According to the latest report by IMARC Group, titled "Car Subscription Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027," the global car subscription market to reach a value of US$ 3.1 Billion in 2021. Car subscription refers to a service model that offers customers full access to cars on a fixed periodic recurrent payment. It is a fee-based business model that grants subscribers complete access to the car without having to pay monthly EMIs and heavy down payments, insurance or maintenance fees. Instead, it covers all charges, including roadside assistance, on an all-inclusive monthly fee. Additionally, it is a hassle-free mobility solution that provides users the freedom and flexibility to drive their favorite car without the need of buying it while offering facilities of multiple switches of the subscribed car from different brands.
We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.
Global Car Subscription Market Trends:
The global market is primarily driven by rapid urbanization. Coupled with the inflating disposable income levels of the masses and the rising awareness regarding car subscription services among individuals, this is creating a positive market outlook. With the penetration of high-speed internet connectivity and the increasing adoption of smartphones on account of rapid digitization, this has impelled the global car subscription market. In addition to this, numerous leading players are heavily investing in offering convenient services, such as easy booking, drop and pickup and maintenance activities, in an attempt to strengthen their market position, thereby providing a boost to the demand. Apart from this, continual technological advancements, such as the integration of these services with global positioning systems (GPS) to provide real-time tracking solutions, are impacting the market growth favorably. Other factors, including the continuous improvements in the tourism industry, increasing strategic partnerships with automakers, the expansion of dealer networks to better provide services and the development of strong digital platforms to operate the services effectively, are also contributing to the market. On account of the aforementioned factors, the market is anticipated to reach a value of US$ 9.8 Billion by 2027, growing at a CAGR of 21.1% during 2022-2027.
- On the basis of the service provider, the market has been segmented into OEMs and captives and independent/third party service provider.
- Based on the vehicle type, the market has been segregated into IC powered vehicle and electric vehicle.
- On the basis of the subscription period, the market has been classified into 1 to 6 months, 6 to 12 months, and more than 12 months.
- Based on the end-use, the market has been categorized into private and corporate.
- On the basis of the region, the market has been divided into North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Europe (Germany, France, the United Kingdom, Italy, Spain, Russia and others), Latin America (Brazil, Mexico and others) and the Middle East and Africa.
- The competitive landscape of the market has been studied in the report with the detailed profiles of the key players operating in the market. Some of the key players are 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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