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Middle East and Africa Car Subscription Market

Middle East and Africa Car Subscription Market: Information by Subscription Type (Single Brand), Subscription Period (1 to 6 Months, 6 to 12 Months, More than 12 Months), Service Provider (OEM), End-Use (Private), and Region—Forecast till 2030

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Market Overview

The Middle East and Africa car subscription market size was valued at USD 122 million in 2021. It is projected to reach USD 1,378 million by 2030, growing at a CAGR of 31.7% during the forecast period (2022-2030).

A car subscription is a service where a client pays a regular fee for using one or more automobiles. Some automobile subscriptions include insurance and maintenance in the subscription fee, while others permit the subscriber to exchange automobiles during the subscription period. In addition, the increase in the penetration of automotive subscription service providers due to consumers' strong demand for car leasing services and the increase in government rules to regulate vehicle emissions substantially impact the growth of the Car Subscription industry. During the projected period, the rise in population, fast urbanization, and industrialization are expected to support the development of the car subscription market.


  • The multi-brand market dominates the subscription-type segment.
  • The 1 to 6 months subscription period dominates the market.
  • Independent/third-party service providers dominate the service provider segment.
  • The corporate segment dominates the market by end-use.

Market Snapshot

Base Year:
Study Period:
31.7 %
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Market Dynamics

The Middle East and Africa Car Subscription Market Drivers

Advantages Over Leasing to Drive Market Expansion

Vehicle leasing is less expensive than car subscription services over the long term. However, auto subscription has advantages over car leasing. Multiple switching of subscribing vehicles under predetermined conditions is not available with car leasing. In addition, car leasing incurs maintenance, repairs, insurance, licensing, and taxes costs. In contrast, service providers are responsible for all these auto subscription fees. In addition, the contract duration in car leasing is lengthy but seldom exceeds two years, allowing for short-term usage and simple vehicle replacement. These advantages over automotive leasing services are anticipated to have increased the demand for car subscription services in recent years.

The Middle East and Africa Car Subscription Market Restraint

Cost-efficiency of Leasing Model Over Subscription Schemes

Among the benefits of a car subscription are switching between many vehicles and shorter-term service agreements. Long-term, a subscription is more expensive than leasing or purchasing a car. Options for automobile subscriptions include monthly billing cycles and mileage restrictions. An automobile subscription has a higher monthly premium than leasing or buying a vehicle for over two years. In addition, most service providers impose a mileage limit on cars for a specified period; violating this limit results in additional expenses for the end user. These monthly servicing fees and other costs are negligible when leasing or owning a vehicle. In the coming years, the high price of the subscription model will likely hinder the demand for car subscriptions.

The Middle East and Africa Car Subscription Market Opportunities

Strategic Partnerships with Automobile Manufacturers

End-users of automobile subscriptions select vehicles from certified providers that are dependable. In addition, automakers are starting their automobile subscription service vertical and establishing a partner network to serve uncharted territories. Changing consumer attitudes toward vehicle subscription as they adopt the service from a particular vehicle brand provider and market participants of car subscription must engage in a strategic partnership to achieve long-term business opportunities and gain a competitive advantage in the global market. Under the collaboration agreement with Rev, Hyundai Motor India, for example, announced the launch of a subscription model in six Indian cities in 2019.

Segmental Analysis

The car subscription market is segmented by Subscription Type, Subscription Period, Service Provider and End-Use.

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 is expected to grow at a robust CAGR of 33.1% because it allows subscribers to switch between brands, increasing flexibility and convenience.

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 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.

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

The corporate segment dominates the market and is anticipated to grow at a CAGR of 29.2% during the forecast period.

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Regional Analysis

The Middle East and Africa hold a significant market share. The Saudi Arabian car rental and leasing business is predicted to increase due to the country's expanding youth population and even faster-growing female driver sector. A few new enterprises in the region provide inexpensive monthly rental options. Swapp partnered with Uber-owned Careem to offer flexible car rentals on its mobile app, while Ekar raised USD 17.5 million in Series B funding in 2019. Additionally, Invygo, a startup with operations in the UAE and Saudi Arabia, raised USD 10 million in Series A funding, headed by MEVP, to expand its car-rental business in the region. It offers three distinct rental service choices. Using the short-term option, people can rent a vehicle for one, three, six, or nine months.

In addition, Toyota South Africa and Kinto have introduced the Kinto One automobile subscription service in the country, allowing drivers to enjoy all the benefits of driving a new car without purchasing one. In Africa, individuals and businesses can access the pay-per-use subscription model, which combines warranty, service, and maintenance fees into a single monthly payment.


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Top Key Players of 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

Report Scope

Report Metric Details
CAGR 31.7%
Forecast Period 2023-2031
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Segments Covered
  1. By Subscription Type
    1. Single Brand
    2. Multi 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-Use
    1. Private
    2. Corporate

Middle East and Africa Car Subscription Market Segmentations

By Subscription Type

  • Single Brand
  • Multi Brand

By Subscription Period

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

By Service Provider

  • OEM
  • Third-party Service Provider

By End-Use

  • Private
  • Corporate

By Countries

  • UAE
  • Turkey
  • Saudi Arabia
  • South Africa
  • Egypt
  • Nigeria
  • Rest of MEA

Frequently Asked Questions (FAQs)

How big is the Middle East and Africa car subscription market?
The Middle East and Africa car subscription market size was valued at USD 122 million in 2021. It is projected to reach USD 1,378 million by 2030, growing at a CAGR of 31.7% during the forecast period (2022-2030).
Key verticals adopting the Middle East and Africa car subscription market include: Daimler AG, Drover Limited, Facedrive Inc., Fair Financial Corp., OpenRoad Auto Group, Porsche AG, Prime mover Mobility Technologies Pvt Ltd., The Hertz Corporation, Toyota Motor Corporation, Volvo Car Corporation
Advantages over leasing to drive market expansion is the key drivers for the growth of the Middle East and Africa car subscription market.
Strategic partnerships with automobile manufacturers is one of the key trends in the Middle East and Africa car subscription market.
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