Europe Automotive Financing Market by Application and Type Forecast and Analysis 2024-2028

Published: Feb 2024

Pages: 152

SKU: IRTNTR77635

Snapshot

Europe Automotive Financing Market 2024-2028

The Europe Automotive Financing Market size is forecast to increase by USD 6.14 billion, at a CAGR of 4.43% between 2023 and 2028. Several factors play a crucial role in the market's growth, such as the rise in cab service financing, the digitization of automotive financing, and the rising demand for luxury vehicles. The report provides market size, historical data spanning from 2018-2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The rise in cab service financing is the key factor driving the market. The surging demand for cab services worldwide has prompted various tech-based companies to enter the market, offering convenient transportation solutions. While taxi drivers eagerly sign up on these platforms for a steady income, limitations arise if they don't own the vehicle they operate. This hurdle particularly affects those aspiring to drive their own cabs, hindered by financial constraints or challenges in obtaining credit. To address this, automotive financing companies are introducing flexible loan terms and discounts for potential cab drivers looking to purchase new cars.

Furthermore, cab service providers are forging partnerships with financiers and car dealers to offer financing programs with favorable long terms. For instance, Uber's vehicle solutions program provides up to 90% financing for new cars, with payments deducted automatically from drivers' earnings. This collaboration between cab service providers, financiers, and auto lenders aims to facilitate vehicle ownership for drivers, especially in the growing market for electric and commercial vehicles. Such initiatives are expected to boost the demand for loans in the banks segment, further driving growth in the commercial and consumer financing space. Thus, the presence of such financial programs will lead to market expansion during the forecast period. Key Market Trends

Growing demand from SMEs is the primary trend in the market. SMEs require vehicles to meet the needs of transporting employees and goods. A significant outflow of capital is required to meet these transportation needs. Vehicle financing through automotive loans offers an alternative and provides various advantages to SMEs. Vehicles are depreciating assets, and hence, a company has to incur high costs in upgrading to a newer model of a vehicle. However, loans for purchasing vehicles offer a cost-effective alternative, wherein the loan taker must only pay for the depreciating factor of the vehicle and can upgrade easily after the expiry of the loan payment period. Monthly loan payments are generally less than lumpsum payments for purchasing a vehicle.

Additionally, the greater the number of vehicles a company owns, the higher will be the costs incurred on their maintenance. In addition, new vehicle models offer better fuel economy, which is an important criterion for SMEs as it ensures that they do not spend more than the required fuel cost. Thus, these factors encourage SMEs to opt for automotive financing, making them key customers for the Europe automotive financing market, especially as it allows them to avail of automotive financing services in a convenient and hassle-free manner, which, therefore, will drive the growth of the market during the forecast period.

Major Market Challenge

Ride-sharing services gaining traction is a challenge that affects market expansion. The rideshare industry has been gaining popularity in the past few years as it helps in reducing traffic, saving money, and protecting the environment. Ride-sharing services are useful for people who do not own a car, travelers going out of town, and people needing a car for a definite time, which could range from one hour to a few weeks. By using ride-sharing services, users can help reduce the number of vehicles on the road, which will also reduce travel time.

Furthermore, the market for car sharing is growing due to the increase in the number of services in Europe due to the high number of automotive OEMs present in this region. An increasing number of customers opting for ride-sharing services will affect the sales of automotive vehicles negatively, which will be a challenge for the growth of the market in focus during the forecast period.

Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

Customer Landscape

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Banco Santander SA: The company offers services through points-of-sale and direct-to-consumer channels such as branches, phone centers and internet.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 19 market companies, including:

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Largest-Growing Segments in the Market?

The used vehicle segment is estimated to witness significant growth during the forecast period. As used vehicles offer better value for money, many customers prefer them. In addition, in a few countries in the region, the annual registration fees are based on the value and model year. Therefore, the registration fees decline drastically in the first few years after a vehicle is manufactured. Further,, most purchase decisions about used vehicles depend on the customer's conviction about the quality of the available vehicles.

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The used vehicle segment was the largest segment and was valued at USD 17.45 billion in 2018. Moreover, the quality of used vehicles is a key decision-making factor as details about ownership are vague, and any damage to used vehicles after they are purchased is not covered by warranty. The purchase criteria for used vehicles are also impacted by the affordability and financial strength of customers. Market players offer used vehicle loans to help customers purchase vehicles such as passenger cars and commercial vehicles due to the growing demand for used vehicles. Thus, such factors will drive the growth of the segment of the Europe automotive financing market during the forecast period.

Segment Overview

The market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

Application Outlook
- Used vehicle
- New vehicle

Type Outlook
- Passenger vehicle
- Commercial vehicle

Market Analyst Overview:

In Europe, the market is driven by a diverse array of financial institutions, including banks, credit unions, and online lenders, along with specialized entities like automotive finance companies and fintech companies. Factors such as the increasing popularity of electric cars and challenges such as job losses have influenced the market dynamics. To address these issues, there's a rise in payment deferrals, loan restructuring, and interest rate reductions by auto lenders.

The global automotive finance market is witnessing innovations like cryptocurrency payments and platforms such as Car Now, Cion Digital, and Upstart, leveraging artificial intelligence for streamlined processes. The market is segmented into direct and indirect segments, covering both loan and leasing segments, particularly focusing on passenger vehicles

Market Scope
Report Coverage	Details
Page number	152
Base year	2023
Historic period	2018-2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.43%
Market Growth 2024-2028	USD 6.14 billion
Market structure	Fragmented
YoY growth 2023-2024(%)	2.95
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ALPHERA Financial Services, Banco Santander SA, Bank of America Corp., Bayerische Motoren Werke AG, Blue Motor Finance Ltd., Capital One Financial Corp., Credit Agricole SA, ESKA Finance s.r.o., First Response Finance Ltd., Ford Motor Co., Honda Motor Co. Ltd., JPMorgan Chase and Co., Mercedes Benz Group AG, NatWest Group plc, Porsche Automobil Holding SE, Startline Motor Finance Ltd., Sumitomo Corp., Toyota Motor Corp., and Wells Fargo and Co.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Research Report?

CAGR of the market during the forecast period
Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
Precise estimation of the market size and its contribution to the market in focus on the parent market
Accurate predictions about upcoming market growth and trends and changes in consumer behavior
Growth of the market across Europe
A thorough analysis of the market’s competitive landscape and detailed information about companies
Comprehensive analysis of factors that will challenge the growth of market companies

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Table of Contents

1 Executive Summary

1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market by Geography
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Application
- Exhibit 06: Executive Summary – Chart on Market Segmentation by Type
- Exhibit 07: Executive Summary – Chart on Incremental Growth
- Exhibit 08: Executive Summary – Data Table on Incremental Growth
- Exhibit 09: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem
- Exhibit 10: Parent market
- Exhibit 11: Market Characteristics

3 Market Sizing

3.1 Market definition
- Exhibit 12: Offerings of vendors included in the market definition

3.2 Market segment analysis
- Exhibit 13: Market segments

3.3 Market size 2023

3.4 Market outlook: Forecast for 2023-2028
- Exhibit 14: Chart on Europe - Market size and forecast 2023-2028 ($ billion)
- Exhibit 15: Data Table on Regional - Market size and forecast 2023-2028 ($ billion)
- Exhibit 16: Chart on Europe: Year-over-year growth 2023-2028 (%)
- Exhibit 17: Data Table on Regional - Market size and forecast 2023-2028 ($ billion)

4 Historic Market Size

4.1 Automotive financing market in Europe 2018 - 2022
- Exhibit 18: Historic Market Size – Data Table on automotive financing market in Europe 2018 - 2022 ($ billion)

4.2 Application Segment Analysis 2018 - 2022
- Exhibit 19: Historic Market Size – Application Segment 2018 - 2022 ($ billion)

4.3 Type Segment Analysis 2018 - 2022
- Exhibit 20: Historic Market Size – Type Segment 2018 - 2022 ($ billion)

4.4 Geography Segment Analysis 2018 - 2022
- Exhibit 21: Historic Market Size – Geography Segment 2018 - 2022 ($ billion)

5 Five Forces Analysis

5.1 Five forces summary
- Exhibit 22: Five forces analysis - Comparison between 2023 and 2028

5.2 Bargaining power of buyers
- Exhibit 23: Chart on Bargaining power of buyers – Impact of key factors 2023 and 2028

5.3 Bargaining power of suppliers
- Exhibit 24: Bargaining power of suppliers – Impact of key factors in 2023 and 2028

5.4 Threat of new entrants
- Exhibit 25: Threat of new entrants – Impact of key factors in 2023 and 2028

5.5 Threat of substitutes
- Exhibit 26: Threat of substitutes – Impact of key factors in 2023 and 2028

5.6 Threat of rivalry
- Exhibit 27: Threat of rivalry – Impact of key factors in 2023 and 2028

5.7 Market condition
- Exhibit 28: Chart on Market condition - Five forces 2023 and 2028

6 Market Segmentation by Application

6.1 Market segments
- Exhibit 29: Chart on Application - Market share 2023-2028 (%)
- Exhibit 30: Data Table on Application - Market share 2023-2028 (%)

6.2 Comparison by Application
- Exhibit 31: Chart on Comparison by Application
- Exhibit 32: Data Table on Comparison by Application

6.3 Used vehicle - Market size and forecast 2023-2028
- Exhibit 33: Chart on Used vehicle - Market size and forecast 2023-2028 ($ billion)
- Exhibit 34: Data Table on Used vehicle - Market size and forecast 2023-2028 ($ billion)
- Exhibit 35: Chart on Used vehicle - Year-over-year growth 2023-2028 (%)
- Exhibit 36: Data Table on Used vehicle - Year-over-year growth 2023-2028 (%)

6.4 New vehicle - Market size and forecast 2023-2028
- Exhibit 37: Chart on New vehicle - Market size and forecast 2023-2028 ($ billion)
- Exhibit 38: Data Table on New vehicle - Market size and forecast 2023-2028 ($ billion)
- Exhibit 39: Chart on New vehicle - Year-over-year growth 2023-2028 (%)
- Exhibit 40: Data Table on New vehicle - Year-over-year growth 2023-2028 (%)

6.5 Market opportunity by Application
- Exhibit 41: Market opportunity by Application ($ billion)
- Exhibit 42: Data Table on Market opportunity by Application ($ billion)

7 Market Segmentation by Type

7.1 Market segments
- Exhibit 43: Chart on Type - Market share 2023-2028 (%)
- Exhibit 44: Data Table on Type - Market share 2023-2028 (%)

7.2 Comparison by Type
- Exhibit 45: Chart on Comparison by Type
- Exhibit 46: Data Table on Comparison by Type

7.3 Passenger vehicle - Market size and forecast 2023-2028
- Exhibit 47: Chart on Passenger vehicle - Market size and forecast 2023-2028 ($ billion)
- Exhibit 48: Data Table on Passenger vehicle - Market size and forecast 2023-2028 ($ billion)
- Exhibit 49: Chart on Passenger vehicle - Year-over-year growth 2023-2028 (%)
- Exhibit 50: Data Table on Passenger vehicle - Year-over-year growth 2023-2028 (%)

7.4 Commercial vehicle - Market size and forecast 2023-2028
- Exhibit 51: Chart on Commercial vehicle - Market size and forecast 2023-2028 ($ billion)
- Exhibit 52: Data Table on Commercial vehicle - Market size and forecast 2023-2028 ($ billion)
- Exhibit 53: Chart on Commercial vehicle - Year-over-year growth 2023-2028 (%)
- Exhibit 54: Data Table on Commercial vehicle - Year-over-year growth 2023-2028 (%)

7.5 Market opportunity by Type
- Exhibit 55: Market opportunity by Type ($ billion)
- Exhibit 56: Data Table on Market opportunity by Type ($ billion)

8 Customer Landscape

8.1 Customer landscape overview
- Exhibit 57: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

9 Geographic Landscape

9.1 Geographic segmentation
- Exhibit 58: Chart on Market share by geography - 2023-2028 (%)
- Exhibit 59: Data Table on Market share by geography - 2023-2028 (%)

9.2 Geographic comparison
- Exhibit 60: Chart on Geographic comparison
- Exhibit 61: Data Table on Geographic comparison

9.3 Germany - Market size and forecast 2023-2028
- Exhibit 62: Chart on Germany - Market size and forecast 2023-2028 ($ billion)
- Exhibit 63: Data Table on Germany - Market size and forecast 2023-2028 ($ billion)
- Exhibit 64: Chart on Germany - Year-over-year growth 2023-2028 (%)
- Exhibit 65: Data Table on Germany - Year-over-year growth 2023-2028 (%)

9.4 UK - Market size and forecast 2023-2028
- Exhibit 66: Chart on UK - Market size and forecast 2023-2028 ($ billion)
- Exhibit 67: Data Table on UK - Market size and forecast 2023-2028 ($ billion)
- Exhibit 68: Chart on UK - Year-over-year growth 2023-2028 (%)
- Exhibit 69: Data Table on UK - Year-over-year growth 2023-2028 (%)

9.5 France - Market size and forecast 2023-2028
- Exhibit 70: Chart on France - Market size and forecast 2023-2028 ($ billion)
- Exhibit 71: Data Table on France - Market size and forecast 2023-2028 ($ billion)
- Exhibit 72: Chart on France - Year-over-year growth 2023-2028 (%)
- Exhibit 73: Data Table on France - Year-over-year growth 2023-2028 (%)

9.6 Italy - Market size and forecast 2023-2028
- Exhibit 74: Chart on Italy - Market size and forecast 2023-2028 ($ billion)
- Exhibit 75: Data Table on Italy - Market size and forecast 2023-2028 ($ billion)
- Exhibit 76: Chart on Italy - Year-over-year growth 2023-2028 (%)
- Exhibit 77: Data Table on Italy - Year-over-year growth 2023-2028 (%)

9.7 Rest of Europe - Market size and forecast 2023-2028
- Exhibit 78: Chart on Rest of Europe - Market size and forecast 2023-2028 ($ billion)
- Exhibit 79: Data Table on Rest of Europe - Market size and forecast 2023-2028 ($ billion)
- Exhibit 80: Chart on Rest of Europe - Year-over-year growth 2023-2028 (%)
- Exhibit 81: Data Table on Rest of Europe - Year-over-year growth 2023-2028 (%)

9.8 Market opportunity by geography
- Exhibit 82: Market opportunity by geography ($ billion)
- Exhibit 83: Data Table on Market opportunity by geography ($ billion)

10 Drivers, Challenges, and Trends

10.1 Market drivers

10.2 Market challenges

10.3 Impact of drivers and challenges
- Exhibit 84: Impact of drivers and challenges in 2023 and 2028

10.4 Market trends

11 Vendor Landscape

11.1 Overview

11.2 Vendor landscape
- Exhibit 85: Overview on Criticality of inputs and Factors of differentiation

11.3 Landscape disruption
- Exhibit 86: Overview on factors of disruption

11.4 Industry risks
- Exhibit 87: Impact of key risks on business

12 Vendor Analysis

12.1 Vendors covered
- Exhibit 88: Vendors covered

12.2 Market positioning of vendors
- Exhibit 89: Matrix on vendor position and classification

12.3 Banco Santander SA
- Exhibit 90: Banco Santander SA - Overview
- Exhibit 91: Banco Santander SA - Product / Service
- Exhibit 92: Banco Santander SA - Key offerings

12.4 Bank of America Corp.
- Exhibit 93: Bank of America Corp. - Overview
- Exhibit 94: Bank of America Corp. - Business segments
- Exhibit 95: Bank of America Corp. - Key news
- Exhibit 96: Bank of America Corp. - Key offerings
- Exhibit 97: Bank of America Corp. - Segment focus

12.5 Bayerische Motoren Werke AG
- Exhibit 98: Bayerische Motoren Werke AG - Overview
- Exhibit 99: Bayerische Motoren Werke AG - Business segments
- Exhibit 100: Bayerische Motoren Werke AG - Key news
- Exhibit 101: Bayerische Motoren Werke AG - Key offerings
- Exhibit 102: Bayerische Motoren Werke AG - Segment focus

12.6 Blue Motor Finance Ltd.
- Exhibit 103: Blue Motor Finance Ltd. - Overview
- Exhibit 104: Blue Motor Finance Ltd. - Product / Service
- Exhibit 105: Blue Motor Finance Ltd. - Key offerings

12.7 Capital One Financial Corp.
- Exhibit 106: Capital One Financial Corp. - Overview
- Exhibit 107: Capital One Financial Corp. - Business segments
- Exhibit 108: Capital One Financial Corp. - Key offerings
- Exhibit 109: Capital One Financial Corp. - Segment focus

12.8 Credit Agricole SA
- Exhibit 110: Credit Agricole SA - Overview
- Exhibit 111: Credit Agricole SA - Product / Service
- Exhibit 112: Credit Agricole SA - Key offerings

12.9 ESKA Finance s.r.o.
- Exhibit 113: ESKA Finance s.r.o. - Overview
- Exhibit 114: ESKA Finance s.r.o. - Product / Service
- Exhibit 115: ESKA Finance s.r.o. - Key offerings

12.10 Ford Motor Co.
- Exhibit 116: Ford Motor Co. - Overview
- Exhibit 117: Ford Motor Co. - Business segments
- Exhibit 118: Ford Motor Co. - Key offerings
- Exhibit 119: Ford Motor Co. - Segment focus

12.11 Honda Motor Co. Ltd.
- Exhibit 120: Honda Motor Co. Ltd. - Overview
- Exhibit 121: Honda Motor Co. Ltd. - Business segments
- Exhibit 122: Honda Motor Co. Ltd. - Key news
- Exhibit 123: Honda Motor Co. Ltd. - Key offerings
- Exhibit 124: Honda Motor Co. Ltd. - Segment focus

12.12 JPMorgan Chase and Co.
- Exhibit 125: JPMorgan Chase and Co. - Overview
- Exhibit 126: JPMorgan Chase and Co. - Business segments
- Exhibit 127: JPMorgan Chase and Co. - Key offerings
- Exhibit 128: JPMorgan Chase and Co. - Segment focus

12.13 Mercedes Benz Group AG
- Exhibit 129: Mercedes Benz Group AG - Overview
- Exhibit 130: Mercedes Benz Group AG - Business segments
- Exhibit 131: Mercedes Benz Group AG - Key news
- Exhibit 132: Mercedes Benz Group AG - Key offerings
- Exhibit 133: Mercedes Benz Group AG - Segment focus

12.14 NatWest Group plc
- Exhibit 134: NatWest Group plc - Overview
- Exhibit 135: NatWest Group plc - Business segments
- Exhibit 136: NatWest Group plc - Key offerings
- Exhibit 137: NatWest Group plc - Segment focus

12.15 Porsche Automobil Holding SE
- Exhibit 138: Porsche Automobil Holding SE - Overview
- Exhibit 139: Porsche Automobil Holding SE - Business segments
- Exhibit 140: Porsche Automobil Holding SE - Key news
- Exhibit 141: Porsche Automobil Holding SE - Key offerings
- Exhibit 142: Porsche Automobil Holding SE - Segment focus

12.16 Toyota Motor Corp.
- Exhibit 143: Toyota Motor Corp. - Overview
- Exhibit 144: Toyota Motor Corp. - Business segments
- Exhibit 145: Toyota Motor Corp. - Key offerings
- Exhibit 146: Toyota Motor Corp. - Segment focus

12.17 Wells Fargo and Co.
- Exhibit 147: Wells Fargo and Co. - Overview
- Exhibit 148: Wells Fargo and Co. - Business segments
- Exhibit 149: Wells Fargo and Co. - Key news
- Exhibit 150: Wells Fargo and Co. - Key offerings
- Exhibit 151: Wells Fargo and Co. - Segment focus

13 Appendix

13.1 Scope of the report

13.2 Inclusions and exclusions checklist
- Exhibit 152: Inclusions checklist
- Exhibit 153: Exclusions checklist

13.3 Currency conversion rates for US$
- Exhibit 154: Currency conversion rates for US$

13.4 Research methodology
- Exhibit 155: Research methodology
- Exhibit 156: Validation techniques employed for market sizing
- Exhibit 157: Information sources

13.5 List of abbreviations
- Exhibit 158: List of abbreviations

Methodology

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

Manufacturers and suppliers
Channel partners
Industry experts
Strategic decision makers

Secondary sources

Industry journals and periodicals
Government data
Financial reports of key industry players
Historical data
Press releases

DATA ANALYSIS

Data Synthesis

Collation of data
Estimation of key figures
Analysis of derived insights

Data Validation

Triangulation with data models
Reference against proprietary databases
Corroboration with industry experts

REPORT WRITING

Qualitative

Market drivers
Market challenges
Market trends
Five forces analysis

Quantitative

Market size and forecast
Market segmentation
Geographical insights
Competitive landscape

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Key Questions Answered

What are the key global market and the regional market share?
What are the revenue-generating key market segments?
What are the key factors driving and challenging this market’s growth?
Who are the key market vendors and their growth strategies?
What are the latest trends influencing the growth of this market?
What are the variables influencing the market growth in the primary regions?
What are the factors influencing the growth of the parent market?

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