Global Automotive Subscription Services Market

Automotive Subscription Services Market Size, Share, Growth Analysis, By Service Provider(Original Equipment Manufacturer (OEM), Third-Party Service Providers), By Vehicle(Luxury Car, Executive Car, Economy Car, Other), By Region - Industry Forecast 2024-2031


Report ID: SQMIG35H2178 | Region: Global | Published Date: February, 2024
Pages: 157 |Tables: 63 |Figures: 75

Automotive Subscription Services Market Insights

Global Automotive Subscription Services Market size was valued at USD 2.65 billion in 2022 and is poised to grow from USD 3.24 billion in 2023 to USD 16.22 billion by 2031, growing at a CAGR of 22.30% during the forecast period (2024-2031).

The ongoing trend towards embracing flexible mobility solutions is expected to persist and flourish over the long term. The decreasing significance of car ownership, particularly among millennials, stands as a prominent factor fueling the upward trajectory of vehicle subscriptions. Additionally, the surging popularity of mobility-as-a-service (MaaS) is compelling individuals to adopt flexible mobility alternatives as substitutes for traditional vehicle possession.

Traditional leasing contracts and car financing are increasingly perceived as burdens rather than advantages by the general population. Inflexibility in the availability of ride-hailing and ride-sharing services during peak hours, coupled with the high costs associated with longer trips, acts as limiting factors for these services. Nevertheless, the car subscription model presents itself as a remarkably flexible alternative within the market.

Vehicle subscription services are offered for varying durations, ranging from one month to a year or more. The subscription fees encompass insurance, maintenance, repairs, registration, and related expenses. Moreover, these services grant the convenience of switching between different cars and brands in accordance with individual preferences and subscription plans. This surge in demand for adaptable mobility solutions across both developed and emerging economies is poised to drive market expansion throughout the forecast period.

US Automotive Subscription Services Market is poised to grow at a sustainable CAGR for the next forecast year.

Market Snapshot - 2024-2031

Global Market Size

USD 2.65 billion

Largest Segment

Third-Party Service Providers

Fastest Growth

Third-Party Service Providers

Growth Rate

22.30% CAGR

Global Automotive Subscription Services Market ($ Bn)
Country Share for Europe Region (%)

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Automotive Subscription Services Market Segmental Analysis

The global automotive subscription services market is segmented on the basis of service provider, vehicle, subscription period, region. By service provider, the market is segmented into original equipment manufacturer (oem), third-party service providers. By vehicle, the market is segmented into luxury cars, executive cars, economy cars, and others. By subscription period, the market is segmented into 0-6 months, 6-12 months, more than 12 months. By region, the market is segmented into North America, Europe, Latin America, Asia- Pacific, Middle East and Africa.

Automotive Subscription Services Market Analysis By Subscription Period

The segment spanning 6 to 12 months held the largest market share in 2021 and is projected to maintain its dominant position throughout the forecast period. Over recent years, the average car subscription duration has hovered around 12 months, and many industry players have crafted appealing offerings within this timeframe. The segment's growth is driven by a shift in consumer preferences toward flexible mobility solutions and economical alternatives to conventional vehicle ownership. As individuals seek adaptable options without the commitment of permanent ownership, the 6 to 12 months segment is expected to exhibit continued expansion.

Concurrently, the 1 to 6 months segment is poised to showcase the highest growth rate during the forecast period. The surge in demand for short-term car subscriptions aligns with the desire for heightened flexibility and minimal commitment. This burgeoning trend emphasizes convenience and the ability to tailor transportation solutions according to immediate needs, driving the overall market growth.

Automotive Subscription Services Market Analysis By Service Provider

The independent third-party providers segment assumed market leadership in 2022 and is projected to maintain its prominence throughout the forecast period. This trajectory is propelled by the escalating presence of independent third-party providers and startups that predominantly facilitate multi-brand car subscriptions through their platforms. The burgeoning number of such providers has spurred the segment's growth. Key players like Cluno, Flexdrive, Turo, Fair, Carvolution, and Drove, among others, operate across diverse regions, offering multi-brand subscription services to a wide consumer base.

Despite the notable prevalence of startups and independent platforms in the subscription arena, a considerable customer base still favors subscription contracts provided by Original Equipment Manufacturers (OEMs) offering their vehicle subscription services. Moreover, the inclusion of premium brands like Mercedes and Porsche in the subscription landscape has widened the accessibility of luxury vehicles to a broader spectrum of consumers. Those who may not be in a position to purchase these luxury vehicles outright can now opt for car subscriptions, thereby fueling market growth. Consequently, the expanding presence of renowned automotive brands venturing into the subscription sphere is anticipated to augment the growth of the OEM/captives segment during the forecast period.

Global Automotive Subscription Services Market By Product, 2023 (%)

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Automotive Subscription Services Market Regional Insights

Europe took the lead in the global vehicle subscription market, commanding a share valued at 1.1 billion in 2022, and this dominance is projected to extend into the foreseeable future. The region's supremacy can be attributed to the presence of numerous innovative mobility service startups and well-established automotive giants like Mercedes and BMW, which are propelling the market's expansion. Furthermore, Europe's robust automotive sector has prompted established automakers to pivot towards mobility service-oriented models, aligning with the preferences of the new generation. This strategic shift is poised to create lucrative prospects for the market in the region, fostering growth.

Anticipated to experience the most rapid growth rate throughout the forecast period, the Asia Pacific region is emerging as a hotspot for vehicle subscription models. The escalating adoption of subscription-based approaches and governmental emphasis on automotive electrification for environmental conservation are prime catalysts driving market proliferation in the region. As the cost of electric vehicles remains high, the populace is turning towards subscription-based electric mobility services. The region's strong automotive foundation, coupled with diminishing interest in traditional car ownership among younger demographics, is expected to amplify market expansion.

Global Automotive Subscription Services Market By Geography, 2024-2031
  • Largest
  • Fastest

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Automotive Subscription Services Market Dynamics

Automotive Subscription Services Market Drivers

Shift in Consumer Preferences

  • The popularity of vehicle subscription services is being driven by millennials in urban areas who are increasingly favoring access over ownership. Without the commitment of ownership, consumers desire convenience, adaptability, and a variety of vehicle experiences.

Flexible Mobility Solutions

  • One major driver is the development of adaptable mobility solutions, which are aided by improvements in digital platforms and mobile apps. The ease with which customers can select and swap automobiles based on their requirements improves user experience.

Cost-effective Alternatives

  • With no need for large upfront costs, ongoing maintenance costs, or deteriorating assets, automotive subscription services provide affordable alternatives to traditional ownership.

Automotive Subscription Services Market Restraints

Limited Geographical Availability

  • Automobile subscription services are frequently limited to particular metropolitan areas or geographic areas, which makes them less accessible to customers in rural or sparsely populated areas.

Complex Pricing Models

  • A complex pricing structure may confuse users and diminish adoption rates for some subscription services.

Insurance Challenges

  • In subscription models, determining insurance coverage, risk, and claims processing can be difficult, which may lower client confidence in the business.

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Automotive Subscription Services Market Competitive Landscape

The global automotive subscription services market offers a competitive and dynamic environment, with a wide range of businesses vying for a share of this expanding market. Established automotive giants, tech innovators, and creative startups are all part of the industry's heated competition.

Leading industry players like Cox Automotive, Turo, and Sixt SE make use of their vast resources and industry expertise to offer all-inclusive subscription solutions. By providing a variety of car options, clear pricing, and smooth user experiences, they hope to develop a strong market presence. Meanwhile, forward-thinking businesses like Cluno, Fair Financial, and Flexdrive offer the market new viewpoints. They emphasize user-centric experiences, flexible subscription terms, and digital platforms that enable users to select, swap, and manage their vehicles effortlessly.

Automotive Subscription Services Market Top Player’s Company Profiles

  • Cox Automotive, Inc. (USA)
  • Cluno GmbH (Germany)
  • Fair Financial Corp. (USA)
  • Turo, Inc. (USA)
  • Carmudi Group (Germany)
  • Hertz Global Holdings, Inc. (USA)
  • Sixt SE (Germany)
  • Blinker (USA)
  • Borrow (USA)
  • Invygo (United Arab Emirates)
  • Cars on Demand (USA)
  • Yieldstreet (USA)
  • Wagonex (United Kingdom)
  • Carma Car (USA)
  • Fleks (Mexico)
  • Revolve Finance (USA)
  • Mycar Subscription (Malaysia)

Automotive Subscription Services Market Recent Developments

  • In March 2023, Porsche made a statement announcing the introduction of a new subscription service for its Taycan electric vehicle.
  • In February 2023, In order to accommodate more cars and services, BMW disclosed it will be broadening its subscription service.
  • In January 2023, Mercedes-Benz revealed it would be introducing a new subscription service for its high-end automobiles.

Automotive Subscription Services Key Market Trends

  • OEM Involvement: With their own subscription services, automakers are joining the subscription market so they can maintain client engagement and develop new revenue sources.
  • Multi-Brand Subscription Platforms: In response to a wide range of consumer preferences, independent third-party suppliers are providing multi-brand subscription systems that let consumers choose from a variety of automobile brands and models.
  • Tiered Subscription Plans: Many providers are introducing tiered subscription plans, offering different levels of access, services, and vehicle options at varying price points to cater to a wider range of customers.

Automotive Subscription Services Market SkyQuest Analysis

SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Product types team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.

According to our global automotive subscription services market analysis, the global automotive subscription services market is witnessing a transformative shift in consumer preferences, as convenience, cost-efficiency, and flexible mobility options take center stage. Established industry players, startups, and automakers are engaged in a competitive race to offer seamless subscription experiences that cater to diverse user needs. The market's landscape is characterized by innovation, with multi-brand platforms, tiered subscription plans, and integrated services becoming key trends.

Report Metric Details
Market size value in 2023 USD 2.65 billion
Market size value in 2031 USD 16.22 billion
Growth Rate 22.30%
Forecast period 2024-2031
Forecast Unit (Value) USD Billion
Segments covered
  • Service Provider
    • Original Equipment Manufacturer (OEM), Third-Party Service Providers
  • Vehicle
    • Luxury Car, Executive Car, Economy Car, Other
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Cox Automotive, Inc. (USA)
  • Cluno GmbH (Germany)
  • Fair Financial Corp. (USA)
  • Turo, Inc. (USA)
  • Carmudi Group (Germany)
  • Hertz Global Holdings, Inc. (USA)
  • Sixt SE (Germany)
  • Blinker (USA)
  • Borrow (USA)
  • Invygo (United Arab Emirates)
  • Cars on Demand (USA)
  • Yieldstreet (USA)
  • Wagonex (United Kingdom)
  • Carma Car (USA)
  • Fleks (Mexico)
  • Revolve Finance (USA)
  • Mycar Subscription (Malaysia)
Customization scope

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on Automotive Subscription Services Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on Automotive Subscription Services Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the Automotive Subscription Services Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Automotive Subscription Services Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Automotive Subscription Services Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the Automotive Subscription Services Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

Automotive Subscription Services Market size was valued at USD 2.65 billion in 2022 and is poised to grow from USD 3.24 billion in 2023 to USD 16.22 billion by 2031, growing at a CAGR of 22.30% during the forecast period (2024-2031).

The automotive subscription services market offers a competitive and dynamic environment, with a wide range of businesses vying for a share of this expanding market. Established automotive giants, tech innovators, and creative startups are all part of the industry's heated competition. 'Cox Automotive, Inc. (USA)', 'Cluno GmbH (Germany)', 'Fair Financial Corp. (USA)', 'Flexdrive (USA)', 'Turo, Inc. (USA)', 'Carmudi Group (Germany)', 'ZoomCar (India)', 'Hertz Holdings, Inc. (USA)', 'Porsche Mobility (Germany)', 'Sixt SE (Germany)', 'Blinker (USA)', 'Borrow (USA)', 'Invygo (United Arab Emirates)', 'Cars on Demand (USA)', 'Yieldstreet (USA)', 'Wagonex (United Kingdom)', 'Carma Car (USA)', 'Fleks (Mexico)', 'Revolve Finance (USA)', 'Mycar Subscription (Malaysia)'

The popularity of vehicle subscription services is being driven by millennials in urban areas who are increasingly favoring access over ownership. Without the commitment of ownership, consumers desire convenience, adaptability, and a variety of vehicle experiences.

OEM Involvement: With their own subscription services, automakers are joining the subscription market so they can maintain client engagement and develop new revenue sources.

Europe took the lead in the vehicle subscription market, commanding a share valued at 1.1 billion in 2022, and this dominance is projected to extend into the foreseeable future. The region's supremacy can be attributed to the presence of numerous innovative mobility service startups and well-established automotive giants like Mercedes and BMW, which are propelling the market's expansion. Furthermore, Europe's robust automotive sector has prompted established automakers to pivot towards mobility service-oriented models, aligning with the preferences of the new generation. This strategic shift is poised to create lucrative prospects for the market in the region, fostering growth.

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