Automotive fintech is the convergence of financial technology and the automotive industry, where innovative financial services are delivered to vehicle customers and organizations. Automotive fintech firms provide a variety of digital financial services, such as auto loans, insurance, payment processing, and online markets for purchasing and selling vehicles. Automotive fintech strives to create a more convenient, transparent, and cost-effective way to buy and finance automobiles, trucks, and other vehicles by integrating of advance technology.
Various automobile firms have partnered with various advanced analytics service providers to supply telematics-based data for major insurance providers. This information enables insurers to provide cheap vehicle insurance rates for users of passenger vehicles. For instance, in October 2020, Ford Motor Company teamed with Verisk Analytics, Inc., one of the top data analytics companies in the U.S., to acquire driving data for the biggest insurers. As a result, the market will benefit from these profitable chances. In addition, the top payment solution providers have announced partnerships with in-car apps from automakers, which are expected to enable end users to make payments while seated in their vehicles. For instance, one of the largest financial corporations in the world, Visa, Inc., announced a cooperation with Honda Motor Company, Ltd., to create wireless payment options for smart parking in April 2020. More of these breakthroughs should offer profitable chances to accelerate market growth.
North America has seen an increase in the digitization of automobile electronics in recent years. New opportunities for data sharing emerge as more gadgets begin to digitally connect and communicate with one another. Over the next several decades, metropolitan areas is expected to house 85% of the U.S. population. Increased communication between cars and road infrastructure will enable the introduction of autonomous driving technologies, which may also reduce traffic congestion and road safety. Furthermore, according to the U.S. Census Bureau, the average American family owns 2.5 vehicles, which are frequently the second most valuable commodity in any household. Despite this, Carputty a fintech firm that modernizes auto financing and ownership, claims that most people are misinformed and unprepared when it comes to making financial decisions concerning their vehicles. According to the firm, more than 60% of auto loans originate at the dealership, where rates rarely take the financial situation of the buyer into account.
Furthermore, the robust rise of the Russian fintech market is considered a harbinger of high levels of future growth and a sign that it will soon reach new peaks. Russia is particularly appealing to fintech companies because of its "tax credit for R&D spending or for innovative firms." In addition, the Russian government provides "regulatory sandboxes" that let companies test out innovative business models in the real world without being subject to different regulatory restrictions for a limited time. These regulatory sandboxes are especially advantageous to fintech companies since they allow them to test their newly developed business models under less constrained conditions in the real market.
Moreover, recent FTC findings have indicated that many of the same vulnerabilities that plagued the house mortgage business in the run-up to the 2008 crisis are now prevalent in the auto financing sector. As a result, market participants are expanding their operations across the country. For instance, in January 2022, Carputty, raised $12.3 million in a Series A fundraising round. Such reasons are projected to propel the automotive fintech market further.
The use of smartphones and the internet has increased dramatically worldwide. The insurance industry is not far behind when it comes to embracing digital technologies to scale their business model and strive to offer a hassle-free experience.. The rate of digitization in the insurance sector is picking up, and it is anticipated to become a pillar of insurance firms all over the world. AI (Artificial Intelligence) enables online insurers to access more precise reports faster, owing to benefits such as easy online insurance purchases and through the online insurance process, insurers provide personalized or customized insurance solutions as opposed to a one-size-fits-all strategy. These factors are expected to fuel the growth of the market during the forecast period.
The Automotive Fintech market is segmented on the basis of end use, channel, vehicle type, propulsion type and region. On the basis of end use, it is classified into in-vehicle payments, online leasing, digital loans and purchase, and online insurance. On the basis of channel, it is bifurcated into on-demand and subscription. On the basis of vehicle type, it is bifurcated into passenger car and commercial vehicle. On the basis of propulsion type, it is categorized into ICE and electric. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Some leading companies profiled in the automotive fintech market report comprises The Savings Group, Inc., AutoFi Inc., Blinker, Inc., By Miles Ltd., Creditas Soluções Financeiras, Cuvva, Grab, ROUTEONE, Euroclear, Kuwy Technology Service Private Limited.
Various automobile firms have partnered with various advanced analytics service providers to supply telematics-based data for major insurance providers. This information enables insurers to provide cheap vehicle insurance rates for users of passenger vehicles. For instance, in October 2020, Ford Motor Company teamed with Verisk Analytics, Inc., one of the top data analytics companies in the U.S., to acquire driving data for the biggest insurers. As a result, the market will benefit from these profitable chances. In addition, the top payment solution providers have announced partnerships with in-car apps from automakers, which are expected to enable end users to make payments while seated in their vehicles. For instance, one of the largest financial corporations in the world, Visa, Inc., announced a cooperation with Honda Motor Company, Ltd., to create wireless payment options for smart parking in April 2020. More of these breakthroughs should offer profitable chances to accelerate market growth.
North America has seen an increase in the digitization of automobile electronics in recent years. New opportunities for data sharing emerge as more gadgets begin to digitally connect and communicate with one another. Over the next several decades, metropolitan areas is expected to house 85% of the U.S. population. Increased communication between cars and road infrastructure will enable the introduction of autonomous driving technologies, which may also reduce traffic congestion and road safety. Furthermore, according to the U.S. Census Bureau, the average American family owns 2.5 vehicles, which are frequently the second most valuable commodity in any household. Despite this, Carputty a fintech firm that modernizes auto financing and ownership, claims that most people are misinformed and unprepared when it comes to making financial decisions concerning their vehicles. According to the firm, more than 60% of auto loans originate at the dealership, where rates rarely take the financial situation of the buyer into account.
Furthermore, the robust rise of the Russian fintech market is considered a harbinger of high levels of future growth and a sign that it will soon reach new peaks. Russia is particularly appealing to fintech companies because of its "tax credit for R&D spending or for innovative firms." In addition, the Russian government provides "regulatory sandboxes" that let companies test out innovative business models in the real world without being subject to different regulatory restrictions for a limited time. These regulatory sandboxes are especially advantageous to fintech companies since they allow them to test their newly developed business models under less constrained conditions in the real market.
Moreover, recent FTC findings have indicated that many of the same vulnerabilities that plagued the house mortgage business in the run-up to the 2008 crisis are now prevalent in the auto financing sector. As a result, market participants are expanding their operations across the country. For instance, in January 2022, Carputty, raised $12.3 million in a Series A fundraising round. Such reasons are projected to propel the automotive fintech market further.
The use of smartphones and the internet has increased dramatically worldwide. The insurance industry is not far behind when it comes to embracing digital technologies to scale their business model and strive to offer a hassle-free experience.. The rate of digitization in the insurance sector is picking up, and it is anticipated to become a pillar of insurance firms all over the world. AI (Artificial Intelligence) enables online insurers to access more precise reports faster, owing to benefits such as easy online insurance purchases and through the online insurance process, insurers provide personalized or customized insurance solutions as opposed to a one-size-fits-all strategy. These factors are expected to fuel the growth of the market during the forecast period.
The Automotive Fintech market is segmented on the basis of end use, channel, vehicle type, propulsion type and region. On the basis of end use, it is classified into in-vehicle payments, online leasing, digital loans and purchase, and online insurance. On the basis of channel, it is bifurcated into on-demand and subscription. On the basis of vehicle type, it is bifurcated into passenger car and commercial vehicle. On the basis of propulsion type, it is categorized into ICE and electric. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Some leading companies profiled in the automotive fintech market report comprises The Savings Group, Inc., AutoFi Inc., Blinker, Inc., By Miles Ltd., Creditas Soluções Financeiras, Cuvva, Grab, ROUTEONE, Euroclear, Kuwy Technology Service Private Limited.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the automotive fintech market analysis from 2021 to 2031 to identify the prevailing automotive fintech market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the automotive fintech market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global automotive fintech market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By End Use
- In vehicle payments
- Online Leasing
- Digital Loans and purchase
- Online Insurance
By Channel
- On Demand
- Subscription
By Vehicle Type
- Passenger Car
- Commercial Vehicle
By Propulsion Type
- ICE
- Electric
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- UK
- Germany
- France
- Russia
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- Blinker, Inc
- Cuvva
- ROUTEONE
- The Savings Group, Inc.
- By Miles Ltd.
- Creditas Solues Financeiras
- Euroclear
- AutoFi Inc.
- Grab
- Kuwy Technology Service Private Limited
Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: AUTOMOTIVE FINTECH MARKET, BY END USE
CHAPTER 5: AUTOMOTIVE FINTECH MARKET, BY CHANNEL
CHAPTER 6: AUTOMOTIVE FINTECH MARKET, BY VEHICLE TYPE
CHAPTER 7: AUTOMOTIVE FINTECH MARKET, BY PROPULSION TYPE
CHAPTER 8: AUTOMOTIVE FINTECH MARKET, BY REGION
CHAPTER 9: COMPETITIVE LANDSCAPE
CHAPTER 10: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
Automotive fintech Market is expected to experience a significant growth rate of 9.2% from 2022-2031 owing to changing consumer behavior due to fintech in automotive sector.Automobile fintech refers to the intersection of financial technology and the automotive industry, in which novel financial services are provided to car customers and companies. Automotive fintech companies offer a wide range of digital financial services, including auto loans, insurance, and payment processing, as well as online marketplaces for buying and selling vehicles. Automotive fintech aims to offer a more convenient, transparent, and cost-effective way to acquire and finance autos, trucks, and other vehicles by integrating advanced technology.
A key factor that provides an opportunity for the growth of the automotive fintech market includes increased demand for auto loan companies. Rise in vehicle loan demand has resulted in a considerable expansion in the automotive fintech market. Auto loan companies are now able to give consumers a more convenient, streamlined, and quick loan application and approval process due to the growth of digital technologies. This has made it easier for people to secure automobile financing and has resulted in the automotive sector expanding. Fintech loan companies leverage digital technologies such as artificial intelligence, machine learning, and big data analytics to better understand their requirements and behaviors of clients while also streamlining the loan approval process. This enables auto loans to make a faster, more informed judgments and provide more favorable loan terms and interest rates.
Furthermore, fintech firms use digital marketing and social media to reach a bigger audience and engage with new clients. as traditional banks and lenders are also competing with fintech startups, the rise of online auto loan companies has also impacted the conventional auto lending market. This competition, on the other hand, has resulted in the development of new and innovative loan products and services, as well as better loan application and approval processes, making it easier for clients to obtain car finance.
Overall, increased demand for vehicle loans and the expansion of the automotive fintech industry is a good thing for clients since it gives them more easy and more affordable lending options. These advancements fueled the expansion of the automotive fintech market.
The use of digitalization to allow more effective processing of auto loans and increased payment flexibility is anticipated to propel the expansion of the digital loan and buy segment over the course of the projected period. For instance, Consumer Portfolio Services, Inc. (CPS), an independent specialty fintech that offers indirect auto financing to people with past credit problems, low incomes, or limited credit histories, continues its vigorous deployment of artificial intelligence, machine learning solutions to provide increased payment flexibility and more efficient processing of auto loans in December 2022. In order to increase productivity, drastically shorten the funding period, and give borrowers more payment options, the company ended the year with three significant partnerships.
Even though many lenders have moved the vehicle loan application process online, consumers must still complete lengthy, multi-page paperwork. The need for an easy on-demand process, in which customers can customize and build a package online, choosing the amount they want to pay upfront, the amount of time they would like to pay it off, and whether they want to add any additional goods, services, or extras, was created to save time for everyone involved - customer and dealer. It benefits clients by providing quick service. Customers also value the option to alter an offer to suit their needs. Throughout the projection period, the market's growth is anticipated to be driven by the provision of such on-demand consumers.
The Automotive Fintech market is segmented on the basis of end use, channel, vehicle type, propulsion type and region. On the basis of end use, it is classified into in-vehicle payments, online leasing, digital loans and purchase, and online insurance. On the basis of channel, it is bifurcated into on-demand and subscription. On the basis of vehicle type, it is bifurcated into passenger car and commercial vehicle. On the basis of propulsion type, it is categorized into ICE and electric. On the basis of region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The leading companies are adopting strategies such as acquisition, collaboration, and product launch to strengthen their market position. In February 2022, Kuwy Technology Service Private Limited launched ‘KUWYLaaS,' an end-to-end digital loan service for online car trade platforms. This enables OEMs, dealers, aggregator platforms, and lenders to provide digital commerce to their clients.
Key Market Insights
- On the basis of end use, the digital loans and purchase segment was the highest revenue contributor to the market and is estimated to reach $47,138.5 million by 2031, with a CAGR of 8.1%. However, the in-vehicle payment segment is estimated to be the fastest-growing segment with a CAGR of 11.5% during the forecast period.
- On the basis of channel, the on demand segment was the highest revenue contributor to the market, with $27,376.1 million in 2021, and is estimated to reach $60,588.6 million by 2031, with a CAGR of 8.4%.
- On the basis of vehicle type, the passenger vehicle segment dominated the global market and is estimated to reach $72,643.8 million by 2031, with a CAGR of 8.7%. However, the commercial vehicle segment is expected to be the fastest-growing segment with a CAGR of 10.1 % during the forecast period.
- On the basis of propulsion type, the ICE segment was the highest revenue contributor to the market, with $41,650.3 million in 2021, and is estimated to reach $91,042.4million by 2031, with a CAGR of8.3%.
- On the basis of region, North America was the highest revenue contributor, accounting for $17,459.7 million in 2021, and is estimated to reach $36,536.1 million by 2031, with a CAGR of 7.8%.
Companies Mentioned
- Blinker, Inc
- Cuvva
- ROUTEONE
- The Savings Group, Inc.
- By Miles Ltd.
- Creditas Solues Financeiras
- Euroclear
- AutoFi Inc.
- Grab
- Kuwy Technology Service Private Limited
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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