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Automotive Finance Market To Reach $451.71Bn By 2030

Automotive Finance Market To Reach $451.71 Billion By 2030

January 2025 | Report Format: Electronic (PDF)

Automotive Finance Market Growth & Trends

The global automotive finance market size is expected to reach USD 451.71 billion by 2030, registering a CAGR of 7.4% from 2025 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.

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.

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Automotive Finance Market Report Highlights

The banks segment led the market and accounted for 57.5% share of the global revenue in 2024. 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.
The direct segment dominated the market and accounted for significant share of the global revenue in 2024. Consumers are focusing on determining the financing source, which effectively meets their requirements.
The loan segment led the market in 2024. 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.
The passenger vehicles segment led the market in 2024. The segment growth can be attributed to the increasing need of mobility due to increased distances between work, home, education, leisure, and shopping facilities.
The Europe automotive finance market dominated and accounted for a 39.3% share of the global revenue in 2024. The regional market growth can be attributed to the presence of a large number of automotive finance service providers in the region.