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The global car subscription market exhibited strong growth during 2015-2020. Looking forward, IMARC Group expects the market to grow at a CAGR of 17% during 2021-2026. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic on different end use sectors. These insights are included in the report as a major market contributor.
Car subscription refers to a fee-based service for automobile ownership with a fixed periodic recurrent payment. The subscription plan enables the user to acquire a motor vehicle in return for a monthly fee for a duration of minimum one month to a few years. It also provides facilities of multiple switches of the subscribed car from different brands and covers additional vehicle expenses, such as insurance and maintenance. In comparison to owning a vehicle, subscription models are more cost-effective, have no down payments and can be used for both internal combustion engine (ICE) and electric vehicles.
Rapid digitization of the automotive industry across the globe is one of the key factors driving the market growth. With the increasing availability of high-speed internet and utilization of smartphone applications, car subscription service providers are offering online and offline-based platforms to facilitate convenient booking, pick up and drop and maintenance activities. Moreover, as the coronavirus disease (COVID-19) continues to spread, consumers are minimizing the usage of public transport facilities, such as metro, taxis and buses, and adopting car subscription services to travel in private vehicles. Additionally, various technological advancements, such as the integration of connected devices with the Internet of Things (IoT) and artificial intelligence (AI) solutions, are acting as other growth-inducing factors. These innovative technologies provide real-time tracking, consumer feedback, driving analysis, alerts of rash driving, geofencing, engine monitoring and service history facilities. Other factors, including rising expenditure capacities of the consumers, along with extensive infrastructural developments, especially in the developing economies, are anticipated to drive the market toward growth.
IMARC Group provides an analysis of the key trends in each sub-segment of the global car subscription market report, along with forecasts for growth at the global, regional and country level from 2021-2026. Our report has categorized the market based on region, service providers, vehicle type, subscription period and end use.
Breakup by Service Providers:
Breakup by Vehicle Type:
Breakup by Subscription Period:
Breakup by End Use:
Breakup by Region:
The competitive landscape of the industry has also been examined along with the profiles of the key players being 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.
We expect the global car subscription market to exhibit a CAGR of 17% during 2021-2026.
The growing adoption of online and offline-based platforms for convenient booking, pick up and drop, and maintenance activities is primarily driving the global car subscription market.
The sudden outbreak of the COVID-19 pandemic has led to the increasing adoption of car subscription services by the consumers to travel in private vehicles rather than using public transport facilities, such as metro, train, buses, etc.
Based on the service providers, the global car subscription market has been segmented into OEMs and captives and independent/third party service provider. Currently, OEMs and captives hold the majority of the total market share.
Based on the vehicle type, the global car subscription market can be divided into IC powered vehicle and electric vehicle, where IC powered vehicle currently exhibits a clear dominance in the market.
Based on the subscription period, the global car subscription market has been categorized into 1 to 6 months, 6 to 12 months, and more than 12 months. Among these, 6 to 12 months currently account for the majority of the global market share.
Based on the end use, the global car subscription market can be segmented into private and corporate. Currently, the corporate sector accounts for the largest market share.
On a regional level, the market has been classified into North America, Asia Pacific, Europe, Latin America, and Middle East and Africa, where Asia Pacific currently dominates the global market.
Some of the major players in the global car subscription 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, and ZoomCar.
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