Vehicle Subscription Market Report 2026

The vehicle subscription market size has grown exponentially in recent years. It will grow from $8.25 billion in 2025 to $10.27 billion in 2026 at a compound annual growth rate (CAGR) of 24.4%. The growth in the historic period can be attributed to changing consumer attitudes toward vehicle ownership, expansion of urban mobility services, growth of leasing and rental models, increasing vehicle price sensitivity, availability of digital subscription platforms.

The vehicle subscription market size is expected to see exponential growth in the next few years. It will grow to $23.91 billion in 2030 at a compound annual growth rate (CAGR) of 23.5%. The growth in the forecast period can be attributed to increasing demand for electric vehicle access without ownership, rising corporate mobility subscriptions, expansion of mobility-as-a-service ecosystems, growing focus on flexible personal transportation, increasing integration of fintech-based payment solutions. Major trends in the forecast period include expansion of flexible vehicle access models, growing adoption of multi-brand subscription platforms, rising demand for short-term vehicle usage plans, increased integration of digital customer management systems, enhanced focus on electric vehicle subscriptions.

The increasing penetration of electric vehicle sales is expected to drive the growth of the vehicle subscription market in the coming years. An electric vehicle is powered by an electric motor that runs on a rechargeable battery and can be charged from an external power source. Vehicle subscription models, particularly for electric cars, offer a modern alternative to traditional leasing by allowing users to access vehicles through flexible, all-inclusive plans. Since purchasing an electric vehicle involves high upfront costs and long-term maintenance expenses, subscriptions enable users to experience electric mobility while avoiding many financial and operational challenges. For example, in April 2024, according to the International Energy Agency, a France-based energy analysis organization, nearly 14 million new electric cars were registered globally in 2023. Electric car sales were 3.5 million higher than in 2022, representing a 35% year-on-year increase, and electric vehicles accounted for about 18% of all cars sold in 2023, up from 14% in 2022, bringing the total number of electric cars on roads worldwide to approximately 40 million. Therefore, the rising penetration of electric vehicle sales is driving the growth of the vehicle subscription market.

Companies operating in the vehicle subscription market are increasingly focusing on strategic partnerships to maintain and strengthen their market positions. Strategic partnerships involve formal collaborations between companies aimed at achieving shared goals and mutual benefits. For instance, in June 2023, Arval, a France-based vehicle leasing and fleet management company, partnered with MG Motor, a UK-based automotive manufacturer, to launch a car subscription offering in Germany. The collaboration, branded as MG Auto Abo and powered by Arval, was introduced in response to growing consumer interest in subscription-based alternatives to conventional car ownership. The service offers flexible contract terms and full-service leasing benefits, initially featuring the MG4 Electric in a luxury trim with a WLTP range of 435 kilometers. The partners also planned to extend the subscription offering to business customers and gradually expand the vehicle portfolio.

In November 2024, Karmo Pty Ltd, an Australia-based technology company, acquired Motopool Pty Ltd for an undisclosed amount. Through this acquisition, Karmo aims to reinforce its leadership in Australia’s car subscription market by expanding its vehicle fleet, diversifying service offerings, and accelerating nationwide growth supported by strategic automotive financing partnerships. Motopool Pty Ltd is an Australia-based technology company that provides flexible, all-inclusive vehicle subscription services, bundling insurance, maintenance, and vehicle access as an alternative to traditional car ownership.

Major companies operating in the vehicle subscription market are Daimler AG, Drover Limited, 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., Arval BNP Paribas, ORIX Corporation, 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 2025. 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, South East Asia, 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, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vehicle subscription market includes revenues earned by entities by offering servicing, warranties, road tax and insurance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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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