The vehicle subscription market size has grown exponentially in recent years. It will grow from $5.34 billion in 2023 to $6.71 billion in 2024 at a compound annual growth rate (CAGR) of 25.8%. The growth observed in the historical period can be attributed to several influential factors. These include shifting preferences in consumer mobility, ongoing urbanization trends affecting transportation needs, increased diversity in vehicle fleets offering various options, the digital transformation within the automotive industry introducing innovative services, and the rising consumer demand for convenient and hassle-free mobility experiences. These factors collectively contributed to the expansion and evolution of vehicle subscription services during the historical period.
The vehicle subscription market size is expected to see exponential growth in the next few years. It will grow to $16 billion in 2028 at a compound annual growth rate (CAGR) of 24.2%. The anticipated growth in the forecast period is expected to be fueled by several significant factors. These include the expansion of electric and autonomous vehicles within the automotive landscape, growing concerns and initiatives regarding sustainability and environmental impact, the integration of Mobility-as-a-Service (MaaS) solutions offering diverse transportation options, the adoption of subscription models for commercial fleet management, advancements in data analytics and predictive modeling enhancing service efficiency, and the regulatory support encouraging innovations in mobility solutions. Key trends projected for the forecast period encompass the extension of subscription models beyond luxury vehicles to a wider market segment, increased integration of digital platforms for seamless user experiences, the introduction of tiered subscription plans offering diverse features, an emphasis on flexibility and convenience in subscription offerings, collaborations and partnerships among industry players to enhance service offerings, and the introduction of subscription services tailored specifically for electric vehicles, catering to the rising demand for sustainable transportation solutions. These trends are expected to shape the evolution of vehicle subscription services in the foreseeable future.
The expansion of electric vehicle (EV) sales is anticipated to be a driving force behind the growth of the vehicle subscription market in the future. Electric vehicles, powered by electric motors and rechargeable batteries, have gained popularity, and the subscription model offers a cost-effective and hassle-free way for users to experience driving an EV without the financial burden of ownership. As highlighted in the May 2022 Global EV Outlook report, EV sales witnessed a significant surge in 2021, reaching 6.6 million units globally, reflecting a doubling of sales from the previous year. This upward trend in electric vehicle adoption is a key factor contributing to the growth of the vehicle subscription market.
The rapid pace of urbanization is also poised to drive the expansion of the vehicle subscription market. Urbanization, the process of population concentration in cities and towns, often leads to increased traffic congestion in urban areas. Vehicle subscription services present an attractive solution for urban dwellers, offering flexible and convenient transportation alternatives without the challenges associated with owning and parking personal vehicles. According to data from the United Nations Department of Economic and Social Affairs, the global urban population reached 4.46 billion in 2021, and this number is projected to rise to 6.68 billion by 2050. The substantial growth in urbanization is expected to fuel high demand for vehicle subscription services, particularly in congested urban environments.
Technological advancements have become a prominent trend in the vehicle subscription market, with major companies striving to integrate new technologies and enhance their market positioning. An illustrative example is Santander Consumer Finance, a Spain-based financial services company, which, in June 2022, introduced Ulity, a cutting-edge technology platform designed for vehicle subscription-based solutions targeting businesses. This white-label technology platform, developed as Software as a Service (SaaS), is specialized for creating vehicle subscription solutions in the mobility service industry. Santander Consumer Finance leveraged its industry expertise to develop this platform, allowing other companies to utilize it without the need for extensive development costs. This approach enables businesses to expand their customer base, streamline entry into the vehicle subscription services sector, and explore new markets.
Strategic partnerships have emerged as a key focus for major companies in the vehicle subscription market to fortify their market positions. In June 2023, Arval, a France-based vehicle leasing and fleet management company, collaborated with MG Motor, a UK-based automotive company, to introduce a car subscription model in Germany. This strategic partnership addresses the growing demand for subscription-based alternatives to traditional car ownership. The collaboration, named MG Auto Abo and powered by Arval, offers customers a flexible contract term and the benefits of full-service leasing. Initially featuring the MG4 Electric, a 2023 model known for its impressive WLTP range of 435 kilometers, the subscription aims to cater to consumer preferences for electric vehicles. Arval and MG Motor plan to extend the Auto Abo subscription to business customers and gradually expand the vehicle selection.
In October 2021, ALD Automotive, a French company specializing in fleet management and operational car leasing, completed the acquisition of Fleetpool for an undisclosed sum. This strategic acquisition positions ALD to expedite the development of digital automotive subscription services aimed at clients, employees, and private consumers while expanding the geographical presence of its mobility solutions throughout Europe. Fleetpool, a German firm specializing in car subscription services catering to individuals, partners, and businesses, will facilitate ALD's growth in this sector.
Major companies operating in the vehicle subscription market report are Daimler Aktiengesellschaft, 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., Lyft Inc., Arval BNP Paribas, ORIX Corporation, Zipcar Inc., 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..
North America was the largest region in the vehicle subscription market in 2023. 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. The countries covered in the vehicle subscription market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The primary vehicle types available for subscription services include IC-powered vehicles, which operate using a traditional internal combustion engine burning fuel in a combustion chamber with the help of an oxidizer, usually oxygen from the air. Another category comprises electric vehicles (EVs), which use electric motors powered by rechargeable batteries. Subscription services come in various types such as single-brand subscriptions, which involve access to vehicles from a single manufacturer, and multi-brand subscriptions that offer access to a range of vehicles from different manufacturers. Service providers in the vehicle subscription business include Original Equipment Manufacturers (OEMs) or captives, mobility providers, and technology companies. These subscription services cater to both business and private end-users, offering flexible mobility solutions.
The vehicle subscription market research report is one of a series of new reports that provides vehicle subscription market statistics, including vehicle subscription industry global market size, regional shares, competitors with a vehicle subscription market share, detailed vehicle subscription market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle subscription industry. This vehicle subscription market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
The vehicle subscription market size is expected to see exponential growth in the next few years. It will grow to $16 billion in 2028 at a compound annual growth rate (CAGR) of 24.2%. The anticipated growth in the forecast period is expected to be fueled by several significant factors. These include the expansion of electric and autonomous vehicles within the automotive landscape, growing concerns and initiatives regarding sustainability and environmental impact, the integration of Mobility-as-a-Service (MaaS) solutions offering diverse transportation options, the adoption of subscription models for commercial fleet management, advancements in data analytics and predictive modeling enhancing service efficiency, and the regulatory support encouraging innovations in mobility solutions. Key trends projected for the forecast period encompass the extension of subscription models beyond luxury vehicles to a wider market segment, increased integration of digital platforms for seamless user experiences, the introduction of tiered subscription plans offering diverse features, an emphasis on flexibility and convenience in subscription offerings, collaborations and partnerships among industry players to enhance service offerings, and the introduction of subscription services tailored specifically for electric vehicles, catering to the rising demand for sustainable transportation solutions. These trends are expected to shape the evolution of vehicle subscription services in the foreseeable future.
The expansion of electric vehicle (EV) sales is anticipated to be a driving force behind the growth of the vehicle subscription market in the future. Electric vehicles, powered by electric motors and rechargeable batteries, have gained popularity, and the subscription model offers a cost-effective and hassle-free way for users to experience driving an EV without the financial burden of ownership. As highlighted in the May 2022 Global EV Outlook report, EV sales witnessed a significant surge in 2021, reaching 6.6 million units globally, reflecting a doubling of sales from the previous year. This upward trend in electric vehicle adoption is a key factor contributing to the growth of the vehicle subscription market.
The rapid pace of urbanization is also poised to drive the expansion of the vehicle subscription market. Urbanization, the process of population concentration in cities and towns, often leads to increased traffic congestion in urban areas. Vehicle subscription services present an attractive solution for urban dwellers, offering flexible and convenient transportation alternatives without the challenges associated with owning and parking personal vehicles. According to data from the United Nations Department of Economic and Social Affairs, the global urban population reached 4.46 billion in 2021, and this number is projected to rise to 6.68 billion by 2050. The substantial growth in urbanization is expected to fuel high demand for vehicle subscription services, particularly in congested urban environments.
Technological advancements have become a prominent trend in the vehicle subscription market, with major companies striving to integrate new technologies and enhance their market positioning. An illustrative example is Santander Consumer Finance, a Spain-based financial services company, which, in June 2022, introduced Ulity, a cutting-edge technology platform designed for vehicle subscription-based solutions targeting businesses. This white-label technology platform, developed as Software as a Service (SaaS), is specialized for creating vehicle subscription solutions in the mobility service industry. Santander Consumer Finance leveraged its industry expertise to develop this platform, allowing other companies to utilize it without the need for extensive development costs. This approach enables businesses to expand their customer base, streamline entry into the vehicle subscription services sector, and explore new markets.
Strategic partnerships have emerged as a key focus for major companies in the vehicle subscription market to fortify their market positions. In June 2023, Arval, a France-based vehicle leasing and fleet management company, collaborated with MG Motor, a UK-based automotive company, to introduce a car subscription model in Germany. This strategic partnership addresses the growing demand for subscription-based alternatives to traditional car ownership. The collaboration, named MG Auto Abo and powered by Arval, offers customers a flexible contract term and the benefits of full-service leasing. Initially featuring the MG4 Electric, a 2023 model known for its impressive WLTP range of 435 kilometers, the subscription aims to cater to consumer preferences for electric vehicles. Arval and MG Motor plan to extend the Auto Abo subscription to business customers and gradually expand the vehicle selection.
In October 2021, ALD Automotive, a French company specializing in fleet management and operational car leasing, completed the acquisition of Fleetpool for an undisclosed sum. This strategic acquisition positions ALD to expedite the development of digital automotive subscription services aimed at clients, employees, and private consumers while expanding the geographical presence of its mobility solutions throughout Europe. Fleetpool, a German firm specializing in car subscription services catering to individuals, partners, and businesses, will facilitate ALD's growth in this sector.
Major companies operating in the vehicle subscription market report are Daimler Aktiengesellschaft, 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., Lyft Inc., Arval BNP Paribas, ORIX Corporation, Zipcar Inc., 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..
North America was the largest region in the vehicle subscription market in 2023. 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. The countries covered in the vehicle subscription market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The primary vehicle types available for subscription services include IC-powered vehicles, which operate using a traditional internal combustion engine burning fuel in a combustion chamber with the help of an oxidizer, usually oxygen from the air. Another category comprises electric vehicles (EVs), which use electric motors powered by rechargeable batteries. Subscription services come in various types such as single-brand subscriptions, which involve access to vehicles from a single manufacturer, and multi-brand subscriptions that offer access to a range of vehicles from different manufacturers. Service providers in the vehicle subscription business include Original Equipment Manufacturers (OEMs) or captives, mobility providers, and technology companies. These subscription services cater to both business and private end-users, offering flexible mobility solutions.
The vehicle subscription market research report is one of a series of new reports that provides vehicle subscription market statistics, including vehicle subscription industry global market size, regional shares, competitors with a vehicle subscription market share, detailed vehicle subscription market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle subscription industry. This vehicle subscription market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
This product will be delivered within 3-5 business days.
Table of Contents
1. Executive Summary2. Vehicle Subscription Market Characteristics3. Vehicle Subscription Market Trends and Strategies31. Global Vehicle Subscription Market Competitive Benchmarking32. Global Vehicle Subscription Market Competitive Dashboard33. Key Mergers and Acquisitions in the Vehicle Subscription Market
4. Vehicle Subscription Market - Macro Economic Scenario
5. Global Vehicle Subscription Market Size and Growth
6. Vehicle Subscription Market Segmentation
7. Vehicle Subscription Market Regional and Country Analysis
8. Asia-Pacific Vehicle Subscription Market
9. China Vehicle Subscription Market
10. India Vehicle Subscription Market
11. Japan Vehicle Subscription Market
12. Australia Vehicle Subscription Market
13. Indonesia Vehicle Subscription Market
14. South Korea Vehicle Subscription Market
15. Western Europe Vehicle Subscription Market
16. UK Vehicle Subscription Market
17. Germany Vehicle Subscription Market
18. France Vehicle Subscription Market
19. Italy Vehicle Subscription Market
20. Spain Vehicle Subscription Market
21. Eastern Europe Vehicle Subscription Market
22. Russia Vehicle Subscription Market
23. North America Vehicle Subscription Market
24. USA Vehicle Subscription Market
25. Canada Vehicle Subscription Market
26. South America Vehicle Subscription Market
27. Brazil Vehicle Subscription Market
28. Middle East Vehicle Subscription Market
29. Africa Vehicle Subscription Market
30. Vehicle Subscription Market Competitive Landscape and Company Profiles
34. Vehicle Subscription Market Future Outlook and Potential Analysis
35. Appendix
Executive Summary
Vehicle Subscription Global Market Report 2024 provides strategists, marketers and senior management with the critical information they need to assess the market.This report focuses on vehicle subscription market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Reasons to Purchase
- Gain a truly global perspective with the most comprehensive report available on this market covering 50+ geographies.
- Understand how the market has been affected by the COVID-19 and how it is responding as the impact of the virus abates.
- Assess the Russia-Ukraine war’s impact on agriculture, energy and mineral commodity supply and its direct and indirect impact on the market.
- Measure the impact of high global inflation on market growth.
- Create regional and country strategies on the basis of local data and analysis.
- Identify growth segments for investment.
- Outperform competitors using forecast data and the drivers and trends shaping the market.
- Understand customers based on the latest market shares.
- Benchmark performance against key competitors.
- Suitable for supporting your internal and external presentations with reliable high quality data and analysis
- All data from the report will also be delivered in an excel dashboard format.
Description
Where is the largest and fastest growing market for vehicle subscription? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? This report answers all these questions and many more.The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.
Scope
Markets Covered: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
Companies Mentioned: Daimler Aktiengesellschaft; Drover Limited; Facedrive Inc.; Open Road Auto Group LLC; Primemover Mobility Technologies Private Limited
Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
Time series: Five years historic and ten years forecast.
Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
Delivery format: PDF, Word and Excel Data Dashboard.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Daimler Aktiengesellschaft
- 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.
- Lyft Inc.
- Arval BNP Paribas
- ORIX Corporation
- Zipcar Inc.
- 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.
Methodology
LOADING...