Automotive Subscription Services Market by Distribution Channel and Geography - Forecast and Analysis 2020-2024
- Published: Apr 2020
- Pages: 120
- SKU: IRTNTR41296
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The automotive subscription services market size has the potential to grow by USD 9.15 billion during 2020-2024, and the market’s growth momentum will accelerate during the forecast period.
This report provides a detailed analysis of the market by distribution channel (OEMs and dealership/third party) and geography (APAC, Europe, MEA, North America, and South America).
What will be the Automotive Subscription Services Market Size in 2020?
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Who are the Major Automotive Subscription Service Vendors?
The automotive subscription services market analysis report provides information on the production, sustainability, and prospects of several leading companies, including:
- AB Volvo
- BMW AG
- Cox Automotive, Inc.
- Daimler AG
- Fair Financial Corp.
- Flexdrive Services LLC
- General Motors Co.
- Hyundai Motor Co.
- Tesla Inc.
- Volkswagen AG
The automotive subscription services market is fragmented, and market vendors are focusing on M&As, divestitures, JVs, and partnerships and are currently targeting Tier-I and TIER-II cities to stay ahead in the competition. This automotive subscription services market forecast report provides a detailed analysis of the market leaders and offers information on the competencies and capacities of these companies.
Market drivers such as the option to select from a wide range of vehicles under a single subscription will create immense growth opportunities for vendors. However, challenges such as the growing use of public transport may impede the growth of the market participants.
Which are the Key Markets for Automotive Subscription Services?
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North America was the largest automotive subscription services market in 2019, and the region will offer several growth opportunities to market vendors during the forecast period. The increase in car subscriptions and a rise in automotive prices and regulations will significantly influence automotive subscription services market growth in this region.
Almost 49% of the market’s growth will originate from North America during the forecast period. The US is a key market for automotive subscription services in North America. Market growth in this region will be faster than the growth of the market in Europe.
Which is the Largest Market Segment Contributing Automotive Subscription Services Market Growth?
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OEM accounts for the largest automotive subscription services market share in the distribution channel segment. Under the OEM model, customers pay a monthly subscription fee to OEMs for access to several vehicles in its model lineup. OEMs through automotive subscription services can provide cars at lower prices because of the low operational cost for fleet management. As a result, the number of OEMs providing automotive subscription services is increasing and consequently fueling the growth of the automotive subscription services market during the forecast period.
An in-depth scenario-based approach was followed in this automotive subscription services market research report to identify the direct and indirect impact of COVID-19 on market growth. Buy the full market research report to gain actionable insights on the influence of COVID-19 on automotive subscription services market segments.
What are the Key Automotive Subscription Services Market Drivers and Trends?
The changing purchasing behavior of customers, coupled with the penetration of the Internet and smartphones, has led to an increased preference for on-demand automotive subscription services. Moreover, automotive manufacturers are focusing on integrating their products with advanced features such as advanced driver-assistance systems and automatic high-beam control. Established players in the automotive industry are also adopting artificial intelligence and machine learning. The adoption of these technologies will increase the overall cost of automobiles. This will increase the preference for subscription services as it will ease the affordability of customers. As a result, automotive manufacturers have started partnering with third-party service providers and software aggregators to introduce subscription services.
- There is an increasing demand for more flexible and sustainable transport systems, which will lead to the development of new mobility concepts.
- New mobility concepts will help in maximizing environmental compatibility and offer smart traffic management solutions.
- Volkswagen has already started offering a flexible and efficient shuttle-on-demand service using environment-friendly electric vehicles.
- Companies are also focusing on adopting technologies such as integrated ticketing, and in-car communications provide packaged solutions to customers.
- The adoption of advanced features will increase customer preference for subscription services.
- As a result, the market will register a CAGR of almost 64% during the forecast period.
Key Highlights of the Automotive Subscription Services Market Report for 2020-2024
- CAGR of the market during the forecast period 2020-2024
- Detailed information on factors that will drive automotive subscription services market growth during the next five years
- Precise estimation of the automotive subscription services market size and its contribution to the parent market
- Accurate predictions on upcoming trends and changes in consumer behavior
- The growth of the automotive subscription services industry across APAC, Europe, MEA, North America, and South America
- A thorough analysis of the market’s competitive landscape and detailed information on vendors
- Comprehensive details of factors that will challenge the growth of automotive subscription services market vendors
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Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
- Market size and forecast
- Market segmentation
- Geographical insights
- Competitive landscape
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