|Status : Published||Published On : Feb, 2021||Report Code : VRAT4072||Industry : Automotive & Transportation||Available Format :||Page : 166|
The global automotive financing market was valued at USD 221.0 billion in 2019 and is expected to reach USD 321.8 billion by 2027, growing at a CAGR of 7.4% during 2021-2027. The growth of this market is attributed towards rapid need for using superior quality of products in car is thereby escalating the sales of global automobiles along with incorporation of upgraded technology features in the automobile parts.
This technological upgradation in automobiles is thereby uplifting its demand and hence this industry is enhancing its customer base at extensive rate. Furthermore, excessive investments in autonomous vehicles along with prompt financing from dealers, banks and credit unions are further contributing towards the growth of global automotive financing market.
Due to features such as safety and convenience provided by the autonomous vehicles to the drivers thus motivates the users to invest in the research and development activities in automotive domain. Furthermore, in order to invest in autonomous vehicles the end users require financing from credit union, dealers and banks that further bolster the need of automotive financing and anticipated to drive the growth of global automotive financing market.
Insight by Provider Type
On the basis of provider type, the global automotive financing market is categorized into OEMs, banks, and other financial institutions. Amongst these segments, banks segment is expected to generate largest revenue by 2025 due to steady procedures and use of less documents in availing the finance.
Insight by Purpose Type
On the basis of purpose type, the global automotive financing market is segmented into leasing, loan, and others. Amongst these segments, leasing is expected to witness highest CAGR during the forecast period owing to changing trends observed amongst the customers and the millennials generation towards leasing of products that is considered to be viable option as compared to that of 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 2027 as these vehicles are more expensive and provide easy access to financial schemes to the clients.
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. These emerging trends in automotive financing market are further uplifting the customer base of this automotive finance.
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 global automotive financing market. Due to various benefits of electric vehicle such as environment friendly, no use of fossil fuels and low maintenance is thus making the vehicle extremely popular globally. However, in order to own an electric vehicle is a bit difficult as it is costly in comparison to that of diesel and petrol car and in order to buy the vehicle automotive financing comes into picture.
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.
Geographically, Europe was the largest automotive financing market in 2020. The growth of the European market is attributed towards increasing number of finance service providers in the region. The service providers of finance in the region are emphasizing upon availing various services such as maintenance, insurance and fleet services. Moreover, the region is extending its effort towards making people aware related to finance schemes that is further escalating the growth of automotive financing market in this region.
Moreover, Asia-Pacific is expected to witness 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 of automobiles and large number of used car outlets is propelling the growth of automotive financing in this region.
Key players in the automotive financing market are catering to the demand of these devices by investing in technologically advanced products in their product portfolio 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 in order to extend its 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.
VynZ Research conducts extensive primary research to understand the market dynamics, validate market data and have key opinions from the industry experts. The key profiles approached within the industry includes, 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 behaviour.
Source: VynZ Research
Source: VynZ Research