Market research reports, consulting: Global Market Insights Inc.
We use cookies to enhance user experience. (Privacy Policy)

Vehicle as a Service Market Size

Report ID: GMI5365
   |
Published Date: May 2024
 | 
Report Format: PDF

Download free sample

Vehicle as a Service Market Size

Vehicle as a Service Market size was valued at USD 8.7 billion in 2023 and is estimated to register a CAGR of over 20.5% between 2024 and 2032. The growing demand for short-term vehicle subscription services is boosting market growth. The extensive penetration and the rising popularity of vehicle leasing services are driving the demand for short-term leasing. Buyers must pay equal monthly payments for the duration of their vehicle ownership unlike traditional car ownership. Several leasing service providers impose a monthly fee that covers maintenance, insurance, and other recurrent expenditures.

 

Vehicle as a Service Market

The continually expanding popularity of automobile subscription services in the near term across geographies is expected to propel vehicle as a service (VaaS) market growth. Short-term subscriptions make Vehicle as a Service (VaaS) more accessible to a broader spectrum of users. People who do not require a car on a daily basis or simply on special occasions can profit from VaaS without making a long-term commitment.

 

For instance, in April 2024, the British Vehicle Rental & Leasing Association published data stating that, as of December 2023, the total number of leasing cars stood at 390,898. In addition, the number of personal contract hires has increased significantly in the past years. The emergence of subscription-based business models as well as extended flexibility over leasing are expected to contribute to the vehicle as a service market with a growing demand for vehicle leasing services.

 

The cost-effectiveness associated with vehicle-as-a-service is driving the market growth. Traditionally, an individual consumer would make a down payment, and the remaining cost was paid over a period of up to seven years in equal monthly instalments. Customers were solely responsible for paying interest on EMIs and insurance expenses. In terms of subscription services, users can purchase a vehicle with no down payment and fewer monthly payments. The monthly payment includes insurance, maintenance, and roadside assistance.

 

Furthermore, consumers have the freedom to switch automobiles as needed and return them at any time. These benefits, together with cost efficiency, are propelling the vehicle-as-a-service market growth. VaaS allows for flexibility based on needs. Users can choose a subscription plan that aligns with their driving habits, avoiding the extra costs associated with owning an under-utilized car.

 

The high ownership cost of vehicle as a service poses a major challenge, hampering its growth. The expense of procuring a new vehicle as a service requires a significant financial expenditure by building contractors. Businesses lease machines from manufacturers in the market to minimize this expenditure. The inclusion of sophisticated technology, such as IoT and remote monitoring, will increase the machine's initial cost.

 

Furthermore, these vehicles as a service have a number of other maintenance difficulties that need significant resources and time, which will raise the machine's maintenance and handling costs, slowing market growth. The primary prices of cars as a service are expected to fall in the next few years due to new and emerging technologies, as well as increased competition among industry participants.

 

Authors: Preeti Wadhwani, Aishvarya Ambekar
Frequently Asked Question(FAQ) :
How big the Vehicle as a Service market?
The market size of vehicle as a service reached USD 8.7 billion in 2023 and is set to witness 20.5% CAGR from 2024 to 2032, owing to the growing demand for short-term vehicle subscription services worldwide.
Why is the use of IC engines in Vehicle as a Service growing?
Who are the key leaders in the vehicle as a service market?
What is the size of the Europe vehicle as a service industry?

Report Content

Chapter 1   Methodology & Scope

1.1    Research design

1.1.1    Research approach

1.1.2    Data collection methods

1.2    Base estimates and calculations

1.2.1    Base year calculation

1.2.2    Key trends for market estimates

1.3    Forecast model

1.4    Primary research & validation

1.4.1    Primary sources

1.4.2    Data mining sources

1.5    Market definitions

Chapter 2   Executive Summary

2.1    Industry 3600 synopsis, 2021 - 2032

Chapter 3   Industry Insights

3.1    Industry ecosystem analysis

3.2    Supplier landscape

3.2.1    Vehicle manufacturers (OEMs)

3.2.2    Technology providers

3.2.3    Financial institutions

3.2.4    Maintenance & repair providers

3.2.5    Insurance companies

3.3    Profit margin analysis

3.4    Technology & innovation landscape

3.5    Patent analysis

3.6    Key news & initiatives

3.7    Regulatory landscape

3.8    Impact forces

3.8.1    Growth drivers

3.8.1.1    Growing demand for short-term vehicle subscription services

3.8.1.2    Cost-effectiveness associated with vehicle-as-a-service

3.8.1.3    Rising penetration of third-party vehicle-as-a-service provider

3.8.1.4    Stringent government regulations regarding emission control reducing vehicle ownership

3.8.1.5    Lack of proper public transportation infrastructure in developing countries

3.8.2    Industry pitfalls & challenges

3.8.2.1    High ownership cost of vehicle as a service

3.8.2.2    Inadequate charging infrastructure for EVs

3.9    Growth potential analysis

3.10    Porter’s analysis

3.11    PESTEL analysis

Chapter 4   Competitive Landscape, 2023

4.1    Introduction

4.2    Company market share analysis

4.3    Competitive positioning matrix

4.4    Strategic outlook matrix

Chapter 5   Market Estimates & Forecast, By Engine, 2021 - 2032 ($Bn)

5.1    Key trends

5.2    Electric

5.3    IC engine

Chapter 6   Market Estimates & Forecast, By Service Provider, 2021 - 2032 ($Bn)

6.1    Key trends

6.2    Automotive OEM

6.3    Auto dealerships

6.4    Auto tech startups

6.5    Car subscription software providers

Chapter 7   Market Estimates & Forecast, By Vehicle, 2021 - 2032 ($Bn)

7.1    Key trends

7.2    Passenger cars

7.3    Trucks

7.4    Utility trailers

7.5    Motorcycles

Chapter 8   Market Estimates & Forecast, By End-user, 2021 - 2032 ($Bn)

8.1    Key trends

8.2    Enterprise users

8.3    Private users

Chapter 9   Market Estimates & Forecast, By Region, 2021 - 2032 ($Bn)

9.1    Key trends

9.2    North America

9.2.1    U.S.

9.2.2    Canada

9.3    Europe

9.3.1    UK

9.3.2    Germany

9.3.3    France

9.3.4    Spain

9.3.5    Italy

9.3.6    Russia

9.3.7    Nordics

9.3.8    Rest of Europe

9.4    Asia Pacific

9.4.1    China

9.4.2    India

9.4.3    Japan

9.4.4    South Korea

9.4.5    ANZ

9.4.6    Southeast Asia

9.4.7    Rest of Asia Pacific

9.5    Latin America

9.5.1    Brazil

9.5.2    Mexico

9.5.3    Argentina

9.5.4    Rest of Latin America

9.6    MEA

9.6.1    UAE

9.6.2    South Africa

9.6.3    Saudi Arabia

9.6.4    Rest of MEA

Chapter 10   Company Profiles

10.1    Bavarian Motor Work AG (BMW Group)

10.2    Borrow (Prazo, Inc.)

10.3    CarNext B.V.

10.4    Cluno GmbH

10.5    Daimler AG (Mercedes-Benz Group)

10.6    Porsche AG

10.7    Drover Ltd. (Cazoo)

10.8    Flexdrive (Lyft)

10.9    General Motors Company

10.10    Hertz Corporation

10.11    Hyundai Motor Company

10.12    OpenRoad (Portfolio)

10.13    Sixt SE

10.14    TATA Motors Limited

10.15    Toyota Motor Corporation

10.16    Volkswagen AG

10.17    Volvo AB

10.18    Zoomcar India Private Ltd.

Authors: Preeti Wadhwani, Aishvarya Ambekar
Buy Now
$4,123 $4,850
15% off
$4,840 $6,050
20% off
$5,845 $8,350
30% off
    Buy now
Premium Report Details

Base Year: 2023

Companies covered: 18

Tables & Figures: 200

Countries covered: 25

Pages: 250

Download Free Sample

Top