Automotive Fintech Global Market Report 2024

The automotive fintech market size has grown strongly in recent years. It will grow from $54.12 billion in 2023 to $59.29 billion in 2024 at a compound annual growth rate (CAGR) of 9.6%. The growth in the historic period can be attributed to factors such as digital transformation, the emergence of online marketplaces, increased adoption of automotive technologies, regulatory changes, and the disruption caused by fintech startups in the automotive sector.

The automotive fintech market size is expected to see strong growth in the next few years. It will grow to $86.53 billion in 2028 at a compound annual growth rate (CAGR) of 9.9%. The growth in the forecast period can be attributed to the rise of usage-based financing, integration of API and open banking, a focus on cybersecurity measures, changes induced by the pandemic, and incentives for green financing. Major trends in the forecast period include an emphasis on financial literacy, adoption of blockchain, personalized financial services, subscription-based vehicle financing, automated and contactless transactions, and data-driven decision-making.

The upward trajectory of the automotive industry is anticipated to drive the expansion of the automotive fintech market moving forward. This sector, encompassing digitalization, facilitates more efficient and streamlined financing and insurance processes for vehicles. Through digitalization, automotive companies stand to gain improved customer satisfaction, enhanced data analysis capabilities, and cost-saving measures. For instance, data from the Bureau of Transportation Statistics (BTS) indicates a notable rise in new vehicle sales, escalating from 11,041 in 2020 to 11,741 in 2021. Consequently, this surge in the automotive industry augments the demand for solutions offered by the automotive fintech market.

The burgeoning digital transformation across industries is poised to act as a catalyst propelling the automotive fintech market's growth. This transformation involves the comprehensive integration and deployment of digital technologies and data across various organizational facets. Within the automotive sector, this paradigm shift leverages automotive fintech to modernize and streamline financial procedures. The goal is to elevate customer experiences, optimize lending and payment systems, and foster innovative financial services pertaining to vehicle transactions. As per insights from the International Data Corporation (IDC) in October 2022, the global expenditure on digital transformation is projected to hit $3.4 trillion in 2026, indicating a five-year compound annual growth rate (CAGR) of 16.3%. Hence, this expanding digital transformation serves as a significant driver fueling the automotive fintech market's expansion.

The automotive fintech market is witnessing a prominent trend with the introduction of finance platforms aimed at embracing zero-emission technology. Major industry players are strategically launching innovative platforms focused on financing electric vehicle (EV) sales to encourage greater adoption of these eco-friendly vehicles. For example, in June 2022, Tenet, a US-based climate financing company, debuted an EV financing platform designed to expedite the adoption of zero-emission technology. This novel model for EV financing encourages consumers to embrace sustainable alternatives, aligning their financial objectives with environmental goals.

Significant players within the automotive fintech market are emphasizing the development of pioneering platforms, such as vehicle management solutions, aimed at empowering car owners with efficient vehicle oversight. These platforms cater to various consumer needs, addressing concerns related to maintenance, servicing, and insurance claims. A prime illustration of this initiative is witnessed in Dreamplug Technologies Private Limited's launch of the CRED Garage in September 2023, an India-based fintech company. The platform encompasses an array of services, including vehicle spending tracking, document management, round-the-clock roadside assistance, insurance claim support, and seamless integration with DigiLocker. Additionally, it facilitates tasks such as car insurance renewal, FASTag recharging, and online payment of traffic challans, enabling members to manage their vehicles with ease and convenience.

In November 2021, Cars.com Inc., a US-based online automotive classified site company, acquired CreditIQ for $80 million. This strategic acquisition allows Cars.com to enter the automotive fintech market, enhancing its platform capabilities to better serve customers. CreditIQ Inc. is a US-based automotive fintech platform company.

Major companies operating in the automotive fintech market report are Liberty Mutual Group, Fiserv Inc., Stripe Inc., Global Payments Inc., Coinbase Global Inc., Grab Financial Group, Euroclear Holding SA/NV, Robinhood Markets Inc., Ant Group, The Savings Group Inc., Bajaj Auto Finance, Creditas Soluções Financeiras Ltd., Root Insurance Company, Oodle Car Finance, Cambridge Mobile Telematics, AutoFi Inc., HC Liquidating Inc., Blinker Inc., Cuvva, By Miles Ltd., Clearcover Insurance Co, Bumper.com, CarConnect Group, Fair Financial Corp, Tractable Ltd., Lendbuzz Inc., Eze Wheelz, AlgoDriven, Naked Insurance, Just Insure Inc.

North America was the largest region in the automotive fintech market in 2023. The regions covered in the automotive fintech market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the automotive fintech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary propulsion types in the automotive fintech sector include internal combustion engines (ICE) and electric vehicles. Subscription channels involve payments or promises of payment for subsequent issues of magazines, newspapers, books, or other publications over a predetermined timeframe. Automotive fintech leverages subscription services, providing customers with upfront fee information. Vehicle types encompass passenger cars and commercial vehicles, while channels include on-demand and subscription models. This technology is employed by various end-users, including digital loans and purchases, online leasing, online insurance, and in-vehicle payments.

The automotive fintech research report is one of a series of new reports that provides automotive fintech market statistics, including automotive fintech industry global market size, regional shares, competitors with an automotive fintech market share, detailed automotive fintech market segments, market trends, and opportunities, and any further data you may need to thrive in the automotive fintech industry. This automotive fintech research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The automotive fintech market consists of revenues earned by entities by providing digital payment services, auto finance, and vehicle leasing services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.