In 2022, the size of the worldwide car subscription market was estimated to be $5.4 billion, and it is expected to reach $99.4 billion by the end of 2030 with a CAGR of roughly 35.3% between 2023 and 2030.
Car Subscription Market: Overview
A car subscription is a concept of ownership and service that includes the purchase of cars as well as leasing services at predetermined fee rates that are charged on a recurring basis. In addition, these one-time payments cover the cost of the vehicle's upkeep as well as its insurance premiums. The time commitment for the car subscription model might be anywhere from one month to two years. It is a solution that falls somewhere in between car rental and car leasing services. In addition, when compared to automobile leasing and car rental services, car subscription services provide a greater number of advantageous features. Reportedly, a car subscription includes not only many switches of the subscribed car but also additional expenses for the vehicle, such as additional costs for insurance and upkeep.
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Car Subscription Market: Growth Factors
In order to enrich the global market trends, there has been a massive desire for cars that may be financed at inexpensive installments.
Some of the elements that will be responsible for driving the trends of the global car subscription market include the adaptability and cost-effectiveness of the services offered by car subscription companies. A growing consumer trend towards purchasing automobiles in manageable and inexpensive monthly installments, which may or may not include the price of insurance, maintenance, and roadside assistance, contributes to the viability of the car subscription model for consumers. This, in turn, will encourage the expansion of the market for car subscriptions across the world. The rapidly accelerating digitization of the automotive industry will bolster the expansion of the size of the worldwide market for car subscription services. This has led to an increase in the number of automotive subscription service providers, which in turn has driven the expansion of the automobile subscription industry on a global scale. Other factors that have contributed to this growth include the widespread usage of smartphone applications and convenient access to high-speed internet connections.
Car Subscription Market: Segmentation
The market for automotive subscriptions around the world may be broken down into four categories: vehicle type, subscription provider, subscription period, and area.
The global industry of car subscriptions is broken down into three different sectors based on the length of the subscription period: more than 12 months, 6 to 12 months, and 0 to 6 months. It would appear that the 0 to the 6-month sector, which dominated the subscription term segment in 2022, is anticipated to dominate the assessment period segment as well. It is possible that an increase in vehicle subscriptions for up to six months by a large number of automotive OEMs and vendors would be the cause of the segmental expansion over the period 2023-2030.
Car Subscription Market: Regional Insights
Car Subscription market in North America to account notably towards the global market share by 2030
The North American region, which accounted for a major revenue share of the global market in 2022, will maintain its dominant status in the coming years. The growth of the market in North America during the assessment period can be owing to the presence of key players in the countries such as Canada and the U.S. In addition to this, the presence of a strong automotive infrastructure facility in the region will prompt regional market expansion.
Car Subscription Market: Competitive Space
Toyota Motor Corp.
BMW AG
General Motors
Clunco GmbH
Hyundai Motor India
Clutch Technologies LLC
DriveMyCar Rentals Pvt Ltd.
Fair Financials Corp.
Lyft Inc.
Tesla
Porsche AG
Zoomcar
Wagonex Limited
Tata Motors
Volvo Car Corporation.
The global car subscription market is segmented as follows:
By Subscription Period
More Than 12 Months
6 To 12 Months
0 To 6 Months
By Subscription Provider
Third-Party
OEM
By Vehicle Type
Economy Car
Executive Car
Luxury Car
By Region
North America
The U.S.
Canada
Europe
France
The UK
Spain
Germany
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Southeast Asia
Rest of Asia Pacific
Latin America
Brazil
Mexico
Rest of Latin America
Middle East & Africa
GCC
South Africa
Rest of Middle East & Africa
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