Vehicle Subscription Market size is evaluated at USD 4.9 billion in 2024 and is anticipated to exceed USD 182.7 billion by the end of 2037, growing at over 35.2% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of vehicle subscription is assessed at USD 6.6 billion.
Vehicle subscription allows customers to subscribe and pay a recurring fee to use a vehicle. Certain vehicle subscription services allow end users to switch vehicles while covering insurance and maintenance fees as part of the subscription package. The vehicle subscription market’s growth curve is owed to the cost-effectiveness of a vehicle subscription model. The flexible nature of subscription models makes it much more appealing to the younger demographics. The younger demographics are more prone to traveling for work and switching cities, which makes vehicle subscription plans lucrative as vehicles can be subscribed based on need and convenience.
Key players in the vehicle subscription market are striving to improve the flexibility in their subscription models and customize all-inclusive prices in the subscription plans to retain subscribers. For instance, Maruti Suzuki Subscribe offers insurance, registration, maintenance, and roadside assistance in its inclusive subscription plan. In March 2024, Maruti Suzuki Subscribe announced 10,000 customers in its vehicle subscription plan as well as announced a 44% revenue growth in the financial year 2023-2024 from financial year 2022-2023. The growth statistics are a testament to the potential of the vehicle subscription market.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
35.2% |
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Base Year Market Size (2024) |
USD 4.9 billion |
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Forecast Year Market Size (2037) |
USD 182.7 billion |
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Regional Scope |
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Type (IC Powered Vehicle, Electric Vehicle)
The IC powered vehicle segment held a significant revenue share of 73.2% in 2024 owing to the long-standing buyer trust in petrol- and diesel-powered cars. Consumers have a deeply established buying behavior centered around IC powered vehicles, trusting in their reliability. The easier access makes it convenient for market players to use them in their inventory while offering vehicle subscription services. The segment’s market share is expected to remain steady globally and grow in emerging markets such as India and Brazil. In October 2021, Volkswagen India announced that Volkswagen Taigun, with a petrol engine, can now be subscribed by customers.
The electric vehicles segment in vehicle subscription market is expanding its revenue share due to the rising popularity of EV globally. The increase in EV popularity also has a direct correlation with the growth of larger vehicle subscription. The Global EV outlook 2024 by International Energy Agency reported 14 million new EV registrations in 2023. The report also indicates a 35% increase per year. Vehicle subscription services are updating their inventories and providing the latest EV models to customers at flexible options. In April 2024, Tesla reduced the cost of its monthly self-driving subscription in the US and Canada improving accessibility.
Subscription Period (1 to 6 months, 6 to 12 months, more than 12 months)
1 to 6 months segment in vehicle subscription market is gaining traction and is expected to hold the largest share in the revenue driven by consumer demands for short-term flexibility and convenience. The largest boost to this segment will be the tourism industry with rising demands for vehicles in a 1 to 6-month period during peak seasons. In June 2023, Free2Move announced that its monthly car subscription service experienced a 200% growth in Spain with 2 out of 3 customers retaining their subscription. The company stated that the demand was three times higher compared to previous year.
The 6 to 12 months segment in rising in revenue share as it is a balanced plan for consumers seeking flexibility and stability. The convenience offered by subscription plans with cost-effective bundled services like maintenance, taxes, and insurance contributes to the growth of this segment. Most players in the market offer 12-month subscription as their starting plan. In July 2024, Maruti Suzuki announced traction in their subscription model in India with customers subscribing the for the minimum 12 months plan. The company estimated the growth at 44% over FY23.
More than 12 months segment is gaining traction amongst users who are frequently changing cities. Subscription plans for more than 12 months offer cost-effective mobility solutions to the traveling workforce who have to shift places after a duration of 2 to 4 years. It ensures that they are driving new vehicles in peak conditions as well as the convenience of pickup and delivery as per their needs. The long-term subscription plans segment is expected to grow amongst the consumer base that wants the benefits of car ownership without the responsibilities of maintenance, insurance management, depreciation, etc.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Subscription Period |
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Service Providers |
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End use |
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North America Market Analysis
North America vehicle subscription market is set to hold revenue share of over 38.2% by the end of 2037, owing to robust automotive infrastructure, early adoption, favorable regulatory ecosystem, and rising consumer preference for flexibility in automobiles. Cost-effective access to premium vehicles is expected to boost buyer preferences towards subscription models. In November 2022, Audi rebranded its vehicle subscription service to Audi on Demand and added a fully electric offering in catalog.
The U.S. is set to dominate the revenue share during the forecast period owing to rising awareness of consumers regarding vehicle subscription models combined with rapidly increasing interest prices making it more convenient to subscribe rather than buy. Inclusive packages that cover insurance, registration, maintenance, repair, and on-road support are increasingly becoming popular amongst the consumer base. In August 2024, the American Customer Satisfaction Index published a report that driver satisfaction with the automobile industry has increased by 1% currently at 80 out of 100, boding well for the vehicle subscription market.
Another growth factor is the large number of car subscription services around the country which provides customers with a multitude of options. Current trends in the market are companies seeking to offer customized affordable plans to consumers tailored to their demands. For instance, Volvo Care announced in October 2020, that customers can upgrade or return a subscription in the first four months and the plans will be inclusive to insurance costs.
Canada is a rapidly growing vehicle subscription market due to consumer awareness, fluctuating interest rates, and increasing demand for cost-effective solutions. The market in Canada is characterized by the presence of global and regional players. There have been recent developments in the market such as in September 2024, Porsche Drive celebrated its fifth anniversary in Canada, marking the stability in the vehicle subscription market. In, August 2023, Roam, a local company, partnered with Onlia to provide personalized insurance to car subscribers in Ontario.
APAC Market Analysis
Asia Pacific is projected to have a significant surge in the vehicle subscription market due to high population numbers, rising buyer awareness on subscription models, growing popularity of electronic vehicles (EVs), and buyer behavior shifts in younger demographics. Consumers are seeking to escape the high wait times to buy new vehicles and the rising costs in buying and maintaining vehicles. Subscription services are offering an alternative to the pain points of the consumers. Additionally, emergence of the young workforce with greater emphasis on traveling has contributed to the rise in demands for premium vehicle subscription services.
India is a significant emerging economy with massive growth potential for the vehicle subscription market. A key marker for the potential in the market is the presence of global players who are regularly increasing their inventory of vehicles offered for subscription and emergence of local startups who are vying to establish themselves in the market. The younger demographics in the country are increasingly preferring cost-effective subscription models for vehicles. Ease of booking and delivery have led to increased number of vehicle subscription over the years. In September 2024, Kia India launched Kia Subscribe, allowing customers to subscribe to a vehicle without a downpayment from 12 to 36 months.
China has a significant potential for revenue growth as it is the largest EV market globally. As per the Global EV Outlook 2024 by the International Energy Association, 60% of the global EV vehicle registrations were done in China in 2023. Science Direct’s survey in September 2024 highlighted a 100% positive response to paying for automated vehicle subscription models. The high population numbers and rapid urbanization are also significant drivers of the vehicle subscription market.
Japan is poised to have a surge in market growth during the forecast period. Renowned automobile giants like Mitsubishi, Nissan, and Toyota have announced their vehicle subscription services in the country. The public broadcaster of Japan, NHK, announced in 2022 that there is a rising trend in the popularity of used car subscriptions in the country. These trends are set to push the growth of the vehicle subscription market with rising awareness on benefits of subscription models for vehicles gradually shifting the buyer behavior.
The vehicle subscription market is poised to have a lucrative CAGR during the forecast period. The market is competitive with several global and regional players competing for the revenue share. The key market players are seeking to increase their inventory, improve their subscription services to make it more personalized, and raise buyer awareness of subscription models.
Some of the key players in the market are:
Author Credits: Saima Khursheed
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