PUBLISHER: The Business Research Company | PRODUCT CODE: 1620155
PUBLISHER: The Business Research Company | PRODUCT CODE: 1620155
Vehicle as a Service (VaaS) refers to a business model where vehicles are provided to customers as a service rather than as products to be purchased outright. This model includes various transportation solutions that are typically offered on a subscription basis or pay-per-use. VaaS aims to deliver a more flexible and user-friendly transportation experience by leveraging technology to address changing mobility needs.
The primary components of VaaS include subscription management, asset management, and vehicle status monitoring services. Asset management involves the administration and optimization of vehicle fleets, including maintenance and usage tracking, to ensure effective vehicle utilization and upkeep. VaaS incorporates both electric and internal combustion (IC) engine types for different vehicle categories, such as passenger cars, trucks, utility trailers, and motorcycles. Service providers in this space include automotive original equipment manufacturers (OEMs), auto dealerships, auto tech startups, and car subscription software providers. VaaS caters to various end-users, including both enterprise and private individuals.
The vehicle as a service market research report is one of a series of new reports from The Business Research Company that provides vehicle as a service market statistics, including vehicle as a service industry global market size, regional shares, competitors with a vehicle as a service market share, detailed vehicle as a service market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle as a service industry. This vehicle as a service market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The vehicle as a service market size has grown rapidly in recent years. It will grow from $6.18 billion in 2023 to $7.36 billion in 2024 at a compound annual growth rate (CAGR) of 19%. The growth during the historic period can be attributed to several factors, including supportive policies and incentives for electric vehicles and shared mobility services, increased adoption of electric vehicles, rising disposable incomes, the expansion of VaaS services in emerging markets, and growing public awareness and acceptance of shared mobility solutions.
The vehicle as a service market size is expected to see rapid growth in the next few years. It will grow to $14.83 billion in 2028 at a compound annual growth rate (CAGR) of 19.2%. The anticipated growth during the forecast period can be attributed to several factors, including a rising demand for mobility solutions, heightened awareness of environmental issues, increasing urban population density, the expansion of ride-sharing services, and growing popularity of vehicle subscription services. Key trends expected to shape the market include innovations in vehicle connectivity, the integration of VaaS solutions, the development and deployment of autonomous vehicles, integration with smartphones and digital payment systems, and the use of big data and analytics.
The increasing global traffic congestion and jams are expected to drive the growth of the Vehicle-as-a-Service (VaaS) market in the future. Traffic congestion occurs when excessive vehicle volume on road networks causes delays, resulting in slower speeds and longer travel times. Factors contributing to rising traffic congestion include urbanization, population growth, inadequate infrastructure, and an increasing number of vehicles. VaaS can help mitigate traffic congestion by promoting shared mobility and reducing the number of individual vehicles on the road, thus optimizing transportation efficiency. For example, a report by INRIX, published in January 2024, highlighted that traffic congestion worsened in 98 out of the top 100 urban areas in 2023 compared to the previous year. In 71 of these cities, traffic delays increased by double digits in 2022. Moreover, drivers in New York City lost an average of 101 hours to traffic jams in 2023, resulting in economic losses exceeding $9.1 billion due to wasted time. Consequently, the growing issue of traffic congestion is likely to drive the expansion of the VaaS market.
Key companies in the VaaS market are focusing on developing flexible and personalized mobility solutions, such as vehicle subscription platforms, to enhance their service offerings and attract new customers. A vehicle subscription platform provides customers with access to a variety of vehicles on a flexible, short-term basis, usually including insurance, maintenance, and other costs within a single monthly fee. For instance, Santander Consumer Finance, a Spain-based financial services company, launched its platform Ulity in June 2022. Ulity features white-label SaaS technology designed to simplify the creation of vehicle subscription services. This platform allows automotive brands, private transport companies, car rental services, leasing firms, large corporations, and auto marketplaces to quickly and cost-effectively enter the vehicle subscription market, expand their reach, and attract new customers without needing to develop their own solution.
In October 2024, Carwow Group, a UK-based technology and online marketplace company, acquired Gridserve Car Leasing for an undisclosed sum. This acquisition marks a significant step for Carwow in solidifying its position as a top vehicle leasing marketplace in the UK. By broadening its offerings beyond electric vehicles (EVs) and enhancing its comparison tools, Carwow aims to appeal to a larger customer base and enhance service delivery in the dynamic automotive market. Gridserve, a UK-based company, specializes in leasing electric vehicles.
Major companies operating in the vehicle as a service market are Volkswagen AG, Toyota Motor Corporation, Tata Group, Ford Motor Company, Mercedes-Benz Group, General Motors, Bayerische Motoren Werke AG (BMW Group), Hyundai Motor Group, Accenture Plc, AB Volvo, Porsche AG, Uber Technologies Inc., AutoNation, Nokia Corporation, DiDi Chuxing, LeasePlan Corporation NV, Hertz Corporation, Orange Business Services, Lyft Inc., Sixt SE, Kelsian Group, CarNext B.V., Zoomcar, Cluno GmbH, Bipi
North America was the largest region in the vehicle as a service market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vehicle as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the vehicle as a service market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The vehicle as a service market includes revenues earned by entities by car sharing, ride-hailing, long-term rentals, fleet management services and autonomous vehicle services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Vehicle As A Service Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on vehicle as a service market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for vehicle as a service ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The vehicle as a service market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.