Vehicle as a Service Market Size - By Engine (Electric, IC Engine), Service Provider (Automotive OEM, Auto Dealerships, Auto Tech Startups, Car Subscription Software Providers), End User (Enterprise Users, Private Users), Vehicle & Forecast, 2024 - 2032

Vehicle as a Service Market Size - By Engine (Electric, IC Engine), Service Provider (Automotive OEM, Auto Dealerships, Auto Tech Startups, Car Subscription Software Providers), End User (Enterprise Users, Private Users), Vehicle & Forecast, 2024 - 2032

Vehicle as a Service Market size is set to register over 20.5% CAGR during 2024-2032 driven by the increasing shift towards shared mobility solutions and the rising consumer preference for flexible transportation options. Rising urbanization and the congestion in cities have led to the surge in demand for services like car-sharing, ride-hailing, and subscription-based vehicle services. As per World bank.org, currently 56% of the population lives in urban areas. Vehicle as a service (VaaS) offers consumers the convenience of accessing vehicles without the burden of ownership, which is particularly appealing to the younger, urban population.

The increasing investments and strategic partnerships among automotive manufacturers, technology companies, and service providers will also favor the market growth. Major automotive companies are also collaborating with tech firms to develop and expand their VaaS offerings by integrating advanced technologies like autonomous driving and AI to enhance user experience and operational efficiency.

The vehicle as a service industry is segmented into engine, service provider, vehicle, end-user, and region.

Based on engine, the market size from electric engine segment is poised to generate substantial revenue between 2024 and 2032 due to the alignment with environmental sustainability goals and cost efficiency. Electric vehicles (EVs) produce zero emissions, making them an attractive option for shared mobility services aimed at reducing urban pollution and meeting the stringent regulatory standards.

In terms of vehicle, the VaaS industry from the truck segment is set to grow during 2024-2032 owing to the increasing demand for flexible, cost-effective logistics and freight solutions. Businesses are increasingly opting for truck-as-a-service models to avoid the high capital expenditure associated with purchasing and maintaining their own fleet. This allows companies to scale their operations as per the demands without significant financial strain.

Asia Pacific vehicle as a service market will expand significantly through 2032. Governments in countries like China, India, and Japan are heavily investing in infrastructure to support shared mobility services, including ridesharing and car-sharing platforms. The growing middle-class population is also seeking more flexible and cost-effective transportation options, further driving the regional market growth.