Vehicle as a Service Market Report 2026

The vehicle as a service market size has grown rapidly in recent years. It will grow from $8.79 billion in 2025 to $10.48 billion in 2026 at a compound annual growth rate (CAGR) of 19.3%. The growth in the historic period can be attributed to urban mobility challenges, rise of shared mobility platforms, fleet digitization, demand for cost predictability, growth of leasing models.

The vehicle as a service market size is expected to see rapid growth in the next few years. It will grow to $20.97 billion in 2030 at a compound annual growth rate (CAGR) of 18.9%. The growth in the forecast period can be attributed to expansion of electric vehicle subscriptions, enterprise mobility demand, smart city integration, data-driven fleet optimization, regulatory support for shared mobility. Major trends in the forecast period include growth of subscription-based mobility models, expansion of fleet-based services, integration of telematics and analytics, rising demand for flexible vehicle access, shift from ownership to usage.

The increasing global traffic congestion and jams are expected to drive the growth of the Vehicle-as-a-Service (VaaS) market in the future. Traffic congestion occurs when excessive vehicle volume on road networks causes delays, resulting in slower speeds and longer travel times. Factors contributing to rising traffic congestion include urbanization, population growth, inadequate infrastructure, and an increasing number of vehicles. VaaS can help mitigate traffic congestion by promoting shared mobility and reducing the number of individual vehicles on the road, thus optimizing transportation efficiency. For example, a report by INRIX, published in January 2024, highlighted that traffic congestion worsened in 98 out of the top 100 urban areas in 2023 compared to the previous year. In 71 of these cities, traffic delays increased by double digits in 2022. Moreover, drivers in New York City lost an average of 101 hours to traffic jams in 2023, resulting in economic losses exceeding $9.1 billion due to wasted time. Consequently, the growing issue of traffic congestion is likely to drive the expansion of the VaaS market.

Key companies operating in the vehicle-as-a-service market are concentrating on the development of innovative solutions, such as flexible subscription platforms, to provide convenient and cost-effective access to vehicles without the need for long-term ownership. A flexible subscription platform is a service model that allows users to access vehicles for a recurring fee that includes rental, maintenance, insurance, and other related services, offering convenience, predictable costs, and the flexibility to switch or cancel vehicles as required. For instance, in October 2024, Drivalia UK Ltd., a UK-based automotive company, introduced CarCloud, a new car subscription service focused on the Omoda 5 SUV. Through this launch, Drivalia seeks to offer customers the flexibility to use a vehicle without ownership obligations, featuring monthly renewals, no long-term commitments, and bundled services such as maintenance and insurance. CarCloud is designed to cater to both individual consumers and corporate clients, reflecting the growing demand for flexible mobility solutions across Europe.

In October 2024, Carwow Group, a UK-based technology and online marketplace company, acquired Gridserve Car Leasing for an undisclosed sum. This acquisition marks a significant step for Carwow in solidifying its position as a top vehicle leasing marketplace in the UK. By broadening its offerings beyond electric vehicles (EVs) and enhancing its comparison tools, Carwow aims to appeal to a larger customer base and enhance service delivery in the dynamic automotive market. Gridserve, a UK-based company, specializes in leasing electric vehicles.

Major companies operating in the vehicle as a service market report include Volkswagen AG, Toyota Motor Corporation, Tata Group, Ford Motor Company, Mercedes-Benz Group, General Motors, Bayerische Motoren Werke AG (BMW Group), Hyundai Motor Group, Accenture Plc, AB Volvo, Porsche AG, Uber Technologies Inc., AutoNation, Nokia Corporation, DiDi Chuxing, LeasePlan Corporation NV, Hertz Corporation, Orange Business Services, Lyft Inc., Sixt SE, Kelsian Group, CarNext B.V., Zoomcar, Cluno GmbH, Bipi.

North America was the largest region in the vehicle as a service market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vehicle as a service market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle as a service market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The vehicle as a service market includes revenues earned by entities by car sharing, ride-hailing, long-term rentals, fleet management services and autonomous vehicle services. 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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