The global vehicle subscription market size is predicted to hit around US$ 80 Bn by 2030, growing ata a noteworthy CAGR of 14% during the forecast period 2021 to 2030.
The market growth can be primarily attributed to factors such as increasing demand for personal mobility, benefits of vehicle subscription models in comparison with traditional lease and outright purchase, ease of maintenance, etc. The high demand from developed regions is anticipated to play a key role in boosting the growth of the global vehicle subscription market in the first half of the forecast period. However, the Asia Pacific region is expected to provide abundant opportunities to players involved in the current vehicle subscription market landscape.
Automotive users are finding convenience in the vehicle subscription model, owing to flexible, monthly, or yearly subscription plan offerings; however, awareness about vehicle subscription model is low in Asia Pacific, as compared to that in the U.S. and Europe. Automotive OEMs have been rolling out vehicle subscription model vehicle offerings. Competition is expected to increase in the market, as more OEMs enter, while third party players are expected to seek differentiation of their offerings compared to those of OEMs.
High Market Growth across Developed Regions
Due to the robust automotive framework and presence of top-tier companies in the developed regions, including North America and Europe, vehicle subscriptions have garnered immense popularity in these regions. While the subscription trend has gradually taken over modern day consumerism, vehicle subscription remains at a nascent stage. The automotive industry is aligning its operations in response to evolving consumer preferences by curating customized subscription plans. Some of the prominent stakeholders involved in the vehicle subscription market, including car manufacturers, insurance firms, tech-startups, lending companies, and repair companies and on the course to modify their business operations to accommodate the increasing the demand for vehicle subscription. The increasing acceptance of the term ‘temporary ownership’ among the current generation of consumers is projected to fuel the demand for vehicle subscription during the assessment period.
Furthermore, at present, consumers are of the opinion that vehicle subscription models are more cost-efficient in the long run in comparison with conventional car lease, outright purchases, or rentals– another factor that is likely to fuel the expansion of the global vehicle subscription market during the assessment period.
Increase in Consumer Demand for Flexible Subscription Models to Drive Global Market
While the developed regions are slated to remain at the forefront in terms of vehicle subscription, the Asia Pacific region is gradually entering the mix as market players in nations including India and China continue to express considerable interest in the vehicle subscription model.
Although car ownership is expected to remain popular, consumers are increasingly opting for flexible offerings. While financial factors are likely to have a strong influence on the eventual consumer purchase decisions, other factors including possibility of changing vehicles, flexibility of terminating a contract, adjusting the scope of service, and more are expected to bolster the demand for vehicle subscription during the assessment period. The increasing popularity of electric vehicles is expected to have a strong influence on the growth of the global vehicle subscription market during the assessment period.
Flexibility, convenience, and affordability are key factors driving the vehicle subscription market. Car subscription services represent a fundamental paradigm shift for the average automotive consumer. Instead of buying or even leasing, consumers are likely to subscribe to the vehicle, while paying a monthly subscription fee that covers complete vehicle maintenance expenses such as insurance, regular vehicle maintenance, and roadside assistance. Moreover, vehicle subscribers can swap or quit the subscribed vehicle without paying extra charges, which is nor facilitated in the vehicle leasing model. Therefore, these benefits are propelling the vehicle subscription market.
Major restraint to the global vehicle subscription market is the well-established vehicle leasing, rental, and sharing market
Large number of vehicle leasing, rental, and shared mobility service providers are operating across the globe and hence, vehicle leasing and sharing services have a strong foothold across the globe. This, in turn, is restraining the global vehicle subscription market.
Design of more flexible leasing models and better ride-hailing features offered by service providers are estimated to further restrain the vehicle subscription market
|Market Size||US$ 80 Billion by 2030|
|Growth Rate||CAGR of 14% From 2021 to 2030|
|Forecast Period||2021 to 2030|
|Segments Covered||Subscription, Service Provider, Package, End User|
|Companies Mentioned||Fair Financial Corp, Clutch Technology, CarNext, FlexDrive, Cluno GmbH, DriveMyCar, Rentals Pty Ltd.|
The recent report on the vehicle subscription market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the vehicle subscription market analyzes the scenario for the period of 2019 to 2030, wherein, 2019 is the base year and 2018 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of Information enclosed in the study.
This study on the vehicle subscription market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the vehicle subscription market gives readers an individual understanding of the market.
This report answers these questions and more about the vehicle subscription market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
This report on the vehicle subscription market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the vehicle subscription market is supported by an assessment of different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by key players, researchers of the vehicle subscription market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the vehicle subscription market, with both a bottom-up and top-down approach.
This detailed assessment of the vehicle subscription market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the vehicle subscription market is estimated to expand are based on carefully vetted primary and secondary sources.
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