Global Vehicle Subscription Market Grows at a Staggering CAGR of 15.35%

Introduction

A vehicle subscription is a service that provides users to rent one or more vehicles for a set amount of time. Some car subscriptions include insurance and maintenance as part of the monthly payment, while others allow subscribers to switch between vehicles at any time. According to industry commentators, a vehicle subscription is an alternative to purchasing or leasing a vehicle. The difference between a vehicle subscription and purchasing a vehicle is that the subscription service retains vehicle ownership. In contrast, vehicle rental requires the effort of procuring vehicles for specific dates or trips.

Market Dynamics

Affordable and Accessible Automobiles and Rapid Growth in Disposable Income Drives the Global Market

The vehicle subscription market is expanding rapidly due to the affordability and accessibility of automobiles. In addition, rapid growth in the disposable income of consumers in developing nations is anticipated to fuel market expansion. For instance, Fair Financial Corporation announced the relaunch of its app for offering subscriptions to its inventory of used cars. In the first quarter of 2022, Fair plans to launch subscriptions for used-car leases offered by third-party vendors, with the ultimate goal of becoming a central hub for all automotive retail. Rapid growth in the disposable income of consumers in developing countries is a significant factor in the market's expansion.

Technological Advancements in the Vehicle Subscription Market Creates Tremendous Opportunities

The vehicle subscription market is expected to have a ton of potential due to rapid technological development and consumers' preference for vehicle subscription services over car ownership.

Regional Analysis

North America and Europe are expected to dominate the market due to the high disposable incomes and standard of living in these regions. Asia-Pacific is anticipated to increase at a CAGR of 28% due to a rapid surge in urbanization, industrialization, and the massive population. The growth of disposable incomes due to industrialization fosters market growth in the Asia Pacific region.

Key Highlights

• The global vehicle subscription market was valued at USD 13,346.5 million in 2021. It is expected to reach USD 48,250.5 million, growing at a CAGR of 15.35% during the forecast period (2022–2030).
• Based on the vehicle type, the vehicle subscription market is divided into IC-powered and electric vehicles. The IC-powered vehicle segment leads the vehicle subscription market in revenue share and is anticipated to grow substantially during the forecast period.
• Based on the subscription type, the market is divided into single brand [single brand exchange] and multi-brand. The multi-brand segment dominates the market and is anticipated to maintain its dominance during the forecasted period.
• Based on the subscription period, the market is divided into 1 to 6 months, 6 to 12 months, and more than 12 months. The 1 to 6 months component holds a significant market share and is anticipated to grow during the forecast period.
• Based on the service provider, the market is segmented into OEM/captives, mobility providers, and technology companies. The mobility provider segment holds the largest market share.
• Based on the package, the market is segmented into the budget, standard, and premium. The standard segment is estimated to hold a significant share of the market.
• Based on end-user, the market is divided into business and private. The private segment accounted for the largest market share.

Competitive Players

1. Fair Financial Corp.
2. Clutch Technologies LLC
3. CarNext
4. FlexDrive
5. Cluno GmbH
6. DriveMyCar Rentals Pty Ltd
7. BMW AG
8. Daimler AG
9. General Motors
10. Hyundai Motor India
11. Tata Motors
12. Tesla
13. Volkswagen
14. Volvo Car Corporation
15. ZoomCar
16. Cox Automotive
17. Wagonex Limited
18. LeasePlan
19. Drover Limited
20. Lyft Inc.
21. Facedrive Inc.
22. OpenRoad Auto Group
23. Porsche AG
24. Primemover Mobility Technologies Pvt. Ltd.
25. The Hertz Corporation
26. Toyota Motor Corporation

Recent Developments

Segmentation

1. By Subscription Type
   1. Single Brand (Single Brand Swap)
   2. Multiple Brand
2. By Subscription Period
   1. 1 to 6 months
   2. 6 to 12 months
   3. More than 12 months
3. By Service Provider
   1. OEM
   2. Third-party Service Provider
4. By End-User
   1. Business
   2. Private