Automotive Vehicle Subscription Market: Introduction
According to the report, the global vehicle subscription market is projected to surpass US$ 81 Bn by 2030, expanding at a CAGR of ~15% during the forecast period. Automotive users are finding convenience in the vehicle subscription model, owing to flexible, monthly, or yearly subscription plan offerings; however, awareness about vehicle subscription model is low in Asia Pacific, as compared to that in the U.S. and Europe. Automotive OEMs have been rolling out vehicle subscription model vehicle offerings. Competition is expected to increase in the market, as more OEMs enter, while third party players are expected to seek differentiation of their offerings compared to those of OEMs.
Expansion of Automotive Vehicle Subscription Market
The fundamental change in consumer behavior and societal trend toward individualization has resulted in the rise of subscription economy. The trend of vehicle subscription is gaining traction among urban young and middle class population. The introduction of flexible vehicle subscription models has transformed consumer preference from owning to experiencing. Moreover, subscribing a car makes car ownership and driving easy and hassle-free. The rise in income of middle class population has prompted young consumers to use vehicle subscription, along with high-income group population, thereby fueling the market.
In terms of vehicle subscription type, the multi-brand segment dominated the global vehicle subscription market, as currently the multi brand subscription offers a flexibility of switch to cross-brands. Based on end user, private individuals are currently witness major adoption of vehicle subscription services, while corporate end users are likely to witness high rate of adoption over the next few years.
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Regional Analysis of Automotive Vehicle Subscription Market
In terms of region, the global vehicle subscription market has been segregated into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Asia Pacific is estimated to lead the global vehicle subscription market during the forecast period, due to rapid industrialization and urbanization and rising per capita income and purchasing power in the region, especially in China and India. The vehicle subscription model has been gaining traction in China, Japan, India, South Korea, ANZ, and countries across Southeast Asia. Awareness about vehicle subscription offerings in relatively low in Asia Pacific compared to that in the U.S and Europe; however the region is likely to witness spread of awareness and rise in vehicle subscription over the next 12 to 18 months.
Automotive Vehicle Subscription Market Players
Key players operating in the global vehicle subscription market include Fair Financial Corp, Clutch Technology, CarNext, FlexDrive, Cluno GmbH, and DriveMyCar Rentals Pty Ltd.
