NEW
YORK, June 24, 2024 /PRNewswire/ -- The global
automotive financing market size is estimated to grow by
USD 17.6 billion from 2024-2028,
according to Technavio. The market is estimated to grow at a CAGR
of over 3.52% during the forecast
period. Rise in cab service financing is driving
market growth, with a trend towards increasing investment
in autonomous vehicles. However, increase in ride-sharing
services poses a challenge. Key market players include Ally
Financial Inc., Banco Santander SA, Bank of America Corp.,
Bayerische Motoren Werke AG, BNP Paribas SA, Capital One Financial
Corp., Citigroup Inc., Deutsche Bank AG, Ford Motor Co., General
Motors Co., HDFC Bank Ltd., HSBC Holdings Plc, Hyundai Motor Co.,
ICICI Bank Ltd., JPMorgan Chase and Co., Mercedes Benz Group AG,
Nissan Motor Co. Ltd., Toyota Motor Corp., Volkswagen AG, and Wells
Fargo and Co..
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Application (Used
vehicle and New vehicle), Type (Passenger vehicle and Commercial
vehicle), and Geography (APAC, Europe, North America, South
America, and Middle East and Africa)
|
Region
Covered
|
APAC, Europe, North
America, South America, and Middle East and Africa
|
Key companies
profiled
|
Ally Financial Inc.,
Banco Santander SA, Bank of America Corp., Bayerische Motoren Werke
AG, BNP Paribas SA, Capital One Financial Corp., Citigroup Inc.,
Deutsche Bank AG, Ford Motor Co., General Motors Co., HDFC Bank
Ltd., HSBC Holdings Plc, Hyundai Motor Co., ICICI Bank Ltd.,
JPMorgan Chase and Co., Mercedes Benz Group AG, Nissan Motor Co.
Ltd., Toyota Motor Corp., Volkswagen AG, and Wells Fargo and
Co.
|
Key Market Trends Fueling Growth
The autonomous vehicle market's growth is anticipated to boost
the demand for automotive financing. Major automakers like Volvo,
Volkswagen, Audi, BMW, General Motors, Ford Motor, and tech
companies such as Google are investing in this technology. Industry
experts believe autonomous vehicles will revolutionize the
automotive industry. Front-runners in this space include Audi,
Daimler, Ford Motor, Continental, Bosch, and Aptiv. Non-automotive
companies like Apple are also investing. As the market expands,
automotive financing will play a crucial role in its growth during
the forecast period.
The automotive financing market is experiencing significant
growth, with a high volume of transactions taking place. Online
financing is becoming increasingly popular, allowing consumers to
apply and receive financing from the comfort of their homes.
Vehicles of all types, including used and new, are being financed
through various financing options such as personal loans, vehicle
loans, and leasing. Financing companies provide competitive
interest rates and flexible repayment plans to attract customers.
The use of technology, including mobile applications and digital
documentation, is streamlining the financing process. The trend
towards electric and autonomous vehicles is also influencing
financing options, with specialized financing solutions being
offered to cater to this market. Overall, the automotive financing
market is dynamic and evolving to meet the changing needs of
consumers.
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Market Challenges
- The rise of ride-sharing services has significantly impacted
the automotive financing market. With fewer individuals purchasing
new vehicles due to the convenience and cost savings of
ride-sharing, the demand for automotive financing is decreasing.
Notable companies like Lyft and Zify are expanding their offerings,
leading to increased competition and potential revenue losses for
the automotive financing industry. Additionally, strategic
alliances between ride-sharing apps and taxi services, such as Curb
and Via, further reduce the need for personal vehicle ownership.
This trend is expected to continue, posing a challenge for the
automotive financing market during the forecast period.
- The automotive financing market faces several challenges. One
major challenge is the increasing cost of vehicles and financing
them. Another challenge is the rising debt levels of consumers,
making it difficult for them to secure loans. Additionally,
regulatory changes and economic uncertainty can impact financing
options and interest rates. Furthermore, the shift towards electric
vehicles and the associated higher upfront costs pose a challenge
for financing providers. Lastly, the use of technology and digital
platforms for financing is transforming the industry, requiring
adaptability and innovation from players.
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challenges - Download a Sample Report
Segment Overview
This automotive financing market report extensively covers
market segmentation by
- Application
- 1.1 Used vehicle
- 1.2 New vehicle
- Type
- 2.1 Passenger vehicle
- 2.2 Commercial vehicle
- Geography
- 3.1 APAC
- 3.2 Europe
- 3.3 North America
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Used vehicle- The automotive financing market
caters to consumers seeking to purchase or lease vehicles.
Financing options include loans from banks and credit unions, as
well as leasing arrangements from dealerships. These financial
solutions enable consumers to acquire vehicles despite limited
upfront funds. The market's growth is driven by increasing vehicle
sales and consumer credit availability. Additionally, competitive
financing rates and flexible repayment terms attract more buyers.
Overall, the automotive financing market plays a crucial role in
making car ownership accessible to a wider audience.
For more information on market segmentation with
geographical analysis including forecast (2024-2028) and historic
data (2018 - 2022) - Download a Sample Report
Research Analysis
The automotive financing market is experiencing significant
growth, driven by the increasing demand for new and used vehicles.
Sales activities in this sector are buoyed by automotive financing
solutions, which enable consumers to purchase vehicles despite
credit constraints. Eulers Hiload EV and other financing options
facilitate the acquisition of electric vehicles, with loan-to-value
ratios often determining the size of loans. Autonomous vehicles are
poised to disrupt the market, necessitating innovative financing
structures. Dealers, banks, and credit unions offer various
financing solutions, including Captive automotive financing,
cryptocurrency payments, and digital payments systems.
Technological advancements, such as artificial intelligence
technology from firms like Upstart and Cion Digital, streamline
loan processing and underwriting. Commercial vehicles and
year-on-year growth are also key areas of focus in the automotive
financing sector. Block chain and online/mobile banking further
enhance the convenience and security of automotive financing
services.
Market Research Overview
The Automotive Financing Market encompasses various financing
solutions for purchasing or leasing vehicles. These financing
options include secured and unsecured loans, leases, and lines of
credit. Vehicles can be financed through various channels such as
banks, credit unions, and finance companies. Sales and leasing
companies also offer financing services. The market caters to a
diverse range of consumers, from individuals to businesses. The use
of technology, such as online applications and digital
documentation, has streamlined the financing process. Dealers and
lenders employ credit assessment techniques to determine
eligibility and offer competitive rates. The market is influenced
by factors such as economic conditions, interest rates, and
consumer preferences. Consumers seek affordable financing solutions
with flexible terms and low interest rates. The market continues to
evolve with the integration of innovative technologies and changing
consumer needs.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Type
-
- Passenger Vehicle
- Commercial Vehicle
- Geography
-
- APAC
- Europe
- North America
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio