PUBLISHER: Frost & Sullivan | PRODUCT CODE: 1490867
PUBLISHER: Frost & Sullivan | PRODUCT CODE: 1490867
Leasing, Rental, and Subscription Services Will Drive the Flexible Mobility Sector to $150 Billion by 2028 with a Plethora of Start-ups Focused on EVs and Used Cars Gaining a Foothold in This Organized Space
Customers' changing preferences have spurred the transition from vehicle ownership to usership. For older generations, owning a vehicle was a status symbol, but today's younger generations prioritize usership over ownership and the associated hassles (i.e., various costs and responsibilities). Leasing and rental services have evolved, but essentially they allow customers to use vehicles for a set period without the commitment of ownership. Additionally, recent global economic crises and disruptions (e.g., COVID-19 pandemic, wars) have created concerns over job security and financial stability. These conditions hinder customers' desire to purchase a vehicle.
Mobility start-ups and existing players have moved toward a more effective way to minimize the vehicle leasing or renting process. Technological advancements in the digital era have helped accelerate the shift toward a usership model (i.e., paperless process, keyless entry). The subscription model, in particular, is gaining traction amongst younger demographics because it offers customers the flexibility to customize a vehicle according to their driving preferences. This shift is changing how start-ups and other companies do business, with a focus on providing convenient options that cater to customer demand.
This study examines flexible mobility start-ups in Europe, covering only leasing, rental, and subscription services in the passenger vehicles (PV) space. It provides parc data and revenue forecasts for the overall flexible mobility industry, with focus on the growth potential of each segment. The analysis accounts for historical data, current market trends, and insights gathered from start-up participants. In addition, the study highlights select start-up companies for each segment that are doing well in the European flexible mobility industry.