The auto loan market size is expected to grow from US$ 279.33 billion in 2023 to US$ 498.18 billion by 2031; it is anticipated to expand at a CAGR of 7.5% from 2023 to 2031. The automotive industry has observed exponential growth since its beginning. Consumers are looking at used cars more than ever before, and some are even choosing them over two-wheelers. This, in turn, is anticipated to drive the demand for auto load market growth during the forecast period.
Ownership of cars, which used to be a status symbol long ago, has become a necessity in recent times. Thus, growing consumer preference for owning a vehicle and evading public transportation is also an important factor in the adoption of used cars across the globe. Increasing digitization and startups with novel business models are promoting the used car financing market. Digitization helps to store, retrieve, and retain data. Saving information in digital format reduces the capital resources required and decreases the problem of storing documents. The surge in digitization in auto loans is growing. Further, including digital loan documents and e-signatures gives an opportunity to gain an advantage in the auto loan market during the forecast period.
The scope of the auto loan market report is primarily divided into five regions - North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America is observing rapid growth and is expected to hold a noteworthy auto loan market share in 2022. The market for used car financing in the Asia Pacific region is on the fragmented side. The presence of numerous unorganized and organized players has shaped such a market scenario. Also, the majority of auto manufacturers, apart from offering their financing, have tie-ups with financial institutions and banks to offer a broader choice for their customers.
Additionally, the surge in auto sales has also influenced vehicle financing volumes. As per data published by the Reserve Bank of India (RBI) data, vehicle advances of commercial banks grew 18% at the end of June 2022. The surge was seen more for passenger vehicles than commercial vehicles. Thus, the market in the Asia Pacific region is expected to grow during the forecast period.
The regional trends and factors influencing the Auto loan Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Auto loan Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 279.33 Billion |
| Market Size by 2031 | US$ 498.18 Billion |
| Global CAGR (2023 - 2031) | 7.5% |
| Historical Data | 2021-2023 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Loan Provider
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Auto loan Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Auto loan Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The "Auto loan Market Analysis" was carried out based on vehicle type, ownership, end-user, loan provider, and geography. In terms of vehicle type, the market is segmented into passenger vehicles and commercial vehicles. In terms of ownership, the market is segmented into new vehicles and used vehicles. In terms of end-users, the market is segmented into individuals and enterprises. In terms of vehicle loan providers, the market is segmented into banks, OEMs, credit unions, and other loan providers. Based on geography, the market is segmented into North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
Ally Financial, HDFC Bank, Chase, Wells Fargo, Capital One, Bank of America, ICICI Bank, Credit Agricole, Mashreq Bank, and Tata Capital. are among the prominent players profiled in the Auto loan market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. The auto loan market forecast is estimated based on various secondary and primary research findings, such as key company publications, association data, and databases.
Companies adopt inorganic and organic strategies such as mergers and acquisitions in the auto loan market. A few recent key market developments are listed below:
(Source: Tata Motors, Company Website)
(Source: Mahindra & Mahindra, Company Website)
(Source: Maruti Suzuki, Company Website)
(Source: Sojitz Corporation, Company Website)
The market report "Auto Loan Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering below areas-
The key players holding majority shares in the global auto loan market are General Electrics, TomTec, Imaging Systems GMBH, Olympus Corporation, PLANMECA OY, and Ajile Light Industry.
The global auto loan market is expected to reach US$ 498.18 billion by 2031.
The global auto loan market was estimated to be US$ 279.33 billion in 2023 and is expected to grow at a CAGR of 7.5 % during the forecast period 2023 - 2031.
Digital advancements in the auto loan market to play a significant role in the global auto loan market in the coming years.
Increasing investments in the auto loan market and high adoption in the commercial sector are the major factors that propel the global auto loan market.