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Future of Vehicle Subscription - Business Models and Opportunities in North America and Europe, 2025

  • Report

  • 100 Pages
  • August 2018
  • Region: Europe, North America
  • Frost & Sullivan
  • ID: 4659830

Vehicle Subscription Targets 10% of New Vehicles Sales by 2025

The researchers define vehicle subscription as a shared mobility service where a customer can get access to temporary vehicle ownership - usually by the month. In other words, it can be described as micro leasing a vehicle for a shorter period. It is also sometimes referred as temporary ownership via renting a new car or leasing a used car. Vehicle subscription is unlike any other shared mobility service formats such as carsharing, rental, leasing and outright purchase. It is slotted in between these different services targeting a unique whitespace opportunity. Vehicle subscription, an emerging service, is offered under dedicated program names by various market participants to differentiate it from their other offerings.

This study discusses key topical areas within this emerging service, including: 1) if vehicle subscription would be perceived to be lower in cost than traditional car leasing or rental or ownership; 2) whether consumers would be willing to experiment and adopt until this factor is challenged in the future; 3) unique drivers such as One Flat Fee and its impact on the growth of vehicle subscription services; 4) why should such a service appeal to Baby Boomers, Gen - X customers, including Gen - Z, as well as premium customers, who are seen as key drivers for growth of this model; 5) how will this service coexist alongside car rental, long - term leasing, carsharing, and traditional car ownership.

Further, this study discusses how current vehicle subscription programs are in pilot stages or in limited availability and how most market participants expect a nationwide rollout of program offerings / global adoption largely by 2025. It also discusses the emerging area of vehicle subscription, mapping the market, various participants, and new business models as they evolve; analyzing via a comparative benchmark how participants target to be different with their unique marketplace offerings; and presenting regional similarities and differences between Europe and North America with respect to the entire emerging vehicle subscription economy.

This research study is also an effort to project if vehicle subscription will complement or replace the vehicle leasing / vehicle ownership business model. It serves to showcase how vehicle subscription will influence the new and used car market offerings, and analyzes if OEMs would be the first movers and fast followers while also understanding prospects targeting this space. It also helps to examine the impact of vehicle subscription on the future of mobility and car ownership, and how programs offered by OEMs are different from non - OEM solutions. Moreover, it helps to understand key current success stories and factors influencing vehicle subscription, including analyzing drivers and restraints impacting the vehicle subscription market.

Table of Contents

1. Executive Summary
  • Key Takeaways
  • Key Predictions
  • Vehicle Subscription Ecosystem
  • 38 Current Vehicle Subscription Programs
  • Current and Future Program Offerings
  • Major Cost Elements of the Programs
  • Vehicle Subscription Regional Differences
  • Program (Minimum) Costs Breakdown Analysis
  • Vehicle Subscription Forecast
  • OEM Programs’ Targeted Vehicle Segments
  • Key Conclusions and Future Outlook

2. Research Scope, Objectives, Background, and Methodology
  • Research Scope
  • Research Aims and Objectives
  • Key Questions this Study will Answer
  • Research Background
  • Research Methodology
  • Major Vehicle Subscription Programs Analyzed in this Research

3. Definitions
  • Vehicle Subscription Definition
  • One Flat Fee / One Bill - Definition

4. Emergence of Vehicle Subscription in North America and Europe
  • Vehicle Retailing Formats - Introduction
  • Footprint of Major Programs in the US
  • Leasing Penetration* into the Total Market in Europe

5. Overview of Vehicle Subscription - Market Drivers and Restraints
  • Vehicle Subscription Market Drivers
  • Market Drivers Explained
  • Specific Market Drivers of Growth Targeted by Major Participants
  • Vehicle Subscription Market Restraints
  • Restraints Explained

6. Introduction to Vehicle Subscription Participants in North America and Europe
  • Vehicle Subscription Ecosystem
  • 38 Current Vehicle Subscription Programs
  • OEM Vehicle Subscription Program Evolution
  • Vehicle Subscription - OEM and Dealer Program End Game
  • Vehicle Subscription - New Mobility, Tech Company Program End Game
  • Automotive OEMs Vehicle Subscription Programs
  • Non - Captive Participants Vehicle Subscription Offerings
  • Program (Minimum) Costs Breakdown Analysis
  • Vehicle Subscription Forecast
  • Vehicle Subscription Forecasts - Overall New and Used Vehicles Mix
  • Vehicle Subscription Forecasts - Overall as a Percent of New Vehicle Sales
  • Vehicle Subscription Forecasts - Overall Take - up Rate
  • Key Assumptions to Vehicle Subscription Forecasts

7. OEM Vehicle Subscription Programs Business Model Analysis
  • Vehicle Subscription - OEMs’ Program Status
  • Vehicle Subscription - OEMs’ Program Partners
  • Vehicle Subscription - OEM Programs’ Cities Footprint
  • Programs (OEM and Non - OEM) Operational in Key Locations in the US
  • Vehicle Subscription - OEMs Program Plans
  • Vehicle Subscription - Target Customers of OEM Programs
  • Vehicle Subscription - OEM Programs’ Total Ownership Cost
  • Vehicle Subscription - OEM Program Subscribers (at Launch, Future Target)
  • Vehicle Subscription - OEM Programs’ New and Used Cars Fleet Mix

8. OEM Vehicle Subscription Programs - Operational Model Analysis
  • Vehicle Subscription - OEM Programs’ Nameplates in Fleet
  • Vehicle Subscription - Age of OEM Program Vehicles
  • Vehicle Subscription - OEM Programs’ Target Vehicle Segments
  • Minimum Requirements for Program Enrollment in North America
  • Program Registration Fees for Enrollment in North America
  • Program Minimum Subscription Term in North America

9. Overview of Non - OEM Vehicle Subscription Program / Platform Providers
  • Program Platform Providers - Profile of Clutch and Flexdrive
  • Profile of Mobiliti
  • Profile of Revolve
  • Profile of DriveFlow
  • Profile of YoYo

10. Growth Opportunities within the Vehicle Subscription Market
  • Growth Opportunity - Vehicle Subscription
  • Strategic Imperatives for Success and Growth

11. Conclusions and Future Outlook
  • Key Conclusions
  • Legal Disclaimer

12. Appendix
  • Global Fleet & Leasing Program - 2017 Published Topics
  • Global Fleet & Leasing Program - 2013 - 2016 Published Topics
  • List of Exhibits

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Clutch
  • DriveFlow
  • Flashdrive
  • Mobiliti
  • Revolve
  • YoYo