected to pave the way for the availability and sales of used cars in the market.
This market research report on the global used car market 2018-2022 also provides an analysis of the most important trends expected to impact the market outlook during the forecast period. Technavio classifies an emerging trend as a major factor that has the potential to significantly impact the market and contribute to its growth or decline.
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In this report, Technavio highlights the growing demand for car subscription services as one of the key emerging trends in the global used car market:
Global used car market: Growing demand for car subscription services
Car subscription services are an alternative to owning or leasing a vehicle. These services allow consumers 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 with a notice of just a few days. For example, one can drive a sedan during the week and can switch to an SUV or a sports car during the weekends. Each car has different subscription plans, including leasing a used car for a short duration. Some services are focused on the luxury car market where convenience and comfort are imperative. Others include long-term rentals, allowing one to change cars weekly or monthly.
“Several auto manufacturers have adopted this concept and are providing their services in major regions across the globe. Consumers that find high-priced cars unaffordable due to their high cost of ownership or leasing prefer such car subscription services to get an experience of driving a luxury car. Many car subscription providers offer used luxury cars for such consumers,” says a senior analyst at Technavio for research on automotive services.
Global used car market: Segmentation analysis
This market research report segments the global used car market by product (mid-sized cars, full-sized cars, and compact-sized cars) and geographical regions (APAC, EMEA, and the Americas).
The mid-sized cars segment held the largest market share in 2017, accounting for nearly 58% of the market. This product segment is expected to dominate the global market over the forecast period.
The Americas led the market in 2017 with a market share of nearly 44%. This region is expected to dominate the market through 2022, however, there will be a decrease in its market share by nearly 9%.
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Some of the key topics covered in the report include:
- Market ecosystem
- Market characteristics
- Market segmentation analysis
- Market definition
- Market size and forecast
Five Forces Analysis
- Regional comparison
- Key leading countries
- Vendors covered
- Vendor classification
- Market positioning of vendors
- Competitive scenario
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