According to recent market study published by Nova One Advisor Market reports titled, “Global Vehicle Subscription Market Size, Share, Trends Analysis , Opportunity and Forecast, 2021-2027”, the market was valued at US$ 80.2 Billion by 2027 and is expected to grow at a moderate growth rate of 14.20% by the year 2027.
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The surge in the adoption of vehicle subscription model across the world owing to its cost-effectiveness and offering easy user access to vehicles is expected to drive the growth of the market. For instance, On 29th September 2021, General Motors announced the development of “Ultifi” software platform for its cars. This new software will facilitate in-car subscription services, over-the-air (OTA) updates and “new opportunities to increase customer loyalty. The automaker conceptualizes the new software powering everything starting from the mundane, such asweather apps, to potentially disputable features like the use of in-car cameras for facial recognition or to detect children to automatically activate the car’s child locks. The third partydevelopers will also be able to use this Linux-based system, who wishes to create apps and other features for GM customers.
Also, the increase in penetration of vehicle subscription service providers due to increased demand for vehicle leasing services by consumers and the strict regulations by governments in order to control emissions from vehicles are some of the factors that is accelerating the growth of the vehicle subscription market.
The rapid increase in the consumers disposable income in the developing countries are fostering the market growth. Furthermore, the factors such as the increase in population, rapid urbanization and industrialization are anticipated to fuel the market growth
Drivers of Vehicle Subscription Market
Flexibility, convenience, and affordability are key factors driving the vehicle subscription market. Car subscription services represent a fundamental paradigm shift for the average automotive consumer. Instead of buying or even leasing, consumers are likely to subscribe to the vehicle, while paying a monthly subscription fee that covers complete vehicle maintenance expenses such as insurance, regular vehicle maintenance, and roadside assistance. Moreover, vehicle subscribers can swap or quit the subscribed vehicle without paying extra charges, which is nor facilitated in the vehicle leasing model. Therefore, these benefits are propelling the vehicle subscription market.
Challenges for Vehicle Subscription Market
Major restraint to the global vehicle subscription market is the well-established vehicle leasing, rental, and sharing market
Large number of vehicle leasing, rental, and shared mobility service providers are operating across the globe and hence, vehicle leasing and sharing services have a strong foothold across the globe. This, in turn, is restraining the global vehicle subscription market.
Design of more flexible leasing models and better ride-hailing features offered by service providers are estimated to further restrain the vehicle subscription market
Segmentation of Vehicle Subscription Market analysis:
The global vehicle subscription market has been segmented based on subscription type, service provider, package, end user, and region
Based on subscription type, the multi brand segment dominated the global vehicle subscription market, as currently with multi brand mobility, providers offer the flexibility of switching to cross-brands. Thus, multi brand subscription type holds a major share of the market.
Based on service type, the mobility providers segment holds a major share of the market, as mobility providers are early adopters of vehicle subscription model, while in recent times, OEMs have started offering vehicle subscription, individually, and with the support of technology companies
Based on package, the standard segment is estimated to hold a major share of the market. This segment is likely to maintain its dominance of the market.
Based on end user, the private segment accounted for a major share, while business class end users have started adopting subscription models. The business segment is projected to gain higher market share in the near future.
- The IC powered vehicle segment is expected to lead the market contributing more than 71% of the revenue share in the upcoming years.
- The corporate end use segment of the Vehicle Subscription Market is estimated to lead the market with a market share of more than 60% in 2020.
- By Geography, Asia Pacificis expected to grow significantly with a CAGR of 28% during the forecast period because of the surge in urbanization, industrialization and massive population present in this region.
Asia Pacific is anticipated to grow significantly during the forecast period and with a CAGR of more than 28% of the market share due to the presence of developing countries engaged in activities such as rapid urbanization and industrialization. Also, the presence of huge population in this region fosters the growth of Vehicle Subscription market. For instance, On 15th December 2020, Hyundai Motor India announced that its vehicle subscription services has seen increasing demand specially among the millennials and tech savvy individuals.
COVID-19 Impact on Vehicle Subscription Sales
- Businesses today are operating in a dynamic environment. Earlier focus primarily concentrated on keeping pace with changing consumer preferences. COVID-19 outbreak was unprecedented and exposed vulnerabilities of various industries. Pandemic-induces obstacles also were registered in the Vehicle Subscription market.
- Sales plummeted as COVID-19 gradually tightened its noose worldwide. Supply-chain disruptions caused massive losses, while demand took nose-dive as consumers remained indoors with affected countries implementing either partial or complete lockdown.
- Gradual recovery however is on the cards with the roll out of vaccinations. Nonetheless, consecutive waves of the virus compelled businesses to stay prepared for the worst. As government and healthcare organizations successfully implement steps to contain the spread of COVID-19, industries have begun operations, albeit at a slow and more cautious pace.
- Against this backdrop, Nova one advisor’s study predicts gradual recovery for the Vehicle Subscription market 2021 onwards. This trend will however continue through the course of the report’s assessment period
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Recent report on the Vehicle Subscription market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the Vehicle Subscription market analyzes the scenario for the period of 2017 to 2027, wherein, 2021 is the base year and 2020 is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of Information enclosed in the study. The report also provides the compound annual growth rate (CAGR) of the global Vehicle Subscription market for the forecast period of 2021–2027. This data can help readers interpret quantitative growth aspects of the global market during the forecast period. It presents a wealth of information on key market dynamics, including drivers, market trends, and challenges, as well as the structure of the global market across the globe.
The report analyzes the historical and present-day scenario of the global Vehicle Subscription market to accurately gauge its growth potential. The study presents detailed information about important growth factors, restraints, and key trends that are creating the landscape for growth of the global market in order to identify opportunities for stakeholders.
The report includes an elaborate executive summary, along with a snapshot of the growth behavior of various segments in the scope of the study. Moreover, the report sheds light on the changing competitive dynamics in the Vehicle Subscription market. These indices serve as valuable tools for existing market players as well as for entities interested in participating in the market.
The report delves into the competition landscape of the global Vehicle Subscription market. Key players operating in the market have been identified and each one of these has been profiled for distinguishing business attributes. Company overview, financial standings, recent developments, and SWOT are some of the attributes of players in the Vehicle Subscription market that are profiled in this report.
Y-o-Y growth comparison, volume and revenue comparison, and market share comparison of various market segments are provided in the report. The Vehicle Subscription market is analyzed at both regional and country levels.
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Some of the prominent players in the Vehicle Subscription Market include: Fair Financial Corp, Clutch Technology, CarNext, FlexDrive, Cluno GmbH, and DriveMyCar Rentals Pty Ltd.
Unravelling the Critical Segments
This research report offers market revenue, sales volume, production assessment and prognoses by classifying it on the basis of various aspects including product type, application/end-user, and region. Further, this research study investigates market size, production, consumption and its development trends at global, regional, and country level for period 2017 to 2027 and covers subsequent region in its scope:
- Vehicle Subscription Market, by Subscription Type
- Single Brand
- Multi Brand
- Vehicle Subscription Market, by Service Provider
- Mobility Providers
- Technology Companies
- Vehicle Subscription Market, by Package
- Vehicle Subscription Market, by End User
A unique research methodology has been utilized to conduct a comprehensive research on the growth of the global Vehicle Subscription market and arrive at conclusions on the future growth prospects of the market. This research methodology is a combination of primary and secondary research, which helps analysts warrant the accuracy and reliability of the drawn conclusions. Secondary sources referred to by analysts during the production of the global market report include statistics from company annual reports, SEC filings, company websites, World Bank database, investor presentations, regulatory databases, government publications, and industry white papers. Analysts have also interviewed senior managers, product portfolio managers, CEOs, VPs, and market intelligence managers, who contributed to the production of our study on the market as a primary source.
These primary and secondary sources provided exclusive information during interviews, which serves as a validation from mattress topper industry leaders. Access to an extensive internal repository and external proprietary databases allows this report to address specific details and questions about the global Vehicle Subscription market with accuracy. The study also uses the top-down approach to assess the numbers for each segment and the bottom-up approach to counter-validate them. This has helped to estimates the future prospects of the global market more reliable and accurate.
Key Questions are
- What are the key factors influencing the Vehicle Subscription market in each region?
- How much value will the global market generate by the end of the forecast period?
- What will be the CAGR of the global market between 2021 and 2027?
- What would be the Y-o-Y growth trend of the global market between 2021 and 2027?
- What is the future scope and current trends in technologies of the global market?
- What is the revenue of the global market based on segments?
- Which key strategies are used by top players of the global market?
- Which are the leading companies in the global market?
- What are the essential strategies by key stakeholders in the market to expand their geographic presence?
- What are the major advancements witnessed in the global market?
Why should you invest in this report?
If you are aiming to enter the global Vehicle Subscription market, this report is a comprehensive guide that provides crystal clear insights into this niche market. All the major application areas for Vehicle Subscription are covered in this report and information is given on the important regions of the world where this market is likely to boom during the forecast period of 2021-2027 so that you can plan your strategies to enter this market accordingly.
Besides, through this report, you can have a complete grasp of the level of competition you will be facing in this hugely competitive market and if you are an established player in this market already, this report will help you gauge the strategies that your competitors have adopted to stay as market leaders in this market. For new entrants to this market, the voluminous data provided in this report is invaluable.
Thanks for reading you can also get individual chapter-wise sections or region-wise report versions such as North America, Europe, or the Asia Pacific.
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