Automotive Subscription Services Market By Subscription provider (OEMs, Dealership/third party), By Vehicle Type (Luxury Car, Executive Car, Economy Car, and Others)- Prospective Landscape, Size, Share, Growth, Opportunities and Industry Forecast 2020-2028

Market Insights

The automotive subscription service market was valued at US$ 3.2 billion in 2019 and anticipated to grow at a CAGR of 41.2% throughout the forecast period to reach over US$ 50.8 million by 2028. The automotive subscription service market is predicted to grow due to factors such as an increase in demand from emerging nations such as Brazil, India, China, and others due to growing working population in these countries along with rising urbanization. The increasing cost of automotive vehicles worldwide has increased the demand for subscription services across the glove which is anticipated to enhance the market demand during the forecast period. The increasing popularity of flexible mobility services is enabling market players to launch new offerings in the automotive subscription services market. For instance: in September 2020, Volvo Cars launched its Care by Volvo subscription services in the UK.

Market Trends

The major trend of the market is the increasing usage of smartphones and internet penetration is driving market growth. Market players are developing advanced automotive electronics components by adopting machine learning and artificial intelligence. In the future, the demand for subscription services is expected to rise due to technological advancement in the automotive industry. The availability of subscription services will facilitate affordability for customers. Software aggregators and third-party service providers together with manufacturers are introducing subscription services. These are the major trends due to which the market is expected to grow in the forecast period.

Market Drivers

One of the major factors which are driving the growth of the automotive subscription services market is providing a wide range of vehicles under a single subscription service. Technological advances in automobiles, growing demand for car leasing services, rising penetration of third-party, automotive subscription service providers are other drivers that boost the market growth. Stringent government regulations regarding emission control, lack of proper public transportation infrastructure in developing countries, and due to COVID-19 impact the market is expected to grow throughout the forecast period.

Market Challenges

The major challenges in the automotive subscription market are inadequate transportation infrastructure and high monthly charges for the short-term subscription which is estimated to hamper the growth of the global market.

Segment Insights

According to the subscription service provider market is segmented into OEMs and third-party service providers. In 2019, the OEMs category had a major share in the global automotive subscription services market and had more than ½ of the market revenue share in the same year. OEMs are enabling to launch proprietary vehicle subscription services due to changing consumer preferences and potential benefits over traditional car rental services. Companies are providing these services to serve consumers with an affordable and convenient driving experience. The innovative subscription services are providing by some leading OEMs are Audi, BMW, Genesis, Jaguar Land Rover, and others.

Regional Insights

In 2019 North American automotive subscription services market had more than 30% market share on account of the well-established industry in the region and presence of some of the key automotive players such as General Motors, Fiat Motors, Ford, and Tesla Motors. The increase in third-party automotive service providers in the U.S. is also supporting the regional growth. The major manufacturers of automotive in the U.S. are emphasizing their vehicle subscription program. For instance: In August 2020, Porsche launched a monthly Single-Vehicle Subscription (SVS) program in U.S.’s various cities. The company targets new customers due to this subscription service program.

Besides, Europe is expected to grab more than 23% share in the automotive subscription services market by 2028. The increasing popularity of flexible mobility services in the region is enabling market players to launch their new services in the region. The growing demand for automotive subscription services in the developed economies such as Germany, the U.K., and others is another key factor for regional growth over the forecast period.

Top Companies with Recent Development

Noticeable players within the Market

• AB Volvo
• BMW AG
• Cox Automotive Inc.
• Daimler AG
• Mercedes Benz
• Fair Financial Corp.
• Flexdrive Services LLC
• General Motors Co.
• Hyundai Motor Co.
• Tesla Inc.
• Volkswagen AG

The above mentioned major players for the automotive subscription services market are investing heavily in Research & Development to introduce new products and offers along with enhanced technology to increase their market share and geographical expansion. Besides, the automotive subscription services market players are concentrating on various strategies such as technological innovations, geographical expansion, acquisitions, strategic collaboration, strategic contracts, new product launches, and mergers to increase their market presence.

Report Scope by Market Segments

This report splits the automotive subscription services market revenue opportunities worldwide, regional, and national levels and gives a comprehensive research study of the most recent industry activities in each of the sub-segments throughout the forecast period. For the reason of this ponder, Alchemy Market Research has segmented the automotive subscription services report on the premise of the subscription service provider, vehicle type, subscription period, and regional analysis:

By Subscription Service Provider

• OEMs
• Third-Party service provider

By Vehicle Type

• Luxury Car
• Executive Car
• Economy Car
• Others

By Subscription Period

• 0-6 Months
• 6-12 Months
• More than 12 months

By Region

• North America
  • U.S
  • Canada
• Europe
  • U.K
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• The Middle East and Africa
  • South Africa
  • U.A.E
  • Rest of Middle East & Africa

This report answers key questions such as

• What are the challenges in the automotive subscription services market?
• What are the factors anticipated to drive the automotive subscription services market?
• What are trends, restraints, and challenges in the automotive subscription services market?
• Who are the potential customers of the automotive subscription services market?
• Analysis of key strategies by key market players?
• Which region is growing rapidly?
• How do rapidly changing consumer perspectives will affect the automotive subscription services market?
• How is the competitive environment?
• Comprehensive details of factors that will challenge the growth of the market pre & post-COVID-19.
• How are collaborations evolving in the market?
• What is the customer sentiment about this market?
• What are the solutions to the challenges?
• What are the opportunities in this market?
• What are the key current & upcoming technological trends estimated to drive the markets?
• Regions & segment-wise analysis of how various industries will perform?
• Forecasts on how market drivers, restraints, and future opportunities will affect market dynamics?

Report Synopsis

The automotive subscription services market is majorly driven by the huge demand from consumers for subscription services from a wide range of vehicles. Moreover, the automotive subscription services market is also growing due to advancements in technology and the launching of new products with different subscription services models such as 0-6 months, 6-12 months, and more than 12 months. The rising demand for luxury vehicles among millennials due to increased social media influence is another key factor for the market growth in the years to come. The demand for automotive subscription services in the developed as well as developing economies is growing rapidly due to rising disposable income of the consumers which is further anticipated to enhance the market growth. Hence, Alchemy Research & Analytics LLP estimated that the automotive subscription service market will witness tremendous growth with a CAGR of 41.2% during the forecast period.

Chapter 1.        Executive Summary

 

Chapter 2.        Market Introduction

 

Chapter 3.        Global Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028 – Key Industry Dynamics

3.1.   Key Market Drivers

3.2.   Key Market Restraints

3.3.   Market Opportunities

3.4.   Future Trends

3.5.   Impact Analysis of Drivers and Restraints

Chapter 4.        Global Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028

 

Chapter 5.        Global Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028 – By Subscription Service Provider

 

5.1.   OEMs

5.2.   Third-Party service provider

 

Chapter 6.        Global Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028 – By Vehicle Type

6.1.   Luxury Car

6.2.   Executive Car

6.3.   Economy Car

6.4.   Others

Chapter 7.        Global Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028 – By Subscription Period

7.1.   0-6 Months

7.2.   6-12 Months

7.3.   More than 12 months

Chapter 8.        Global Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028 – By Region

8.1.   North America

8.2.   Europe

8.3.   Asia-Pacific

8.4.   Latin America

8.5.   Middle East & Africa

Chapter 9.        North America Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028

9.1.   North America Automotive Subscription Services Market– By Subscription Service Provider

9.1.1.OEMs

9.1.2.Third-Party service provider

9.2.   North America Automotive Subscription Services Market– By Vehicle Type

9.2.1.Luxury Car

9.2.2.Executive Car

9.2.3.Economy Car

9.2.4.Others

9.3.   North America Automotive Subscription Services Market– By Subscription Period

9.3.1.0-6 Months

9.3.2.6-12 Months

9.3.3.More than 12 months

9.4.   North America Automotive Subscription Services Market– By Country

9.4.1.U.S.

9.4.2.Canada

Chapter 10.    Europe Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028

10.1.            Europe Automotive Subscription Services Market– By Subscription Service Provider

10.1.1.    OEMs

10.1.2.    Third-Party service provider

10.2.            Europe Automotive Subscription Services Market– By Vehicle Type

10.2.1.    Luxury Car

10.2.2.    Executive Car

10.2.3.    Economy Car

10.2.4.    Others

10.3.            Europe Automotive Subscription Services Market– By Subscription Period

10.3.1.    0-6 Months

10.3.2.    6-12 Months

10.3.3.    More than 12 months

10.4.            Europe Automotive Subscription Services Market– By Country

10.4.1.    Germany

10.4.2.    France

10.4.3.    UK

10.4.4.    Spain

10.4.5.    Italy

10.4.6.    Rest of Europe

Chapter 11.    Asia Pacific Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028

11.1.            Asia Pacific Automotive Subscription Services Market– By Subscription Service Provider

11.1.1.    OEMs

11.1.2.    Third-Party service provider

11.2.            Asia Pacific Automotive Subscription Services Market– By Vehicle Type

11.2.1.    Luxury Car

11.2.2.    Executive Car

11.2.3.    Economy Car

11.2.4.    Others

11.3.            Asia Pacific Automotive Subscription Services Market– By Subscription Period

11.3.1.    0-6 Months

11.3.2.    6-12 Months

11.3.3.    More than 12 months

11.4.            Asia-Pacific Automotive Subscription Services Market– By Country

11.4.1. China

11.4.2. India

11.4.3. Japan

11.4.4. South Korea

11.4.5. Rest of Asia-Pacific

Chapter 12.    Latin America Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028

12.1.            Latin America Automotive Subscription Services Market– By Subscription Service Provider

12.1.1.    OEMs

12.1.2.    Third-Party service provider

12.2.            Latin America Automotive Subscription Services Market– By Vehicle Type

12.2.1.    Luxury Car

12.2.2.    Executive Car

12.2.3.    Economy Car

12.2.4.    Others

12.3.            Latin America Automotive Subscription Services Market– By Subscription Period

12.3.1.    0-6 Months

12.3.2.    6-12 Months

12.3.3.    More than 12 months

12.4.            Latin America Automotive Subscription Services Market– By Country

12.4.1. Brazil

12.4.2. Mexico

12.4.3. Rest of Latin America

Chapter 13.    Middle East & Africa Automotive Subscription Services Market– Analysis and Revenue Forecast 2019-2028

13.1.            Middle East & Africa Automotive Subscription Services Market– By Subscription Service Provider

13.1.1.    OEMs

13.1.2.    Third-Party service provider

13.2.            Middle East & Africa Automotive Subscription Services Market– By Vehicle Type

13.2.1.    Luxury Car

13.2.2.    Executive Car

13.2.3.    Economy Car

13.2.4.    Others

13.3.            Middle East & Africa Automotive Subscription Services Market– By Subscription Period

13.3.1.    0-6 Months

13.3.2.    6-12 Months

13.3.3.    More than 12 months

13.4.            Middle East & Africa Automotive Subscription Services Market– By Country

13.4.1. UAE

13.4.2. Saudi Arabia

13.4.3. Turkey

13.4.4. Rest of Middle East & Africa

Chapter 14.    Competitive Analysis

14.1.1. Competition Dashboard

14.1.2. Company Profiles

14.1.2.1.          AB Volvo

14.1.2.2.          BMW AG

14.1.2.3.          Cox Automotive Inc.

14.1.2.4.          Daimler AG

14.1.2.5.          Mercedes Benz

14.1.2.6.          Fair Financial Corp.

14.1.2.7.          Flexdrive Services LLC

14.1.2.8.          General Motors Co.

14.1.2.9.          Hyundai Motor Co.

14.1.2.10.      Tesla Inc.

14.1.2.11.      Volkswagen AG