Car Subscription Market Report by Service Providers, Vehicle Type, Subscription Period, End Use, and Region 2024-2032

The global car subscription market size reached US$ 4.6 Billion in 2023. Looking forward, the publisher expects the market to reach US$ 19.5 Billion by 2032, exhibiting a growth rate (CAGR) of 17.41% during 2023-2032. The rising demand for accessing a variety of vehicles among the masses, changing perceptions of individuals towards ownership of vehicles, and technological advancements in the automotive industry, represent some of the key factors propelling the market.

Car Subscription Market Analysis:

• Major Market Drivers: The demand for car subscription services is growing, as they offer a convenient and flexible alternative to traditional car ownership, offering a favorable market outlook. Moreover, the integration of digital platforms and mobile apps enables seamless subscription management, vehicle selection, and scheduling of deliveries or pickups, further propelling the industry's demand.
• Key Market Trends: The rising urbanization, fluctuating fuel prices, and environmental awareness for eco-friendly transportation options are anticipated to propel the industry's growth. In addition to this, car subscription services typically offer a wide range of vehicle options, including luxury cars, electric vehicles (EVs), SUVs, and hybrids, thereby escalating the market's growth.
• Competitive Landscape: Some of the prominent car subscription market companies include Carly Holdings Limited, Cluno GmbH (Cazoo Limited), Cox Enterprises Inc., Facedrive Inc., Lyft Inc., Onto Ltd., OpenRoad Auto Group, The Hertz Corporation, Wagonex Limited, and ZoomCar, among many others.
• Geographical Trends: According to the car subscription market dynamics, Europe exhibits a clear dominance in the market owing to a noticeable shift among consumers away from traditional car ownership towards more flexible mobility solutions.
• Challenges and Opportunities: Lack of awareness among consumers regarding the availability of car subscription services, and high maintenance and service costs are hampering the market growth. However, with increasing concerns of environmental issues, car subscriptions can promote sustainability by encouraging shared vehicle usage and reducing overall carbon footprints compared to traditional car ownership.

Car Subscription Market Trends:

Access to a Variety of Vehicles

Car subscription services provide subscribers with access to a diverse range of vehicles, including sedans, SUVs, luxury cars, and electric vehicles (EVs). For instance, in June 2024, Astara launched Move, a new car subscription service that offers models from all sectors for private and professional usage. This portfolio includes models from four of the companies it represents, namely Kia, Mitsubishi, Maxus, and Isuzu, as well as the Suzuki range and the two-seater electric "Microlino,". This allows individuals to experience different car models and switch between them as desired, depending on their needs or preferences. These factors are expected to propel the car subscription market in the coming years.

Changing Consumer Preferences

Consumer attitudes toward car ownership are evolving. Younger generations, such as millennials and Gen Z, are showing preferences for the car subscription model. For instance, according to an article published by Deloitte in March 2024, one in every five consumers of all ages (18%) supported the car subscription model, with 18-34-year-olds showing the greatest interest (28%). They value experience and convenience over the responsibility and costs associated with owning a car. These factors further positively influence the car subscription market forecast.

Technological Advancements

Technology is playing a significant role in car subscription services, enabling users to complete the entire process online. Mobile applications and online platforms make it easier for individuals to browse available vehicles, compare subscription plans, and sign up for services. For instance, in October 2022, Myles, a vehicle subscription provider, launched a one-month subscription plan that will enable people to change cars every month. The process of subscription can be easily availed by the Myles Zero Mobile app or website by completing the simple KYC process. These factors are further boosting the car subscription market revenue.

Global Car Subscription Industry Segmentation:

The publisher provides an analysis of the key trends in each segment of the global car subscription market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on service providers, vehicle type, subscription period, and end use.

Breakup by Service Providers:

• OEMs and Captives
• Independent/Third Party Service Provider

Independent/third party service provider dominates the market

According to the car subscription market outlook, independent/third party service providers are not limited to a single brand or manufacturer, allowing them to offer a wide range of vehicle options from various manufacturers. This gives customers greater flexibility in choosing the car that best suits their needs, preferences, and budget. Since independent/third party service providers are not tied to any specific brand, they can offer unbiased recommendations based on the requirements of customers. Their goal is to find the right vehicle for the customer, rather than pushing a specific brand or model.

Breakup by Vehicle Type:

• IC Powered Vehicle
• Electric Vehicle

IC powered vehicle holds the biggest market share

According to the car subscription market overview, the infrastructure for IC powered vehicles is well-established in most regions, such as gas stations are abundant, making it convenient for drivers to refuel their vehicles. In addition, IC powered vehicles generally offer longer driving ranges compared to electric vehicles (EVs) and have shorter refueling times. This makes them more suitable for long-distance travel or for individuals who require a vehicle with extended-range capabilities.

Breakup by Subscription Period:

• 1 to 6 Months
• 6 to 12 Months
• More Than 12 Months

6 to 12 months account for the majority of the market share

People can switch to a different vehicle or service provider sooner if their needs change or if they want to try out different cars. It provides an opportunity to experience various models and make adjustments based on personal preferences or changing circumstances. Moreover, opting for a shorter subscription period reduces the commitment level and gives customers the freedom to explore alternative options more frequently.

Breakup by End Use:

• Private
• Corporate

Corporate represents the largest segment

Car subscriptions can be more cost-effective compared to traditional car ownership or leasing. Instead of a large upfront payment or long-term lease commitments, companies can pay a monthly subscription fee that covers the cost of the vehicle, maintenance, insurance, and other associated expenses. This predictable, fixed cost structure allows for better budgeting and cost control.

Moreover, companies can choose from a wide range of vehicles and switch between models as per their needs. This flexibility allows businesses to adapt to changing requirements, such as different types of projects or client demands. Additionally, car subscriptions often have shorter terms compared to traditional leases, enabling companies to adjust their fleet size or composition more easily.

Breakup by Region:

• North America
• United States
• Canada
• Asia-Pacific
• China
• Japan
• India
• South Korea
• Australia
• Indonesia
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Russia
• Others
• Latin America
• Brazil
• Mexico
• Others
• Middle East and Africa

Europe exhibits a clear dominance, accounting for the largest market share

According to the car subscription market statistics, Europe held the biggest market share as owning a car in the region can be expensive due to various factors, such as high purchase prices, insurance costs, fuel prices, parking fees, and maintenance expenses. Car subscription services provide an alternative that allows individuals to avoid the upfront costs and ongoing financial burdens associated with car ownership. Many European cities face issues related to traffic congestion, limited parking spaces, and strict emissions regulations.

Car subscription services provide a flexible transportation solution without the hassle of owning and parking a car in crowded urban areas. People can access vehicles on demand when they need them and return them when they are done, reducing the need for private car ownership. For instance, in September 2023, Casi collaborated with Hyundai Motor Europe to provide the OEM's Mocean car subscription service to European markets.

Competitive Landscape:

The car subscription industry is witnessing a rise in competition as more companies are entering the market, offering subscription-based models as an alternative to traditional car ownership or leasing. The market includes both traditional automakers and tech startups, each bringing their own unique value propositions and targeting different customer segments.

The car subscription market is relatively new and evolving, which means there is potential for new entrants to disrupt the existing players by introducing innovative business models or technologies. While the market is presenting opportunities, there can be barriers to entry for new players. Established companies may have significant brand recognition, existing customer bases, and partnerships with dealerships or manufacturers, which can make it challenging for new entrants to gain traction.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Carly Holdings Limited
• Cluno GmbH (Cazoo Limited)
• Cox Enterprises Inc.
• Facedrive Inc.
• Lyft Inc.
• Onto Ltd.
• OpenRoad Auto Group
• The Hertz Corporation
• Wagonex Limited
• ZoomCar

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Car Subscription Market Recent Developments:

• June 2024: Astara, launched Move, a new car subscription service that offers models from all sectors for private and professional usage. This portfolio includes models from four of the companies it represents, namely Kia, Mitsubishi, Maxus, and Isuzu, as well as the Suzuki range and the two-seater electric "Microlino,".
• April 2024: Helixx Technologies launched an electric car and van subscription service. This service provides a brand-new automobile or van with insurance and maintenance for as low as $0.25 per hour or $6.00 per day, with no up-front fees.
• February 2024: AMT Auto launched a vehicle subscription service that allows consumers to drive the automobile they want, when they want, and without the burden of ownership.

Key Questions Answered in This Report

1. What was the size of the global car subscription market in 2023?
2. What is the expected growth rate of the global car subscription market during 2024-2032?
3. What has been the impact of COVID-19 on the global car subscription market?
4. What are the key factors driving the global car subscription market?
5. What is the breakup of the global car subscription market based on the service providers?
6. What is the breakup of the global car subscription market based on the vehicle type?
7. What is the breakup of the global car subscription market based on the subscription period?
8. What is the breakup of the global car subscription market based on the end use?
9. What are the key regions in the global car subscription market?
10. Who are the key players/companies in the global car subscription market?