Global Vehicle Subscription Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Vehicle Subscription Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Vehicle subscription is a service where a customer pays a recurring fee for the right to use one or more automotive vehicles. Some vehicle subscriptions offer insurance and maintenance as part of the subscription fee; other subscriptions allow the subscriber to switch between different vehicles during their subscription period.

Market Overview:

The latest research study on the global Vehicle Subscription market finds that the global Vehicle Subscription market reached a value of USD 4760.15 million in 2022. It’s expected that the market will achieve USD 21649.48 million by 2028, exhibiting a CAGR of 28.72% during the forecast period.

Influence of COVID-19 Outbreak on Vehicle Subscription Industry Development

The new crown pneumonia epidemic continues to spread in more than 200 countries and regions around the world. People's travel is restricted, consumer demand is shrinking, and factory production is stagnant. The global industry has suffered an unprecedented shock. As one of the important representatives of the manufacturing industry, the automotive industry feels particularly deep. With salary cuts, layoffs, and suspension of production, the global automotive industry is experiencing the largest crisis in history. Automobile production involves tens of thousands of parts, not only the industrial chain is long, but also the degree of globalization is high, and it is difficult to leave the support of the global industrial chain. According to related reports, the three major US automakers, Ford, General Motors, and Fiat Chrysler, announced on March 19 that all North American plants have ceased production. According to statistics, by the beginning of April, more than 150 automakers worldwide had stopped production, and more than 3000 auto parts companies had stopped production. To a certain extent, this may slow down production and affect the normal supply and demand of automobiles.

Strength

The Vehicle Subscription model has two characteristics: on the one hand, the separation of ownership and use rights can maximize the value of resource use and speed up the efficiency of circulation; on the other hand, the rich model selection and all-inclusive butler service provide car owners with flexibility in car use Sex and convenience. For consumers, compared with car loans or car rentals, car subscriptions are popular among young people with emerging concepts due to its one-stop service, car exchange, flexible contract time and other advantages.

Second, with the increasing popularity of smart phones and the Internet, consumers have been helped to book cars online through mobile applications. In addition, the car subscription service provided through the mobile app ensures convenience and cost-effectiveness. This is because mobile apps allow consumers to access various car models and compare them on a single platform based on their needs. These factors, coupled with increased consumer awareness, are expected to drive the growth of the global Vehicle Subscription service market during the forecast period.

Weakness

High service costs and operational difficulties are also a major obstacle that is difficult to overcome. One of the attractions of subscription services lies in the diversified selection of models, which requires a certain scale and variety of fleets as a guarantee, and the ability to quickly respond to customer needs. However, it is not easy to do this in practice, and the difficulty of operation will multiply with the increase of package and model types, service content, and frequency of car changes.

Opportunities

The Vehicle Subscription service caters to the consumer trend change from owning a vehicle to using a vehicle. It has the characteristics of reducing resource waste and high flexibility. At the same time, it is helpful to promote the development of electric vehicles and is welcomed by consumers.

Vehicle Subscription will have an impact on dealers’ new car business, but it is the future development trend for car companies and dealers to jointly make the cake bigger and attract more partners to participate in building a service ecosystem. For consumers, competition and innovation will inevitably bring more consumption methods and experiences. For the industrial chain, this new type of collaborative network will develop a more vigorous body structure that will promote product innovation, efficient integration of resources, and business model changes under certain tracks and rules. In this sense, car subscription is a brave start.

Threat

The main factor restricting the global vehicle subscription market is the well-developed vehicle leasing, rental and shared mobility service markets. A large number of vehicle leasing, rental and shared mobility service providers are operating on a global scale. Therefore, car rental and sharing services have a strong foothold on a global scale. In turn, this limits the global Vehicle Subscription market.

Secondly, Vehicle Subscription is essentially a rental model, and users have no ownership. Although changing a car sounds beautiful, when you find that you change an old car every time, the excitement and freshness may be greatly reduced. Especially in some markets where the concept of Vehicle Subscription is not mature, such as developing countries such as China and India. People generally think that owning a car and driving a new car are still very important factors, which will lead to resistance in promotion.

Region Overview:

From 2023-2028, North America is estimated to witness robust growth prospects.

Company Overview:

Fair is one of the major players operating in the Vehicle Subscription market, holding a share of 19.07% in 2020.

Fair is an automotive FinTech company that’s revolutionizing car buying by offering unprecedented freedom, flexibility, and end-to-end mobile experience.

Bayerische Motoren Werke Aktiengesellschaft (BMW) manufactures and sells luxury cars and motorcycles worldwide. The Company produces everything from convertible sports cars to luxury sedans to touring motorcycles with large displacement engines. BMW serves customers throughout the world.

Segmentation Overview:

Among different product types, Automotive Manufacturers segment is anticipated to contribute the largest market share in 2028.

Application Overview:

By application, the Luxury Vehicle segment occupied the biggest share from 2018 to 2022.

Key Companies in the global Vehicle Subscription market covered in Chapter 3:

Drover
Cluno
Porsche
Toyota
Revolve
BMW
Prazo
Cocoon Vehicles
FreshCar
Mercedes-Benz
Hertz
LESS
Flexdrive
Audi
Fair
Volvo

In Chapter 4 and Chapter 14.2, on the basis of types, the Vehicle Subscription market from 2018 to 2029 is primarily split into:

Automotive Manufacturers
Automotive Dealerships
Others

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Vehicle Subscription market from 2018 to 2029 covers:

Luxury Vehicle
Others

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)