Automaker Subscriptions Market Size, Share, Growth, and Industry Analysis, By Type (Subscribe by Month, Subscribe by Year), By Application (Electric Cars, Gas Cars) and Regional Insights and Forecast to 2032

Updated On: 10 June 2024

AUTOMAKER SUBSCRIPTIONS MARKET REPORT OVERVIEW

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The global automaker subscriptions market size expanded rapidly in 2022 and will grow substantially by 2029, exhibiting a prodigious CAGR during the forecast period.

A subscription service known as Automaker subscription monthly allows users to use one or more automobiles in return for monthly fees. Because of its affordability, users can use the car without paying for maintenance or auto insurance. Neither an enormous down payment nor EMI payments are required. It provides greater hygiene, safety, and security as comparison to a taxi or cab. Customers are provided with the option to select from a variety of vehicle models for a fixed charge. Convenience, financial savings, adaptability, and set prices are thus some of the attributes drawing clients to the automotive subscription market. Customers who subscribe to a vehicle can choose to buy or lease a car on a regular basis. Certain subscriptions cover maintenance and insurance, while others let users swap out their cars at any time during the subscription period. Vehicle subscriptions are taken into consideration by industry watchers as a substitute for buying or leasing a car. 

In addition, automobile service providers enable booking, maintenance, and pick-up and drop services in addition to providing car subscription services via offline and online tools. Consequently, this will lead to a global expansion of the automobile subscription market. The growth of the dealer network makes it possible for auto service providers to supply consumers with efficient auto subscription services, which further enhances the market's expansion for auto subscriptions. The proliferation of smartphone applications and easy access to high-speed internet facilities have led to a rise in automobile subscription service providers, which in turn has propelled the worldwide vehicle subscription market's expansion.

COVID-19 Impact: Market Growth Fueled by Pandemic Decreased Growth Of Public Transport

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

There is an increasing demand for personal travel and the reduced use of public transport has grown the automaker subscriptions popularity as a practical transportation alternative. Manufacturers reacted by emphasizing the development of safety measures and sanitation processes that boosted the confidence of the customers. An innovation that can meet the need for convenience and efficiency while trying to match the latest green and active transport technologies. After the safety measures and hygiene protocols have been improved, autometer’s vehicles have also become a highly reliable and preferred travel option for urban commuters who value it for its flexibility and sustainability. Furthermore, the worldwide automotive industry, which includes automobile subscriptions, was hindered by a decline in consumer demand and car sales. Nonetheless, the industry landscape has improved recently due to the decreasing infection incidence and the relaxation of government lockdowns. The companies creating smart cost-cutting initiatives have demonstrated the pandemic's economic effects. Companies owning automobile assets are thinking about options for leasebacks and sales to increase cash flow.

LATEST TRENDS

"Strong Online Tool Availability For Auto Subscription Services Will Create New Growth Prospects For The Worldwide Market"

The growing penetration of subscription service providers in the vehicle subscription industry is a result of both stringent government laws governing vehicle emissions and rising consumer demand for car leasing services. The market is expanding faster in developing nations because to the consumers' rapidly rising disposable incomes. It is anticipated that other variables, like population increase, fast urbanization, and industrialization, will contribute to the market's expansion. Not only will strategic alliances help players establish a strong position in the global car subscription market, but they will also open up new growth avenues for the market as a whole. Automotive manufacturers can enter into alliances with businesses to expand their operations and gain a competitive advantage over rivals. Furthermore, the development of a robust web platform for effectively managing automobile subscription services would open up new avenues for global market expansion. The quick adoption of new technology is driving the phenomenal trajectory of the automaker subscriptions market growth. The mobility landscape is changing as a result of advances in electrification, autonomous driving, analytics, and connectivity. Consumers want more and more digital on-demand services that can be accessed with a few smartphones clicks. By providing clients with the newest cars equipped with cutting-edge driver assistance systems, in-car multimedia systems, and soon even self-driving capabilities, subscription services are well-positioned to benefit from these changes. Additionally, clients can continuously experience new advancements through the subscriptions by upgrading and downgrading their automobiles. Personalized on-road experiences and services are made possible by underlying technological platforms, which also enable the aggregation of large data for deeper customer insights. Using this information, automakers are able to deploy new mobility features at scale through subscription fleets, monitor vehicle health in real-time, and distribute over-the-air software updates. The services are an additional complement to emerging mobility paradigms like ride-hailing and MaaS. Above all, modern electrification will greatly increase car longevity.

AUTOMAKER SUBSCRIPTIONS MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Subscribe by Month, Subscribe by Year.

• Subscribe by Month: The biggest market share is captured by the Subscribe by Month segment. People who need cars for a short while can easily adopt these services because many automakers and third-party companies allow their customers to subscribe for cars for one day or up to six months. The rapid expansion of short-term vehicle leasing options is probably going to support industry expansion.

• Subscribe by Year: This segment holds the subscriptions by Year, consumers who need cars for a long time can easily adopt these services.

By Application

Based on application the global market can be categorized into Electric Cars, Gas Cars.

• Electric Cars: Electric Cars are supported with electric engines for which electric battery charging stations are provided at different places.

• Gas Cars: This segment covers the Gas Cars in which gas cylinders are used for transport system, gas filling stations are available at different charging stations.

DRIVING FACTORS

"Change In Customer Preferences And Adaptable Transportation Options And Economical Substitutes Will Boost The Market"

One of the key driving factors in the global automaker subscriptions market growth is the rising preference for access over ownership among urban millennials is fueling the growth of automaker subscription services. Customers want a range of car experiences, convenience, and flexibility without having to commit to ownership. The creation of flexible mobility solutions, which is made possible by advancements in digital platforms and mobile apps, is one important factor. The user experience is enhanced when clients can choose and switch cars easily according to their needs. Subscription services for cars offer cost-effective substitutes for traditional ownership because they do not require significant upfront expenditures, continuous maintenance expenses, or depreciating assets.

"A Huge Market For Autos With Reasonable Installment Payments Will Expand The Market"

The worldwide automaker subscriptions market trends will be influenced by a number of factors, including the cost-effectiveness and flexibility of car subscription services. A growing consumer trend toward purchasing cars at reasonable monthly installments that cover maintenance, insurance, and roadside assistance contributes to the viability of the auto subscription model for customers. Consequently, this will encourage the global automobile subscription industry to grow. The automobile industry is rapidly digitizing, which will contribute to the global automaker subscriptions market growth. The proliferation of smartphone applications and easy access to high-speed internet facilities have led to a rise in automobile subscription service providers, which in turn has propelled the worldwide vehicle subscription market's expansion.

RESTRAINING FACTORS

"Difficulty in Insurance, Complicated Pricing Models, and Limited Geographic Availability Impede Market Growth"

Inadequate transportation infrastructure in developing nations is impeding the expansion of industry. Customers in remote or sparsely populated areas have less access to automobile subscription services because they are sometimes restricted to specific metropolitan centers or geographic areas. Some subscription services may see lower adoption rates due to user confusion caused by a complex price structure. Determining insurance coverage, risk, and claims processing can be challenging in subscription models, which could erode customer trust in the company.

AUTOMAKER SUBSCRIPTIONS MARKET REGIONAL INSIGHTS

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"North America Dominating the Market due to Presence of a Large Consumer Base"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

The North American region will continue to dominate the automaker subscriptions market share, contributing significantly to its revenue share of the worldwide market in 2022. The existence of major companies in nations like the United States and Canada may have contributed to the market's expansion in North America throughout the evaluation period. Furthermore, the region's robust automotive infrastructure will encourage the growth of the regional market.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The automaker subscriptions market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Volvo (Sweden)
• Mercedes-Benz (Germany)
• TOYOTA (Japan)
• Porsche (Germany)
• Volkswagen (Germany)
• NIO (China)
• ZEEKR (China)
• Nissan (Japan)
• Kia (South Korea)
• Hyundai (South Korea)

INDUSTRIAL DEVELOPMENT

October 2022: Myles Automotive, has introduced a monthly car subscription plan for customers in Bangalore, Mumbai, Delhi, and the NCR. This will assist customers who swap cars on a monthly basis. Services covered by the new plan include insurance facilities, maintenance, and roadside assistance. The action will accelerate the expansion of India's automobile subscription market.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.