Automotive

Vehicle Subscription Market Size Hit US$ 34.35 Bn by 2032

The global vehicle subscription market size reached USD 4.80 billion in 2022 and is expected to hit over USD 34.35 billion by 2032, expanding growth at a CAGR of 21.80% from 2023 to 2032.

Crucial factors accountable for market growth are:

Easy user access and cost-effectiveness foster the market demand of vehicle subscription market.
Increase in customer disposable income.
Rapid urbanization and industrialization in developing countries.
The benefits of subscribing vehicles compared with leasing the vehicles.

Regional Snapshots

Asia Pacific is anticipated to grow significantly during the forecast period and with a CAGR of more than 28% of the market share due to the presence of developing countries engaged in activities such as rapid urbanization and industrialization. Also, the presence of a huge population in this region fosters the growth of the Vehicle Subscription market. For instance, On 15th December 2020, Hyundai Motor India announced that its vehicle subscription services have seen increasing demand specially among millennials and tech-savvy individuals.

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Report Highlights

The IC powered vehicle segment is expected to lead the market contributing more than 71% of the revenue share in the upcoming years.
The corporate end use segment of the Vehicle Subscription Market is estimated to lead the market with a market share of more than 60% in 2020.
By Geography, Asia Pacificis expected to grow significantly with a CAGR of 28% during the forecast period because of the surge in urbanization, industrialization and massive population present in this region.

Table of Contents

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Scope of the Vehicle Subscription Market Report

Report Highlights	Details
Market Size	USD 34.35 Billion by 2032
Growth Rate	CAGR of 21.80% From 2023 to 2032
Largest Market	North America
Fastest Growing Market	Asia Pacific
Base Year	2022
Forecast Period	2023 to 2032
Segments Covered	Vehicle, Subscription Period, Service Providers, End Use, Region

Market Dynamics

Driver – Due to the cost-effectiveness and easy user access to vehicles the vehicle subscription market is growing significantly. Also, the rapid increase in the consumers disposable income in the developing countries are estimated to drive the market growth. For instance, On 4th October 2021, Fair Financial Corp announced that they are relaunching the app for offering subscriptions to its inventory of used cars. In the first quarter of 2022, Fair has planned to roll out subscriptions on leases for used cars provided by third-party vendors — with the larger goal of transforming into a central hub for all automotive retail.

Restraint – The major restraining factor that will negatively impact the growth of the Vehicle Subscription Market includes the well-established vehicle leasing, rental, sharing market, and the design of more flexible leasing models and improved ride-hailing features offered by service providers.

Opportunity – The rapid technological developments and the shift of customers towards vehicle subscription services when compared with car ownership are anticipated to offer huge opportunities in the growth of the vehicle subscription market.For instance, On 18th July 2021, Zoomcar, a self-drive car rental firm, planned to increase the number of electric cars fleet from the current 2 to 5 per cent to 30-35 per cent in the upcoming years.

Challenges – The prevalent vehicle leasing, rental, and sharing market and the introduction of more flexible leasing models are expected to be a major challenge in the growth of the vehicle subscription market.

Key Companies Profiled

The global Vehicle Subscription Marketis characterized by the presence of various small and big players. The major market players include Fair Financial Corp., Clutch Technologies, LLC, CarNext, FlexDrive, Cluno GmbH, DriveMyCar Rentals Pty Ltd, BMW AG, Daimler AG, General Motors, Hyundai Motor India, Tata Motors, Tesla, Volkswagen, Volvo Car Corporation, ZoomCar, Cox Automotive, Wagonex Limited, LeasePlan, Drover Limited, and Lyft Inc. As the market is competitive in nature, the players are indulged in rapid adoption of advanced technologies to improve the customers driving experience and in raising their competitive share by means of strategic initiatives like mergers, new product and acquisitions.

Segments Covered in the Report

By Vehicle Type