Vehicle Subscription Market

Vehicle Subscription Market

Growth Factors of Vehicle Subscription Market

The vehicle subscription market size was valued at USD 5.5 billion in 2023, and the market is now projected to grow from USD 9.2 billion in 2024 to USD 791.0 billion by 2032, exhibiting a CAGR of 74.6% during the forecast period of 2024-2032.

During the COVID-19 pandemic, the automotive enterprise skilled a drop in revenue due to decreased sales, manufacturing, supply chain disruptions, and clients' attention on lowering unnecessary purchases. However, the adoption of automobile subscription services expanded because of growing fitness worries and reduced use of shared mobility and mass delivery.

Vehicle subscriptions are gaining recognition because of their value-effectiveness and easy vehicle access, attracting a various client base. These subscriptions provide convenience, flexibility, and no long-term commitment, attracting new customers and preserving current ones. The marketplace is expected to develop due to the combination of revolutionary technological features, along with in-car charge offerings and connecting media offerings, making driving more exciting for automobile proprietors.

The trend of adopting flexible mobility solutions is predicted to persist and thrive inside the long term because of the declining significance of automobile possession among millennials. The growing recognition of mobility services as a provider is riding the population to adopt flexible alternatives to automobile ownership. Conventional leasing contracts and vehicle financing are visible as burdens, at the same time as low availability of services like experience-hailing and trip-sharing at height instances and excessive costs of lengthy journeys restriction their flexibility. However, vehicle subscription models provide a notably bendy service version, covering insurance, maintenance, maintenance, registration, and different expenses. The rising demand for solution across evolved and emerging economies is expected to reinforce vehicle subscription market growth of the forecast duration.

Comprehensive Analysis of Vehicle Subscription Market

The market for electric vehicles (EVs) is segmented into IC engine and electric vehicles. The IC engine segment has the highest market share in 2022 due to low subscription prices and the availability of refuelling stations for conventional fuels. The growing popularity of EVs is driving demand for EV subscription services. The market is also divided into single brand and multi brand subscriptions. Multi brand subscriptions offer greater flexibility and convenience, with well-known brands like Porsche, Mercedes-Benz, and Volvo providing these services. The 6 to 12 months segment is expected to continue its dominance, driven by consumer preference for mobility options and cost-effective alternatives to outright vehicle ownership. The 1 to 6 months segment is expected to experience the fastest growth rate due to the increasing demand for short-term car subscriptions. The independent third-party providers segment dominates the market, with startups offering multi-brand car subscriptions. However, a significant number of customers still prefer subscription contracts with OEMs and premium brands, accelerating OEM/captives segment growth.

The Europe region lead the vehicle subscription market share by benefitting a market size of USD 2.3 billion in 2023 due to the growth is driven by mobility service-providing startups and established automakers like Mercedes and BMW. Europe's strong automotive presence and focus on mobility service-based models are expected to generate lucrative opportunities for the region's automakers, diversifying their business according to the new generation's interests.

Sixt, a worldwide mobility carrier issuer with 2,100 locations in 110 nations, is a part of the Sixt Group, which operates in car and luxury rental automobile sharing, experience-hailing, and subscription. In 2020, Sixt offered all its stocks in Sixt Leasing SE to concentrate on its mobility services enterprise. Key organizations in the listing include e-Sixt, Avis Budget Group, Lyft Inc., Arval BNP Paribas Group, ORIX, Hertz Corporation, AB Volvo, Mercedes-Benz, and e-Carvolution.

In February 2023, Hyundai announced a new subscription version for its Electric software at the Chicago Auto Show. Hyundai launched Evolve which presents Vehicle, Insurance, Roadside Assistance and Maintenance for a single charge overlaying all the indexed capabilities.

Segmentation Table

ATTRIBUTE DETAILS

Study Period 2019-2032

Base Year 2023

Estimated Year 2024

Forecast Period 2024-2032

Historical Period 2019-2022

Growth Rate CAGR of 74.6% from 2024-2032

Unit Value (USD Billion)

Segmentation By Service Provider

• OEM/Captives
• Independent Third Party Providers

By Subscription Type

• Single Brand Subscription
• Multi Brand Subscription

By Subscription Period

• 1 to 6 Months
• 6 to 12 Months
• More than 12 Months

By Vehicle Type

• IC Engine
• Electric Vehicles

By Geography

• North America (By Service Provider, By Subscription Type, By Subscription Period, and By Vehicle Type)

- U.S. (By Vehicle Type)

- Canada (By Vehicle Type)

- Mexico (By Vehicle Type)

• Europe (By Service Provider, By Subscription Type, By Subscription Period, and By Vehicle Type)

- U.K. (By Vehicle Type)

- Germany (By Vehicle Type)

- France (By Vehicle Type)

- Rest of Europe (By Vehicle Type)

• Asia Pacific (By Service Provider, By Subscription Type, By Subscription Period, and By Vehicle Type)

- China (By Vehicle Type)

- India (By Vehicle Type)

- Japan (By Vehicle Type)

- South Korea (By Vehicle Type)

- Rest of Asia Pacific (By Vehicle Type)

• Rest of the World (By Service Provider, By Subscription Type, By Subscription Period, and By Vehicle Type)

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