Vehicle Subscription Market Share

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.