The market for vehicle subscription was estimated to be worth USD 2.9 billion worldwide in 2021. By 2030, it is anticipated to grow at a CAGR of to reach USD 33.5 billion.
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"The Global Vehicle Subscription Market 2020-2030 (USD Billion)")
Owing to key benefits such as no conventional financing, free of the long-term worry of maintenance and depreciation, cost-effectiveness, 24x7 roadside assistance, car repair, the vehicle subscription is experiencing rapid adoption as opposed to traditional alternatives such as car buying or leasing a car which incur significant costs, thus fostering growth in global vehicle subscription market.
Covid-19 Impact & Market Status
Business models are being thoroughly revised to align with current business dynamics and appropriately address all the challenges that have sprung amidst the on-going Covid-19 pandemic and its associated implications. Market players in the global vehicle subscription market are aggressively targeting new opportunities to emerge from the pandemic inflicted growth downturn and reverse the financial vulnerabilities heavily faced due to mobility restrictions. Furthermore, renowned industry players in the global vehicle subscription market are unravelling new product portfolios and technological advancements for market fortification amidst Covid-19 impact.
Meanwhile, the pandemic has given further impetus to the vehicle subscription market world over leading to tectonic shift in mind-set of people from buying a self-owned to vehicle subscription. Economic slowdown is the key factor people why are not preferring to buying a vehicle and locking down the finances for next several years. Thus, car subscription has become a better option and gradually emerging as preferred alternative to buying. Moreover, due to social distancing norms people are prioritizing safe and personal mobility option.
This report on Global Vehicle Subscription Market presents critical information of the global Vehicle Subscription Market considering 2018-2020 as historic years and 2021-2028 as forecast years. The report presents this study in vast depth and imparts the market players the knack to know what to do to stay ahead of the competitive landscape and how to boost productivity. The report also gives in-depth understanding of the current buying patterns of the consumers, market position, and focuses on several other areas of the Vehicle Subscription Market.
IC Powered Vehicle Type is the Most Attractive Segment
The global Vehicle Subscription market is classified into on electric vehicle and IC powered the basis of vehicle type. Among these, the IC powered vehicles segment experienced rapid market growth and is expected to dominate the future market share of global Vehicle Subscription market. The key factors such as zero emissions, higher performance, lower maintenance, more battery life are major factors for popularity of IC powered vehicle in global vehicle subscription market
Automotive Manufacturers Segment to Remain Atop
The global Vehicle Subscription market is classified into automotive manufacturers, automotive dealerships, start-ups and corporate-backed ventures, car subscription software providers, and other providers on the basis of Service Providers. Among these, the automotive manufacturers segment accounted for highest market share of global Vehicle Subscription market. The key factors like better choices, opportunity to drive expensive and better-equipped vehicles available directly from manufacturers without third-party involvement have driven the segment.
Corporate End Use to Ensure Revenue Maximization
The global Vehicle Subscription market is classified into corporate and private on the basis of end use. Among these, the corporate end use segment secured greatest market share in 2020 and is poised for rapid market growth in forecast span. The key factors like no conventional financing, free of the long-term worry of maintenance and depreciation, cost-effectiveness, 24x7 roadside assistance, car repair, the vehicle subscription is experiencing rapid adoption as opposed to traditional alternatives such as car buying or leasing a car which incur significant costs
North American Region to Render Ample Investment Avenues
Based on region-wise performance of the global vehicle subscription market, North America is the highest performing region in global vehicle subscription market and is likely to garner biggest market share of revenue through forecast period. This is evident from the rapid expansion of OEM/Captives, mobility providers, and tech companies. These trends are evident across United Stated and Canada.
Additionally, technological developments in the region owing to presence of tech companies like Fair Financial Corporation, OpenRoad Auto Group, Facedrive Inc., and more such multinational firms and R&D institutes. Besides, M&A activities are improving the feasibility of projector market in the region. Following, APAC is the next mature market in global vehicle subscription market and is emerging as the most lucrative region backed by intense technology innovations across developing countries like India and China.
The need to focus more on mobility experience rather than car ownership is improving the reliance on vehicle subscription.
Advantages such as cost-effectiveness, flexibility, all-inclusive prices, access to all latest models, opportunity to drive expensive and better-equipped vehicles, availability of digital assistance encourage further adoption.
Car subscription is a subscription service that enables customer drive vehicle home in return of monthly fee. Consumers can get premium vehicles direct from manufacturers or third-party leasing companies. The unique feature of vehicle subscription is that it offers flexibility and choices not often affordable to all the consumer class. Therefore, vehicle subscription has become a fantasy scenario for many drivers and enthusiasts.
Also factors such as unforeseen risks, changing regulations and the coronavirus pandemic has led further impetus to the global vehicle subscription market.
However, global vehicle subscription market is grappled with challenges like unclear value proposition, vehicles unfit for subscription model, millennial generation entered the workforce not buying cars, deteriorated relationships between people and their vehicles are likely to hamper market growth. Furthermore, full accessibility to the customer of the vehicle, cost-effective option, access to all latest models, opportunity to drive expensive and better-equipped vehicles are some factors people are attracted to car subscription anticipated to be growth opportunity to the global vehicle subscription market.
These trends indicate significant potential for growth in the global vehicle subscription market. It indicates that the global vehicle subscription market is growing on strong fundamentals, with demand drivers likely to witness more sustainability in the medium term.
The major players in global Vehicle Subscription market are Fresh Car, Hyundai, Porsche, Volvo, DAIMLER, Toyota, Facedrive, OpenRoad, Fair Financial Corporation, Sixt, Hertz, Fair, Enterprise, Borrow, AAA, and Drover Ltd among others. The professionals, marketers, knowledge workers, and other market participants are offering wide range of software solutions with various advanced features in the car subscription market. These well-established international behemoths and emerging players are prevalent across the local and global market of car subscription. The renowned players are launching new product range with new technologies and several price offers for fortification amidst covid-19 pandemic.
Latest Innovations in the Global Vehicle Subscription Market: a Snapshot
- Blinker, a car subscription software provider in Australia witnessed skyrocketing demand during lockdown. Blinker is a Software-as-a-Service (SaaS) platform for car dealerships, resellers, and manufacturers. The car dealerships, resellers, and manufacturers integrating this platform can offer vehicle subscription services to customers.
In 2020, Invygo, the first app-based car subscription company in the Dubai and the overall Middle East raised $1m for GCC expansion plans in Bahrain, Saudi Arabia, and other GCC countries. The company offers car subscription and leasing services to the customer providing unique services.
Vehicle Subscription Market Scope
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2030 |
| Study Period | 2018-2030 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2030 | $33.5 billion |
| Growth Rate | CAGR of XX % during 2020-2030 |
| Segment Covered | Type, Source, End Use, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Fresh Car, Hyundai, Porsche, Volvo, DAIMLER, Toyota, Facedrive, OpenRoad, Fair Financial Corporation, Sixt, Hertz, Fair, Enterprise, Borrow, AAA, and Drover Ltd among others. |
Key Segments of the Global Vehicle Subscription Market
Vehicle Type Overview, (USD Billion)
- IC powered
- Electric vehicle
Service Providers Overview, (USD Billion)
- Automotive manufacturers
- Automotive dealerships
- Start-ups and corporate-backed ventures
- Car subscription software providers
- Other providers
End Use Overview, (USD Billion)
- Corporate
- Private
Regional Overview, (USD Billion)
North America
- U.S
- Canada
Europe
- Germany
- France
- UK
- Rest of Europe
Asia Pacific
- China
- India
- Japan
- Rest of Asia Pacific
South America
- Mexico
- Brazil
- Rest of South America
Middle East and South Africa
Frequently Asked Questions (FAQ) :
The global vehicle subscription market is projected to reach $33.5 billion by 2030 registering a CAGR of NA from 2022 to 2030.
The global vehicle subscription market is expected to grow at a CAGR of NA from 2022 to 2030.
By Vehicle Type, IC Powered segment is expected to gain traction over the forecast period in global vehicle subscription market.
North America is the highest performing region in global vehicle subscription market and is likely to garner biggest market share of revenue through forecast period.
The major market players include Fresh Car, Hyundai, Porsche, Volvo, DAIMLER, Toyota, Facedrive, OpenRoad, Fair Financial Corporation, Sixt, Hertz, Fair, Enterprise, Borrow, AAA, and Drover Ltd among others.