Overview and Scope
Vehicle subscription is a type of service which enables a consumer to drive away in an automobile instead of paying a monthly fee and having full access to the car without making a down payment. It is a business where a client pays on a recurring basis to use one or more automobiles.
Sizing and Forecast
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 in the historic period can be attributed to changing consumer mobility preferences, urbanization trends, vehicle fleet diversity, digital transformation in automotive industry, consumer desire for hassle-free experience.
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 growth in the forecast period can be attributed to expansion of electric and autonomous vehicles, sustainability and environmental concerns, integration of mobility-as-a-service, subscription models for commercial fleets, data analytics and predictive modeling, regulatory support for mobility innovations. Major trends in the forecast period include expansion of subscription models beyond luxury vehicles, increased integration of digital platforms, introduction of tiered subscription plans, focus on flexibility and convenience, collaborations and partnerships, subscription services for electric vehicles.
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Segmentation & Regional Insights
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
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
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Major Driver Impacting Market Growth
Increased penetration of electric vehicle sales is expected to propel the growth of the vehicle subscription market going forward. An electric vehicle which is propelled by an electric motor that is powered by a battery and can be charged from an external source. An electric car subscription is car leasing which has been redesigned and is thought to be a wiser method to lease a car. The purchase of an electric vehicle is expensive, and maintaining one for several years is even more expensive. With a membership, a user may enjoy driving an electric car while eliminating many of the related expenditures and difficulties. For instance, according to May 2022 published, Global EV Outlook 2022 report, electric vehicle (EV) sales had doubled from the previous year in 2021, reaching a new high of 6.6 million. Additionally, the sales of electric car vehicles worldwide in 2021 have reached 6600000 units from 2980000 units. Therefore, the increased penetration of electric vehicle sales is driving the growth of the vehicle subscription market going forward.
Key Industry Players
Major companies operating in the vehicle subscription market are focusing on strategic partnerships to sustain their position in the market. This strategic partnership refers to a formal alliance between two companies with the specific goal of achieving mutual benefits and objectives. For instance, in June 2023, Arval, a France-based vehicle leasing and fleet management company that provides full-service leasing solutions for businesses, and MG Motor, a UK-based automotive company, joined forces to introduce a car subscription model in Germany, responding to the growing popularity of 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 advantages of full-service leasing. Initially featuring the MG4 Electric in luxury trim, 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.
The vehicle subscription market report table of contents includes:
1. Executive Summary
2. Vehicle Subscription Market Characteristics
3. Vehicle Subscription Market Trends And Strategies
4. Vehicle Subscription Market – Macro Economic Scenario
5. Global Vehicle Subscription Market Size and Growth
….
31. Global Vehicle Subscription Market Competitive Benchmarking
32. Global Vehicle Subscription Market Competitive Dashboard
33. Key Mergers And Acquisitions In The Vehicle Subscription Market
34. Vehicle Subscription Market Future Outlook and Potential Analysis
35. Appendix
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