Technavio analyzes that the Automotive Subscription Services Market is expected to grow at a CAGR of 16.6% during 2023 and 2028. During this period, the market is also expected to show a growth of USD 3199.4 million.There are various factors that contribute to the growth of the market. The automotive subscription services market is experiencing significant growth due in part to the increasing penetration of smartphones and the internet. With more individuals gaining access to these technologies, the convenience of subscribing to automotive services online has become increasingly appealing. This trend is expected to continue as the digital landscape continues to evolve, offering new opportunities for automotive companies to engage with customers and provide innovative services.
In the automotive industry, subscription services have emerged as a disruptive business model, allowing customers to access a range of vehicles from various OEMs for a monthly fee. This comprehensive solution includes insurance, maintenance, and roadside assistance. The success of this model in the US market has prompted major players such as BMW, Volkswagen, and Daimler to launch their subscription services. This trend is expected to significantly contribute to the expansion of the global automotive subscription services market. The influx of third-party service providers, however, poses a challenge to OEMs, as they face increased competition and potentially reduced market share. Despite this, the popularity of eco-friendly transportation options, including electric vehicles (EVs) and luxury cars, continues to drive demand for automotive subscription services. Digital platforms and mobile apps enable seamless customer experiences, further enhancing the appeal of this business model.
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Automotive Subscription Services Market Segmentation
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Automotive Subscription Services refer to flexible mobility solutions where individuals pay a recurring monthly fee to access a vehicle, be it IC Engine Vehicles or Electric Vehicles (EVs), including Luxury Cars, SUVs, Hybrids, and more. Via digital platforms and mobile apps, users can choose their preferred Vehicle Options, Subscription Charges cover Insurance and Fuel Prices. The Subscription Period varies, with no long-term Leasing Contracts or Car Financing required. KYC Process ensures secure Subscription Management. Embrace eco-friendly Transportation with Multi-Brand Car Subscription Services, transcending traditional vehicle possession. Mobility-as-a-Service (MaaS) offers IC Powered Vehicles and EVs, replacing Car Renting and Ride-hailing.
The global automotive components and equipment market encompasses businesses producing parts and accessories for various vehicle types, including passenger cars (PCs), electric vehicles (EVs), commercial vehicles (CVs), heavy-duty vehicles, off-road vehicles, motorcycles, scooters, quad bikes, and three-wheelers. According to Technavio, the market size is determined by the consolidated revenue generated by manufacturers of automotive components and equipment. Factors driving growth in this sector include the rise of electronic components in automobiles, such as electric control units (ECUs) and other electrical components, due to the increasing sales of EVs, motorcycles, and PCs over the past decade. Additionally, the emergence of flexible mobility solutions, including vehicle subscription services with recurring monthly fees, car leasing, car buying, and car renting, is expected to further boost market expansion.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.
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