Subscription EV Market Size

Subscription EV Market size was valued at USD 3.6 billion in 2023 and is anticipated to register a CAGR of over 30% between 2024 and 2032. The ability to access the latest automotive technology without the need for a large upfront investment is a significant driver for the market. As electric vehicles continue to evolve with improved ranges, better performance, and advanced features, consumers can stay up to date with the newest models through a subscription service. This access to cutting-edge technology allows users to benefit from the latest advancements and innovations in the EV industry without the financial risk associated with frequent car purchases.

Flexibility and convenience are key drivers of the subscription electric vehicle market, unlike traditional car ownership or leasing which require long-term commitments, subscription services allow users to switch vehicles, adjust their plans, or cancel the subscription with relative ease. This flexibility is particularly appealing to users who need a vehicle for a short period or want to try different EV models without a long-term commitment. Additionally, the convenience of having all related costs bundled into one monthly payment simplifies the user experience, making the process of driving and maintaining an EV hassle-free.

For instance, in February 2023, Hyundai's Evolve+ program lets its user try an electric vehicle without a long-term commitment. Users can subscribe to a Hyundai Ioniq 5 for $899 a month or a Kona Electric for $699, with insurance, maintenance, and 1,000 miles included. This is especially beneficial for those users who need a car temporarily or want to test an EV. It further allows users to cancel anytime, making it more flexible than leasing.

With the EVs getting old, their battery capacity gradually decreases, impacting range and performance. This natural deterioration process poses a unique challenge for subscription services. Unlike traditional vehicle rentals or leases where engine wear is less noticeable, EV battery degradation directly affects the user experience. Subscription services must carefully manage customer expectations regarding vehicle range and performance over time. They may need to implement strategies such as rotating vehicles more frequently, investing in battery health monitoring systems, or offering tiered pricing based on battery condition.

Subscription EV Market Trends

Consumers are shifting towards flexible vehicle ownership, favoring subscription services that offer EV access without a long-term commitment. This model appeals to users seeking flexibility, allowing them to drive an EV without the burdens of purchasing or leasing. Subscribers can easily switch vehicles or end their subscriptions, aligning with changing needs and preferences and shifting from traditional car ownership.

Subscription services are enhancing user experiences by utilizing advanced digital platforms. Mobile apps and online portals allow customers to easily manage their subscriptions, view and modify plans, and access a range of services. These platforms enable users to track vehicle performance in real-time, receive notifications for maintenance needs, and schedule service appointments conveniently. Integration with telematics provides insights into driving patterns and vehicle health, ensuring proactive maintenance and reducing downtime. This seamless digital approach simplifies vehicle management, making the subscription model more attractive and user-friendly.

For instance, in January 2023, Mercedes launched a $1,200 annual subscription service for performance upgrades on four all-electric models such as the EQE sedan, EQE SUV, EQS sedan, and EQS SUV. This subscription reduces each model’s 0-60 mph time by a second or less. The Mercedes online store does not specify if the subscription automatically renews.

Subscription EV Market Analysis

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Based on the service provider, the subscription EV market is segmented into third party provider, and OEM. The third party providers segment accounted for around 77% market share in 2023, due to their ability to offer highly flexible and convenient solutions. They provide subscription models that include a range of vehicles, flexible terms, and bundled services such as maintenance, insurance, and roadside assistance. This all-in-one approach simplifies the ownership experience and appeals to consumers seeking convenience and minimal long-term commitment.

Additionally, these providers benefit from economies of scale, allowing them to offer competitive pricing. Their integration of advanced technology for managing subscriptions further enhances customer satisfaction and positions them as leaders in the evolving market.

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Based on end-user, the subscription EV market is categorized into Individual Consumers, Corporate Clients, and Delivery & Logistics Companies. The individual consumers segment held around 55% market share in 2023, due to their increasing preference for flexible and hassle-free vehicle ownership solutions. Subscription models cater to their desire for short-term commitments and the ability to switch vehicles based on evolving needs or preferences. These models often include comprehensive services such as maintenance, insurance, and roadside assistance, which simplify the ownership experience and appeal to consumers who value convenience and minimal long-term obligations.

Additionally, the growing awareness and adoption of EVs among individual consumers, driven by environmental concerns and incentives, further boost their dominance in this subscription electric vehicle market. As individual consumers seek personalized and adaptable mobility solutions, subscription services provide an attractive alternative to traditional ownership or leasing options.

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North America led the global subscription EV market with a share of over 37% in 2023. The region boasts a well-established infrastructure for electric vehicles, including widespread charging networks and supportive government policies that promote EV adoption. Additionally, consumers in the region have shown a strong preference for innovative mobility solutions and are increasingly drawn to the flexibility and convenience offered by subscription models.

The presence of major automotive manufacturers and tech-savvy companies in North America has facilitated the development and implementation of advanced subscription services. Furthermore, the economic capacity and high level of disposable income in this region allow consumers to explore and invest in new and emerging technologies, including EV subscriptions.

Further, European governments offer various incentives and subsidies for EVs, which make subscription models more attractive to consumers. The mature automotive market and high levels of urbanization in the region create a substantial demand for flexible and convenient vehicle solutions, such as those provided by subscription services. Additionally, the prevalence of well-developed infrastructure for both EVs and subscription services, coupled with a high degree of consumer awareness about environmental issues, further supports Europe's leading position in the market.

Moreover, rapid urbanization and growing environmental awareness in countries such as China, India, and Japan are driving the demand for sustainable transportation solutions. Subscription models align well with the preferences of consumers in these densely populated areas, offering flexibility and convenience without long-term commitments. Additionally, supportive government policies and incentives aimed at promoting electric vehicles bolster the adoption of EV subscriptions. The presence of numerous EV manufacturers and technology-driven companies in the region enhances the availability and variety of subscription options, further fueling market growth.

Subscription EV Market Share

Porsche Drive, Hertz My Car, and Sixt+ hold a significant market share of 73% in the subscription EVs industry in 2023. Porsche Drive benefits from the prestige of the Porsche brand, attracting high-end consumers seeking luxury electric vehicles with flexible subscription terms. Hertz My Car leverages its established reputation in the car rental industry, offering a wide range of EV options and a robust infrastructure for maintenance and support.

Sixt+ combines its global presence and innovative subscription models to appeal to both individual and corporate customers, providing a seamless and customizable experience. These companies' ability to deliver quality vehicles, reliable services, and convenient subscription processes solidifies their dominant position in the market.

Subscription EV Market Companies

The major players operating in the subscription EVs industry are:

• Carbar
• Cluno
• Drover
• Hertz My Car
• Porsche Drive
• Sixt+
• Zoom EV   
  

Subscription EV Industry News

• In February 2024, VOICE, a leading EV aggregator, has partnered with BGauss Electric Vehicles to deploy 5,000 EVs for last-mile partners, corporate customers, and B2B fleets across India. This partnership aims to enhance EV adoption through various services, including rentals and long-term subscriptions. VOICE, rebranded from EV91, launched its new logo and a fleet of 107 vehicles in Bangalore and Chennai, aiming to add 1,500 EVs by the end of 2024.
  
• In October 2023, Sixt Australia and Uber has partnered to offer rideshare drivers access to electric vehicles through a subscription service costing $339 per week. Drivers can choose from month-to-month or annual subscriptions and select EVs from BYD, Tesla, BMW, or Kia, with luxury options coming soon. The subscription includes insurance, 24/7 roadside assistance, and 1,400 kilometers per month. This initiative aims to help drivers switch to EVs affordably.
  

The subscription EV market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) & no. of rental fleets (in Units) from 2021 to 2032, for the following segments:

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Market, By Service Provider

• OEM
• Third Party Provider

Market, By Subscription Period

• Less than 6 months
• 6 to 12 months
• more than 12 months

Market, By Vehicle Type

• Battery Electric Vehicles (BEVs)
• Plug-in Hybrid Electric Vehicles (PHEVs)
• Hybrid Electric Vehicles (HEVs)

Market, By End-user

• Individual Consumers
• Corporate Clients
• Delivery & Logistics Companies

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA