Automotive Finance Market Size, Share, Trends, Growth, Production, Consumption, Revenue, Company Analysis and Forecast 2021-2030

Published Date : Feb 2021 | No. of Pages : 250 Pages | Category : ICT

The global Automotive Finance market size is expected to be worth around US$ 400.06 billion by 2030, according to a new report by Vision Research Reports.

The global Automotive Finance market size was valued at US$ 240.09 billion in 2020 and is anticipated to grow at a CAGR of 7.05% during forecast period 2021 to 2030.

Growth Factors

Numerous customers across the globe are checking lending rates and auto prices online to find the financing firms that offer the best deals. This, as a result, the market is aggressively competitive and an ultra-transparent in nature.

Customers who are looking out for a new car seek lenders who have transparent financing practices and user-friendly websites. Auto loan providers are focusing on offering streamlined and simple online financing environments to their customers. These providers are widely adopting Loan Origination Software (LOS) and online systems for effectively structuring loans for their customers.

Numerous automotive finance businesses are upgrading their LOS systems to efficiently support automated decisions. Using LOS systems, lenders benefit from faster response and processing times. Moreover, loan structuring and automated decision enable them to deny or approve online applications within minutes.

Automotive finance businesses are focusing on using and artificial intelligence tools to structure used and new auto loans more accurately. Furthermore, lenders can easily leverage these innovative technologies in the cloud with the help of LOS vendors. Machine learning and enable auto lenders to calculate risk and identify perfect borrowers with more accuracy.

Report Highlights

The banks' segment led the market and accounted for more than 57.0% share of the global revenue in 2020. The banks' segment growth can be attributed to the fast-processing features with the necessity for least documentation, in addition to the high-reliability features. Earlier, banks are used to finance only around 70% to 80% of the total vehicle price. However, currently, these banks are offering 100% finance of the vehicle, owing to which customers are showing more interest in purchasing a new car over the used car.

The OEMs segment is anticipated to register the highest growth over the forecast period. Automotive OEMs provide better after-sales services due to the availability of identical automobile parts, like that of the vehicle financed, for repair or replacement. Also, OEMs are considered as the future of mobility, owing to their positive impact on new business models. Furthermore, apart from providing products and services, OEMs are focusing on expanding their offerings to include automobile insurance as well.

The direct segment dominated the market and accounted for more than a 56.0% share of the global revenue in 2020. Consumers are focusing on determining the financing source, which effectively meets their requirements. Consumers directly apply for car loans at the credit union, banks, and other lending companies. Moreover, the customers have complete control over the lending process as this process doesn’t include any third-party salesperson or dealer.

The indirect segment is anticipated to register the highest growth over the forecast period. The most important benefit of this indirect finance type is that it allows customers to take on-site expert advice from independent finance specialists. Also, these specialists ensure that their clients determine the best method to finance a vehicle as and when required. Also, in indirect auto financing, customers can access and search all loans at once.

The loan segment led the market and accounted for more than 60.0% share of the global revenue in 2020. Loans have been a standard process of purchasing an automobile by most of the global population. As the credit environment started to advance, leasing and finance companies had extra funding sources to make accessible to consumers. Moreover, banks and credit unions are targeting customers with low-interest rate loans.

The leasing segment is anticipated to register the highest growth over the forecast period. The segment growth can be attributed to the increasing number of leasing providers in emerging economies, such as India, China, and Japan. The growing trend of digitization is making a massive impact in the automotive leasing industry. Moreover, companies in automobile leasing are enhancing consumer experience and leveraging their profit margins by heavily investing in digitization technologies, such as blockchain.

The passenger vehicles segment led the market and accounted for more than 62.0% share of the global revenue in 2020. The segment growth can be attributed to the increasing number of females driving vehicles, surge in the new passenger car registrations, and the emergence of new generation riders. The automotive industry is growing due to the constantly changing customer needs. The need for innovations in safety systems, infotainment systems, advanced driver-assistance systems, telematics, autonomous vehicles, and in-dash controls is increasing, especially in passenger vehicles.

The commercial vehicles segment is anticipated to witness significant growth over the forecast period. As commercial vehicles are expensive in comparison to other vehicles, numerous banks and financial institutions have introduced reasonable loan schemes, which include simple terms and conditions. Moreover, the processing time needed to approve commercial vehicle loans is less in comparison to passenger vehicles. These aforementioned factors are expected to contribute to the segment growth over the forecast period.

Europe dominated the automotive finance market and accounted for more than a 39.0% share of the global revenue in 2020. The regional market growth can be attributed to the presence of a large number of automotive finance service providers in the region. Numerous market players in the market are focusing on offering their services through mobile and online channels. This initiative is giving these players an edge over traditional players.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period. The growing number of favorable government initiatives in economies, such as India, Japan, and China, to promote growth in the automotive industry and maintain consumer interest is expected to create growth opportunities for the regional market growth. The region is witnessing an increasing sale of vehicles. This, as a result, is expected to drive the regional market growth.

Key Players

  • Ally Financial

  • Bank of America

  • Capital One

  • Chase Auto Finance

  • Daimler Financial Services

  • Ford Motor Credit Company

  • GM Financial Inc.

  • Hitachi Capital

  • Toyota Financial Services

  • Volkswagen Financial Services

Market Segmentation

  • Provider Type Outlook 

    • Banks

    • OEMs

    • Other Financial Institutions

  • Finance Type Outlook

    • Direct

    • Indirect

  • Purpose Type Outlook 

    • Loan

    • Leasing

    • Others

  • Vehicle Type Outlook 

    • Commercial Vehicles

    • Passenger Vehicles

  • Regional Outlook 

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa

The Automotive Finance market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.

The report provides size (in terms of volume and value) of Automotive Finance market for the base year 2020 and the forecast between 2021 and 2030. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.

This report focuses on the global Automotive Finance market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Automotive Finance market development in United States, Europe and China.

It is pertinent to consider that in a volatile global economy, we haven’t just conducted Automotive Finance market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.

In terms of production side, this report researches the Automotive Finance capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.

In terms of consumption side, this report focuses on the consumption of Automotive Finance by regions (countries) and application.

Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Automotive Finance market. These figures have been provided in terms of both revenue and volume for the period 2017 to 2030. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.

With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Automotive Finance market companies.

Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Automotive Finance market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.

The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.

Overall, this is an in-depth research report specifically for the Automotive Finance industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.

The Automotive Finance market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Automotive Finance market.

Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Automotive Finance market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.

Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Automotive Finance market. These factors have benefited the growth of the global market for Automotive Finance. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.

New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Automotive Finance. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).

In this study, the years considered to estimate the market size of Automotive Finance are as follows:

  • Historic Year: 2017-2020
  • Base Year: 2021
  • Forecast Year 2021 to 2030

Reasons to Purchase this Report:

- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players

Research Methodology:

In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.

This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.

Market Size Estimation

Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).

The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.

Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.

All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.

Market Breakdown and Data Triangulation

After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.

Secondary Sources

Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.

Primary Sources

 In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.

The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.

The study objectives of this report are:

  • To analyze and study the global market capacity, production, value, consumption, status (2017-2020) and forecast (2021-2030);
  • Focuses on the key manufacturers, to study the capacity, production, value, market share and development plans in future.
  • Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
  • To define, describe and forecast the market by type, application and region.
  • To analyze the global and key regions market potential and advantage, opportunity and challenge, restraints and risks.
  • To identify significant trends and factors driving or inhibiting the market growth.
  • To analyze the opportunities in the market for stakeholders by identifying the high growth segments.
  • To strategically analyze each submarket with respect to individual growth trend and their contribution to the market
  • To analyze competitive developments such as expansions, agreements, new product launches, and acquisitions in the market
  • To strategically profile the key players and comprehensively analyze their growth strategies.

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