Selbyville, Delaware, Oct. 10, 2022 (GLOBE NEWSWIRE) -- The vehicle as a service market valuation is expected to cross USD 30 billion by 2030, as reported in a research study by Global Market Insights Inc. Growing demand for short-term vehicle subscription services, along with growing concerns regarding automotive carbon emissions, is set to increase industry expansion. The affordability of car leasing has made it a suitable alternative for small and medium enterprises to cater to their employees’ transportation needs. The extensive popularity of car leasing is boosting the adoption of the automobile as a service model.
High monthly charges for short-term subscriptions are foreseen to hamper market growth. As per the subscription model, the cost of car subscription services decreases as the service term increases, thereby preventing new customers to opt for automotive subscription services. Nevertheless, since the car as a service model is more comfortable and hassle-free compared to vehicle ownership, customers are preferring to rent cars and bikes, which is likely to facilitate vehicle as a service market size.
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Widespread electrification to accelerate the electric engine segment growth
The electric engine segment is slated to record exponential demand up to 2030 due to notable advancements in the automotive industry. The introduction of government initiatives to expedite fleet electrification for mitigating the environmental footprint of the automotive sector is promoting consumer interest in EV rentals as well. Moreover, newer market entrants are working to establish their footing in the sector to capitalize on emerging trends related to transportation.
Investment inflows to bolster Auto tech startups segmental share
The auto tech startups service providers segment is poised to witness approximately 19.5% gains from 2022 to 2030. This growth is attributed to favorable investment by automotive companies and other investors for vehicle as a service models proposed by these startups. These funds are enabling the firms to extend their vehicles fleets as well as the regions they serve.
Improvements in digitized trucking to proliferate industry expansion
As per the vehicle as a service market report, the trucks segment is anticipated to register more than 23.5% growth rate through 2030. The thriving transport sector, advancements in digitized trucking, and rapid urbanization are some key factors fueling the demand for truck rental and leasing services. Furthermore, the booming import and export businesses are also estimated to provide lucrative opportunities for truck rental services.
Asia Pacific industry to benefit from escalating vehicle and fuel prices
The Asia Pacific vehicle as a service market is projected to grow at around 23.5% CAGR between 2022 and 2030. Rising inflation and increase in vehicle & fuel costs are speculated to be major factors driving regional industry growth. Additionally, major automotive manufacturers and OEMs, such as Hyundai, Toyota, Daimler AG, BMW AG, Mahindra Motors, and TATA Motors, are launching their services & platforms in the region, which is primed to foster the APAC vehicle subscription industry outlook.
Increasing employment to augment enterprise users segment growth
The enterprise users segment revenue surpassed USD 2 billion in 2021 and is predicted to observe strong development in the upcoming years backed by surging sales on e-commerce platforms. The establishment of new businesses is increasing the employment level across the world, thereby pushing enterprises to opt for the automobile as a service model. The car as a service scheme is also cost-effective and does not require maintenance.
Strategic partnerships to remain a major growth strategy
The competitive scenario of the vehicle as a service market is inclusive of Autonomy, BMW AG, Borrow, CarNext, Daimler AG, Drover Ltd, FlexDrive, Fresh Car, General Motors, Hertz, Hyundai, OpenRoad, Porsche, Sixt, Volkswagen, Volvo Car Corporation, and ZoomCar, among others. These companies are introducing new service portals, expanding business facilities, and undertaking mergers and acquisition agreements to strengthen their standing in the automobile as a service market.
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Partial chapters of report table of contents (TOC):
Chapter 2 Executive Summary
2.1 Vehicle as a service industry 360º synopsis, 2018 – 2030
2.2 Business trends
2.2.1 Total addressable market (TAM), 2022 – 2030
2.3 Engine type trends
2.4 Service provider trends
2.5 Vehicle type trends
2.6 End-user trends
Chapter 3 Vehicle as a Service Industry Insights
3.1 Introduction
3.2 Impact analysis of COVID-19 pandemic
3.2.1 Impact, by region
3.3 Impact analysis of Russia Ukraine war
3.4 Vehicle as a service vs vehicle rental and leasing
3.5 Industry ecosystem analysis
3.6 Vehicle as a service business model analysis
3.7 Vehicle as a service subscription packages
3.8 Technology & innovation landscape
3.9 Patent analysis
3.10 Investment portfolio
3.11 Industry news
3.12 Regulatory landscape
3.13 Industry impact forces
3.13.1 Growth drivers
3.13.2 Industry pitfalls & challenges
3.14 Growth potential analysis
3.15 Porter's analysis
3.16 PESTEL analysis
About Global Market Insights Inc.
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.
