"Market Intelligence for High-Geared Performance"

Vehicle Subscription Market Size, Share & COVID-19 Impact Analysis, By Service Provider (OEMs/Captives and Independent Third Party Providers), By Subscription Type (Single Brand Subscription and Multi Brand Subscription), By Subscription Period (1 to 6 Months, 6 to 12 Months, and More than 12 Months), By Vehicle Type (IC Engine and Electric Vehicles), and Regional Forecasts, 2022-2029

Last Updated: April 01, 2024 | Format: PDF | Report ID: FBI105836



Play Audio Listen to Audio Version

The global vehicle subscription market size was valued at USD 2.11 billion in 2021. The market is projected to grow from USD 3.38 billion in 2022 to USD 172.47 billion by 2029, exhibiting a CAGR of 75.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with vehicle subscriptions experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a growth of 58.5% in 2020 as compared to 2019.

Vehicle subscription is a service in which the customer pays a recurring monthly fee or subscription charge to use one or more cars. Usually, in the vehicle subscription model, the subscription charges cover insurance, registration, maintenance, and repairs of the subscribed vehicles. Third party mobility service providers and automakers mainly offer car subscription services.

Most third party mobility service providers allow subscribers to switch between vehicles and brands during the subscription period to offer more flexibility to the customers. Therefore, a car subscription is one of the major substitutes for car leasing, buying, or renting. Due to the affordability and easy vehicle access, the car subscription market is proliferating.


Decreased Use of Shared Mobility & Public Transport During the Pandemic Fueled Market Growth

During the COVID-19 pandemic, the overall automotive industry witnessed a drop in revenue due to declined automotive sales & production, disrupted supply chain, and consumers' focus on reducing the expenses of unnecessary purchases. However, the adoption of vehicle subscription services increased during the pandemic. The rising number of health concerns among the populace, coupled with the declined use of shared mobility and mass transport as a precaution against the virus, has accelerated the vehicle subscription market growth worldwide. Vehicle subscription has also gained significant attention in mainstream media and further fueled consumer popularity and interest.


Request a Free sample to learn more about this report.

Rising Demand for Flexible Subscription Models Among Consumers to Drive Market Growth

The ongoing trend for the adoption of flexible mobility solutions is likely to emerge intact and is expected to thrive in the long term. The steadily declining importance of car ownership among millennials is one of the major reasons behind the rising adoption of vehicle subscription. Moreover, the increasing popularity of mobility as a service is driving the populace to adopt flexible mobility services that are substitutes for vehicle ownership.

Populace sees conventional leasing contracts and car financing as a burden rather than a benefit. The low availability of mobility services such as ride-hailing and ride-sharing at peak times and the high cost of long trips are some factors restricting these services' flexibility. However, a car subscription model is a highly flexible service model available in the market.

Vehicle subscription services are available for a short period, from a month to a year or more. The subscription charges cover insurance, maintenance, repairs, registration, and other expenses. These services also offer the flexibility to switch between cars and brands as per consumer convenience and subscription plans. Therefore rising demand for flexible mobility solutions across developed and emerging economies is likely to boost market growth during the forecast period.


Growing Demand for Short-term Mobility Solutions with Minimal Commitment to Drive the Market Growth

Car subscriptions have been gaining popularity recently due to their cost-effectiveness and easy vehicle access. Car subscription provides convenience, flexibility, and no long-term commitment. Hence, it attracts a diverse consumer base, which is anticipated to accelerate market growth over the forecast period. Car subscription companies offer various offers with affordable fees to attract new customers while retaining the old ones. For instance, in May 2019, Enterprise Holdings introduced a monthly subscription service for USD 1,499 per month.

Rising Cost of Vehicle Ownership & Shifting Consumer Preference from Ownership to Usership

The rapid rise in the cost of car ownership is compelling people to shift to subscription services. The average cost to own and operate a new car stood at USD 10,738 in 2022, a rise of 11% since last year, as per the American Automobile Association. Factors such as rising fuel prices, depreciation, shortage of microchips, and maintenance & insurance costs have contributed to high operating expenses. Therefore, consumers are switching to subscription services as a substitute for vehicle ownership.


Availability of Alternatives Such as Vehicle Leasing and Sharing to Hamper Market Growth

The availability of other mobility services, including rental, vehicle leasing, and sharing services, is anticipated to restrict the market growth. Leasing a car is a more economical short-term option than subscription plans as it comes with affordable monthly plans than subscription plans. Limited monthly mileage is another drawback in the subscription program that might even rule out the possibility of long daily commutes.


By Vehicle Type Analysis

Low Subscription Prices of IC Engine Vehicles to Drive Segment Growth

Based on vehicle type, the market is segmented into IC engine and electric vehicles.

The IC engine segment accounted for the highest market share in 2021, owing to its low subscription prices compared to electric vehicles. The positive market outlook can be attributed to the higher availability of refueling stations for conventional fuels such as gasoline or diesel. Moreover, the availability of IC engine vehicles in low, medium, and premium ranges is driving the market growth.

The growing popularity of EVs will create a demand for EV subscription services. For instance, EV sales in the first half of 2022 jumped to 196,788, 5.6% of the overall market. Toyota, GM, Stellantis, Honda, Nissan, and more are witnessing higher EV sales due to higher gas prices continuing to increase EVs' popularity.

By Subscription Type Analysis

Greater Flexibility of Multi Brand Subscriptions to Drive Segment Growth

Based on subscription type, the market is segmented into single brand subscription and multi brand subscription.

Multi brand subscription segment held the largest market share in 2021 and is likely to retain its position throughout the forecast period. Multiple brand subscription offers to switch between multiple brands, as it provides greater flexibility and convenience to the customer. Hence, an inclining preference of the populace toward multi-brand car subscription services is anticipated to drive segment growth.

Users can change to different models under the same brand in a single brand subscription. Several OEMs, such as Porsche, Mercedes-Benz (formerly Daimler AG), and Volvo, are providing car subscription services to their customers. Therefore, the increasing popularity of subscription services offered by well-known brands such as Hyundai Motor, Mercedes-Benz, Porsche, and others is likely to accelerate the market growth in the coming years.

By Subscription Period Analysis

To know how our report can help streamline your business, Speak to Analyst

Growing Popularity of Attractive Deals to Propel Segment Growth

Based on subscription period, the market is segmented into 1 to 6 months, 6 to 12 months, and more than 12 months.

The 6 to 12 months segment held the largest market share in 2021 and is likely to continue its dominance over the forecast period. The average duration of a car subscription in recent years has been about 12 months, and most market players offer attractive deals in this time range. A shift in consumer preference toward mobility options and cost-effective alternatives to outright vehicle ownership is anticipated to drive segment growth.

The 1 to 6 months segment is expected to register the fastest growth rate during the forecast period. Increasing demand for short-term car subscriptions with minimal commitment to better flexibility is anticipated to drive market growth. Moreover, the segment of more than 12 months is also expected to witness a considerable growth rate due to the inclining preference of certain age groups toward long-term subscription services. For instance, some corporate users prefer to subscribe to long-term mobility services to avoid discontinuation.

By Service Provider Analysis

Wide Offerings of Independent Third Party Providers to Propel Segment Growth

Based on service provider, the market is segmented into OEM/captives and independent third party providers.

The independent third party providers segment dominated the market in 2021 and is likely to continue its dominance throughout the forecast period. The growing number of independent third-party providers or startups offering mostly multi-brand car subscriptions through their platforms is driving the segment growth. For instance, companies such as Cluno, Flexdrive, Turo, Fair, Carvolution, and Drove, among others, are offering multi-brand subscription services across various regions.

Even though startups and independent platforms represent the majority of subscription providers, a significant number of customers still prefer subscription contracts with OEMs offering vehicle subscription services. Additionally, as premium brands such as Mercedes and Porsche are providing their subscription services, consumers who cannot afford to purchase the luxury vehicles of these brands can opt for car subscriptions. Therefore, an increasing number of well-known automotive brands offering their subscription services are elevated to accelerate OEM/captives segment growth during the forecast period.


Europe Vehicle Subscription Market Size, 2022 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

Europe dominated the global vehicle subscription market share with a value of 0.91 billion in 2021 and is anticipated to continue its dominance in the coming years. The presence of several mobility service-providing startups and established automakers, such as Mercedes, BMW, and others, are driving the market growth. Additionally, Europe has a strong presence in the automotive sector; therefore, shifting the focus of the European automakers to mobility service-based models to diversify their business according to the interest of the new generation is anticipated to generate lucrative opportunities for the market in the region.

Asia Pacific is anticipated to witness the fastest growth rate during the forecast period. Rising awareness for subscription-based models and government focus on automotive electrification to fight climate change are some factors fueling the region's market growth. The high costs of electric vehicles are influencing the populace to adopt subscription-based electric mobility services. Moreover, the presence of a strong automotive sector coupled with the declining interest in car ownership among the younger generation is anticipated to boost the market growth over the forecast period.

North America held a significant market share in 2021. Increasing adoption of mobility services among the younger generation in the U.S. is driving market growth in the region. Additionally, rapid electrification and a strong network of EV charging stations are also influencing the major EV manufacturers, such as Tesla, to offer EV subscription services in the region.

The rest of the world, including Latin America and the Middle East & Africa also witnessed a significant growth rate during the forecast period. Currently, the penetration of car subscription services in these regions is nascent. However, as the cost of subscription services declines in these regions, the demand for car subscription services will witness a boost in the coming years.


OEMs Partnerships with Third Party Subscription Providers to Drive the Competition

OEMs' focus on penetrating the car subscription market through a partnership with third-party subscription providers is driving the competition in the market. Moreover, these companies are also investing in geographical expansion to launch their vehicle as a service platform across emerging economies to cater to the increasing demand for mobility services.

With its Diverse Range of Vehicle Offerings, Sixt is One of the Leading Players in the Market 

Sixt is an international mobility service provider present in about 2,100 locations across 110 countries. The parent company of Sixt Group is Sixt SE, which is globally active in the business areas of car and luxury car rental, car sharing, ride-hailing, and subscription. To focus on its mobility services business, Sixt sold all its shares in Sixt Leasing SE in 2020.


  • Sixt (Germany)

  • Avis Budget Group (U.S.)

  • Lyft Inc. (U.S.)

  • Arval BNP Paribas Group (France)

  • ORIX (Japan)

  • The Hertz Corporation (U.S.)

  • AB Volvo (Sweden)

  • LeasePlan (Netherlands)

  • Mercedes-Benz (Germany)

  • Carvolution (Switzerland)


In February 2022, Avis and FlxeClub joined forces to offer competitive car subscriptions in South Africa. The company aims to offer long-term, low-priced subscriptions on a flexible contract through FlexClub, an online car marketplace.

In March 2022, Arval launched its flexible vehicle subscription solution, Arval Adaptiv, for private customers. The subscription will allow its private customers to choose a specific model within a range of selected cars, both ICE and EVs, with flexibility in terms of duration.

In October 2022, Carvolution raised USD 16.12 million in Series D funding from Redalpine. With the investment, Carvolution aims to further expand its car subscription business. It also seeks to deploy a part of the funds to simplify buying and selling used cars by bringing them online for its customers.

In September 2021, Orix partnered with Volkswagen for a subscription-based car ownership model. Orix, in partnership with Volkswagen, will offer its customers on-road financing, insurance cover, periodic maintenance, and an option to return or upgrade the car at the convenience of the customer.

In October 2020, AB Volvo added flexibility to its subscription program. In this program, customers can upgrade or return a new subscription at any time after the first four months. The flexible subscription enhances the car subscription by including maintenance and insurance costs.


An Infographic Representation of Vehicle Subscription Market

To get information on various segments, share your queries with us

The vehicle subscription market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, service types, service periods, and vehicle types. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that have contributed to the growth of the market in recent years.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD Billion)

By Service Provider

  • OEM/Captives

  • Independent Third Party Providers  

By Subscription Type

  • Single Brand Subscription

  • Multi Brand Subscription

By Subscription Period

  • 1 to 6 Months

  • 6 to 12 Months

  • More than 12 Months

By Vehicle Type

  • IC Engine

  • Electric Vehicles

By Geography

  • North America (By Service Provider, By Subscription Type, By Subscription Period, and By Vehicle Type)

    •  U.S. (By Vehicle Type)

    • zCanada (By Vehicle Type)

    • Mexico (By Vehicle Type)

  • Europe (By Service Provider, By Subscription Type, By Subscription Period, and By Vehicle Type)

    • U.K. (By Vehicle Type)

    • Germany (By Vehicle Type)

    • France (By Vehicle Type)

    • Rest of Europe (By Vehicle Type)

  • Asia Pacific (By Service Provider, By Subscription Type, By Subscription Period, and By Vehicle Type)

    • China (By Vehicle Type)

    • India (By Vehicle Type)

    • Japan (By Vehicle Type)

    • South Korea (By Vehicle Type)

    • Rest of Asia Pacific (By Vehicle Type)

  • Rest of the World (By Service Provider, By Subscription Type, By Subscription Period, and By Vehicle Type)

Frequently Asked Questions

Fortune Business Insights says that the market was valued at USD 2.11 billion in 2021 and is projected to reach USD 172.47 billion in 2029.

The market is expected to register a CAGR 75.3% during the forecast period 2022-2029

The declining interest in vehicle ownership among the younger generation is expected to drive market growth.

Europe led the global market in 2021

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2018-2029
  • 2021
  • 2018-2020
  • 166

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Automotive & Transportation Clients


Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.