VEHICLE SUBSCRIPTION MARKET TO SURPASS VALUATION OF US$ 81 BN BY 2030

Posted by Katheine Silway on April 27th, 2021

Automotive Vehicle Subscription Market: Introduction

According to the report, the global vehicle subscription market is projected to surpass US$ 81 Bn by 2030, expanding at a CAGR of ~15% during the forecast period. Automotive users are finding convenience in the vehicle subscription model, owing to flexible, monthly, or yearly subscription plan offerings; however, awareness about vehicle subscription model is low in Asia Pacific, as compared to that in the U.S. and Europe. Automotive OEMs have been rolling out vehicle subscription model vehicle offerings. Competition is expected to increase in the market, as more OEMs enter, while third party players are expected to seek differentiation of their offerings compared to those of OEMs.

Expansion of Automotive Vehicle Subscription Market

The fundamental change in consumer behavior and societal trend toward individualization has resulted in the rise of subscription economy. The trend of vehicle subscription is gaining traction among urban young and middle class population. The introduction of flexible vehicle subscription models has transformed consumer preference from owning to experiencing. Moreover, subscribing a car makes car ownership and driving easy and hassle-free. The rise in income of middle class population has prompted young consumers to use vehicle subscription, along with high-income group population, thereby fueling the market.

In terms of vehicle subscription type, the multi-brand segment dominated the global vehicle subscription market, as currently the multi brand subscription offers a flexibility of switch to cross-brands. Based on end user, private individuals are currently witness major adoption of vehicle subscription services, while corporate end users are likely to witness high rate of adoption over the next few years.