The global car subscription market size is likely to attain over USD 12.5 billion by the year 2028. Besides, it is likely to project a CAGR of nearly 17% during the forecast years 2021-2028. The car subscription leverages multiple switches of subscribed car and additional car expenses comprising of maintenance and insurance costs owned by the service provider. It has the capability of providing additional advantages such as convenience of availing car, flexibility in car usage, and cost-effective nature of subscription services. Repair costs, taxes, license fees, maintenance costs, insurance costs and other additional charges are handled by car subscription service providers which is not in case of car leasing services.
The present and future car subscription market progress is summarized to conclude the attractiveness of the entire market. Also, prime factors that influence the car subscription market opportunities during the forecast years. Factors such as rapid digitization of the automotive industry is the key factor driving the market growth for car subscription.
Also, easy availability of the facility to change a vehicle and use a car for short duration is another factor driving market growth. 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.
The report also emphasizes several distinctiveness of the global car subscription industry by valuing the market from value chain breakdown. Moreover, the report encompasses numerous qualitative features of the car subscription industry which comprises market restraints, drivers, as well as key industry opportunities. Furthermore, the report offers an inclusive evaluation of the company profiling along with the market rivalry of local and global vendors.
The car subscription market has tough competition among the new emerging and pre-established market vendors. Besides, the car subscription industry vendors are trying to capture the prospective markets to grab a competitive advantage over the remaining industry vendors. To capture the market, market players are forming agreements, acquiring other companies & startups, mergers & acquisitions, partnerships & collaboration, and escalating their business existence.
In terms of the Vehicle Type segment, the market is categorized into IC Powered vehicles and electric vehicles. The IC Powered Vehicle segment is predicted to achieve the largest growth during the forecast years 2021-2028. On the other hand, the same segment seized the maximum market share in 2020 and it is likely to maintain its place 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.
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 in countries such as India, Japan, and China to compete against other regional players. However, the North American region 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.
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 solutions. In addition, 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.
Segment Overview of Global Car Subcription Market
Vehicle Type Overview, 2019-2028 (USD Million)
- IC Powered Vehicle
- Electric Vehicle
End Use Overview, 2019-2028 (USD Million)
Service Providers Overview, 2019-2028 (USD Million)
- Independent/Third Party Service Provider
Subscription Period Overview, 2019-2028 (USD Million)
- 1 to 6 Months
- 6 to 12 Months
- More Than 12 Months
Regional Overview, 2019-2028 (USD Million)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America