Status : Published Published On : Dec, 2023 Report Code : VRAT4072 Industry : Automotive & Transportation Available Format : Page : 166
2025
2030

Global Automotive Financing Market – Analysis and Forecast (2025-2030)

Industry Insights by Provider Type (OEMs, Banks, Other Financial Institutions), by Purpose Type (Leasing, Loan, Others), by Finance Type (Indirect, Direct), by Vehicle Type (Passenger Vehicle, Commercial Vehicle)

Industry Overview

The Global Automotive Financing Market was valued at USD 0.48 billion in 2023 and is expected to reach USD 5.8 billion by 2030, growing at a CAGR of 7.4% during 2025-2030. The growth of this market is attributed to the rapid need for using superior quality products in the car thereby escalating the sales of global automobiles along with the incorporation of upgraded technology features in automobile parts.

Automotive Financing Market

This technological upgradation in automobiles is thereby uplifting its demand and hence this industry is enhancing its customer base at an extensive rate. Furthermore, excessive investments in autonomous vehicles along with prompt financing from dealers, banks, and credit unions are further contributing to the growth of the global automotive financing market.

Features such as safety and convenience provided by autonomous vehicles to the drivers thus motivate users to invest in research and development activities in the automotive domain. Furthermore, to invest in autonomous vehicles the end users require financing from credit unions, dealers, and banks that further bolster the need of automotive financing and are anticipated to drive the growth of the global automotive financing market.

Market Segmentation

Insight by Provider Type

Based on provider type, the global automotive financing market is categorized into OEMs, banks, and other financial institutions. Amongst these segments, the banks segment is expected to generate the largest revenue by 2030 due to steady procedures and the use of fewer documents in availing the finance.

Insight by Purpose Type

Based on purpose type, the global automotive financing market is segmented into leasing, loan, and others. Amongst these segments, leasing is expected to witness the highest CAGR during the forecast period owing to changing trends observed amongst the customers and the millennial generation towards leasing products that is considered to be a viable option as compared to purchasing a product.

Insight by Vehicle Type

Based on vehicle type, the global automotive financing market is bifurcated into passenger and commercial vehicles. Between these, commercial vehicles are anticipated to generate larger revenue by 2030 as these vehicles are more expensive and provide easy access to financial schemes to the clients.

Global Automotive Financing Market Report Coverage

Report Metric

Details

Historical Period

2018 - 2023

Base Year Considered

2024

Forecast Period

2025 - 2030

Market Size in 2023

U.S.D.  USD 0.48 billion Billion

Revenue Forecast in 2030

U.S.D.  USD 5.8 billion Billion

Growth Rate

7.4%%

Segments Covered in the Report

By Provider Type, By Purpose Type, and By Vehicle Type

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Industry Dynamics

Industry Trends

Extensive trends of digitalization progressions in blockchain technology along with excessive use of superior telematics and online services are the key trends observed in the global automotive financing market. These emerging trends in the automotive financing market are further uplifting the customer base of this automotive finance.

Growth Drivers

Extensive demand for electric vehicles along with excessive investments done towards autonomous vehicles are the key factors that are expected to drive the growth of the global automotive financing market. Due various benefits of electric vehicles such as being environment friendly, no use of fossil fuels, and low maintenance are thus making the vehicle extremely popular globally. However, to own an electric vehicle is a bit difficult as it is costly in comparison to diesel and petrol cars and to buy the vehicle automotive financing comes into the picture.

Challenges

Excessive competition observed between the key players in this market is the key factor that is anticipated to hinder the growth of the global automotive financing market.

Geographic Overview

Geographically, Europe was the largest automotive financing market in 2020. The growth of the European market is attributed to an increasing number of finance service providers in the region. The service providers of finance in the region are emphasizing availing various services such as maintenance, insurance, and fleet services. Moreover, the region is extending its effort toward making people aware related to finance schemes that are further escalating the growth of the automotive financing market in this region.

Moreover, Asia-Pacific is expected to witness the highest CAGR during the forecast period. The APAC market is growing due to the extensive efforts undertaken by the government authorities in countries such as China, India, and Japan towards consumer interest that is further uplifting the growth of the automotive industry. In addition, the increasing number of showrooms for automobiles and a large number of used car outlets are propelling the growth of automotive financing in this region.

Competitive Insight

Key players in the automotive financing market are catering to the demand for these devices by investing in technologically advanced products in their product portfolios across the globe. They are availing their service via online channels and are attributing their efforts towards availing special loan packages to the customers. Furthermore, the companies are making coalitions with car rental companies and transportation companies to extend their market base.

Some of the major players operating in the global automotive financing market are Bank of China, Mercedes-Benz Financial Services,  Toyota Financial Services, Hitachi Capital Asia Pacific, Bank of America, Volkswagen Finance, Banquo Bradesco Financiamentos, BNP Paribas,   Ally Financial, Wells Fargo,  Industrial and Commercial Bank of India, HSBC, Capital One, and HDFC Bank.

Forecast Parameters

  • Identifying variables and establishing market impact.
  • Establishing market trends regionally.
  • Analyzing opportunities and market penetration rates by understanding product commercialization, and regional expansion.
  • Analyzing demand and supply trends and changes in industry dynamics to establish future growth.
  • Analyzing sustainability strategies adhered to by market participants in an attempt to determine the future course of the market.
  • Analyzing historical market trends and super-imposing them on the current and future variables to determine year-on-year trends.
  • Understanding adoption, production, export, import, and regulatory framework.

Data Validation

  • Estimated and forecasted data was validated through industry experts.
  • Apart from industry experts, data triangulation methods were used for validation.
  • The bottom-up and top-down approaches have been used for the estimation and forecast of market data, whereas the top-down approach was used for validation.
  • Demand, as well as supply-side surveys, were conducted to understand the industry dynamics and data validation.

Primary Research

VynZ Research conducts extensive primary research to understand the market dynamics, validate market data, and have key opinions from industry experts. The key profiles approached within the industry include, CEO, CFO, CTO, President, Vice President, Product Managers, Regional Heads, and Others. Also, end user surveys comprising of consumers are also conducted to understand consumer behavior.

The Automotive Financing Market report offers a comprehensive market segmentation analysis and estimates for the forecast period 2025–2030.

Segments Covered in the Report

  • Provider Type
    • OEMs
    • Banks
    • Other Financial Institutions
  • Purpose Type
    • Leasing
    • Loan
    • Others
  • Finance Type
    • Indirect
    • Direct
  • Vehicle Type
    • Passenger Vehicle
    • Commercial Vehicle

Geographical Segmentation

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • U.K.
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia-Pacific (APAC)
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Rest of the World (RoW)
    • Brazil
    • Saudi Arabia
    • South Africa
    • U.A.E.
    • Other Countries

Automotive Financing Market Size

Source: VynZ Research

Automotive Financing Market Analysis

Source: VynZ Research

Frequently Asked Questions

Based on vehicle type, commercial vehicles are anticipated to generate larger revenue by 2030.
On the basis of provider type, banks segment is expected to generate largest revenue by 2030.
Europe was the largest automotive financing market in 2023.
Excessive competition observed between the key players in this market is the key factor that is anticipated to hinder the growth of global automotive financing market.
Extensive trend of digitalization progressions in blockchain technology along with excessive use of superior telematics and online services are the key trends observed in the global automotive financing market.

Place an order

Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle

CONNECT WITH OUR SALES TEAM