Auto Asset Backed Security Abs Market Report 2025 (Global Edition)

Global Auto Asset Backed Security Abs Market Report 2025 Market Size Split by Type (Carbon Auto Loan ABS, Auto Finance Leasing ABS, Auto Operating Lease ABS, Other Receivables), by Application (Functi...

Auto Asset Backed Security Abs Market Report Description

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Auto Asset Backed Security Abs Market Insights Video

Competitive Landscape of the Auto Asset Backed Security Market

The Auto Asset Backed Security (ABS) Market is a dynamic environment with a variety of competitors striving for market dominance. Companies are constantly looking for ways to expand their reach with strategies like business acquisitions, introducing innovative financial solutions, forging strategic partnerships with other industry players, and launching aggressive marketing campaigns. Key players include established financial institutions, specialized ABS issuers, and rising startups that are bringing new and improved auto ABS solutions to the market.

July 2024: Mercedes-Benz launched a new green auto loan asset-backed securities (ABS) program to support the financing of its electric and hybrid vehicles in China. The company aims to securitize the auto loans for its sustainable models, packaging them into green ABS that can be sold to investors. This innovative initiative aligns with Mercedes-Benz's goal of achieving carbon neutrality across its entire vehicle fleet by 2039 and contributes to its broader sustainability strategy. The green auto loan ABS is expected to attract significant investor interest due to the growing demand for sustainable financial products and Mercedes-Benz's commitment to reducing the environmental impact of its operations and products. (Source: https://group.mercedes-benz.com/investors/reports-news/financial-news/20240705-green-auto-loan-abs.html) February 2024: BMW Financial Services announced that the company is preparing to issue USD 1 billion in asset-backed securities (ABS) backed by prime auto lease receivables. The securitization, known as BMWLT 2024-1, will be issued through five tranches with legal final maturity dates ranging from February 2025 to June 2027. (Source: https://asreport.americanbanker.com/news/bmw-financial-preps-1-billion-in-prime-auto-abs)

Top Companies Market Share in Auto Asset Backed Security Abs Industry: (In no particular order of Rank)

• CITIC Securities Co. Ltd.
• China Merchants Securities Co. Ltd.
• Bank of China Limited
• Industrial and Commercial Bank of China Limited (ICBC)
• Mizuho Bank Ltd.
• Guotai Junan Securities Co. Ltd.
• Standard Chartered Bank
• HSBC Bank (Hongkong and Shanghai Banking Corporation)
• China International Capital Corporation (CICC)
• SAIC-GM Financial Company Limited
• BMW Financial Services
• Dongfeng Nissan Auto Finance Co. Ltd.
• China Merchants Bank Co. Ltd.
• Mercedes-Benz Financial Services (Benz Finance)
• SAIC Motor Finance Corporation Limited
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*List of Second Tier Companies, List of Third Tier/ Start-up Companies (Inquire with sales executive) Request Any Company Profile for Preview Purpose OR Data Validation!

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Regional Analysis of the Auto Asset Backed Security Market

Which Region will dominate the Auto Asset Backed Security Market in 2024 ?

According to Cognitive Market Research, North America dominated the market in 2024. It accounted for around 40% of the global due to the region’s robust demand for vehicles, supported by a strong consumer base and a well-established automotive industry. Favorable economic conditions and low interest rates enhance consumer affordability and encourage higher auto loan origination. Additionally, technological advancements in data analytics and risk assessment improve the efficiency and attractiveness of ABS to investors. Regulatory frameworks that support securitization and investor protection also contribute to market growth.

Which Region is Expanding at the Fastest CAGR ?

Asia Pacific stands out as the fastest-growing region in the Auto Asset Backed Security Market due to rapid economic growth and urbanization, increasing vehicle ownership, and driving demand for auto financing. This demographic shift is bolstered by rising disposable incomes and expanding middle-class populations across countries like China, India, and Southeast Asia. Additionally, supportive government policies and regulatory frameworks are encouraging the development of financial markets, including ABS issuance. Technological advancements and increasing adoption of digital finance solutions further enhance the efficiency and transparency of ABS transacti ons, attracting both issuers and investors.

 

The current report Scope analyzes Auto Asset Backed Security Abs Market on 5 major region Split (In case you wish to acquire a specific region edition (more granular data) or any country Edition data then please write us on info@cognitivemarketresearch.com

• North America (United States, Canada, Mexico)
• Europe (United Kingdom, France, Germany, Italy, Russia, Spain, Sweden, Denmark, Netherlands, Switzerland, Belgium)
• Asia-Pacific (China, Japan, Korea, India, Australia, Philippines, Singapore, Malaysia, Thailand, Indonesia, Rest of APAC)
• South America (Brazil, Argentina, Colombia, Peru, Chile, Rest of South America)
• Middle East and Africa (Saudi Arabia, Turkey, Nigeria, UAE, Egypt, South Africa, GCC Countries, Rest of MEA)

The above graph is for illustrative purposes only.

North America Auto Asset Backed Security Abs

According to Cognitive Market Research, the global Auto Asset Backed Security Market size was estimated at USD 15241.2 Million, out of which North America held the major market of more than 40% of the global revenue with a market size of USD 6096.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 4.2% from 2024 to 2031

• According to Cognitive Market Research, the US had a major share in the Auto Asset Backed Security market with a market size of USD 4810.12 million in 2024 and is projected to grow at a CAGR of 4.00% during the forecast period. The favorable interest rate environment and robust consumer demand for vehicles amplify the demand.
• The Canada Auto Asset Backed Security Market had a market share of USD 731.58 million in 2024 and is projected to grow at a CAGR of 5.00% during the forecast period. Increasing vehicle sales and a stable economic environment propel growth in Canada's Auto Asset Backed Security (ABS) market.
• The Mexico Auto Asset Backed Security Market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 554.78 million in 2024.

Europe Auto Asset Backed Security Abs

According to Cognitive Market Research, the global Auto Asset Backed Security Market size was estimated at USD 15241.2 Million, out of which Europe held the market of more than 30% of the global revenue with a market size of USD 4572.36 million in 2024 and will grow to a compound annual growth rate (CAGR) of 4.5% from 2024 to 2031.

• The United Kingdom Auto Asset Backed Security Market had a market share of USD 768.16 million in 2024 and is projected to grow at a CAGR of 5.30% during the forecast period. In the UK, auto asset backed security sales witness an upswing due to the strong demand for vehicle financing, which is supported by a mature financial services industry.
• The France Auto Asset Backed Security Market is projected to witness growth at a CAGR of 3.70% during the forecast period, with a market size of USD 420.66 million in 2024.
• According to Cognitive Market Research, the Germany Auto Asset Backed Security Market size was valued at USD 905.33 million in 2024 and is projected to grow at a CAGR of 4.7% during the forecast period. In Germany, technological innovation in automotive manufacturing and robust consumer demand drive market expansion.
• The Italy Auto Asset Backed Security Market is projected to witness growth at a CAGR of 3.9% during the forecast period, with a market size of USD 393.22 million in 2024.
• The Russia Auto Asset Backed Security Market is projected to witness growth at a CAGR of 3.5% during the forecast period, with a market size of USD 708.72 million in 2024.
• The Spain Auto Asset Backed Security Market is projected to witness growth at a CAGR of 3.6% during the forecast period with a market size of USD 374.93 million in 2024
• The Luxembourg Auto Asset Backed Security Market is projected to witness growth at a CAGR of 4.6% during the forecast period, with a market size of USD 141.74 million in 2024.
• The Portugal Auto Asset Backed Security Market is projected to witness growth at a CAGR of 4.3% during the forecast period, with a market size of USD 96.02 million in 2024.
• The Greece Auto Asset Backed Security Market is projected to witness growth at a CAGR of 4.8% during the forecast period, with a market size of USD 54.87 million in 2024.
• The Rest of Europe's Auto Asset Backed Security Market is projected to witness growth at a CAGR of 3.2% during the forecast period, with a market size of USD 708.72 million in 2024.

Asia Pacific Auto Asset Backed Security Abs

According to Cognitive Market Research, the global Auto Asset Backed Security Market size was estimated at USD 15241.2 Million, out of which Asia Pacific held the market of around 23% of the global revenue with a market size of USD 3505.48 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.00% from 2024 to 2031.

• According to Cognitive Market Research, the China Auto Asset Backed Security Market size was valued at USD 1577.46 million in 2024 and is projected to grow at a CAGR of 7.5% during the forecast period. Auto Asset Backed Security sales surged in China due to government initiatives supporting the development of the automotive sector and increasing vehicle sales.
• The Japan Auto Asset Backed Security Market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 483.76 million in 2024.
• The India Auto Asset Backed Security Market had a market share of USD 420.66 million in 2024 and is projected to grow at a CAGR of 9.8% during the forecast period. In India, rapid urbanization, increasing disposable incomes, and rising demand for vehicle financing are driving demand.
• The South Korea Auto Asset Backed Security Market is projected to witness growth at a CAGR of 7.1% during the forecast period, with a market size of USD 350.55 million in 2024.
• The Australia Auto Asset Backed Security Market is projected to witness growth at a CAGR of 7.7% during the forecast period, with a market size of USD 182.28 million in 2024.
• The South East Asia Auto Asset Backed Security Market is projected to witness growth at a CAGR of 9.0% during the forecast period, with a market size of USD 241.88 million in 2024.
• The Rest of Asia Pacific Auto Asset Backed Security Market is projected to witness growth at a CAGR of 7.8% during the forecast period, with a market size of USD 248.89 million in 2024.

South America Auto Asset Backed Security Abs

According to Cognitive Market Research, the global Auto Asset Backed Security Market size was estimated at USD 15241.2 Million, out of which Latin America held the market of around 6.00% of the global revenue with a market size of USD 762.06 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2031.

• According to Cognitive Market Research, the Brazil Auto Asset Backed Security Market size was valued at USD 326.16 million in 2024 and is projected to grow at a CAGR of 6.00% during the forecast period. Auto Asset Backed Security sales flourished in Brazil due expanding middle class and increasing consumer demand for vehicle financing.
• Argentina Auto Asset Backed Security Market had a market share of USD 128.03 million in 2024 and is projected to grow at a CAGR of 6.30% during the forecast period. In Argentina, government incentives promoting automotive industry growth and increasing vehicle sales are driving market demand.
• Colombia Auto Asset Backed Security Market is projected to witness growth at a CAGR of 5.2% during the forecast period, with a market size of USD 67.82 million in 2024.
• Peru Auto Asset Backed Security Market is projected to witness growth at a CAGR of 5.60% during the forecast period, with a market size of USD 62.49 million in 2024.
• The Chile Auto Asset Backed Security Market is projected to witness growth at a CAGR of 5.70% during the forecast period, with a market size of USD 54.87 million in 2024.
• The Rest of Latin America Auto Asset Backed Security Market is projected to witness growth at a CAGR of 4.50% during the forecast period, with a market size of USD 122.69 million in 2024.

Middle East and Africa Auto Asset Backed Security Abs

According to Cognitive Market Research, the global Auto Asset Backed Security Market size was estimated at USD 15241.2 Million, out of which the Middle East and Africa held the major market of around 2% of the global revenue with a market size of USD 304.82 million in 2024 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2024 to 2031

• The GCC Countries Auto Asset Backed Security Market is projected to witness growth at a CAGR of 6.5% during the forecast period, with a market size of USD 130.46 million in 2024. Auto Asset Backed Security sales flourish due to government initiatives promoting economic diversification and infrastructure development, coupled with increasing vehicle sales.
• The Egypt Auto Asset Backed Security Market is projected to witness growth at a CAGR of 6.0% during the forecast period, with a market size of USD 32.01 million in 2024
• The South Africa Auto Asset Backed Security Market is projected to witness growth at a CAGR of 6.70% during the forecast period, with a market size of USD 48.16 million in 2024. Auto Asset Backed Security sales flourish in South Africa due to the expansion of the middle class, coupled with rising consumer demand for vehicle financing and improving economic conditions.
• The Turkey Auto Asset Backed Security Market is projected to witness growth at a CAGR of 5.20% during the forecast period, with a market size of USD 26.21 million in 2024.
• The Nigeria Auto Asset Backed Security Market is projected to witness growth at a CAGR of 4.80% during the forecast period, with a market size of USD 32.01 million in 2024.
• The Rest of MEA Auto Asset Backed Security Market is projected to witness growth at a CAGR of 4.7% during the forecast period, with a market size of USD 35.97 million in 2024.

Auto Asset Backed Security Abs Market Analysis

Auto Asset Backed Security Market Type Segment Analysis

According to Cognitive Market Research, the Auto Loan ABS segment holds the largest market share. This dominance stems from the widespread availability of auto loans, which form the backbone of this segment. Auto Loan ABS involves pooling together a large number of individual auto loans and issuing securities backed by these loans' cash flows. These securities appeal to investors seeking stable returns and relatively lower risk profiles compared to other types of ABS. The high volume of auto loan originations, driven by consumer demand for vehicle ownership and financing, ensures a steady supply of assets for securitization. Moreover, regulatory frameworks supporting the securitization process provide stability and transparency, further bolstering the attractiveness of Auto Loan ABS in the market.

Auto Finance Leasing ABS emerges as the fastest-growing category in the Auto Asset Backed Security Market. This segment involves securitizing lease agreements where vehicles are leased to consumers or businesses, with lease payments serving as the underlying cash flows for ABS securities. The growth in Auto Finance Leasing ABS is fueled by shifting consumer preferences towards leasing rather than traditional vehicle ownership. Leasing offers consumers lower monthly payments and flexibility, which are increasingly valued in today's market. Moreover, businesses opting for fleet leasing to manage operational costs and vehicle procurement also contribute significantly to the segment's expansion. Innovations in lease structures, such as residual value guarantees and variable lease terms, further enhance the appeal of Auto Finance Leasing ABS to investors by mitigating risks and improving cash flow predictability.

The above Chart is for representative purposes and does not depict actual sale statistics. Access/Request the quantitative data to understand the trends and dominating segment of Auto Asset Backed Security Abs Industry. Request a Free Sample PDF!

Auto Asset Backed Security Market Application Segment Analysis

According to Cognitive Market Research, Commercial Banks currently hold the largest share of the Auto Asset Backed Security Market due to their integral role in originating auto loans and securitizing them into ABS. Commercial banks leverage their extensive networks and capabilities to underwrite a variety of auto loans, ranging from consumer financing to corporate fleet leasing. By packaging these loans into ABS, banks can efficiently manage their balance sheets, optimize capital allocation, and free up liquidity for further lending activities. Their adherence to stringent regulatory standards ensures the transparency and quality of assets securitized, which in turn enhances investor confidence and market stability. Commercial banks' established infrastructure and expertise in loan origination make them key players in maintaining the liquidity and functionality of the ABS market, thereby securing their dominant position in terms of market share.

The Investment Banks segment is expected to be the fastest-growing subsegment in the Auto Asset Backed Security Market. These institutions specialize in structuring, underwriting, and distributing ABS securities to a diverse range of institutional and retail investors. Investment banks play a crucial role in bringing ABS to market by offering sophisticated risk management tools, innovative deal structures, and global market access. Their ability to tailor ABS offerings to meet investor demand and optimize pricing strategies enhances market liquidity and expands ABS issuance opportunities. Moreover, investment banks' expertise in navigating complex regulatory environments and leveraging technological advancements further accelerates their growth trajectory within the Auto ABS market.

The above Graph is for representation purposes only. This chart does not depict actual Market share.

Auto Asset Backed Security Abs Vehicle Type Segment Analysis

• Passenger Vehicles
• Commercial Vehicles

Auto Asset Backed Security Abs Issuer Type Segment Analysis

• Banks
• Financial Institutions
• Captive Finance Companies

Auto Asset Backed Security Abs Maturity Segment Analysis

• Short-Term
• Long-Term

Author's Detail

Swasti Dharmadhikari

Research associate at Cognitive Market Research

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Swasti Dharmadhikari, an agile and achievement-focused market researcher with an innate ardor for deciphering the intricacies of the Service & Software sector. Backed by a profound insight into technology trends and consumer dynamics, she has committed herself to meticulously navigating the ever-evolving terrain of digital Services and software solutions.

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