How Has The Vehicle Subscription Market Size Evolved Historically?
The vehicle subscription market has seen considerable growth due to a variety of factors.
• The car subscription market has seen substantial growth over recent years. Projected to expand from a market cap of $6.61 billion in 2024 to $8.29 billion in 2025, indicating a compound annual growth rate (CAGR) of 25.3%. This surge during the historical period can be associated with alterations in consumer transportation choices, the trend towards urbanization, variety in vehicle fleets, digital advancements in the auto industry, and the consumer's preference for a seamless experience.
What is the Forecasted Market Size and CAGR for the Vehicle Subscription Market?
The Vehicle Subscription market is expected to maintain its strong growth trajectory in upcoming years.
• It is projected that significant positive shift will occur in the vehicle subscription market size in the coming years, expanding to $19.68 billion in 2029 with a compound annual growth rate (CAGR) of 24.1%.
Factors contributing to this anticipated increase include the rise of electric and autonomous vehicles, increasing sustainability and environmental issues, the adoption of mobility-as-a-service, commercial fleet subscription models, the use of data analytics and predictive modeling, and regulatory backing for mobility innovations. Key upcoming trends include the growth of subscription models beyond luxury cars, heightened use of digital platforms, the launch of tiered subscription plans, emphasis on flexibility and convenience, collaborations and partnerships, and subscription amenities for electric vehicles.
What Key Factors and Trends Are Driving The Growth Vehicle Subscription Market?
The rise in electric vehicle sales is predicted to boost the expansion of the vehicle subscription market in the future. Electric vehicles, powered by a battery-driven electric motor that can be charged from an outside source, offer a revised model of traditional car leasing known as electric car subscription. Acquiring an electric vehicle tends to be costly, and its long-term maintenance escalates these costs further. However, adopting a subscription model enables users to relish the experience of driving an electric car while bypassing many associated costs and challenges. To illustrate, the U.S. Energy Information Administration, a governmental agency, reported that the proportion of Battery Electric Vehicles (BEVs) in new light-duty vehicle sales hit 17.7% in the third quarter of 2023. So far this year, BEVs have made up 16.0% of all new vehicle sales, a considerable rise from 12.5% in 2022 and just 9.0% in 2021. Thus, the increasing prevalence of electric vehicle sales continues to fuel the growth trajectory of the vehicle subscription market.
What Are The Market Segments In The Vehicle Subscription Market?
The vehicle subscription market covered in this report is segmented –
1) By Vehicle Type: IC Powered Vehicle, Electric Vehicle
2) By Subscription: Single Brand, Multi Brand
3) By Service Provider: OEM Or Captives, Mobility Providers, Technology Companies
4) By End Use: Business, Private
Subsegments:
1) By IC Powered Vehicle: Sedan, SUV, Hatchback, Pickup Truck, Luxury Car
2) By Electric Vehicle: Battery Electric Vehicle (BEV), Plug-In Hybrid Electric Vehicle (PHEV), Hybrid Electric Vehicle (HEV)
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What Trends Are Shaping The Vehicle Subscription Market?
Advances in technology is a significant trend that is gaining momentum in the vehicle subscription market. Major players in this market are prioritizing the rollout of novel technologies to fortify their market status. For instance, in June 2022, Santander Consumer Finance, a financial services firm based in Spain, unveiled Ulity, a brand-new technology platform designed for vehicle subscription-based services for businesses. This revolutionary white-label technology platform is catered towards developing vehicle subscription-based solutions for the mobility service sector. By utilizing its profound industry knowledge and expertise, Santander Consumer Finance has developed its proprietary SaaS technology, making it available for different business entities and organizations. This allows these organizations to bypass the expenses of creating a unique solution, facilitate their entry into vehicle subscription services, and penetrate novel markets.
Who Are the Key Players In The Vehicle Subscription Market?
Major companies operating in the vehicle subscription market include:
• Daimler AG
• Drover Limited
• Facedrive Inc.
• Open Road Auto Group LLC
• Primemover Mobility Technologies Private Limited
• The Hertz Corporation
• Dr. Ing. h.c. F. Porsche AG
• Volvo Car Corporation
• Toyota Motor Corporation
• Clutch Technologies LLC
• General Motors Company
• FreshCar Inc.
• Drivemate Inc.
• LMP Motors Pvt. Ltd.
• Cluno GmbH
• Sixt SE
• Avis Budget Group Inc.
• Arval BNP Paribas
• ORIX Corporation
• Flexdrive Inc.
• Fair Financial Corp.
• BMW AG
• Mercedes-Benz USA LLC
• Audi of America Inc.
• Hyundai Motor America
• Carbar Pty Ltd.
• CarNext
• LeasePlan Corporation N.V.
What Are The Regional Insights Into The Vehicle Subscription Market?
North America was the largest region in the vehicle subscription market in 2024. Asia-Pacific is expected to be the fastest-growing region in the vehicle subscription market report during the forecast period. The regions covered in the vehicle subscription market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
