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Vehicle Subscription Market To Reach USD 172.48 Billion By Year 2030

Vehicle Subscription Market Size Was Valued at USD 3.38 Billion in 2022 and is Projected to Reach USD 172.48 Billion by 2030, Growing at a CAGR of 75.3 % From 2023-2030.

30-01-2024
Swati Kalagate
IT and Telecom
Pristine Intelligence

Market Overview:

Vehicle Subscription Market Size Was Valued at USD 3.38 Billion in 2022 and is Projected to Reach USD 172.48 Billion by 2030, Growing at a CAGR of 75.3 % From 2023-2030.

The vehicle subscription market refers to a business model where individuals or businesses can subscribe to a vehicle service instead of owning or leasing a car outright. It operates on a similar concept to other subscription-based services like streaming platforms or subscription boxes. In a vehicle subscription model, customers pay a monthly fee to access a fleet of vehicles. The subscription typically includes various services such as insurance, maintenance, and roadside assistance. The specific terms and conditions can vary depending on the subscription provider and the region.

Top Key Players Covered in The Vehicle Subscription Market:

    • Fair Financial Corp. (US)
    • Clutch Technologies LLC (US)
    • CarNext (Netherlands)
    • FlexDrive (US)
    • Cluno GmbH (Germany)
    • DriveMyCar (Australia)
    • BMW AG (Germany)
    • Daimler AG (Germany)
    • General Motors (US)
    • Hyundai Motor (South Korea)
    • Tata Motors (India), and Other Major Players

Market Dynamics and Factors:           

In the vehicle subscription market, affordable and accessible vehicles are an important factor in attracting customers. One of the key advantages of vehicle subscription services is that they offer more affordable options compared to traditional car ownership or leasing. By paying a monthly fee that covers various costs such as insurance and maintenance, subscribers can access a fleet of vehicles without the high upfront costs associated with purchasing a car. Vehicle subscription services often offer a diverse range of vehicles, catering to different customer preferences and needs. This includes options for compact cars, sedans, SUVs, electric vehicles, and more. By offering a variety of vehicle types, subscribers can choose a vehicle that aligns with their lifestyle, family size, or specific requirements. Technological advancements present significant opportunities in the vehicle subscription market. Vehicle subscription providers can leverage mobile applications and online platforms to streamline the entire subscription process. Users can browse and select available vehicles, manage their subscription details, make payments, and schedule vehicle pickups or drop-offs through user-friendly interfaces. These platforms provide convenience and accessibility for subscribers.

The Vehicle Subscription Market Report Highlight:

    • By Service Provider: An OEM (Original Equipment Manufacturer) service provider is a company that offers manufacturing and customization services for other companies' products. These service providers work closely with their clients to design, develop, and produce products according to the client's specifications and requirements. OEM service providers have expertise in manufacturing processes and technologies.
    • By Subscription Type: A single brand subscription refers to a type of subscription service where customers can subscribe to a specific brand's products or services regularly. It allows customers to access and enjoy the offerings of a particular brand regularly without the need for individual purchases. Single-brand subscriptions have become increasingly popular across various industries, including fashion, beauty, entertainment, software, and more. They offer convenience, value, and a unique brand experience for customers who wish to regularly engage with a particular brand's products or services.
    • By Region, the Asia Pacific region is experiencing significant urbanization, with a large population shifting to cities. This urban population seeks convenient and flexible transportation options, making vehicle subscription services an attractive solution. This allows a larger population to afford vehicle subscription services, driving the market growth. The Asia Pacific region is known for its high rate of technological adoption and digital penetration. This readiness to embrace technology makes it easier for vehicle subscription providers to offer online platforms and mobile applications, facilitating the growth of the market.

Key Industry Development:

In January 2023, Homegrown electric vehicle charging network startup Statiq announced its partnership with car-sharing marketplace Zoomcar to accelerate EV-based travel in the country.

In March 2023, ALD entered into a share purchase agreement to sell its subsidiaries in Ireland, Portugal, and Norway2, as well as LeasePlan’s subsidiaries in Luxembourg, Finland, and the Czech Republic, to Credit Agricole Consumer Finance and Stellantis.

The Vehicle Subscription Market Segmentation:

By Service Provider    

    • OEM/Captives
    • Independent Third-Party Providers

 By Subscription Type

    • Single Brand Subscription
    • Multi Brand Subscription

By Subscription Period            

    • 1 to 6 Months
    • 6 to 12 Months
    • More than 12 Months

By Vehicle Type

    • IC Engine
    • Electric Vehicles

For this report, Introspective Market Research has segmented the Vehicle Subscription Market based on region:

Regional Outlook (Revenue in USD Million; Volume in Units, 2023-2030)

North America

o            The U.S.

o            Canada

o            Mexico

Eastern Europe

o            Russia

o            Bulgaria

o            The Czech Republic

o            Hungary

o            Poland

o            Romania

o            Rest of Eastern Europe

Western Europe

o            Germany

o            UK

o            France

o            Netherlands

o            Italy

o            Spain

o            Rest of Western Europe

Asia Pacific

o            China

o            India

o            Japan

o            Singapore

o            Australia

o            New-Zealand

o            Rest of APAC

Middle East & Africa

o            Turkey

o            Saudi Arabia

o            Qatar

o            UAE

o            Israel

o            South Africa

South America

o            Brazil

o            Argentina

o            Rest of SA

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