PUBLISHER: The Business Research Company | PRODUCT CODE: 1664784
PUBLISHER: The Business Research Company | PRODUCT CODE: 1664784
Vehicle subscription is a service offering that allows consumers to access automobiles by paying a recurring fee without the need for a down payment. Subscribers gain full access to the vehicle and its services for a monthly payment.
The primary vehicle types available for subscription services include IC-powered vehicles, which operate using a traditional internal combustion engine burning fuel in a combustion chamber with the help of an oxidizer, usually oxygen from the air. Another category comprises electric vehicles (EVs), which use electric motors powered by rechargeable batteries. Subscription services come in various types such as single-brand subscriptions, which involve access to vehicles from a single manufacturer, and multi-brand subscriptions that offer access to a range of vehicles from different manufacturers. Service providers in the vehicle subscription business include Original Equipment Manufacturers (OEMs) or captives, mobility providers, and technology companies. These subscription services cater to both business and private end-users, offering flexible mobility solutions.
The vehicle subscription market research report is one of a series of new reports from The Business Research Company that provides vehicle subscription market statistics, including vehicle subscription industry global market size, regional shares, competitors with a vehicle subscription market share, detailed vehicle subscription market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle subscription industry. This vehicle subscription 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 subscription market size has grown exponentially in recent years. It will grow from $6.61 billion in 2024 to $8.29 billion in 2025 at a compound annual growth rate (CAGR) of 25.3%. The growth in the historic period can be attributed to changing consumer mobility preferences, urbanization trends, vehicle fleet diversity, digital transformation in automotive industry, consumer desire for hassle-free experience.
The vehicle subscription market size is expected to see exponential growth in the next few years. It will grow to $19.68 billion in 2029 at a compound annual growth rate (CAGR) of 24.1%. The growth in the forecast period can be attributed to expansion of electric and autonomous vehicles, sustainability and environmental concerns, integration of mobility-as-a-service, subscription models for commercial fleets, data analytics and predictive modeling, regulatory support for mobility innovations. Major trends in the forecast period include expansion of subscription models beyond luxury vehicles, increased integration of digital platforms, introduction of tiered subscription plans, focus on flexibility and convenience, collaborations and partnerships, subscription services for electric vehicles.
The growing sales of electric vehicles are anticipated to drive the expansion of the vehicle subscription market in the future. Electric vehicles operate using an electric motor powered by a battery, which can be recharged from an external source. An electric vehicle subscription represents a reimagined approach to car leasing, considered a smarter way to access a vehicle. Purchasing an electric vehicle can be costly, and the long-term maintenance can add even more expenses. Through a subscription, users can enjoy driving an electric car while alleviating many of the associated costs and challenges. For example, in November 2023, the U.S. Energy Information Administration, a government agency, reported that the share of battery-electric vehicles (BEVs) in new light-duty vehicle sales reached 17.7% in the third quarter of 2023. So far this year, BEVs have made up 16.0% of total new vehicle sales, an increase from 12.5% in 2022 and 9.0% in 2021. Thus, the rising electric vehicle sales are propelling the growth of the vehicle subscription market moving forward.
Rapid urbanization is projected to foster the growth of the vehicle subscription market. Urbanization refers to the trend of population concentration in urban areas, leading to the expansion of cities and towns. Urban regions often face significant traffic congestion. Vehicle subscription services provide urban residents with flexible and convenient transportation options, mitigating the challenges of owning and parking a personal vehicle, which makes them appealing in crowded cities. For instance, according to the United Nations, by 2050, approximately 68% of the global population is expected to live in urban areas, up from 55%. This swift urbanization is likely to create substantial demand for the vehicle subscription market.
Technological advancements have become a prominent trend in the vehicle subscription market, with major companies striving to integrate new technologies and enhance their market positioning. An illustrative example is Santander Consumer Finance, a Spain-based financial services company, which, in June 2022, introduced Ulity, a cutting-edge technology platform designed for vehicle subscription-based solutions targeting businesses. This white-label technology platform, developed as Software as a Service (SaaS), is specialized for creating vehicle subscription solutions in the mobility service industry. Santander Consumer Finance leveraged its industry expertise to develop this platform, allowing other companies to utilize it without the need for extensive development costs. This approach enables businesses to expand their customer base, streamline entry into the vehicle subscription services sector, and explore new markets.
Strategic partnerships have emerged as a key focus for major companies in the vehicle subscription market to fortify their market positions. In June 2023, Arval, a France-based vehicle leasing and fleet management company, collaborated with MG Motor, a UK-based automotive company, to introduce a car subscription model in Germany. This strategic partnership addresses the growing demand for subscription-based alternatives to traditional car ownership. The collaboration, named MG Auto Abo and powered by Arval, offers customers a flexible contract term and the benefits of full-service leasing. Initially featuring the MG4 Electric, a 2023 model known for its impressive WLTP range of 435 kilometers, the subscription aims to cater to consumer preferences for electric vehicles. Arval and MG Motor plan to extend the Auto Abo subscription to business customers and gradually expand the vehicle selection.
In March 2022, Shift Technologies, Inc., a US-based automotive e-commerce platform, acquired assets from Fair.com for $15 million. Through this acquisition, Shift Technologies, Inc. intended to broaden its automotive e-commerce platform by incorporating Fair.com's technology, assets, and consumer leasing portfolio, thereby enhancing its offerings and solidifying its position in the online used car marketplace. Fair.com Inc. is a US-based company that provides vehicle subscription services.
Major companies operating in the vehicle subscription market include Daimler AG, Drover Limited, Facedrive Inc., Open Road Auto Group LLC, Primemover Mobility Technologies Private Limited, The Hertz Corporation, Dr. Ing. h.c. F. Porsche AG, Volvo Car Corporation, Toyota Motor Corporation, Clutch Technologies LLC, General Motors Company, FreshCar Inc., Drivemate Inc., LMP Motors Pvt. Ltd., Cluno GmbH, Sixt SE, Avis Budget Group Inc., Arval BNP Paribas, ORIX Corporation, Flexdrive Inc., Fair Financial Corp., BMW AG, Mercedes-Benz USA LLC, Audi of America Inc., Hyundai Motor America, Carbar Pty Ltd., CarNext, LeasePlan Corporation N.V.
North America was the largest region in the vehicle subscription market in 2024. Asia-Pacific is expected to be the fastest-growing region in the vehicle subscription market report during the forecast period. The regions covered in the vehicle subscription market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the vehicle subscription market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The vehicle subscription market includes revenues earned by entities by offering servicing, warranties, road tax and insurance. 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 Subscription Global Market Report 2025 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 subscription 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 subscription ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The vehicle subscription 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 forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.