Car Subscription Market size is set to surpass USD 100 billion by 2032, according to a new research report by Global Market Insights Inc.
The growing demand for subscription services is drawing new industry participants. The existing manufacturers are taking initiatives to capitalize on increasing market potential and are making efforts to reach the untapped market, which is likely to positively impact the overall market.
Furthermore, the lack of connectivity across several Asian and Latin American countries is indirectly contributing to the market growth. The lack of adequate public transit infrastructure in emerging nations is increasing the preference for leased or rented automobiles among the public to travel to preferred destinations. Car subscriptions are estimated to gain traction in developing countries owing to the growing demand for effective transportation alternatives.
Surging inclination toward subscription-based mobility services to foster OEM segment growth
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The OEM service provider segment accounted for over 80% of the car subscription market in 2022. The segment is projected to exhibit considerable growth between 2023 and 2032 resulting from shifting consumer preferences and a transition toward subscription-based mobility services that are encouraging businesses to offer car subscriptions.
Convenience and affordability to favor economy car industry share.
The economy car segment is poised to witness 39% growth rate up to 2032. The primary factors boosting the demand for economy cars are their affordability and convenience in comparison to executive and luxury vehicles.
Browse key industry insights spread across 200 pages with 190 market data tables and 36 figures & charts from the report, “Car Subscription Market Size By Subscription Provider (OEM, Third-party Service Provider), By Vehicle (Luxury Car, Executive Car, Economy Car), By Subscription Period (0 - 6 Months, 6 - 12 Months, More Than 12 Months), COVID-19 Impact Analysis, Growth Potential, Regional Outlook, Competitive Market Share & Forecast, 2023 – 2032” in detail along with the table of contents:
Growing demand among corporates & individuals to increase more than 12 months segment revenues
The more than 12 months of car subscription services are predicted to observe around 35.5% growth through 2032. The growth of the segment is aided by the rising demand from corporate and individual consumers for car subscription services that reduce the financial burden. Companies in the market offer subscription services that include insurance and maintenance fees, which reduces the financial strain on clients and promotes a wider adoption of automotive services.
Favorable government initiatives to complement Asia Pacific industry expansion
Asia Pacific car subscription market is anticipated to depict a CAGR of 40% from 2023 to 2032. The development of electric vehicle charging infrastructure, along with favorable government initiatives aimed to promote the reduction of carbon emissions, is expected to accelerate APAC market growth.
Strategic partnerships to define the competitive landscape
Prominent key players operating in the automotive subscription market include Wagonex Limited, Tata Motors, Toyota, and Volkswagen, among others. In order to retain their market position, these firms focus primarily on expanding the development of innovative products and implementing growth strategies through partnerships and collaborations.