Market of Vehicle Subscription

The vehicle subscription market is expected to witness significant growth over the next few years. The rising preference of consumers towards flexible all-inclusive plans and limiting large up-front costs associated with vehicle ownership are expected to drive the demand for vehicle subscriptions. Additionally, improving vehicle connectivity and frequent technology upgrades available in vehicle subscriptions are appealing to many consumers. As internet and technology penetration increases globally, newer regions are expected to adopt vehicle subscriptions, thus pushing market revenues higher between 2024 and 2031.

Recent Growth in Vehicle Subscription Market

Analysis Report By End-User (Business, Private) By Service Provider (OEM/Captives, Independent Third-Party Providers) By Subscription Type (Single Brand Subscription, Multi Brand Subscription) By Subscription Period (1 to 6 Months, 6 to 12 Months, More than 12 Months) By Vehicle Type (IC Engine, Electric Vehicles), Global Economy Insights, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2023 – 2031Global Vehicle Subscription Market size was valued at USD 5.4 Billion in 2022 and is projected to reach USD 62.05 Billion by 2031, growing at a CAGR of 35.3% from 2022 to 2031 according to a new report by IMIR Market Research.

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.

Market Drivers & Restraints:

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.

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.

Segments:

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

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.

Key Player Working in Vehicle Subscription Segments

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.

Vehicle Subscription Market Segmentation Analysis:

By End-User

• Business
• Private

By Service Provider

• OEM/Captives
• Independent Third-Party Providers

By Subscription Type

• Single Brand Subscription
• Multi Brand Subscription

By Subscription Period

• 1 to 6 Months
• 6 to 12 Months
• More than 12 Months

By Vehicle Type

• IC Engine
• Electric Vehicles

Global Vehicle Subscription Market Regional Analysis

North America accounted for the highest xx% market share in terms of revenue in the Vehicle Subscription Market and is expected to expand at a CAGR of xx% during the forecast period. This growth can be attributed to the growing adoption of Vehicle Subscription . The market in APAC is expected to witness significant growth and is expected to register a CAGR of xx% over upcoming years, because of the presence of key Vehicle Subscription companies in economies such as Japan and China.