Subscription Based Vehicle Market, Service Provider (OEMs & Captives and Independent/Third Party Service Provider), Vehicle Type (IC Powered Vehicle and Electric Vehicle), End Use (Private and Corporate), and Subscription Period (1 to 6 Months, 6 to 12 Months, and More than 12 Months) and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Market Trends, Analysis, and Forecast till 2030

A vehicle subscription is a service in which a consumer pays a monthly fee to have access to one or more automobiles. Some vehicle subscriptions include insurance and maintenance as part of the monthly charge, while others allow the subscriber to move between vehicles at any time during the subscription period. Vehicle subscription, according to industry experts, is a viable alternative to buying or leasing a vehicle. Vehicle subscriptions are a form of subscription business model in which a consumer pays a monthly charge to use one or more automobiles on a regular basis. The difference between a vehicle subscription and purchasing a vehicle is that the subscription service owns the vehicle. While both vehicle subscriptions and standard automotive leases require periodic payments, several subscription programmes provide greater flexibility in terms of minimum term and vehicle swapping. The key distinction between vehicle subscriptions and vehicle or auto rental is that most subscriptions are designed to provide full-time possession of a vehicle, whereas renting includes the work of securing vehicles for specified dates or excursions. Vehicle subscriptions have been labelled as part of the "sharing economy" or the "subscription economy" in various ways. Vehicle subscriptions are also known as "transportation-as-a-service" and "mobility-as-a-service." Subscription Based Vehicle Market accounted for US$ 4185.28 million in 2020 and is estimated to be US$ 25097.7 million by 2030 and is anticipated to register a CAGR of 19.8%.

Growing number of consumers opting for these subscriptions

Due to a variety of circumstances, a growing number of consumers are opting for vehicle subscription services rather than car ownership in the current scenario. Despite the fact that car subscription is currently a niche product, researchers at Transparency Market Research believe that this business model will gain enormous popularity in the future decade. During the forecast period, the rising popularity of leasing automobiles, particularly in developed countries of the world, is likely to have a significant impact on the worldwide vehicle subscription market's growth. Despite rising disposable income in many parts of the world, people are becoming more interested in car subscriptions, which provide flexibility and the ability to drive a variety of automobiles.

Flexibility, Affordability, and Convenience

The market is predicted to develop due to factors such as flexibility, affordability, and convenience of vehicle subscriptions, as well as advantages over leasing. However, the market for car leasing, rental, and sharing is well-established and dominant, and the leasing model is more cost-effective than subscription schemes, which limits market expansion. Entering into strategic partnerships with automakers to obtain a competitive advantage, the development of a robust digital platform to successfully operate the services, and the expansion of the dealer network to better reach or deliver services are some of the reasons projected to drive market growth.

Subscription Based Vehicle Market is segmented based on service provider, vehicle type, end-user, subscription period and region.

On the basis of Service Provider, the Subscription Based Vehicle Market is segmented into OEMs & Captives and Independent/Third Party Service Provider. Based on Vehicle Type, the target market is segmented into IC Powered Vehicle and Electric Vehicle. Based on End-User, the target market is segmented into Private and Corporate. Based on Subscription Period, the target market is segmented into 1 to 6 Months, 6 to 12 Months, and More than 12 Months.

Regional Insights:

On region the Subscription Based Vehicle Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. Asia Pacific is expected to dominate the worldwide market during forecast period. The market in the region is expected to increase at a faster rate than the market in other regions, owing to the region's growing population, urbanisation, industrialization, and improvement in people's living standards. Vehicle sales are expected to increase in fast-developing countries like China and India as a result of this. Furthermore, the launch of vehicle subscription services is expected to make four-wheelers more accessible to a larger number of middle-class individuals in the region through a flexible monthly package that covers all maintenance costs except fuel.

Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2019 to 2029. For the purpose of this study, has segmented the Subscription Based Vehicle Market report based on Service provider, Vehicle type, End-user, Subscription period and region.

Subscription Based Vehicle Market, By Region:

• North America
  • Middle East & Africa
    • • GCC
      • Israel
      • South Africa
      • Rest of Middle East & Africa
  • Latin America
    • • Brazil
      • Mexico
      • Rest of Latin America
  • Asia Pacific
    • • China
      • India
      • Japan
      • South Korea
      • Rest of Asia Pacific
  • Europe
    • • Germany
      • UK
      • France
      • Russia
      • Italy
      • Rest of Europe
  • • U.S.
    • Canada

The key players operating in the car subscription market are Daimler AG, Drover Limited, Facedrive Inc., Fair Financial Corp., OpenRoad Auto Group, Porsche AG, Primemover Mobility Technologies Pvt Ltd., The Hertz Corporation, Toyota Motor Corporation, and Volvo Car Corporation. Prominent players operating in the target market are focusing on the strategic partnerships as well as launching of the products in order to gain competitive edge in the target market.

• Daimler AG
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Drover Limited
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Facedrive Inc.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Fair Financial Corp.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• OpenRoad Auto Group
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Porsche AG
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Primemover Mobility Technologies Pvt Ltd.
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• The Hertz Corporation
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Toyota Motor Corporation
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Volvo Car Corporation
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies