SAN FRANCISCO, Sept. 12, 2022 /PRNewswire/ -- The global automotive finance market size is expected to reach USD 451.71 billion by 2030, registering a CAGR of 7.2% from 2022 to 2030, according to a new report by Grand View Research, Inc. Growing global demand for autonomous cars is expected to drive the market growth. Increasing government regulations on rising road safety are creating the need for autonomous cars with highly advanced technologies worldwide.
Key Industry Insights & Findings from the report:
- The banks segment is expected to dominate the market growth during the forecast period as banks offer secure financing to their customers. Banks also offer customers the facility to apply for pre-approval. This facility helps customers in comparing estimated loan offers.
- The direct segment is expected to dominate the market growth during the forecast period. Numerous customers across the globe prefer direct auto loans as they can easily access and get loans from the credit unions, banks, and other loan lending companies.
- The leasing 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 in comparison to others for new, shared, and used vehicles that could comprise services such as insurance.
- The passenger segment dominated the market in 2021 and is expected to show similar trends during the forecast period. The number of passenger vehicles including pickup trucks and others on the road, continues to rise across the globe, thereby creating growth opportunities for the passenger vehicles segment during the forecast period.
- The presence of many prominent automotive finance providers in the European region and the adoption of innovative tools, such as biometrics, e-contracts, and machine learning, is expected to drive the regional market growth during the forecast period.
Read 160-page full market research report for more Insights, "Automotive Finance Market Size, Share & Trends Analysis Report By Provider Type, By Finance Type, By Purpose Type, By Vehicle Type, By Region, And Segment Forecasts, 2022 - 2030", published by Grand View Research.
Automotive Finance Market Growth & Trends
The investment made in the automotive finance industry is also creating new opportunities for market growth. For instance, in January 2021, MotoRefi, an automotive refinancing company, announced that it raised USD 10.0 million in a round that Moderna Ventures led. The company uses this funding to hire more employees and expand its offerings.
Various auto car manufacturers are entering into a partnership with automotive finance providers to enhance their customer experience. For instance, in March 2022, CIG Motors, a GAC brand distributor, announced its collaboration with Polaris Bank Limited. By means of this partnership, the former company aims to make vehicle ownership and acquisition easy for Nigerians through the Easy Buy scheme.
COVID-19 had a negative impact on the market growth in 2021. However, the global auto manufacturers, lenders, and dealers have got adjusted to the current COVID-19 situation. For instance, the automotive manufacturers incentivized their new car sales to grow their sales amid COVID-19. These efforts taken by the automakers are expected to improve the demand for automotive finance during the forecast period.
Automotive Finance Market Segmentation
Grand View Research has segmented the automotive finance market based on the provider type, finance type, purpose type, vehicle type, and region
Automotive Finance Market - Provider Type Outlook (Revenue, USD Billion, 2017 - 2030)
- Banks
- OEMs
- Other Financial Institutions
Automotive Finance Market - Type Outlook (Revenue, USD Billion, 2017 - 2030)
- Direct
- Indirect
Automotive Finance Market - Purpose Type Outlook (Revenue, USD Billion, 2017 - 2030)
- Loan
- Leasing
- Others
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
- U.S.
- Canada
- Europe
- Germany
- U.K.
- Asia Pacific
- China
- India
- Japan
- Latin America
- Brazil
- Middle East & Africa
List of Key Players in the Automotive Finance Market
- 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
Check out more related studies published by Grand View Research:
- Finance Cloud Market- The global finance cloud market size is anticipated to reach USD 101.71 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 20.3% from 2022 to 2030. Financial organizations are modernizing their processes and embracing different aspects of digital transformation owing to the convenience offered by cloud solutions. Financial institutions using the cloud model benefit from improved disaster recovery, fault tolerance, and data protection.
- Smart Finance Services Market - The global smart finance services market size is expected to reach USD 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. The crucial growth factors of the market include the growing demand for the various IoT-based ATM services, such as installation and management services, across the globe. In addition, the growing popularity of smart ATMs further increases the demand for connected ATMs, which further encourages the demand for smart finance services, such as management and installation services. However, the rising privacy and security concerns due to cyber threats of IoT-connected devices are projected to restrain the market growth during the forecast period.
- Smart Finance Hardware Market - The global smart finance hardware market size has been projected to reach USD 16.66 million by 2028, advancing at a CAGR of 2.4% from 2022 to 2028, according to a new report by Grand View Research, Inc. The major growth factors for the market include the growing adoption of smart ATMs, coupled with the growing number of ATM installations and rising smart city projects across the globe.
Browse through Grand View Research's Next Generation Technologies Industry Research Reports.
About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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