The global Car Subscription market is expected to develop USD 35.83 billion by 2029, at a compound annual increase in price (CAGR) of 25.8% throughout the forecast period.
.jpg "The Global Car Subscription Market 2019-2029 (USD Billion)")
Automobile industry has undergone major changes in the recent years. Car subscription leverages multiple switches of subscribed car and additional car expenses comprising of maintenance and insurance costs owned by the service provider. It is referred to as a fee-based service for automobile ownership. The subscription plan enables the user to acquire a motor vehicle in return for a monthly fee for a duration of minimum one month to a few years. Besides, it helps in offering convenience of availing car, flexibility in car usage, and cost-effective nature of subscription services.
However, lack of well-established and dominance of vehicle leasing, rental, and sharing market are hampering the market growth. Furthermore, rising expenditure capacities of the consumers, along with extensive infrastructural developments, especially in the developing economies is likely to provide lucrative development opportunities for the car subscription market in the forthcoming years.
Car Subscription Market Scope
| Metrics | Details |
| Base Year | 2022 |
| Historic Data | 2019-2020 |
| Forecast Period | 2022-2029 |
| Study Period | 2019-2029 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2029 | USD 35.83 billion |
| Growth Rate | CAGR of 25.8% during 2019-2029 |
| Segment Covered | type of service, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Fresh Car, Hyundai, Porsche, Volvo, DAIMLER, Toyota, Facedrive, OpenRoad, Fair Financial Corporation, Sixt, Hertz, Fair, Enterprise, Borrow, AAA, and Drover Ltd among others |
Key Segments of the Global Car Subscription Market
Vehicle Type Overview, (USD Billion)
- IC Powered Vehicle
- Electric Vehicle
End Use Overview, (USD Billion)
- Private
- Corporate
Service Providers Overview, (USD Billion)
- OEMs & Captives
- Independent/Third Party Service Provider
Subscription Period Overview, (USD Billion)
- 1 to 6 Months
- 6 to 12 Months
- More Than 12 Months
Regional Overview, (USD Billion)
North America
- U.S.
- Canada
Europe
- UK
- Germany
- France
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- Rest of Asia-Pacific
Middle East and Africa
- UAE
- South Africa
- Rest of Middle East and Africa
South America
- Brazil
- Rest of South America
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global car subscription market. Benchmark yourself against the rest of the market.
- Ensure you remain competitive as innovations by existing key players to boost the market.
What does the report include?
- The study on the global car subscription market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers the competitive landscape of existing/prospective players in the Car Subscription industry and their strategic initiatives for product development.
- The study covers a qualitative and quantitative analysis of the market segmented based on Vehicle Type, End Use, and Subscription Period. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global car subscription market. The report will benefit Every stakeholder involved in the car subscription market.
- Managers within the car subscription industry looking to publish recent and forecasted statistics about the global car subscription market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global car subscription market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
Besides, easy availability of the facility to change a vehicle and use a car for short duration is also the key factor driving the market growth for car subscription.
Frequently Asked Questions (FAQ) :
The Vehicle Type of the car subscription market IC Powered Vehicle and Electric Vehicle.
The major contenders in the global market are car subscription market include Fresh Car, Hyundai, Porsche, Volvo, DAIMLER, Toyota, Facedrive, OpenRoad, Fair Financial Corporation, Sixt, Hertz, Fair, Enterprise, Borrow, AAA, and Drover Ltd among others
The car subscription market is growing at a CAGR of 25.8 % during the forecast period.
Over the past few decades, car subscription has evolved from conventional structure to automated structure. With the growing adoption of numerous technologies, car subscription is no more limited to a particular and one-time use and being adopted across a wide range of industries and their business processes. Car subscription market is vast, with many local and global players making it popular among people.
Advanced technologies such as integration of connected devices with the Internet of Things (IoT) and artificial intelligence (AI) solutions enable service providers to provide real-time tracking, consumer feedback, driving analysis, alerts of rash driving, geo fencing, engine monitoring and service history facilities. Moreover, car subscription also boosts the purchase of private vehicles processes as consumers are minimizing the usage of public transport facilities, such as metro, taxis and buses. With all these capabilities car subscription allows extensive infrastructural developments, especially in the developing economies.
Furthermore, as the adoption of IoT is increasing, the purchase behavior of the consumers is changing globally. The current industry trends, such as the development of a robust digital platform to operate the services effectively, and expansion of the dealer network to better reach or effectively provide services, are expected to offer several beneficial market opportunities to the key players.
The market is consolidated as several major market players currently hold the major market share. However, the market is expected to become fragmented in the forthcoming years as several new market players are emerging from developing countries such as India, Japan, China, and other countries.
Vehicle Type Segment
Based on the Vehicle Type segment, the market is bifurcated into IC Powered vehicles and electric vehicles. In 2020, the IC Powered Vehicle segment accumulated the maximum market share and it is likely to continue its dominance with over three-fourths share throughout the forecast years. It is due to the dominance of the existing automotive fleet of IC vehicles and service providers worldwide. Moreover, the rise in consumer demand for flexible subscription models contributes to the high IC Powered Vehicle segment growth in the forecast period
End Use Segment
Based on the End Use, the market is segmented into Private and Corporate. The corporate segment seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. The growth of this segment is largely ascribed to the high usage of car subscription services in the corporate sector for the optimum durational contract period and business tours. Also, car subscription works out very well for those in transferable jobs and do not want to worry about owning/transporting a car across cities, contributing to the high demand from corporate segment growth in the forecast period.
Service Providers Segment
Based on the Service Providers, the market is segmented into OEMs & Captives and Independent/Third Party Service Provider. The OEM and captives segment seized the maximum market share in 2020 and it is likely to maintain its place throughout the forecast years. The growth of this segment is largely ascribed to the use of finished product as component for other industries.
Subscription Period Segment
Based on the Subscription Period, the market is segmented into 6 to 12 Months, 1 to 6 Months, and More Than 12 Months. The 6 to 12months segment gathered the major market share in 2020 and it is likely to continue its dominance throughout the forecast years. The growing demand for car ownership for a year and the changing consumer preference are boosting the market growth across banking & financial institutions.
Europe followed by North America is likely to account for the maximum market contribution during the forecast years. The domination of this region is largely ascribed to the presence of key players in the region to enhance their business, and increase in penetration of car as a service and technological shifts in the automotive industry across the country. However, the Asia-Pacific is likely to gather noteworthy growth through the forecast years 2021-2028. The growth of the Car Subscription market in this region is mostly ascribed to the growing demand for car subscription services and shared mobility and rise in demand for alternate car ownership with cost-effective mobility solutions, which is fueling the growth of global car subscription market in countries such as India, Japan, and China to compete against other regional players.
_1.png "North American Car Subscription Market 2019-2028 (USD Million)")
The major players of the global car subscription market are Drover Limited, Fair Financial Corp., OpenRoad Auto Group, Facedrive Inc., DAIMLER AG, Toyota Motor Corporation, Volvo Car Corporation, Porsche Smart Mobility, Inc., Hyundai Motor Company, and Fresh Car. Moreover, the additional prospective market players in the car subscription market are The Hertz Corporation, Wagonex Limited and ZoomCar. Renowned companies are offering new and modern car subscription software services. Besides, the previously recognized as well as new market players are approaching the market with advanced and new strategic services and solutions and to remain competitive in the global market.