Vehicle as a Service Market Size By Engine Type (Internal Combustion [IC] Engine, Electric Engine), By Vehicle Type (Passenger Cars, Trucks, Utility Trailers, Motorcycles), By Service Providers (Automotive OEMs, Auto Dealerships, Auto Tech Startups, Car S

Vehicle as a Service Market Size By Engine Type (Internal Combustion [IC] Engine, Electric Engine), By Vehicle Type (Passenger Cars, Trucks, Utility Trailers, Motorcycles), By Service Providers (Automotive OEMs, Auto Dealerships, Auto Tech Startups, Car Subscription Software Providers), By End-users (Enterprise Users, Private Users), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 - 2030

The vehicle as a service market is anticipated to amass substantial gains by 2030 owing to the lack of proper public transportation infrastructure in developing countries. In addition, stringent government guidelines associated with vehicle emissions, along with growing awareness about leasing and renting vehicles, are likely to further propel market growth over the forecast period.

The COVID-19 pandemic adversely impacted market outlook as a result of stringent lockdowns, disruptions in business operations, and limited transportation needs of customers. However, with mounting purchasing power of buyers and changing standards of living in developing countries driven by escalating disposable incomes, customers have been opting for alternative private transport solutions instead of traditional public transport.

Furthermore, major industry players are engaging in strategic collaborations and partnerships, entering new markets, and broadening their customer bases to strengthen their business standing. To cite an instance, in July 2022, SIXT, a multinational mobility service provider, expanded its services to Canada in its efforts to establish its presence in the North American market. Starting with Vancouver, the company planned to extend to Toronto.

The vehicle as a service market has been bifurcated in terms of engine, service provider, vehicle, end-user, and region.

By service providers, the car as a service industry has been classified into automotive OEMs, auto dealerships, auto tech startups, and car subscription software providers. The auto dealerships segment surpassed $1 billion in revenue in 2021. Auto dealers are offering customers the advantage of choosing from vehicles of different companies on one platform, enabling customers to change to another company vehicle with auto dealership vehicle rental services, which is fueling segment expansion.

With respect to vehicle, the vehicle as a service market has been classified into passenger cars, trucks, utility trailers, and motorcycles. The motorcycles segment was worth more than $209 million in 2021 and is slated to progress at a robust pace over 2022-2030 due to the growing working population, along with significant funding in these platforms. For instance, in February 2022, Yamaha Motors, a Japanese automotive company, invested in the Indian bike rental platform Royal Brothers.

In the regional context, the Middle East & Africa automobile as a service market was valued at more than $192 million in 2021. Soaring demand for the vehicle subscription model has created massive growth potential for market players in the MEA region, thereby augmenting industry growth. To cite an instance, in June 2021, Amazon launched its car rental services in the UAE.

Meanwhile, the Latin America vehicle as a service market valuation exceeded $411 million in 2021. Start-ups and tech giants in the LATAM region are working on advancing the domestic automotive sector by offering solutions such as self-driving vehicles, car sharing, electric cars, and so on, thereby fostering industry outlook.