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Used EV Market Projected to Grow to $40B by 2033 as Prices Fall

Future Market Insights Inc. projects a compound annual growth rate of 8.4% to 2033.

Posted by Staff

April 25, 2023

3 Min Read
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FMI anticipates the demand for used electric vehicles to rise as time goes on.Credit: Ronnie Kaufman / The Image Bank via Getty Images

During the time period between 2018 and 2022, the global used EV market grew at an annual rate of 5.3% and reached a valuation of US$ 16,428.4 million by 2022. According to a Future Market Insights (FMI) research report, worldwide sales of used EVs are projected to grow at 8.4% from 2023 to 2033. The overall market value is projected to increase from US$ 17,890.5 million in 2023 to US$ 40,078.9 million by the year 2033.

The international movement against global warming has had a positive and unprecedented impact with demand for electric vehicles experiencing a growing shock in every area. The increasing viability and affordability of pre-owned EVs, the popularity of high-end models, and extra subsidies and discounts that purchasers may take advantage of have strengthened the market.

FMI predicts that electric cars are getting more and more affordable, irrespective of economic level, and the demand for used electric vehicles is anticipated to rise as time goes on.

The affordability point is echoed in Battery Technology’s own recent findings: In January, we found ten used EV models available for under $15,000—a full $5,000 less than a survey done a year earlier.

Used EV markets around the world

By having a huge market for electric vehicles, the United States is figured to have become the second leading market following Germany. The net worth of all used EVs purchased in the United States in 2022 summed up to $1,429.3 million and acquired 8.7% of the global revenue.

On the other hand, Germany generated a revenue of $2,217.8 million in 2022 from the resale of electric vehicles in the country. By virtue of the presence of some of the leading used EV market players; it acquires 13.5% of the global market.

Contrarily, the United Kingdom is one of the notable regions experiencing an above-average growth rate in the adoption of used EVs. In the present years, it is experiencing an annual growth rate of 12.6%, which is expected to continue for the next ten years.

Among the Asia Pacific countries, Japan is the leading region in selling and reselling different types of electric vehicles. As per the survey report, the value of total used electric vehicles sold in the country was approximately US$ 575 million in 2022.

Presently China is a remarkably growing region in the adoption of used EVs in the Asia Pacific region. According to the market analysis report, China used EV market is projected to register a CAGR of 9.8% over the forecast years.

India is poised to set the record for demand and adoption of used EVs against any other country in the Asia Pacific. As per the experts at FMI, the annual growth rate of this emerging economy is anticipated to be around 9.8% from 2023 to 2033.

Australia is another notable country studied for the market analysis for the recent rise in demand for used EVs in the country. Based on the used EV resale statistics figures, the net valuation of this used commodity in the country is expected to be around US$ 561 million by 2033.

BEVs dominate both new and used markets

According to a FMI’s online summary of the report, battery-operated electric vehicles—BEVs—now dominate the overall market. The net worth of all the pre-owned BEVs resold globally in 2022 was about $7984.2 million. With a market share of nearly 48.6% in terms of sales of used EVs, the BEV sector led the overall market.

“However,” the summary continues, “the popularity of hybrid electric cars is growing rapidly in both new and used EV markets in all countries.” Because hybrids offer the choice of fuel-based and electric driving, particularly in areas lacking adequate charging infrastructure, the hybrid-electric segment is expected to grow at a faster rate and overtake BEVs soon.

Competitive landscape

Some of the renowned automotive companies that have also become used EV dealers are Audi AG, BMW AG, Hyundai Motor India, Jaguar Land Rover Limited, Mahindra and Mahindra Ltd., Mercedes-Benz AG, MG Motor India PVT. Ltd., Olectra Greentech Limited, Tata Motors, and Toyota Motor Corp., among others.

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