Selbyville, Delaware, Nov. 04, 2020 (GLOBE NEWSWIRE) --
Global Market Insights, Inc. has recently added a new report on automotive subscription services market which estimates the global market valuation for vehicle subscription services will cross US$ 40 billion by 2026. The increasing demand for flexibility to choose a wide range of vehicle models at a fixed cost for shorter period is expected to contribute to the market growth.
The demand for automotive subscription services has increased significantly in the last couple of years due to cost-effectiveness and convenience associated with it. Customers need not pay any extra charges for vehicle insurance and maintenance along with roadside assistance. In the post-COVID-19 pandemic scenario, the demand for personal automotive is expected to increase significantly to maintain hygiene and social distancing. This is further contributing to the adoption of automotive subscription services.
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OEM service providers held a market share over 80% in 2019. Changing customer preferences and potential benefits over traditional car rental services are enabling OEMs to launch proprietary vehicle subscription services. Leading OEMs, such as Audi, BMW, Genesis, Jaguar Land Rover, etc., offer innovative automotive subscription services. These services help companies to serve customers with affordable and convenient driving experience.
The executive vehicle segment is anticipated to grow at a steady rate over the forecast period. Executive vehicles provide enhanced comfort with their length between 4,700 mm to 5,000 mm. These executive vehicles are both affordable & luxurious and offer a great driving experience. For instance, Volkswagen AG offers executive vehicles such as Passat and Tiguan. Cadillac also offers a subscription service for its multiple executive vehicles.
The adoption of automotive subscription services for a tenure of more than 12 months is expected to grow at a CAGR of above 40% from 2020 to 2026. Enterprises with transferable jobs are subscribing for automotive services for more than 12 months. This also facilitates enterprises to eliminate the need for maintenance and management of owned vehicles. Companies operating in the market such as Fair Financial Corporation are offering Fair, a car leasing platform for third-party service providers.
Europe is projected to hold above 20% share in the automotive subscription services market by 2026. The growing popularity of flexible mobility services in the region is enabling market players to launch their service offerings in the region. For instance, in September 2020, Volvo Cars launched its Care by Volvo subscription services in the UK. The launched service provides customer with an easy, flexible, and convenient option to choose a car of their choice. In addition, the maintenance, data, and assistance charges are all included in the monthly payment.
Browse key industry insights spread across 240 pages with 237 market data tables and 24 figures & charts from the report, “Automotive Subscription Services Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
https://www.gminsights.com/industry-analysis/automotive-subscription-services-market
Companies operating in the market are focusing on launching and expanding their innovative automotive subscription services. For instance, in February 2020, Mercedes Benz added automaker’s high-performance AMG models in its Collection subscription service. The addition of new models will focus on targeting customers requiring access to luxury sports cars. This demand also helped the company to expand its vehicle subscription offerings.
Some major findings of the automotive subscription services market report include:
- The emergence of flexible automotive leasing services inclusive of insurance and maintenance charges in the automotive sector is supporting the market growth.
- Europe is expected to witness a significant market share in the global automotive subscription services market due to the extensive proliferation of subscription services and presence of major automotive manufacturers, such as AB Volvo and Volkswagen, in the region.
- Major players operating in the automotive subscription services market are BMW AG, Daimler AG, Volkswagen AG, Hyundai Motor Corp., etc.
- Companies operating in the market are focusing on the expansion of their automotive subscription services for customers in wider geographies.
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Partial chapter from the report table of contents (ToC):
Chapter 3 Automotive Subscription Services Industry Insights
3.1 Introduction
3.2 Industry segmentation
3.3 Impact of COVID-19 outbreak
3.3.1 Impact by region
3.3.1.1 North America
3.3.1.2 Europe
3.3.1.3 Asia Pacific
3.3.1.4 Latin America
3.3.1.5 Middle East & Africa
3.3.2 Impact by value chain
3.3.3 Impact by competitive landscape
3.4 Technological evolution
3.5 Industry ecosystem analysis
3.6 Technology & innovation landscape
3.6.1 Mobility as a Service
3.6.2 Usage-based Insurance
3.7 Regulatory landscape
3.7.1 Vehicle Excise and Registration Act 1994 (Section 29)
3.7.2 Environmental Protection Agency
3.7.3 Regulation for Greenhouse Gas Emission from Passenger cars and Trucks
3.7.4 Road Traffic Act 1988
3.7.5 Canada Motor Vehicle Safety Act
3.7.6 Vehicular Safety Standards & Regulations in India
3.7.7 Anti-air-pollution law
3.8 Industry impact forces
3.8.1 Growth drivers
3.8.1.1 Growing demand for car leasing services
3.8.1.2 Cost-effectiveness associated automotive subscription services
3.8.1.3 Rising penetration of third-party automotive subscription service providers
3.8.1.4 Stringent government regulations regarding emission control
3.8.1.5 Lack of proper public transportation infrastructure in developing countries
3.8.2 Industry pitfalls & challenges
3.8.2.1 Inadequate transportation infrastructure
3.8.2.2 High monthly charges for short-term subscription
3.9 Porter’s analysis
3.10 PESTEL analysis
3.11 Growth potential analysis
Browse complete reports table of contents (ToC): https://www.gminsights.com/industry-analysis/automotive-subscription-services-market
Partial chapters of report table of contents (TOC):
About Global Market Insights:
Global Market Insights, Inc., headquartered in Delaware, U.S., is a global market research and consulting service provider, offering syndicated and custom research reports along with growth consulting services. Our business intelligence and industry research reports offer clients with penetrative insights and actionable market data specially designed and presented to aid strategic decision-making. These exhaustive reports are designed via a proprietary research methodology and are available for key industries such as chemicals, advanced materials, technology, renewable energy and biotechnology.