The global used car market is on track for explosive growth, with its value projected to soar from $857.5 million in 2023 to nearly $2 billion by 2033, according to a new report by Allied Market Research. The market is expected to grow at a compound annual growth rate (CAGR) of 8.9%, driven by digital transformation, rising demand for eco-friendly vehicles, and affordability concerns surrounding new cars.
Digitalization Driving Sales Surge
The report highlights a significant shift in consumer behavior, with over 95% of car buyers conducting online research and 70% using third-party platforms to compare prices, vehicle histories, and financing options. The integration of AI-based pricing, blockchain for ownership verification, and virtual vehicle inspections is enhancing transparency and trust, transforming the used car buying experience into a tech-enabled journey.
Pre-Owned EVs See 30% Surge in Sales
Eco-conscious buyers are increasingly turning to hybrid and electric vehicles (EVs) in the used car market. Pre-owned EV sales surged by 30% in 2023, as improved battery life and government incentives such as tax credits and subsidies made them more appealing. The report notes that demand for fuel-efficient vehicles is expected to accelerate further amid tightening global emission regulations.
SUVs Dominate Market Preferences
The SUV segment accounted for 45% of global used car sales in 2023, maintaining its position as the top-selling vehicle category. This trend is likely to persist due to the popularity of compact and fuel-efficient SUV models, particularly among urban families and younger drivers.
Subscription Models & Shared Mobility Gain Ground
Younger consumers are also reshaping the market through subscription-based vehicle ownership, preferring flexible access over long-term commitments. Ride-sharing and rental companies are increasingly integrating low-mileage used cars into their fleets to reduce acquisition costs and boost profitability.
High-Tech Features Drive Resale Value
Used vehicles equipped with connected technologies such as adaptive cruise control, lane departure alerts, and integrated infotainment systems are commanding higher resale values. Buyers are actively seeking pre-owned models with advanced safety and tech features, pushing automakers and dealers to focus on connected vehicle offerings.
Cross-Border Trade Expanding Reach
The report also highlights a surge in cross-border used vehicle trade, especially in Africa and Southeast Asia, where affordability and reliability are driving increased demand for imported used cars. In some developing markets, used imports account for up to 60% of all vehicle sales.
Regional and Segment Insights
- Vehicle Type: SUV segment leads and is expected to retain dominance.
- Fuel Type: Petrol-powered vehicles remain the top choice.
- Distribution Channel: Franchised dealers account for the largest share, benefiting from trust and warranties.
- Region: Asia-Pacific emerged as the largest market in 2023 and is projected to maintain its leadership due to rising urbanization and digital penetration.
Key Market Players
Major players analyzed in the report include CarMax, AutoNation, Cars24, Mahindra First Choice, Asbury Automotive Group, Group1 Automotive, Big Boy Toyz, and TrueCar, among others. These companies are increasingly investing in tech platforms, certification programs, and global expansion to gain competitive advantage.
