SAN FRANCISCO, September 12, 2022 /PRNewswire/ — The size of the global automotive finance market is expected to reach $451.71 billion by 2030, recording a CAGR of 7.2% from 2022 to 2030, according to a new report from Grand View Research, Inc. Growing global demand for self-driving cars is expected to drive the market growth. Rising government regulations on increasing road safety is creating the need for self-driving cars with highly advanced technologies all over the world.
Key industry insights and findings from the report:
- The banking segment is expected to dominate the market growth over the forecast period as banks provide secure funding to their customers. Banks also offer customers the option of requesting pre-approval. This facility helps customers to compare estimated loan offers.
- The direct segment is expected to dominate the market growth over the forecast period. Many customers around the world prefer direct auto loans because they can easily access and obtain loans from credit unions, banks, and other lending companies.
- The rental segment is expected to register the highest CAGR during the forecast period. Customers are focusing on adopting the leasing model as it is a more flexible model compared to others for new, shared and used vehicles which could include services such as insurance.
- The passenger segment dominated the market in 2021 and is expected to exhibit similar trends over the forecast period. The number of passenger vehicles including pickup trucks and others on the road continues to increase across the globe, thereby creating growth opportunities for the passenger vehicle segment over the forecast period.
- Presence of numerous leading auto finance providers in the European region and adoption of innovative tools, such as biometrics, e-contracts, and machine learning, are expected to drive the growth of the regional market during the period. forecast.
Read the full 160-page market research report for more insights, “Automotive Finance Market Size, Share and Trends Analysis Report by Vendor Type, by Finance Type, by Type by Vehicle Type, by Region and Segment Forecast, 2022 – 2030”, published by Grand View Research.
Automotive Finance Market Growth and Trends
The investment made in the auto finance industry is also creating new opportunities for market growth. For example, in January 2021MotoRefi, an automotive refinancing company, has announced that it has raised $10.0 million in a round led by Moderna Ventures. The company is using this funding to hire more employees and expand its offerings.
Various automakers are partnering with auto finance providers to improve their customer experience. For example, in March 2022, CIG Motors, distributor of the GAC brand, announced its collaboration with Polaris Bank Limited. Through this partnership, the former company aims to make it easier for Nigerians to own and acquire vehicles through the Easy Buy scheme.
COVID-19 has negatively impacted the market growth in 2021. However, global automakers, lenders, and dealerships have been adjusting to the current COVID-19 situation. For example, automakers have been pushing their new car sales to boost sales amid COVID-19. These efforts by automakers are expected to improve the demand for auto finance over the forecast period.
Automotive finance market segmentation
Grand View Research has segmented the automotive financing market on the basis of vendor type, financing type, purpose type, vehicle type, and region
Automotive Finance Market – Vendor Type Outlook (Revenue, USD Billion, 2017 – 2030)
- Banks
- OEM
- Other financial institutions
Automotive Finance Market – Type of Outlook (Revenue, Billion USD, 2017 – 2030)
Automotive Finance Market – Purpose Type Outlook (Revenue, USD Billion, 2017 – 2030)
Automotive Finance Market – Vehicle Type Outlook (Revenue, USD Billion, 2017 – 2030)
- Commercial vehicles
- Passenger vehicles
Automotive Finance Market – Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2019-2030)
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
List of Automotive Finance Market Key Players
- Allied 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
Check out other related studies published by Grand View Research:
- Financial cloud market – The Global Financial Cloud Market Size is Expected to Reach $101.71 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to grow at a CAGR of 20.3% from 2022 to 2030. Financial organizations are modernizing their processes and embracing different aspects of digital transformation due the convenience offered by cloud solutions. Financial institutions using the cloud model benefit from improved disaster recovery, fault tolerance and data protection.
- Smart Financial Services Market – The global smart financial services market size is expected to reach $46.85 million by 2028 and is expected to grow at a CAGR of 2.9% from 2022 to 2028, according to a new report by Grand View Research, Inc. ‘IoT, such as installation and management services, worldwide. In addition, the growing popularity of smart ATMs further increases the demand for connected ATMs, which further encourages the demand for smart financial services, such as management and installation services. However, rising privacy and security concerns due to cyber threats from IoT connected devices are expected to restrain the market growth over the forecast period.
- Smart Financial Hardware Market – The global smart financial hardware market size is expected to reach $16.66 million by 2028, growing at a CAGR of 2.4% from 2022 to 2028, according to a new report by Grand View Research, Inc. Key market growth factors include increasing adoption of smart ATMs coupled with the number growing number of ATM installations and the rise of smart city projects around the world.
Browse next-generation technology industry research reports from Grand View Research.
About Grand View Research
Grand View Research, a US-based market research and consulting firm, provides syndicated and custom research reports and consulting services. Checked in California and whose head office is at San Francisco, the company has more than 425 analysts and consultants, adding more than 1,200 market research reports to its extensive database each year. These reports offer in-depth analysis of 46 industries in 25 major countries around the world. Using an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and assess upcoming opportunities.
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