Vehicle as a Service Market size is anticipated to cross USD 30 billion by 2030, according to a new research report by Global Market Insights Inc.
The report identifies the growing popularity of electric vehicles and customer inclination toward cost-effective transportation solutions as the chief drivers of the vehicle as a service industry.
Favorable investment in automotive industry to increase electric engine demand
The electric engine segment is expected to witness a growth rate of nearly 24% through 2030. The rising preference for EVs for rental services is accelerating the demand for the automobile as a service model. Favorable future trends and significant investments in the automotive industry are helping many startups get ahead in the business.
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Seamless customer management to push car subscription software providers segment growth
The vehicle as a service market share from the car subscription software providers segment valued at USD 1.9 billion in 2021 and is set to register notable gains in the coming years. Vehicle subscription software market players provide many benefits to automakers, new & used car dealerships, fleet rental providers, and new mobility startups through point-of-sale & self-service customer onboarding, seamless ongoing subscription & customer management, enterprise-grade automated billing and invoicing, and other advantages, which is bolstering segment progress.
Browse key industry insights spread across 230 pages with 325 market data tables and 43 figures & charts from the report “Vehicle as a Service Market Size By Engine Type (Internal Combustion [IC] Engine, Electric Engine), By Vehicle Type (Passenger Cars, Trucks, Utility Trailers, Motorcycles), By Service Providers (Automotive OEMs, Auto Dealerships, Auto Tech Startups, Car Subscription Software Providers), By End-users (Enterprise Users, Private Users), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2030”, in detail along with the table of contents:
Effective design of vehicles to boost demand for utility trailers
The utility trailers vehicle type surpassed USD 570 million in 2021. Utility trailers are widely utilized in end-user industries, including steel, cement, food & beverage, and others. They have an open-top design that enables customers to fit items of varied shapes and sizes. In addition, individuals and businesses can rent them as per their requirements instead of owning them, which is speculated to fuel the vehicle as a service market growth from the utility trailers segment.
Cost-effectiveness to encourage enterprise users to opt for vehicle subscription
The deployment of vehicles on lease or rent for commercial use to enterprises is foreseen to remain high in the coming years. The car as a service market size from the enterprise users segment is speculated to depict considerable growth through 2030. Due to their cost-effectiveness and no maintenance, organizations are using these services for the commute of their employees. The segment growth is influenced to be further driven by rising sales on e-commerce platforms, which is allowing companies to choose vehicles that cater to their specific business needs.
North America emerges as a prominent revenue pocket
The North America vehicle as a service market size is estimated to expand at a CAGR of more than 21.5% through 2030. The region is forecast to emerge as a major hub for this industry owing to the implementation of strict government regulations and rules to reduce automotive emissions resulting from heavy pollution in the region. Moreover, the region has a strong production base with automotive manufacturers, such as General Motors, Fiat Motors, Ford, and Tesla Motors, who are promoting rental and leasing services, which is likely to stimulate regional market growth.
Introduction of innovative B2C platforms to remain a key growth strategy
The competitive landscape of the vehicle as a service market is expected to observe a series of product diversification efforts, strategic acquisitions, collaboration, and mergers, along with introduction of innovative e-commerce applications, by industry players. Some of the key participants profiled in the report include Autonomy, BMW AG, Borrow, CarNext, Cluno GmbH, Hertz, Hyundai, OpenRoad, Tata Motors, Toyota, Volkswagen, Volvo Car Corporation, and ZoomCar, among others.