The global vehicle as a service market was valued at $5.2 billion in 2021 and it is expected to reach $46.5 billion at a CAGR of 20.7% between 2022 and 2032. Rising urbanization and smart city initiatives, rising adoption of on-demand mobility services, the growing trend of smart mobility with better in-vehicle amenities, growing parking problems, and emphasis on lowering CO2 emissions are expected to propel the growth of global mobility as a service market.
The users find the Vehicle-as-a-Service model to be highly useful. A service component is also being added by automakers. Customers who rent automobiles every month will additionally receive concierge services. Customers will therefore only enjoy driving the car, according to this. Moreover, rising urbanization and smart city initiatives, rising adoption of on-demand mobility services, the growing trend of smart mobility with better in-vehicle amenities, growing parking problems, and emphasis on lowering CO2 emissions are all predicted to contribute to the growth of the global vehicle-as-a-service market. The vehicle-as-a-service model is promoted as being superior to the current car leasing paradigm. The current approach places a strong emphasis on assets. Long-term obligations are placed on customers with vehicles through contracts. The initial lease time was fixed, and it cannot be changed.
Source: SAI Research
A car purchase is a pricey choice. Customers are required to commit to lengthy financial commitments. Although the majority of cars are financed, only consumers with good credit are eligible for loans. As far as the auto industry is concerned, this limits the market's size. The market for mobility as a service is anticipated to grow in the coming years as people increasingly rely on mobility services rather than personally-owned forms of transportation. Travelers can choose from a variety of mobility options depending on their needs.
Additionally, the automotive sector is the last significant one whose fundamental business and sales model has not yet been affected by digitization. Through services including leasing, subscriptions, and short- and mid-term rentals, the Vehicle-as-a-Service model enables clients to use vehicles for a range of periods, from years to minutes. Therefore, the decades-old practice of cars being sold to a single owner through a dealership will be completely reversed by the advent of vehicle-as-a-service.
Based on vehicle type, the market is segmented into passenger vehicles and commercial vehicles among others. The passenger segment accounted for most of the market share and is also expected to dominate the market throughout the upcoming years. Urban population expansion needs an effective and dependable method of moving people from one location to another. MaaS for passenger transportation offers a wide range of services that combine diverse forms of transportation, information, and payment methods into a dependable and effective user experience. Additionally, the increased interest among consumers in renting or leasing vehicles rather than buying them is being influenced by the traffic and parking issues that cities are experiencing as a result of urbanization and the alarming increase in traffic accidents. During the projection period, the market is anticipated to be driven by these evolving aspects.
In terms of service type, the vehicle and status monitoring service segment has been dominating the market and would also hold its dominant position over the forecast period. The introduction of vehicle tracking systems in some developing nations has ushered in a radical transformation of the nation's logistics and transportation industries. The benefits of a vehicle tracking system can change how fleet procedures have been carried out for a long time, as transportation is a fast-growing industry in our nation. Hence, these rising factors are projected to propel the market growth of vehicle-as-a-service across the globe.
Geographically, the Asia-Pacific region holds most of the market share and is also expected to hold its dominant position during the forecast period from 2022 to 2032. Most of the key players are located in several countries of Asia-Pacific which is an advantage of this market. The industry is expected to grow faster in developing cities with dockless bike-sharing systems and an increase in ride-hailing services. On the other hand, the North American region is also anticipated to gain market growth due to new business strategies such as mergers and acquisitions as well as collaboration with other companies to make innovative products.
According to the study, key players such as Accenture (Ireland), AB Volvo (Sweden), BMW AG (Germany), Cazoo (U.K), General Motors (U.S), Hyundai Motor Group (South Korea), Kelsian Group (Australia), LeasePlan Corporation (Netherlands), Nokia (Finland), Orange SA (France), Samsung Group (South Korea), Tata Group (India), Uber (U.S), Volvo Cars (Sweden), among others are leading the global vehicle as a service market.
|Market Size in 2021||US$ 5.2 Billion|
|Market Volume Projection by 2032||US$ 46.5 Billion|
|Forecast Period 2022 to 2032 CAGR||20.7%|
|Historical Data||2019, 2020 and 2021|
|Forecast Period||2022 to 2032|
By Vehicle Type: Passenger Vehicle, Commercial Vehicle & Others
By Service Type: Subscription Management, Asset Management, Vehicle and Status Monitoring Service & Others
North America, Europe, Asia-Pacific, LAMEA
|Companies covered||Accenture (Ireland), AB Volvo (Sweden), BMW AG (Germany), Cazoo (U.K), General Motors (U.S), Hyundai Motor Group (South Korea), Kelsian Group (Australia), LeasePlan Corporation (Netherlands), Nokia (Finland), Orange SA (France), Samsung Group (South Korea), Tata Group (India), Uber (U.S), Volvo Cars (Sweden), among others|
The Global Vehicle-as-a-Service Market – by Vehicle Type:
The Global Vehicle-as-a-Service Market – by Service Type:
The Global Vehicle-as-a-Service Market – by Regions: