Car Subscription Market to Grow with a CAGR of 25.89% through 2031F
The potentially higher overall cost of car subscriptions, when compared to traditional leasing or outright purchase, represents a significant impediment to the expansion of the global car subscription market.
According to TechSci Research report, “Global Car Subscription Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031F”, The Global Car Subscription Market is projected to grow from USD 10.51 Billion in 2025 to USD 41.84 Billion by 2031 at a 25.89% CAGR. Car subscription is the amalgamation of both
car leasing and car rental services and contains the benefits of both the
services. Duration for opting car subscription services generally ranges from
minimum 1 month to maximum 2 years. Due to the rising expansion of the
automotive network and presence of top companies in developed regions, the
concept of car subscription is gaining momentum. Car subscription service
providers are aligning their operations in response to customers demand, which
is aiding in increasing the market demand for the next five years. Also, the
increasing adoption of term ‘temporary ownership’ by the youth population
around the globe is contributing significantly to the market growth. Consumers’
rising preference for cost-effective options such as car subscription services
over car ownership options, conventional car lease options or rental options is
expected to fuel the car subscription market demand around the world. Car
subscription services offer flexibility such as the possibility of changing cars
according to need, adjusting the scope of service and flexibility to cancel the
services according to one’s willingness.
Due to the ongoing COVID-19 pandemic, complete lock down
was observed across regions which impacted the economy in an adverse way. Restriction
in the commute activities to follow the precautionary guidelines and government
restrictions which severely impacted the car subscription market. Original
equipment manufacturers faced financial breakdown due to loss of workers and
shutdown of manufacturing units at some places. After, the lifting of lockdown
car subscription market is expected to witness eventual growth due to evolution
of digital technologies. COVID-19 brought the need to own personalized cars to
cover the need for their convenience and maintain their personal hygiene.
However, the presence of well-established vehicle
leasing, rental, shared model services over subscription schemes may create
hindrance to the growth of global car subscription market.
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Based
on end use, market is further bifurcated into private and corporate. Corporate
segment is expected to witness substantial growth over the forecast period
owing to high usage of car subscription services for business tours purpose and
visiting the clients. Based on propulsion type, the market is majorly
categorized into ICE and EV. Growing dominance of ICE powered automotive fleet
around the globe and their increasing demand from consumers around the world. Based
on subscription period, market is categorized into 1 to 6 months, 6 to 12 months,
and more than 12 Months. 1 to 6 months segment is expected to witness the growth
in the forecast period. This segment is generally preferred by tourists who go
for short visits and use car subscription services to satisfy their needs.
Consumers who go for short corporate visits can get personal vehicle with all
features covered. Based on subscription type, market is divided into single brand
and multi brand. Multi brand segment is expected to hold lion’s share due as car
subscription service providers under this segment offer the flexibility to
switch between the cross-brands.
Key Market Players
- Porsche Financial Services GmbH
- Volvo Car Corporation
- Bayerische Motoren Werke Aktiengesellschaft
- Mercedes-Benz Group AG
- Toyota Motor Corporation
- Hyundai Motor Company
- Clutch Technologies, LLC
- Revolve Technologies, Inc.
- Sixt SE
- Fair Financial Corp..
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“Automotive
manufacturers are providing their own car subscription services along with the
development of partner chain for wider reach into the market. Consumers are
preferring authorized vehicle service providers for reliable and technologically
advanced vehicles. Also, the presence of online platforms including user-friendly
mobile applications and engaging websites to remain ahead in the competitive
market. Car subscription providers offers lucrative offers and discounts to
consumers to increase the reach world-wide. "Increasing internet penetration and
proliferation of smart devices is ensuring the market growth until 2031” said Mr. Karan Chechi, Research Director with TechSci Research,
a research based global management consulting firm.
“Global Car Subscription Market By Service Provider (OEM/Captives, Mobility Provider, Technology Companies), By Subscription Period (1 to 6 Months, 6 to 12 Months, and More than 12 Months), By Subscription Type [Single Brand (Single Brand Swap), Multi Brand], By End Use (Private, Corporate), By Propulsion Type (ICE, EV), By Company, By Region, Forecast & Opportunities, 2021-2031F” has
evaluated the future growth potential of global car subscription market and
provided statistics & information on market size, shares, structure and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides,
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in the of global car
subscription market.
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