Global Car Subscription Market Overview
The key driver impacting the car subscription market is the high affordability, flexibility, and convenience associated with car subscriptions in comparison to leasing. Also, the considerable number of benefits linked with car subscriptions makes it popular among people, thus adding growth to the market. For instance, Benefits such as No EMI and Down Payment are needed, No Maintenance or Insurance Claims, Cost-saving, acts as a flexible lease alternative, and gives a chance to drive different cars for the subscriber. Moreover, stringent government regulations regarding emission control and the shortage of proper public transportation infrastructure in developing nations contribute to car subscription market demand in the coming years.
According to Value Market Research, the global car subscription market size was valued at around USD 6.41 million in 2022 and is estimated to grow at a CAGR of about 23.2% during the forecast period 2023 to 2030.
The major automotive manufacturers emphasizing on vehicle subscription programs are likely to augment the demand in the forecast period. For instance, In August 2020, Porsche started a monthly Single-Vehicle Subscription (SVS) program in various U.S. cities. This includes Los Angeles, San Diego, Atlanta, and Phoenix. This program enabled the company to target new consumers across the U.S. Similarly, in 2019, Hyundai Motor India had launched a subscription model that operates in six cities of India as an element of the partnership with Revv. However, the well-established and dominant vehicle leasing, rental, and sharing may hamper the market in the long run. Also, the leasing model is cost-efficient compared to subscription schemes that are negatively impacting the market. The current industry trends, such as the development of a robust digital platform to operate the services effectively, and expansion of the dealer network to better reach or effectively provide services, are expected to offer several beneficial market opportunities to the key players.
The car subscription market is vast, with many local and global players. The car subscription market is extensive, with many regional and international players. The prominent market leaders follow several strategies to improve their market status, such as extending product portfolio, acquisitions, contracts, acquisitions, amalgamation, acquisitions, product upgrades to mount their market share across the globe. The prominent players studied in the report include Daimler AG, Drover Limited, Facedrive Inc., Fair Financial Corp., OpenRoad Auto Group, Porsche AG, Primemover Mobility Technologies Pvt Ltd., Toyota Motor Corporation, The Hertz Corporation, and Volvo Car Corporation.
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In this research report, the car subscription market is segmented by vehicle type, end-user and region.
Analysis by Vehicle Type:
By vehicle type, the report is categorized into IC Powered vehicles and electric vehicles. The IC Powered Vehicle segment dominates the vehicle type segment with over three-fourths share in 2020. It is due to the dominance of the existing automotive fleet of IC vehicles and service providers worldwide. Moreover, the rise in consumer demand for flexible subscription models contributes to the high IC Powered Vehicle segment growth in the forecast period.
Analysis by End-User:
By end-use, the report is categorized into private and corporate. The corporate segment dominates the end-use segment with more than half in the forecast period. It is due to the high usage of car subscription services in the corporate sector for the optimum durational contract period and business tours. Also, car subscription works out very well for those in transferable jobs and do not want to worry about owning/transporting a car across cities, contributing to the high demand from corporate segment growth in the forecast period.
Analysis by Region:
In the regional outlook of the global car subscription market, the North America region dominates globally with a 30% market share in the forecast period. It is due to the increased popularity of vehicle subscriptions in this region. Moreover, the rise in adoption of car subscription services and shared mobility outlook contributes to tremendous market growth across North America.
Market Segmentation covered in the Report:
By Vehicle Type
- IC Powered Vehicle
- Electric Vehicle
By End Use
By Region
- North America
- Europe
- Asia Pacific
- Middle East and Africa
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