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Car Subscription Market Overview
The global car subscription market is expected to witness considerable growth during the forecast period (2020–2030), on account of technology transition and changing ownership patterns. For instance, young millennials are subscribing for almost everything they use in daily life, from mobile packages to on demand video, from food to cosmetics. It gives them liberty to access mobility and experience luxury, which earlier came with multiple strings attached to it. With the global car sale was decreased by more than 10% in 2019, the car subscription model has given meaningful cue to car manufacturers to grab insights into ongoing market transition.
On the basis of vehicle type, the car subscription market has been classified into economy, executive, and premium. Among these, the premium category dominated the market during the historical period (2014–2019), owing to the increasing access of such vehicles to a large number of people, who were otherwise discouraged by high sticker price of these vehicles. For instance, several luxury OEMs have offered distinct brands for their subscription services, such as Book by Cadillac, Care by Volvo, Passport by Porsche, Flexperience by Mercedes-Benz, Access by BMW, and CarpeDrive by Jaguar and Land Rover (JLR).
Based on service provider, the car subscription market has been bifurcated into original equipment manufacturer (OEM) and private/third party. During the forecast period, the market is expected to witness faster growth in the OEM category. This can be mainly attributed to the several vehicle manufacturers entering into the subscription services market. OEMs have the ready bandwidth and inventory to provide easy availability of several vehicles, as compared to private/third party players, such as Drover Limited, Hellocars (Innovate Automotive Pty Ltd.), and Zoom Car Pvt. Ltd.
Geographically, North America held the largest share in the car subscription market in 2019. This is mainly attributed to more than 10% penetration into average household incomes in the U.S. On the other hand, the market in Asia-Pacific (APAC) is also following the North American market, due to the increasing demand for subscription services, which is driven largely by fast developing economies, such as China, India, and Australia. The regional market is also expected to witness the fastest growth during the forecast period.
Car Subscription Market Dynamics
The burgeoning demand for car subscription services is attributed to multiple factors, such as users could save from hefty down payment or financing troubles. In the car subscription model, the access to cars comes with no string attached to it, for instance, the users have to pay neither for vehicle insurance, maintenance, nor on-road assistance. This model also focuses on owning experience not car. The users have the liberty to switch between models and trims, in case of dissatisfaction with existing vehicle. These benefits are expected to boost the growth of the car subscription market.
The car subscription market players are expected to witness significant growth opportunities over the forecast period, mainly due to the surging technology transition in automotive space. For instance, OEMs are focusing on energy efficiency and electric mobility as future technologies. This works as an opportunity for car subscription service providers to cater to users’ need to stay abreast with the latest technologies available in the market. The service has come as boon to car manufacturers, who were witnessing lower sales in 2019, to use their existing inventories and dealer networks to work for car subscription model. Lower penetration of cars in developing economies offers huge opportunities for players in the market to grow there, since it will allow more people to use the service with less upfront cost. For instance, India has just 24 cars for every 1,000 people.
Car Subscription Market Competitive Landscape
Some of the private/third party major players operating in the global car subscription market are Zoomcar, Drover, Clutch Technologies, Revv (Primemover Mobility Technologies Pvt. Ltd.), Myles, and InMotion Ventures. These companies are increasingly focusing on collaborations with car manufacturers, to enhance their services and widen their market share. Some of the OEMs providing their services in the market include Ford, Cadillac, Volvo, Porsche, Mercedes-Benz, BMW, and Jaguar and Land Rover (JLR).
The report also includes a country-wise market analysis. Some of the major countries covered in the report are the U.S., Canada, the U.K., Germany, France, China, India, Japan, South Korea, Australia, Brazil, Mexico, and the U.A.E.
Car Subscription Market Size Breakdown by Segment
The Car Subscription Market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Vehicle Type
Based on Service Provider
Based on Subscription Period