Middle East & Africa Vehicle Subscription Market: Industry Analysis and Forecast (2024-2030)

Middle East & Africa Vehicle Subscription Market Definition:

 

A vehicle subscription is a subscription business model where the client pays a recurring fee for the use of a particular vehicle. Vehicle subscriptions differ from traditional auto leases because they maintain ownership of the vehicle. However, while both subscription services and traditional automotive leases include recurring payments, some subscription services allow users to switch between vehicles. A car subscription differs from a vehicle rental in that most subscriptions provide users with full-time use of a vehicle, replacing their primary vehicle, while rentals provide access to vehicles at public locations

 

Further, the Vehicle Subscription market is segmented by Vehicle type, Subscription Period, Service Provider, End-User, and geography. On the basis of vehicle type, the Vehicle Subscription market is segmented under IC Powered and Electric. Based on the Subscription Period, the market is segmented under 1 to 6 months, 6 to 12 months, and more than 12 months. Based on service provider, the Vehicle Subscription market is segmented under OEM, Mobility, and Independent/third-party. Based on End-User, the market is segmented into Private and Business. By geography, the market covers the major countries in Middle East and Africa i.e., South Africa, Nigeria, Saudi Arabia, UAE, Kuwait, Egypt and Rest of Middle East and Africa For each segment, the market sizing and forecasts have been done on the basis of value (in USD Million).

 

 

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Middle East & Africa Vehicle Subscription Market Dynamics:      

         

A strong automotive ecosystem, top-tier companies, and a huge population of consumers in developed countries have made vehicle subscriptions extremely popular in MEA. On the other hand, OEMs and third-party service providers have fueled growth in Dubai and Abu Dhabi. Additionally, in the MEA region, multinational companies, research and development institutions, and M&A activity are helping to make the projector market more feasible.

 

Subscribing to a car subscription might seem like an economical choice in the short run. However, in the long run, it can be more expensive than leasing or buying a car. Plans with car-swapping features can cost thousands of dollars per month, which is far more than a monthly lease or purchase payments. There is a limit on how many miles subscribed vehicles can be driven. Exceeding this limit can raise the price of a subscription vehicle immediately. Therefore, the high cost may hinder the market growth. Because of increasing customer preference for subscription-based vehicles over owning a car, and technological advancements, vehicle subscription market players will have enormous opportunities.

 

Middle East & Africa Vehicle Subscription Market COVID-19 Insights:

 

Due to COVID-19, this region was economically paralyzed, resulting in severe government restrictions regarding commute activities and precautionary measures that seriously impacted the car subscription market. After the lockdown is lifted, the car subscription market may continue to grow due to the evolution of digital technologies, After the lockdown is lifted, passengers will be required to own customized cars for convenience and for maintaining their hygiene due to COVID-19.

 

Middle East & Africa Vehicle Subscription Market Segment Analysis:

 

By Vehicle Type, the Middle East & Africa Vehicle Subscription Market is segmented into IC Powered and Electric. EV adoption will be gradual in the UAE as car dealers, maintenance networks, and the general public learn about EVs. In the next 3 years, automotive manufacturers will release a wider range of EVs that are tailored to the market in the UAE. The UAE's current electricity and petrol prices make EVs close to cost parity with their conventional counterparts when fuel costs are factored in. MEA production and competition will increase, leading to further reductions in the cost and improving economics.  

 

 

By Subscription Period, the Vehicle Subscription Market is segmented into 1 to 6 months, 6 to 12 months, and more than 12 months. Those who are on short-term vacations and use car subscription services to meet their transportation needs are part of this segment; while consumers traveling on business can afford a car with every feature and amenity. A majority of subscription programs allow you to lease or purchase a car for a monthly fee that includes maintenance, registration, and insurance. All you need to do is pay for the gas or electricity to power your vehicle. 

 

By Service Provider, the Vehicle Subscription Market is segmented into OEM, Mobility, and Independent. The Independent segment held the highest market share in 2023. Independent dealers can offer consumers a variety of cars from different brands for those more agnostic about what brand they drive (or who are concerned about brand loyalty).

 

By End-User, the Vehicle Subscription Market is segmented into Private and Business. The Business segment held the highest market share in 2023. For business tours and client visits, car subscription services are highly used in the MEA region

 

Vehicle Subscription Market Key Players Insights:

 

The market is characterized by the existence of a number of well-known firms. These companies control a large portion of the market, have a wide Vehicle Type portfolio, and have a Middle East & Africa presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.

 

The market's major companies have a significant impact because most of them have extensive Middle East & Africa networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the Middle East & Africa market, key players in the market, particularly in Middle East & Africa and Middle East & Africa, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.

 

The objective of the report is to present a comprehensive analysis of the Middle East & Africa Vehicle Subscription market to the stakeholders in the industry. The report provides trends that are most dominant in the Middle East & Africa Vehicle Subscription market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Middle East & Africa Vehicle Subscription Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the Middle East & Africa Vehicle Subscription market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Middle East & Africa Vehicle Subscription market. The report studies factors such as company size, market share, market growth, revenue, Vehicle Type, and profits of the key players in the Middle East & Africa Vehicle Subscription market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their Vehicle Type quality is in the Middle East & Africa Vehicle Subscription market. The report also analyses if the Middle East & Africa Vehicle Subscription market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Middle East & Africa Vehicle Subscription market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Middle East & Africa Vehicle Subscription market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Middle East & Africa Vehicle Subscription market is aided by legal factors.

 

Middle East & Africa Vehicle Subscription Market Scope:

 

Middle East & Africa Vehicle Subscription Market
Market Size in 2023	US 896.80 Mn.
Market Size in 2030	USD 2691.52 Mn.
CAGR (2024-2030)	17 %
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Vehicle Type IC Powered Electric
	By  End User Private Business
Country Scope	South Africa GCC Egypt Nigeria Rest of the Middle East and Africa

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Middle East & Africa Vehicle Subscription Market Key Players: 

• Ekar
• Star Tech
• Planet42
• Drive
• AVIS
• Flex Club
• Hatchback