Japan Used Car Market Projected to Reach $30 Billion by 2030, Reveals MarkWide Research Analysis
According to a new report published by MarkWide Research, titled, “Japan Used Car Market Outlook and Growth Forecast 2023-2030,” the Japan used car market is poised to experience significant growth over the next decade. The market is projected to expand at a Compound Annual Growth Rate (CAGR) of 4.8% from 2023 to 2030, driven by several key factors that are reshaping the landscape of the automotive industry in Japan.
The report delves into the various trends, challenges, and opportunities that are shaping the Japan used car market. As the automotive industry continues to evolve, the demand for used cars is witnessing an upsurge due to their cost-effectiveness and improved reliability. Additionally, changing consumer preferences, advancements in vehicle technology, and a growing focus on sustainability are influencing the dynamics of the market.
Key Insights from the Report:
- Rising Demand for Fuel-Efficient Vehicles: With the escalating concerns over environmental impact, there is a notable increase in the demand for fuel-efficient and eco-friendly vehicles. Japanese consumers are showing a strong inclination towards hybrid and electric used cars, driving the growth of this segment.
- Digitalization and Online Platforms: The digital revolution has transformed the way consumers buy and sell used cars. Online platforms, mobile apps, and virtual showrooms have gained prominence, providing consumers with more convenient ways to explore, compare, and purchase used vehicles.
- Quality Certification and Extended Warranties: To build trust among buyers, many dealerships are offering certified pre-owned programs that provide rigorous inspection and extended warranties. This trend is gaining traction as consumers seek assurance about the quality and reliability of used cars.
- Shift towards SUVs and Crossovers: The preference for SUVs and crossovers remains strong in the Japanese market. This shift in consumer preference is driving dealerships to maintain a diverse inventory of used SUVs to cater to the demand.
- Government Initiatives: The Japanese government’s initiatives to promote the adoption of electric vehicles (EVs) and reduce carbon emissions are playing a pivotal role in shaping the used car market. Incentives, subsidies, and infrastructure development for EVs are encouraging consumers to consider electric used cars.
- Market Challenges: Despite the positive trajectory, the Japan used car market is not without challenges. The market faces stiff competition from the new car market, potential supply chain disruptions, and changing regulations that impact vehicle imports.
Forecasted Market Size and Growth:
The report highlights that the Japan used car market, valued at $23.4 billion in 2023, is projected to reach a market size of $34.7 billion by 2030. This remarkable growth can be attributed to the factors mentioned above, along with the changing socio-economic landscape and an increasing number of consumers opting for used vehicles as their preferred mode of transportation.
Commenting on the findings, Mark Thompson, Lead Analyst at MarkWide Research, stated: “The Japan used car market is undergoing a transformative phase, driven by technology advancements, changing consumer preferences, and environmental concerns. The market’s sustained growth trajectory presents exciting opportunities for industry stakeholders to innovate and adapt to the evolving landscape.”
As the Japan used car market continues to evolve, industry participants are expected to focus on enhancing their online presence, investing in technology to streamline operations, and offering personalized experiences to cater to diverse consumer needs.