Global Vehicle Subscription Market Size Worth USD 172.47 Billion, Globally, by 2029 at a CAGR of 75.3%
Fortune Business Insights
8 min read
Fortune Business Insights
Vehicle Subscription Market to Hit USD 172.47 Billion by 2029, at CAGR of 75.3% during 2022-2029; Europe to Hold Maximum Market Share during the Forecast Period.
Pune, India., April 04, 2023 (GLOBE NEWSWIRE) -- The global vehicle subscription market size was worth USD 2.11 billion in 2021. The market value is slated to rise from USD 3.38 billion in 2022 to USD 172.47 billion by 2029 at 75.3% CAGR during the forecast period. Customers pay a recurring monthly fee or subscription cost when they sign up for a service for one or more cars. The subscription costs for the car subscription model typically cover the cost of the subscribed vehicles' insurance, registration, maintenance, and repairs.
Industry Development:
Otonomo Inc., a leading vehicle data platform, in partnership with Lease Plan USA has agreed to offer highly advanced insights into behavior and vehicle performance.
Rising Cost of Vehicle Ownership to Boost Market Growth
Recent years have seen a rise in the popularity of car subscriptions because of how affordable and convenient they are. Convenience, flexibility, and lack of a long-term commitment are all provided by car subscriptions. As a result, it draws various customers, which is expected to speed up market growth during the forecast period. Automobile subscription services provide a range of deals at reasonable prices to draw in new clients while retaining the ones they already have.
Low Prices of Subscription of IC Engines to Fuel Market Growth
The market is divided into electric vehicles and IC engine based on vehicle type. IC engine segment accounted for the largest share in 2021, as it has low subscription prices than electric vehicles. IC engine vehicles are available in three ranges such as low, medium, and premium; hence, these factors are anticipated to drive market growth.
Greater Convenience and Flexibility of Multi Brand Subscription to Drive Market Growth
According to subscription type, the market is fragmented into single brand subscription and multi brand subscription.
Multi brand subscription segment accounted for the biggest share in 2021, providing customers with greater convenience and flexibility. Hence, the gaining popularity of multi-brand subscriptions is anticipated to drive the market.
Low-Cost Subscriptions Gaining Popularity to Propel Growth
Based on subscription period, the market is divided into 1 to 6 months, 6 to 12 months, and more than 12 months. The largest market share was held by 6 to 12 months in 2021 and is expected to continue the same position during the forecast period. The growing interest of people toward cost-effectiveness and mobility is expected to gain impetus in the market.
Large Range Offerings of Independent Third Party Providers to Drive Growth
On the basis of service provider, the market is bifurcated into independent third party providers and OEM/captives.
In 2021, the independent third party providers segment showed dominance in the market and was estimated to continue that position in the coming years. A growing number of well-known automotive brands offering their subscription services is expected to gain growth for the OEM/captives segment during the forecast period.
Competitive Landscape-
Market Players Focus on New Product Launches to Strengthen Market Position
Leading vehicle subscription companies are competing to increase their market share by providing solutions that are specific to particular sectors. These players strategically work with and take over local rivals to gain a solid regional footing. These companies prioritize developing innovative products and effective marketing strategies to capture a larger market share. It is projected that the growing volume of international trade will present lucrative opportunities for market players.
Europe Holds Dominant Share owing to the Presence of Several Auto Majors
Europe dominated the global vehicle subscription market share in 2021 with a market size of 0.91 billion, and it is anticipated that this dominance will continue. Numerous start-ups that provide mobility services and well-known automakers such as Mercedes, BMW, and others are causing the market to grow. Furthermore, Europe has a strong presence in the automotive sector; as a result, turning European automakers' attention to business models based on mobility services to diversify their operations and meet the needs of the younger generation is anticipated to impact the market in the region favorably.
Report Coverage:
Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
Comprehensive insights into regional developments.
List of major industry players.
Key strategies adopted by the market players.
Recent industry developments include product launches, partnerships, mergers, and acquisitions.
Fortune Business Insights™ delivers accurate data and innovative corporate analysis, helping organizations of all sizes make appropriate decisions. We tailor novel solutions for our clients, assisting them to address various challenges distinct to their businesses. Our aim is to empower them with holistic market intelligence, providing a granular overview of the market they are operating in.
