Vehicle Subscription Global Market Report 2024

The vehicle subscription market size has grown exponentially in recent years. It will grow from $5.34 billion in 2023 to $6.71 billion in 2024 at a compound annual growth rate (CAGR) of 25.8%. The growth observed in the historical period can be attributed to several influential factors. These include shifting preferences in consumer mobility, ongoing urbanization trends affecting transportation needs, increased diversity in vehicle fleets offering various options, the digital transformation within the automotive industry introducing innovative services, and the rising consumer demand for convenient and hassle-free mobility experiences. These factors collectively contributed to the expansion and evolution of vehicle subscription services during the historical period.

The vehicle subscription market size is expected to see exponential growth in the next few years. It will grow to $16 billion in 2028 at a compound annual growth rate (CAGR) of 24.2%. The anticipated growth in the forecast period is expected to be fueled by several significant factors. These include the expansion of electric and autonomous vehicles within the automotive landscape, growing concerns and initiatives regarding sustainability and environmental impact, the integration of Mobility-as-a-Service (MaaS) solutions offering diverse transportation options, the adoption of subscription models for commercial fleet management, advancements in data analytics and predictive modeling enhancing service efficiency, and the regulatory support encouraging innovations in mobility solutions. Key trends projected for the forecast period encompass the extension of subscription models beyond luxury vehicles to a wider market segment, increased integration of digital platforms for seamless user experiences, the introduction of tiered subscription plans offering diverse features, an emphasis on flexibility and convenience in subscription offerings, collaborations and partnerships among industry players to enhance service offerings, and the introduction of subscription services tailored specifically for electric vehicles, catering to the rising demand for sustainable transportation solutions. These trends are expected to shape the evolution of vehicle subscription services in the foreseeable future.

The expansion of electric vehicle (EV) sales is anticipated to be a driving force behind the growth of the vehicle subscription market in the future. Electric vehicles, powered by electric motors and rechargeable batteries, have gained popularity, and the subscription model offers a cost-effective and hassle-free way for users to experience driving an EV without the financial burden of ownership. As highlighted in the May 2022 Global EV Outlook report, EV sales witnessed a significant surge in 2021, reaching 6.6 million units globally, reflecting a doubling of sales from the previous year. This upward trend in electric vehicle adoption is a key factor contributing to the growth of the vehicle subscription market.

The rapid pace of urbanization is also poised to drive the expansion of the vehicle subscription market. Urbanization, the process of population concentration in cities and towns, often leads to increased traffic congestion in urban areas. Vehicle subscription services present an attractive solution for urban dwellers, offering flexible and convenient transportation alternatives without the challenges associated with owning and parking personal vehicles. According to data from the United Nations Department of Economic and Social Affairs, the global urban population reached 4.46 billion in 2021, and this number is projected to rise to 6.68 billion by 2050. The substantial growth in urbanization is expected to fuel high demand for vehicle subscription services, particularly in congested urban environments.

Technological advancements have become a prominent trend in the vehicle subscription market, with major companies striving to integrate new technologies and enhance their market positioning. An illustrative example is Santander Consumer Finance, a Spain-based financial services company, which, in June 2022, introduced Ulity, a cutting-edge technology platform designed for vehicle subscription-based solutions targeting businesses. This white-label technology platform, developed as Software as a Service (SaaS), is specialized for creating vehicle subscription solutions in the mobility service industry. Santander Consumer Finance leveraged its industry expertise to develop this platform, allowing other companies to utilize it without the need for extensive development costs. This approach enables businesses to expand their customer base, streamline entry into the vehicle subscription services sector, and explore new markets.

Strategic partnerships have emerged as a key focus for major companies in the vehicle subscription market to fortify their market positions. In June 2023, Arval, a France-based vehicle leasing and fleet management company, collaborated with MG Motor, a UK-based automotive company, to introduce a car subscription model in Germany. This strategic partnership addresses the growing demand for subscription-based alternatives to traditional car ownership. The collaboration, named MG Auto Abo and powered by Arval, offers customers a flexible contract term and the benefits of full-service leasing. Initially featuring the MG4 Electric, a 2023 model known for its impressive WLTP range of 435 kilometers, the subscription aims to cater to consumer preferences for electric vehicles. Arval and MG Motor plan to extend the Auto Abo subscription to business customers and gradually expand the vehicle selection.

In October 2021, ALD Automotive, a French company specializing in fleet management and operational car leasing, completed the acquisition of Fleetpool for an undisclosed sum. This strategic acquisition positions ALD to expedite the development of digital automotive subscription services aimed at clients, employees, and private consumers while expanding the geographical presence of its mobility solutions throughout Europe. Fleetpool, a German firm specializing in car subscription services catering to individuals, partners, and businesses, will facilitate ALD's growth in this sector.

Major companies operating in the vehicle subscription market report are Daimler Aktiengesellschaft, Drover Limited, Facedrive Inc., Open Road Auto Group LLC, Primemover Mobility Technologies Private Limited, The Hertz Corporation, Dr. Ing. h.c. F. Porsche AG, Volvo Car Corporation, Toyota Motor Corporation, Clutch Technologies LLC, General Motors Company, FreshCar Inc., Drivemate Inc., LMP Motors Pvt. Ltd., Cluno GmbH, Sixt SE, Avis Budget Group Inc., Lyft Inc., Arval BNP Paribas, ORIX Corporation, Zipcar Inc., Flexdrive Inc., Fair Financial Corp., BMW AG, Mercedes-Benz USA LLC, Audi of America Inc., Hyundai Motor America, Carbar Pty Ltd., CarNext, LeasePlan Corporation N.V..

North America was the largest region in the vehicle subscription market in 2023. Asia-Pacific is expected to be the fastest-growing region in the vehicle subscription market report during the forecast period. The regions covered in the vehicle subscription market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle subscription market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary vehicle types available for subscription services include IC-powered vehicles, which operate using a traditional internal combustion engine burning fuel in a combustion chamber with the help of an oxidizer, usually oxygen from the air. Another category comprises electric vehicles (EVs), which use electric motors powered by rechargeable batteries. Subscription services come in various types such as single-brand subscriptions, which involve access to vehicles from a single manufacturer, and multi-brand subscriptions that offer access to a range of vehicles from different manufacturers. Service providers in the vehicle subscription business include Original Equipment Manufacturers (OEMs) or captives, mobility providers, and technology companies. These subscription services cater to both business and private end-users, offering flexible mobility solutions.

The vehicle subscription market research report is one of a series of new reports that provides vehicle subscription market statistics, including vehicle subscription industry global market size, regional shares, competitors with a vehicle subscription market share, detailed vehicle subscription market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle subscription industry. This vehicle subscription market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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