Global Automotive Fintech Market Report 2023: Sector is Expected to Reach $82.6 Billion by 2028 at a CAGR of 9%
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Dublin, June 06, 2023 (GLOBE NEWSWIRE) — The “Global Automotive Fintech Market Size, Share & Industry Trends Analysis Report by Channel, Vehicle Type, Propulsion Type, End User, Regional Outlook and Forecast, 2022-2028” report has been added to ResearchAndMarkets.com’s offering.
The Global Automotive Fintech Market size is expected to reach $82.6 billion by 2028, rising at a market growth of 9.0% CAGR during the forecast period.
Key Market Players
- Kuwy Technology Services Pvt Ltd.
- Creditas Solucoes Financeiras Ltda.
- Euroclear SA/NV (Euroclear Holding SA/NV)
- Grab Holdings Inc
- Blinker Inc.
- The Savings Group, Inc. (Autopay)
- Cuvva Limited
- RouteOne LLC
- By Miles
- AutoFi, Inc.
A subset of financial technology called ‘automotive fintech’ caters to the need for digital financial services in the auto sector. Digital insurance, car payments, digital leasing, and other services are all part of the automotive fintech industry. Automotive fintech companies streamline and automate financial processes to simplify buying and running automobiles for customers and businesses. These technologies include machine learning, data analytics, and blockchain.
Automotive fintech includes equipment for managing and owning vehicles and purchasing and financing them. For instance, smartphone applications let users check their vehicle’s health and get alerts when repairs are due. Other systems enable customers to hire automobiles for brief periods without going to a rental car office. These systems provide on-demand automobile sharing and rental services.
Most dealerships and car loan financing organizations know that change is necessary and that they must start implementing cutting-edge end-to-end pricing technologies, such as digital loans and purchases. Fortunately, recent developments in cloud and digital technology have made innovations and trends in vehicle finance possible.
Auto dealers can now ultimately oversee every element of their lending program due to the sophisticated end-to-end lending software, which integrates cutting-edge technologies like machine learning, advanced data analytics, and artificial intelligence. The usage of such technologies would accelerate market growth.
Market Growth Factors
Cooperation between cab companies and fintech firms
The on-demand provision of transportation services to customers through automobiles, taxis, or ride-hailing services is the business of the cab rental industry. With the development of technology and smartphone applications, the industry has seen remarkable growth, making it more straightforward for customers to schedule a trip and track their cars in real-time.
Cab companies offer many services, including hourly rentals, point-to-point trips, and airport shuttle services. The collaboration between cab firms and fintech companies for mutual benefits is expected to drive market growth.
Automotive industry’s digitalization
The digitization of supply chains is fueled by the continuously growing desire for industries to be more responsible and sustainable globally. Technologies like blockchain and smart contracts will be used to accomplish this objective of traceability and transparency further.
The increasing digitalization of the automotive sector provides different growth opportunities for automotive fintech firms to provide better financial services to the consumers and thereby surge market growth.
Market Restraining Factors
Concerns regarding security and privacy of the fintech firms
One-time passwords and other forms of authentication are used by fintech businesses to protect the payment system, but hackers can still access these systems, stealing financial and personal data. While cyberattacks get more sophisticated every day and establishing total security in the digital realm is quite a challenge, financial organizations have always been in danger of data leaks.
Yet hackers often use these third-party programs as a point of entry. They allow hackers to pretend to be authorized users to get access without authorization, compromising data security. Data security risk with the fintech firms is anticipated to restrict the market growth.
Scope of the Study
By Channel
- On Demand
- Subscription
By Vehicle Type
- Passenger Car
- Commercial Vehicle
By Propulsion Type
- ICE
- Electric
By End-user
- Digital Loans & Purchase
- Online Leasing
- Online Insurance
- In-Vehicle Payments
For more information about this report visit https://www.researchandmarkets.com/r/hyiot1
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