Automotive Fintech Market Players are all set to alter the behavioral design of car buyers

Automotive fintech Market Size & Forecast

The automotive industry across many countries is undergoing a rapid transformation due to the new-age technologies revolution and challenges caused by the ongoing COVID19 pandemic. Automotive market economics is mainly driven by financial services provided by lending organizations, as a major percentage of the vehicle sold are financed.

Technology has already transformed the financial services market due to the advent of digital payments and lending systems. Internet penetration is growing rapidly due to growing sales of smartphones and cheaper data packs. The buying pattern of people too has drastically changed and it is reflected in the growing revenue of eCommerce players.  Similarly, services like car rental, ordering food, or buying groceries, almost everything is shifting online and fintech players are playing a huge role in making these ideas possible. Fintech companies have already changed the way people used to do financial transactions, now it is time for the automotive sector to be transformed. Automotive Fintech companies are extensively working on altering the behavioral design of customers willing to buy cars.

The automotive fintech Market is expected to grow at an average yearly rate of around xx% during the timeframe (2022-2025). In 2021, global automotive fintech market revenue stood at $xx million. The global Automotive fintech Market is segmented into North America, Europe, APAC & the Rest of the world. The research report titled “Automotive fintech Market, Business and Opportunity Analysis” published by Datavagyanik presents a detailed analysis of the Automotive fintech Market with country-wise market statistics, qualitative insights, and market player analysis. One of the prime objectives of the report is to provide an assessment of the market potential, market revenue, growth, and business opportunities for the Automotive fintech Market in each country.

How big is the fintech market?

You might be wondering; banks already have a huge focus on automotive lending and have a very deep market penetration. Then, where is the room for fintech players to fit in the automotive financing industry? Well…. Automotive fintech has got a tailwind due to technology. These players are not just there to grab a market share in auto finance but their main motto is to provide value to customers and in the process make a business out of it.

The way people shop today has totally changed. A few years ago, if I had to buy a car, I would go to a few car dealers’ showrooms, talk to some of my friends and relatives, finalize and then buy the car. Do you think the same, today? ……you are right, I am also thinking the same things, why would I take so much pain, instead I would sit on my couch, read online reviews, compare prices, find the best price, check eligibility for financing and finally go to the showroom to get the car or get it delivered home.

Key Insights the report are:

• Automotive fintech Market revenue and demand by countries
• Break-down of the Automotive fintech Market in terms of application areas, target customers, and other potential market segments
• Areas that are relatively more potential and are faster growing
• Automotive fintech Market competitive scenario, market share analysis
• Automotive fintech Market business opportunity analysis

Global and Country-Wise Automotive fintech Market Statistics

• Global and Country-Wise Automotive fintech Market Size ($Million) and Forecast – (2021-2028)
• Global and Country-Wise Automotive fintech Market Trend Analysis
• Global and Country-Wise Automotive fintech Market Business Opportunity Assessment

Sample Data Tables Covered for Each Region and Country:

This business analysis report on the Automotive fintech Market presents a regional as well as country-level analysis. The regions covered in the report are – North America, Europe, Asia Pacific, and the Rest of the World. In these four regions, all the countries have been covered in detail with information on the Automotive fintech Market size, trends, and forecasts.

The report covers Automotive fintech Market revenue and forecasts for the period (2021 – 2028), by regions, (further split into countries):

• North America (United States, Canada, Mexico)
• Asia Pacific (China, Japan, South Korea, India, Indonesia, Vietnam, Rest of APAC)
• Europe (UK, Germany, France, Italy, Spain, Benelux, Poland, Rest of Europe)
• Latin America (Brazil, Argentina, Rest of Latin America)
• Middle East & Africa

Automotive fintech Market Revenue ($MILLION), & Forecast, 2021–2028

*Note – Country-level break-down has been covered in the report

Top 5 Business areas where Automotive fintech player are focusing

Online auto lending platform

Gone are those days when people used to run from one bank to other to get a loan sanctioned. Technology has not only transformed the way we bank but also revolutionized the financing industry. Now you can get a loan at the click of your fingers. All this has been possible because of fintech players getting into the financing Industry. They have simplified the process for people as well as businesses with the help of technology such as cloud computing, BigData Analytics, etc. Cloud-based software has drastically reduced the expenditures for information technology hardware and software. Automotive dealers get standard software that integrates with major lenders and third parties at a much lower cost.

Online car marketplace

Online used car marketplace is a hit in the USA. Companies offer customers to have a look at their used car inventories and virtually examine the car with a 360-degree view. Customers can check and apply for automotive finance online and avail of finance in no time. Moreover, they can also get their bought car delivered to their door.

However, when it comes to buying a new car, customers engagement has been quite low. Many automakers such as General Motors, Fiat Chrysler, Ford, Toyota already offer online buying and home delivery of cars. But the engagement has been quite low before 2020. However, Covid-19 restrictions in various parts of the world forced customers to try online car shopping platforms. It can be verified by looking at the sales figures of AutoFi (a digital car sales and finance Platform) which saw a growth of more than 125% in revenue in 2020.

Online auto insurance platform

Automotive fintech players are capitalizing on this space too. The focus is to enable customers to compare various insurance plans online and buy with a click of fingers.

On-demand transport (vehicle leasing, car rentals)

The Automotive market has two major pain points, i.e., the length of the loan term and the cost. Customers generally want new or well-maintained used cars; however, they are not willing to pay huge monthly recurring amounts for the short term or get locked into the long term loan period. Millennials are opting not to buy new vehicles due to these two factors.  On the other hand, many Americans are extending their auto loan term to manage monthly payments. Some of the automotive fintech players have identified this problem and have started facilitating pre-owned cars at minimal monthly rates. This not only helps the car owner to pay their auto loan but also facilitates cars to the customers who are not willing to be locked in long-term loan tenure.

In-car payment (cashless payment at gas station, cashless parking payment solution)

A study by pymnts in 2019 suggests that commuters spend around $213 billion a year while commuting. Automotive players are partnering with fintech players to offer In-car payment facilities and capitalize on the available market.

Automotive fintech Market Segmentation

Global Automotive fintech Market revenue and forecast, by Product:

• Two Wheeler
• Three Wheeler
• Commercial Vehicles
• Passenger Vehicles

Global Automotive fintech Market revenue and forecast, by Vehicle Type:

• New Vehicle
• Used Vehicle

Global Automotive fintech Market revenue and forecast, by Business Type:

• Online vehicle Marketplace
• Online Auto Insurance Platform
• On Demand Transport
• In-car Payments
• Online Auto finance

Global Automotive fintech Market revenue and forecast for the period (2020 – 2027), by Region:

North America Automotive fintech Market Size & Forecast by Country

• United States
• Canada

Europe Automotive fintech Market Size & Forecast by Country

• Germany
• France
• Italy
• Spain
• UK
• Rest of Europe

Asia-Pacific Automotive fintech Market Size & Forecast By Country

• China
• India
• Japan
• South Korea
• Indonesia
• Australia
• Rest of Asia-Pacific

Latin America Automotive fintech Market Size & Forecast By Country

• Brazil
• Mexico
• Argentina

Middle East & Africa Automotive fintech Market Size & Forecast By Country

• Saudi Arabia
• UAE
• Egypt
• Rest of Middle East & Africa

How big is the US fintech industry?

US Automotive fintech market size in 2021 is XX billion and is expected to grow at a cagr of XX% during the forecast period. The U.S auto loan stand at $ 1.36 trillion in 2020. Auto-loans have a share of nearly 10% of the total US household debt. They are the third-largest debt category after mortgage loans and student loans. In other words, they are the third most lucrative business opportunity for lending organizations operating in the US. Further, the growth of auto loans is astonishing as it has doubled in a span of merely 10 years.

According to our survey of 23 dealers across the United States in January 2020, we found that although consumers still prefer to purchase vehicles from stores, many of them have already inquired about the loan process, eligibility, interest rates, etc. on online auto lending platforms. Further, when we surveyed premium bikes and car owners, they said they had booked their vehicles online and had collected them from the store on the receiving date. They further added it would be better if the vehicle were delivered to their doorstep. Automotive fintech companies can bring a revolution in automotive financing and change the way people buy vehicles. Moreover, they are also helping auto-manufacturers and their suppliers to have a better and more profitable relationship by extending a credit line for the number of goods they(suppliers) have delivered to the manufacturers. This helps manufacturers get a discount on the materials procured, thus, lowering the raw material cost.

Automotive fintech Market Player Analysis:

• Company overview, portfolio analysis, market share, and target customers
• Estimated segment revenue and relative positioning
• Business and growth strategies

Some of the Automotive fintech Companies covered in the report are listed below

• Auto pay
• AutoFi
• AutoGravity
• Blinker
• Car Gurus
• Carsoup
• Carvana
• Edmunds
• Motorefi
• Roadster
• Other market players

Why Auto giants are funding Auto fintech Companies?

Global Auto Sales are declining every year. This is a worrying trend for automakers and they need to identify the pain points which is causing this fall. A lot of analysts will blame online car rental platforms like Uber and OLA to be the reason for this fall. However, we at Datavagyanik think that with the increasing penetration of the internet and technology, the behavioral design of society is changing and businesses need to adapt as well as find new opportunities to serve their existing customers or acquire new customers. Automakers knew that most of their sales is through financing, so they entered in automotive financing space. Now, they are trying to adapt to changing the behavior of customers by funding technology startups in the automotive sector. Whether it is online car rentals, on-demand car servicing, or online car sales; auto giants are investing in potential startups. Auto giants are under huge pressure to adopt technology to lower their cost of production and find innovative ways to increase auto sales.

Automotive fintech Market Demand and Supply Side Analysis

The report analyzes the Automotive fintech Market from the demand as well as the supply side. In supply-side analysis, we reach out to the Automotive fintech Market players to collect information on their portfolio, revenue, target customers, and other insights. During this process, paid interviews and surveys are conducted for obtaining and validating the data pointers. We also deep dive into the available paid industry databases, research studies, white papers, and annual reports.

As a part of our demand-side analysis, we reach out to the end-users of the Automotive fintech Market, to gauge the application areas, demand trends, and similar insights.

Automotive fintech Market Research Methodology:

There is an entire data collection and validation framework that Datavagyanik follows to provide you with authentic information. We connect to industry experts across various countries to understand market trends and demand patterns. The same is done through paid interviews and surveys.

Our internal team of analysts is experts in studying market patterns, mining data, and extracting useful information from different paid as well as freely available sources. Datavagyanik has an exhaustive internal database with information on markets, market players, and other macro and micro economic indicators that impact industries.

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