Europe Car Subscription Market Size Likely to Surpass at a CAGR of 14.2% By 2033

As per the current market research conducted by the CMI Team, the Europe Car Subscription Market size is expected to record a CAGR of 14.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 972.1 Million. By 2033, the valuation is anticipated to reach USD 3,211.4 Million.

Europe Car Subscription Market: Growth Factors and Dynamics

• Changing Consumer Preferences: Shifting consumer attitudes towards mobility, driven by factors such as urbanization, environmental concerns, and the sharing economy, are fueling the demand for flexible and hassle-free transportation solutions like car subscriptions.

• Urbanization and Congestion: Increasing urbanization in major European cities is leading to congestion and parking challenges, making traditional car ownership less appealing. Car subscriptions offer an attractive alternative by providing access to vehicles without the burdens of ownership.

• Rise of Mobility-as-a-Service (MaaS): The emergence of Mobility-as-a-Service (MaaS) platforms, which integrate various transportation options including car subscriptions, public transit, ride-hailing, and bike-sharing, is driving the adoption of car subscription services as part of a holistic mobility solution.

• Preference for Experience over Ownership: Millennial and Generation Z consumers, in particular, prioritize experiences over ownership. Car subscriptions align with this trend by offering the convenience of access to a variety of vehicles without the long-term commitment and financial burden of ownership.

• Advancements in Digital Technology: Technological advancements, such as mobile apps and digital platforms, are making it easier for consumers to sign up for and manage car subscriptions. Seamless booking, payment, and vehicle delivery processes contribute to the convenience and appeal of car subscription services.

• Partnerships and Collaborations: Car manufacturers, rental companies, and startups are forming partnerships and collaborations to expand their presence in the car subscription market. These alliances enable companies to leverage each other’s strengths and resources to offer competitive subscription packages and reach a wider audience.

• Regulatory Support for Sustainable Mobility: European governments are increasingly implementing policies and regulations to promote sustainable mobility solutions, including incentives for electric vehicles (EVs) and measures to reduce carbon emissions. Car subscription services, particularly those offering electric or low-emission vehicles, stand to benefit from these initiatives, as consumers seek environmentally-friendly transportation options and governments encourage their adoption to meet climate targets.

Europe Car Subscription Market: Partnership and Acquisitions

• In 2022, Tokyo-based telecom company SoftBank launched a vehicle subscription service, enabling consumers to rent a used car for a fixed monthly fee. This initiative offers flexibility and convenience to users, aligning with SoftBank’s diversification into innovative mobility solutions.

• In 2022, Facedrive Inc. completed its non-brokered private placement, fully subscribed. This successful funding round marks a milestone for the company, providing financial support for its growth and expansion initiatives.

• In 2021, Invygo, the pioneer of app-based car subscription services in Dubai and the Middle East, secured $1 million for expanding its operations across the GCC region, including Bahrain and Saudi Arabia. The company provides innovative car subscription and leasing services, offering unique benefits to customers.

Report Scope

Europe Car Subscription Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the Europe Car Subscription Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Temporary Reduction in Demand: During the height of the pandemic, travel restrictions, lockdown measures, and economic uncertainty led to a temporary reduction in demand for car subscription services as people stayed home and limited non-essential travel.

• Shift in Consumer Preferences: COVID-19 has accelerated certain trends such as remote work and increased interest in personal transportation over public transit or ride-hailing services. This shift in consumer preferences may impact the types of vehicles and subscription plans sought by consumers.

• Flexible Subscription Plans: Offering flexible subscription plans with shorter commitment periods and easy cancellation policies can attract hesitant consumers and accommodate fluctuating mobility needs as economic conditions and travel patterns evolve post-pandemic.

• Focus on Hygiene and Safety: Emphasizing hygiene and safety measures, such as thorough vehicle cleaning and sanitization protocols, can reassure consumers about the safety of using car subscription services and rebuild trust in shared mobility solutions.

• Promotion of Contactless Services: Implementing contactless booking, delivery, and payment processes through digital platforms can enhance convenience and minimize physical interactions, addressing concerns about virus transmission and aligning with evolving consumer preferences for touchless experiences.

• Targeted Marketing Campaigns: Tailoring marketing campaigns to highlight the benefits of car subscription services, such as flexibility, convenience, and access to a variety of vehicles, can rekindle interest and attract new customers who may be seeking alternative transportation solutions in the post-pandemic era.

• Partnerships and Collaborations: Collaborating with other mobility providers, such as ride-hailing companies, public transit agencies, or bike-sharing services, to offer integrated mobility solutions can broaden the appeal of car subscription services and provide consumers with comprehensive transportation options that meet their diverse needs and preferences.

• Adaptation to Remote Work Trends: Recognizing the increasing prevalence of remote work arrangements post-pandemic, car subscription providers may tailor their offerings to cater to the needs of remote workers, such as by offering flexible plans with options for occasional or part-time vehicle access to support occasional commuting or errands. This adaptation can help maintain relevance and appeal in a changing mobility landscape.

In conclusion, the COVID-19 pandemic has had a mixed impact on the Europe Car Subscription Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the Europe Car Subscription Market:

• Care by Volvo (Volvo Car Corporation)
• Mercedes-Benz Collection (Daimler AG)
• Audi Select (Audi AG)
• BMW Access (BMW Group)
• Porsche Passport (Porsche AG)
• Jaguar Land Rover Carpe (Jaguar Land Rover)
• Lynk & Co Mobility (Geely Holding Group)
• Volkswagen We Share (Volkswagen Group)
• LeasePlan Corporation N.V.
• SIXT SE
• Drover
• Ubeeqo (owned by Europcar Mobility Group)
• Wabi Car (Wabi Mobility)
• DriveNow (BMW Group and Sixt SE joint venture)
• Free2Move (Stellantis NV)
• Others

The Europe Car Subscription Market is segmented as follows:

By Vehicle Type

• Sedans
• SUVs
• Trucks
• Electric Vehicles (EVs)
• Luxury Cars
• Sports Cars

By Subscription Duration

• Short-Term
• Long-Term
• Flexible

By Price Tier

• Basic
• Standard
• Premium

Regional Coverage:

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe