Future of Vehicle Subscription—Business Models and Opportunities in North America and Europe, 2025

Future of Vehicle Subscription—Business Models and Opportunities in North America and Europe, 2025

Vehicle Subscription Targets 10% of New Vehicles Sales by 2025

RELEASE DATE
30-Aug-2018
REGION
North America
Research Code: 9AB2-00-BC-00-00
SKU: AU01706-NA-MR_22263

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Description

Frost & Sullivan defines vehicle subscription as a shared mobility service where a customer can get access to temporary vehicle ownership - usually by the month. In other words, it can be described as micro leasing a vehicle for a shorter period. It is also sometimes referred as temporary ownership via renting a new car or leasing a used car. Vehicle subscription is unlike any other shared mobility service formats such as carsharing, rental, leasing and outright purchase. It is slotted in between these different services targeting a unique whitespace opportunity. Vehicle subscription, an emerging service, is offered under dedicated program names by various market participants to differentiate it from their other offerings.

This study discusses key topical areas within this emerging service, including: 1) if vehicle subscription would be perceived to be lower in cost than traditional car leasing or rental or ownership; 2) whether consumers would be willing to experiment and adopt until this factor is challenged in the future; 3) unique drivers such as One Flat Fee and its impact on the growth of vehicle subscription services; 4) why should such a service appeal to Baby Boomers, Gen-X customers, including Gen-Z, as well as premium customers, who are seen as key drivers for growth of this model; 5) how will this service coexist alongside car rental, long-term leasing, carsharing, and traditional car ownership.

Further, this study discusses how current vehicle subscription programs are in pilot stages or in limited availability and how most market participants expect a nationwide rollout of program offerings / global adoption largely by 2025. It also discusses the emerging area of vehicle subscription, mapping the market, various participants, and new business models as they evolve; analyzing via a comparative benchmark how participants target to be different with their unique marketplace offerings; and presenting regional similarities and differences between Europe and North America with respect to the entire emerging vehicle subscription economy.

This research study is also an effort to project if vehicle subscription will complement or replace the vehicle leasing / vehicle ownership business model. It serves to showcase how vehicle subscription will influence the new and used car market offerings, and analyzes if OEMs would be the first movers and fast followers while also understanding prospects targeting this space. It also helps to examine the impact of vehicle subscription on the future of mobility and car ownership, and how programs offered by OEMs are different from non-OEM solutions. Moreover, it helps to understand key current success stories and factors influencing vehicle subscription, including analyzing drivers and restraints impacting the vehicle subscription market.

RESEARCH: INFOGRAPHIC

This infographic presents a brief overview of the research, and highlights the key topics discussed in it.
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Table of Contents

Executive Summary—Key Takeaways

Executive Summary—Key Predictions

Executive Summary—Vehicle Subscription Ecosystem

Executive Summary—38 Current Vehicle Subscription Programs

Executive Summary—Current and Future Program Offerings

Executive Summary—Major Cost Elements of the Programs

Executive Summary—Vehicle Subscription Regional Differences

Executive Summary—Program (Minimum) Costs Breakdown Analysis

Executive Summary—Vehicle Subscription Forecast

Executive Summary—OEM Programs’ Targeted Vehicle Segments

Executive Summary—Key Conclusions and Future Outlook

Research Scope

Research Aims and Objectives

Key Questions this Study will Answer

Research Background

Research Methodology

Major Vehicle Subscription Programs Analyzed in this Research

Vehicle Subscription Definition

One Flat Fee / One Bill—Definition

Vehicle Retailing Formats—Introduction

Footprint of Major Programs in the US

Leasing Penetration* into the Total Market in Europe

Vehicle Subscription Market Drivers

Market Drivers Explained

Specific Market Drivers of Growth Targeted by Major Participants

Vehicle Subscription Market Restraints

Restraints Explained

Vehicle Subscription Ecosystem

38 Current Vehicle Subscription Programs

OEM Vehicle Subscription Program Evolution

Vehicle Subscription—OEM and Dealer Program End Game

Vehicle Subscription—New Mobility, Tech Company Program End Game

Automotive OEMs Vehicle Subscription Programs

Non-Captive Participants Vehicle Subscription Offerings

Non-Captive Participants Vehicle Subscription Offerings (continued)

Program (Minimum) Costs Breakdown Analysis

Vehicle Subscription Forecast

Vehicle Subscription Forecasts—Overall New and Used Vehicles Mix

Vehicle Subscription Forecasts—Overall as a Percent of New Vehicle Sales

Vehicle Subscription Forecasts—Overall Take-up Rate

Key Assumptions to Vehicle Subscription Forecasts

Vehicle Subscription—OEMs’ Program Status

Vehicle Subscription—OEMs’ Program Partners

Vehicle Subscription—OEM Programs’ Cities Footprint

Programs (OEM and Non-OEM) Operational in Key Locations in the US

Vehicle Subscription—OEMs Program Plans

Vehicle Subscription—Target Customers of OEM Programs

Vehicle Subscription—OEM Programs’ Total Ownership Cost

Vehicle Subscription—OEM Program Subscribers (at Launch, Future Target)

Vehicle Subscription—OEM Programs’ New and Used Cars Fleet Mix

Vehicle Subscription—OEM Programs’ Nameplates in Fleet

Vehicle Subscription—Age of OEM Program Vehicles

Vehicle Subscription—OEM Programs’ Target Vehicle Segments

Minimum Requirements for Program Enrollment in North America**

Program Registration Fees for Enrollment in North America*

Program Minimum Subscription Term in North America*

Program Platform Providers—Profile of Clutch and Flexdrive

Program Platform Providers—Profile of Clutch and Flexdrive (continued)

Program Platform Providers—Profile of Clutch and Flexdrive (continued)

Profile of Mobiliti

Profile of Revolve

Profile of DriveFlow

Profile of YoYo

Growth Opportunity—Vehicle Subscription

Strategic Imperatives for Success and Growth

Key Conclusions

Legal Disclaimer

Global Fleet & Leasing Program—2017 Published Topics

Global Fleet & Leasing Program—2013-2016 Published Topics

Global Fleet & Leasing Program—2013-2016 Published Topics (continued)

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

The Frost & Sullivan Story

Value Proposition—Future of Your Company & Career

Global Perspective

Industry Convergence

360º Research Perspective

Implementation Excellence

Our Blue Ocean Strategy

Related Research
Frost & Sullivan defines vehicle subscription as a shared mobility service where a customer can get access to temporary vehicle ownership - usually by the month. In other words, it can be described as micro leasing a vehicle for a shorter period. It is also sometimes referred as temporary ownership via renting a new car or leasing a used car. Vehicle subscription is unlike any other shared mobility service formats such as carsharing, rental, leasing and outright purchase. It is slotted in between these different services targeting a unique whitespace opportunity. Vehicle subscription, an emerging service, is offered under dedicated program names by various market participants to differentiate it from their other offerings. This study discusses key topical areas within this emerging service, including: 1) if vehicle subscription would be perceived to be lower in cost than traditional car leasing or rental or ownership; 2) whether consumers would be willing to experiment and adopt until this factor is challenged in the future; 3) unique drivers such as One Flat Fee and its impact on the growth of vehicle subscription services; 4) why should such a service appeal to Baby Boomers, Gen-X customers, including Gen-Z, as well as premium customers, who are seen as key drivers for growth of this model; 5) how will this service coexist alongside car rental, long-term leasing, carsharing, and traditional car ownership. Further, this study discusses how current vehicle subscription programs are in pilot stages or in limited availability and how most market participants expect a nationwide rollout of program offerings / global adoption largely by 2025. It also discusses the emerging area of vehicle subscription, mapping the market, various participants, and new business models as they evolve; analyzing via a comparative benchmark how participants target to be different with their unique marketplace offerings; and presenting regional similarities and differences between Europe a
More Information
No Index No
Podcast No
Author Vishwas Shankar
Industries Automotive
WIP Number 9AB2-00-BC-00-00
Is Prebook No
GPS Codes 9800-A6,9807-A6,9813-A6,9832-A6,9AF6-A6,9B02-A6