Vehicle as a Service Market Size

Vehicle as a Service Market Size

Vehicle as a Service Market size valued at USD 5 billion in 2021 and is expected to grow at more than 20% CAGR from 2022 to 2030. Surging consumer demand for effective alternatives to vehicle ownership will improve the market statistics.

The vehicle-as-a-service (VaaS) or automobile as a service model has been attaining significant interest from customers recently. One of the factors driving industry growth is its cost-effectiveness, which allows customers with subscription vehicles to acquire the product with no down payment and pay economical monthly installations. Compared to an owned car, vehicle rental enables users to save up on vehicle registration, daily maintenance, servicing, pollution certificate, taxation, and insurance.

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Stringent government regulations regarding emission control are reducing interest in vehicle ownership and encouraging individuals to opt for the vehicle as a service model. Hydrocarbon emissions from vehicles are known to adversely affect natural resources. Thus, governments are focusing on curbing vehicle carbon emission levels, which is slated to further enhance the demand for car rental services in the foreseeable future. The Climate Action Law Bill introduced by the German government in 2021 directed the transport sector to reduce its level of carbon emissions from a CO2 equivalent of 150 million tons in 2020 to 85 million tons of CO2 equivalent by 2030.