Middle East and Africa Car Subscription Market Size & Outlook, 2025-2033

Middle East and Africa Car Subscription Market Size

The Middle East and Africa car subscription market size was valued at USD 1.02 billion in 2024 and is projected to reach from USD 1.19 billion in 2025 to USD 4.09 billion by 2033, growing at a CAGR of 16.7% during the forecast period (2025-2033).

A car subscription is a service in which a consumer agrees to pay a recurring fee to access a fleet of automobiles. While others allow subscribers to transfer vehicles at any time, others incorporate insurance and maintenance costs in the monthly fee. Experts in the auto business argue that subscription services can replace outright automobile purchases and leases. The subscription service preserves car ownership in contrast to traditional vehicle ownership. On the other hand, car rentals necessitate the upfront purchase of a vehicle for a limited period or a single journey.

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Middle East and Africa Car Subscription Market Growth

Advantages of Leasing to Drive Market Expansion

Long-term car leasing is less expensive than car subscription services. Auto subscription, however, has benefits over car leasing. With car leasing, multiple vehicle changeover under preset circumstances is not possible. In addition, the cost of car leasing includes charges for insurance, licensing, repairs, and upkeep. In contrast, all of these auto-subscription payments are the responsibility of the service providers. Additionally, though car lease contracts are typically for two years, they can be longer, allowing for simple vehicle replacement and short-term usage. The demand for car subscription services has expanded in recent years due to these advantages over automotive leasing services.

Market Restraint

Inadequate Transportation Facilities

Some developing nations are having trouble putting together functional infrastructure. Auto subscription service providers may be unable to enter a market due to a lack of public transportation and infrastructure caused by adverse economic and fiscal policies. Increased government spending and programs to improve infrastructure are expected to help manufacturers overcome this limitation in the future.

Market Opportunity

High Demand for Economy Car

It is predicted that the third-party service provider subsegment of the automobile subscription industry will expand at a rate of 39% between 2018 and 2032. These companies' car subscription services feature reasonably priced vehicles. The market demand is partly met by the rising popularity of economy cars, which are favored for their improved fuel efficiency, low cost, and dependability. Promoting strategic alliances by third-party service providers to increase their service footprint is also expected to contribute to the industry's momentum. For instance, the Car Subscription Software from Wagonex Technologies streamlines launching a subscription business.

Regional Analysis

The Middle East and Africa hold significant market shares. The country's burgeoning youth population and even faster-growing female driver sector contribute to the expected growth of the Saudi Arabian car rental and leasing industry. A few recent businesses in the area offer low-cost monthly rental choices. To provide flexible automobile rentals on its mobile app, Swapp teamed up with Careem, owned by Uber, and in 2019 Ekar raised USD 17.5 million in Series B funding. Additionally, to develop its car-rental business in the area, Invygo, a startup with operations in the UAE and Saudi Arabia, raised USD 10 million in Series A funding led by MEVP. There are three different rental service options available. Consumers can rent a car using the short-term option for one, three, six, or nine months.

Additionally, Toyota South Africa and Kinto launched the Kinto One car subscription service nationwide, enabling drivers to take advantage of all the advantages of driving a new car without buying one. The pay-per-use subscription model, which combines warranty, service, and maintenance expenses into a single monthly payment, is available to people and organizations throughout Africa.

Subscription Type Insights

The car subscription market is divided based on the subscription type into single-brand and multi-brand segments.

The multi-brand market dominates the segment and is expected to grow at a robust CAGR of 33.1% because it allows subscribers to switch between brands, increasing flexibility and convenience. Some consumers strongly prefer staying loyal to a single brand because they are satisfied with the consistency of that brand's products and services.

Subscription Insights

The car subscription market is segmented based on the subscription period into 1 to 6 months, 6 to 12 months, and more than 12 months. 

The 1 to 6 months subscription period dominates the segment and is anticipated to increase at a respectable CAGR of 32% during the predicted period. The demand for subscriptions of 1 to 6 months is driven by the employer category, who often rent the automobile during their vacations; this segment also maintains a sizeable portion of the market. Long-term subscribers leased vehicles for six months to a year or more.

The car subscription market is segmented based on the service provider into OEM/captives, mobility providers, and technology businesses. Independent/third-party service providers are anticipated to rule the market with a CAGR of 29.6% during the forecast period. OEMs can use existing consumer segments and loyal brand advocates excited by getting the newest vehicle model through this subscription service, but they are limited in several ways. To accelerate OEM adoption, dealerships have been established to use the dealer channel’s benefits fully. Dealerships benefit from this circumstance because they can offer their inventory and draw on their expertise in selling pre-owned, traded-in, and leased-back vehicles.

End-Use Insights

The market for car subscriptions is divided into two categories based on end-users: private and corporate.

The corporate segment dominates the market and is anticipated to grow at a CAGR of 29.2% during the forecast period. As automobile subscription rates increase in developed and developing economies, the private segment is expected to expand swiftly in the coming years. Moreover, newer generations prefer to lease automobiles over purchasing them outright. The category of corporate end-users is anticipated to increase consistently. In the corporate sector, car ownership is more prevalent than subscription.

List of key players in Middle East and Africa Car Subscription Market

1. Daimler AG
2. Drover Limited
3. Facedrive inC.
4. Fair Financial Corp.
5. OpenRoad Auto Group
6. Porsche AG
7. Prime mover Mobility Technologies Pt Ltd.
8. The Hertz Corporation
9. Toyota Motor Corporation
10. Volvo Car Corporation

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