Tokyo, November 04, 2021 (GLOBE NEWSWIRE) – Vehicle subscription is a type of service offered in which the customer, by paying the service charge, obtains the right to use one or more vehicles during the subscription period . In 2020, the vvehicle ssubscription mMarlet the size was valued at US $ 4.1 billion and is expected to grow at a CAGR of 22.8% during the forecast period. Some of the subscriptions offer insurance and maintenance as part of their service; other subscriptions allow the subscriber to switch from one vehicle to another during his subscription period.
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The crucial factors responsible for the growth of the market are:
- Easy user access and cost effectiveness are driving demand in the vehicle subscription market.
- Increased disposable income of clients.
- Rapid urbanization and industrialization in developing countries.
- The advantages of vehicle subscription over vehicle rental.
Scope of Vehicle Subscriptions Market Report
|Cover of the report||Details|
|Market size in 2020||$ 4.1 billion|
|Growth rate from 2021 to 2030||22.8% CAGR|
|Fastest Growing Market||Asia Pacific|
|Year of reference||2021|
|Forecast period||2021 to 2030|
|Companies mentioned||Tesla, Volkswagen, Fair Financial Corp., Clutch Technologies, LLC, General Motors, CarNext, FlexDrive, Cluno GmbH, DriveMyCar Rentals Pty Ltd, BMW AG, Daimler AG, Hyundai Motor India, Tata Motors, Volvo Car Corporation, ZoomCar, Cox Automotive|
Asia-Pacific is expected to experience significant growth during the forecast period and with a CAGR of over 28% market share due to the presence of developing countries engaged in activities such as urbanization and l rapid industrialization. Also, the presence of huge population in this region favors the growth of the vehicle subscription market. For example, on December 15, 2020, Hyundai Motor India announced that its vehicle subscription services have seen increasing demand, especially among millennials and tech-savvy people.
Highlights of the report
- The combustion engine vehicle segment is expected to dominate the market, contributing over 71% of the revenue share in the coming years.
- The business end-use segment of the vehicle subscription market is estimated to dominate the market with a market share of over 60% in 2020.
- By geography, Asia-Pacific is expected to grow significantly with a CAGR of 28% during the forecast period due to the surge in urbanization, industrialization and the massive population present in this region. region.
Driver – Due to the cost effectiveness and ease of user access to vehicles, the vehicle subscription market is experiencing significant growth. In addition, the rapid increase in disposable income of consumers in developing countries is expected to drive the growth of the market. For example, on October 4, 2021, Fair Financial Corp announced that it is relaunching the app to offer subscriptions to its used car inventory. In the first quarter of 2022, Fair plans to roll out used car rental subscriptions provided by third-party providers, with the broader goal of becoming a central hub for all auto retail businesses.
Detention – The major restraining factor that will negatively impact the growth of the vehicle subscription market includes the well-established vehicle rental, rental and sharing market as well as the design of more flexible rental models and functionality. carpools offered by service providers.
Opportunity – The rapid technological developments and the shift in customers towards vehicle subscription services versus car ownership are expected to provide huge opportunities in the growth of the vehicle subscription market. For example, on July 18, 2021, Zoomcar, a driverless car rental company, planned to increase the number of electric car fleets from 2 to 5% currently to 30 to 35% in the coming years.
Challenges – The predominant vehicle leasing, rental and sharing market and the introduction of more flexible leasing models are expected to be a major challenge in the growth of the vehicle subscription market.
- On October 14, 2021, Constellation Automotive Group is the largest vertically integrated digital used car marketplace in Europe, announced the acquisition of CarNext, the leading B2B and B2C digital used car sales market present in 22 European countries. The partnership between CarNext and Constellation creates the largest digital used car market in Europe, selling more than 2.5 million cars per year for a GMV of 21 billion euros.
- On February 21, 2021, Cazoo, the UK-based online used car retailer, announced the acquisition of Cluno, the German leader in automotive subscription services. This acquisition is an important step in its expansion in Europe.
- On October 7, 2021, General Motors announced that it expects to generate nearly $ 2 billion in revenue from its auto subscription services and is expected to reach $ 25 billion by the end of 2030, especially due to the launch of its Ultifi software platform in 2023 which will enable an enhanced subscription platform and over-the-air software updates for its customers.
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Segments covered in the report
By vehicle type
- IC powered vehicle
- Electric vehicle
By subscription period
- 1 to 6 months
- 6 to 12 months
- More than 12 months
By service providers
- OEM and captives
- Independent / Third Party Service Provider
By end use
- North America
- The rest of europe
- Asia Pacific
- South Korea
- Rest of Asia-Pacific
- Latin America
- Middle East
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