Automotive Subscription Services Market Size By Subscription Provider (OEM, Third-party Service Provider), By Vehicle Type (Luxury Car, Executive Car, Economy Car), By Subscription Period (0 - 6 Months, 6 - 12 Months, More Than 12 Months), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

Automotive Subscription Services Market size exceeded USD 3 billion in 2019 and is poised to register a CAGR of over 40% between 2020 and 2026. The low financial liability associated with vehicle subscription compared to vehicle ownership is supporting the market demand. The rising automotive prices along with additional maintenance and insurance costs areenabling consumers to prefer vehicle subscription. Automotive subscription services also allow consumers to switch between multiple vehicle models during the subscription. The growing market demand for Mobility-as-a-Service (MaaS) is another factor driving the industry growth.
 

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The COVID-19 outbreak has imposed restrictions over traveling, thus negatively impacting vehicle subscription services. The economic crisis created due to the COVID-19 outbreak is also restricting customers from buying automotive subscription services. In the post-COVID-19 scenario, automotive subscription services will become more popular as consumers will prefer personal vehicle over public transportation. The vehicle subscription services market is expected to grow exponentially post-COVID-19.
 

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Changing consumer preferences regarding vehicle ownership in the UK

The UK OEMs segment held a market share of over 80% in 2019 driven by the presence of major automotive manufacturers in the country such as Jaguar Land Rover and Nissan. The changing consumer preference regarding vehicle ownership is enabling OEMs to launch their vehicle subscription services.
 

For instance, in July 2020, Jaguar Land Rover, a British automotive company, launched automotive subscription service, Pivotal. This new automotive subscription service helped consumers to provide an alternative to vehicle ownership and long-term leasing. The market dominance of OEMs across the vehicle subscription services market is owing to the rising demand for luxury vehicle.
 

Growing market demand for economy cars from the middle-income population

The economy car segment in India is projected to grow at more than 50% CAGR through 2026 propelled by the presence of middle-level income population in the country. The majorly of the middle-income population prefers economic vehicles as they are affordable compared to luxury & executive vehicles. The rising market demand for third-party automotive subscription providers in the country, such as Zoomcar and Revv, is also fueling the adoption of automotive subscription services. Major automotive manufacturers are partnering with third-party service providers to offer automotive subscription services in India.
 

Decline vehicle sales in Mexico to positively impact the automotive subscription services market expansion

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In Mexico, the 0 - 6 months segment covered around 40% market revenue share in 2019 impelled by the growing popularity of short-term vehicle renting services. The short-term automotive subscription services help consumers to enjoy car ownership without additional ownership costs such as insurance, maintenance, and registration fees.
 

The reduction in vehicle sales in the country due to rising vehicle prices is another factor boosting the adoption of automotive subscription services. For instance, according to OICA, in Mexico, passenger vehicle sales declined to 761.72 million units in 2019 from 866.92 million units in 2018.
 

Well-established automotive industry in North America

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North America automotive subscription services market captured over 30% share in 2019 on account of the well-established automotive industry in the region such as General Motors, Fiat Motors, Ford, and Tesla Motors. The growing penetration of third-party automotive service providers in the U.S. is also supporting market outlook.
 

The major automotive manufacturers in the U.S. are emphasizing on their vehicle subscription program. For instance, 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. This program helped the company to target new consumers across the country.
 

Strategic partnership to remain as the key market growth strategy

Major companies operating in the industry are forming strategic partnerships with third-party automotive subscription service providers to introduce vehicle subscription services in the growing automotive market.

Some of the major automotive subscription services market players are AB Volvo, BMW AG, Daimler AG, Drover Limited, Exelorate Enterprises, LLC, Fair Financial Corp., General Motors Co., Hyundai Motor Co., INNOVATE AUTOMOTIVE PTY LTD, LeasePlan Corporation, Lyft, Inc., Onto Ltd., PRIMEMOVER MOBILITY TECHNOLOGIES PRIVATE LIMITED (Revv), Tata Motors Limited, Toyota Motor Corporation, Volkswagen AG, WAGONEX LIMITED, and ZoomCar.
 

This market research report on automotive subscription services includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2015 to 2026 for the following segments:
 

Market, By Subscription Provider

• OEM
• Third-party Service Provider

Market, By Vehicle Type

• Luxury Car
• Executive Car
• Economy Car
• Others

Market, By Subscription Period

• 0 - 6 Months
• 6 - 12 Months
• More than 12 Months

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Spain
  • Italy
  • Russia
• APAC
  • China
  • Japan
  • India
  • ANZ
  • South Korea
  • Southeast Asia
• Latin A
  • Brazil
  • Mexico
  • Argentina
• MEA
  • South Africa
  • Saudi Arabia
  • UAE
  • Israel