
Automotive Subscription Service Market: Current Analysis and Forecast (2022-2028)
Description
Automotive Subscription Service Market: Current Analysis and Forecast (2022-2028)
Global Automotive Subscription Services Market is expected to grow at a significant rate of around 25% during the forecast period. An automotive subscription is a new kind of ownership that has set, recurring monthly fees that are mostly used to pay for the vehicle's insurance and upkeep. The length of an automotive subscription typically ranges from a minimum of 1 month to a maximum of 2 years. The automotive subscription is a service that bridges the gap between renting and leasing cars, and it offers advantages over both service delivery models. Additionally, a car subscription provides the ability to switch out the subscribed vehicles many times and can enjoy the car without getting ownership of the car. Furthermore, the entry of global players into emerging markets adds to the growth of the market. For instance, in August 2020, Porsche launched a monthly Single-Vehicle Subscription (SVS) program in various cities in the U.S. including Los Angeles, Atlanta, San Diego, and Phoenix
AB Volvo, Assurant Inc., Tesla Inc., Cox Automotive Inc., Volkswagen AG, Toyota Motor Corp., Mercedes Benz Group AG, The Hertz Corporation, General Motors Co, Hyundai Motor Co. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
"Amongst vehicle type, economy car category to witness robust CAGR during the forecast period”
Based on vehicle type, the market is segmented into a luxury car, executive car, and economy car. The economy car category is expected to witness higher CAGR during the forecast period owing to the growing penetration of ATVs from developing nations such as China, India, and Mexico, among others. Economy cars are adopted as subscription prices are affordable and have limited standards of fuel efficiency. Moreover, modern-day consumers are more open to paying their finances using digital channels due to which, the demand for vehicle subscriptions has increased consistently, particularly in developed regions.
"Amongst service providers, the OEMs to hold a significant share in the market in 2020”
Based on the drive type, the market is categorized into OEMs, mobility providers, and technology companies. Among these, OEMs hold a significant share in the market in 2020. This is mainly due to the low income and changing preference of the consumers to take a car on subscription rather than owning a car. Moreover, OEMs are working on subscription services and have great bandwidth and a pipeline of vehicles. The growing preference for the automotive subscription is increased as it has various benefits like low maintenance, affordable, monthly paying options, and less insurance costs. In addition, various key players are also showing interest which helps in the lucrative growth of the market in the forecast period.
"Amongst subscription period, 7-12 months category to witness robust CAGR during the forecast period”
Based on the subscription period, the market is segmented into 1 to 6 months, 7 to 12 months, and 13 and above. 7-12 months category to witness higher CAGR during the forecast period as the low subscription has various benefits as short-term automotive subscription services help consumers to enjoy car ownership without additional costs such as insurance, maintenance, and registration fees, and the subscription fees for the short-term period is affordable for the low middle-income population. In addition, the reduction in vehicle sales in the country due to rising vehicle prices is another factor boosting the adoption of automotive subscriptions from developing nations such as China, India, and Mexico, among others.
"Amongst end-users, private category to witness robust CAGR during the forecast period”
Based on the end-users, the market is segmented into business and private. The private segment category is to witness higher CAGR during the forecast period as the increase in the tours and travel with comfort. Moreover, for short-term use, the consumers don’t prefer to take the car permanently while as prefer to take the car on lease and pay comfortably from month to month.
"APAC to hold a significant share in the market”
In 2020, APAC held a significant share of the global automotive subscription services market. This is mainly due to the rapid urbanization, congestion in public transport, and growing disposable income of the populace are some of the factors responsible for the growth of the market. In addition, major global OEMs and service providers are planning to launch subscription services in Asian automotive market to grab early revenue growth opportunities in emerging countries such as China and India. Moreover, the growing prices of vehicles and middle-income consumers in these regions are also expanding the growth of the market.
Reasons to buy this report:
Global Automotive Subscription Services Market is expected to grow at a significant rate of around 25% during the forecast period. An automotive subscription is a new kind of ownership that has set, recurring monthly fees that are mostly used to pay for the vehicle's insurance and upkeep. The length of an automotive subscription typically ranges from a minimum of 1 month to a maximum of 2 years. The automotive subscription is a service that bridges the gap between renting and leasing cars, and it offers advantages over both service delivery models. Additionally, a car subscription provides the ability to switch out the subscribed vehicles many times and can enjoy the car without getting ownership of the car. Furthermore, the entry of global players into emerging markets adds to the growth of the market. For instance, in August 2020, Porsche launched a monthly Single-Vehicle Subscription (SVS) program in various cities in the U.S. including Los Angeles, Atlanta, San Diego, and Phoenix
AB Volvo, Assurant Inc., Tesla Inc., Cox Automotive Inc., Volkswagen AG, Toyota Motor Corp., Mercedes Benz Group AG, The Hertz Corporation, General Motors Co, Hyundai Motor Co. are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
"Amongst vehicle type, economy car category to witness robust CAGR during the forecast period”
Based on vehicle type, the market is segmented into a luxury car, executive car, and economy car. The economy car category is expected to witness higher CAGR during the forecast period owing to the growing penetration of ATVs from developing nations such as China, India, and Mexico, among others. Economy cars are adopted as subscription prices are affordable and have limited standards of fuel efficiency. Moreover, modern-day consumers are more open to paying their finances using digital channels due to which, the demand for vehicle subscriptions has increased consistently, particularly in developed regions.
"Amongst service providers, the OEMs to hold a significant share in the market in 2020”
Based on the drive type, the market is categorized into OEMs, mobility providers, and technology companies. Among these, OEMs hold a significant share in the market in 2020. This is mainly due to the low income and changing preference of the consumers to take a car on subscription rather than owning a car. Moreover, OEMs are working on subscription services and have great bandwidth and a pipeline of vehicles. The growing preference for the automotive subscription is increased as it has various benefits like low maintenance, affordable, monthly paying options, and less insurance costs. In addition, various key players are also showing interest which helps in the lucrative growth of the market in the forecast period.
"Amongst subscription period, 7-12 months category to witness robust CAGR during the forecast period”
Based on the subscription period, the market is segmented into 1 to 6 months, 7 to 12 months, and 13 and above. 7-12 months category to witness higher CAGR during the forecast period as the low subscription has various benefits as short-term automotive subscription services help consumers to enjoy car ownership without additional costs such as insurance, maintenance, and registration fees, and the subscription fees for the short-term period is affordable for the low middle-income population. In addition, the reduction in vehicle sales in the country due to rising vehicle prices is another factor boosting the adoption of automotive subscriptions from developing nations such as China, India, and Mexico, among others.
"Amongst end-users, private category to witness robust CAGR during the forecast period”
Based on the end-users, the market is segmented into business and private. The private segment category is to witness higher CAGR during the forecast period as the increase in the tours and travel with comfort. Moreover, for short-term use, the consumers don’t prefer to take the car permanently while as prefer to take the car on lease and pay comfortably from month to month.
"APAC to hold a significant share in the market”
In 2020, APAC held a significant share of the global automotive subscription services market. This is mainly due to the rapid urbanization, congestion in public transport, and growing disposable income of the populace are some of the factors responsible for the growth of the market. In addition, major global OEMs and service providers are planning to launch subscription services in Asian automotive market to grab early revenue growth opportunities in emerging countries such as China and India. Moreover, the growing prices of vehicles and middle-income consumers in these regions are also expanding the growth of the market.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Table of Contents
176 Pages
- 1 MARKET INTRODUCTION
- 1.1. Market Definitions
- 1.2. Main Objective
- 1.3. Stakeholders
- 1.4. Limitation
- 2 RESEARCH METHODOLOGY OR ASSUMPTION
- 2.1. Research Process of the Automotive Subscription Services Market
- 2.2. Research Methodology of the Automotive Subscription Services Market
- 2.3. Respondent Profile
- 3 MARKET SYNOPSIS
- 4 EXECUTIVE SUMMARY
- 5 IMPACT OF COVID-19 ON THE AUTOMOTIVE SUBSCRIPTION SERVICES MARKET
- 6 AUTOMOTIVE SUBSCRIPTION SERVICES MARKET REVENUE, 2020-2028F
- 7 MARKET INSIGHTS BY VEHICLE TYPE
- 7.1. Luxury Car
- 7.2. Executive Car
- 7.3. Economy Car
- 8 MARKET INSIGHTS BY SERVICE PROVIDERS
- 8.1. OEMs
- 8.2. Mobility Providers
- 8.3. Technology Companies
- 9 MARKET INSIGHTS BY SUBSCRIPTION PERIOD
- 9.1. 1 to 6 Months
- 9.2. 7 to 12 Months
- 9.3. 13 and above
- 10 MARKET INSIGHTS BY END USERS
- 10.1. Business
- 10.2. Private
- 11 MARKET INSIGHTS BY REGION
- 11.1. North America
- 11.1.1. U.S.
- 11.1.2. Canada
- 11.1.3. Rest of North America
- 11.2. Europe
- 11.2.1. Germany
- 11.2.2. U.K.
- 11.2.3. France
- 11.2.4. Italy
- 11.2.5. Spain
- 11.2.6. Rest of Europe
- 11.3. Asia-Pacific
- 11.3.1. China
- 11.3.2. Japan
- 11.3.3. India
- 11.3.4. Rest of Asia-Pacific
- 11.4. Rest of the World
- 12 AUTOMOTIVE SUBSCRIPTION SERVICES MARKET DYNAMICS
- 12.1. Market Drivers
- 12.2. Market Challenges
- 12.3. Impact Analysis
- 13 AUTOMOTIVE SUBSCRIPTION SERVICES MARKET OPPORTUNITIES
- 14 AUTOMOTIVE SUBSCRIPTION SERVICES MARKET TRENDS
- 15 DEMAND AND SUPPLY-SIDE ANALYSIS
- 15.1. Demand Side Analysis
- 15.2. Supply Side Analysis
- 16 VALUE CHAIN ANALYSIS
- 17 COMPETITIVE SCENARIO
- 17.1. Competitive Landscape
- 17.1.1. Porters Fiver Forces Analysis
- 18 COMPANY PROFILED
- 18.1. AB Volvo
- 18.2. Assurant Inc
- 18.3. Tesla Inc
- 18.4. Cox Automotive Inc
- 18.5. Volkswagen AG
- 18.6. Toyota Motor Corporation
- 18.7. Mercedes-Benz Group AG
- 18.8. The Hertz Corporation
- 18.9. General Motors Company
- 18.10. Hyundai Motor Company
- 19 DISCLAIMER
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