Top Factor Driving Vehicle As A Service Market Growth in 2025: Rising Global Traffic Congestion Driving Growth In Vehicle-As-A-Service Market

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What industry-specific factors are fueling the growth of the vehicle as a service market?
The escalating issue of global traffic gridlock and bottlenecks is anticipated to spur the expansion of the vehicle-as-a-service market. Traffic gridlock arises when excess volume of vehicles on a road network causes delays, leading to reduced speeds and prolonged travel durations. This intensifying worldwide traffic issue and clogging primarily result from surging urbanization, growing number of vehicles, population expansion, and insufficient infrastructure. Vehicle-as-a-Service (VaaS) offers a solution to these problems by endorsing shared commuting, thereby reducing the count of individual vehicles on the roads and resulting in more resourceful and better transportation. For example, a report in January 2024 by INRIX, a US company providing real-time traffic updates and connected driving facilities, indicated that congestion amplified in 98 of the major 100 urban regions in 2023 as compared to a year prior. In fact, 71 of these areas saw a rise in traffic delays by a double-digit percentage in 2022. Alarmingly, New York City drivers lost an average of 101 hours in 2023 to traffic congestion, leading to economic deficits of more than $9.1 billion due to squandered time. Hence, the escalating global traffic issues and traffic blockages will fuel the expansion of the vehicle-as-a-service market.

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What is the future CAGR of the vehicle as a service market, and how will it impact industry expansion?
The market size of vehicle as a service has seen a swift surge in recent times. Projected growth rates indicate an increase from $7.36 billion in 2024 to $8.79 billion in 2025, representing a compound annual growth rate (CAGR) of 19.4%. The historical growth trajectory can be linked to beneficial policies and incentives for electric vehicles and shared mobility services. Increased utilisation of electric vehicles, escalating disposable incomes, growth of VaaS services in developing markets, and a rise in public awareness and acceptance of shared mobility solutions all contribute to this trend.

In the upcoming years, the vehicle as a service market is predicted to undergo swift expansion. By 2029, it is projected to reach a worth of $17.65 billion, growing at a compound annual growth rate (CAGR) of 19.1%. Several factors that can potentially drive the growth during the forecast period include increasing demand for mobility solutions, heightened environmental consciousness, burgeoning urban population, growth in ride-sharing services, and the rising trend of vehicle subscription services. The period is also likely to be characterized by key trends such as advancements in vehicle connectivity, integration of VaaS solutions, progression, and deployment of autonomous vehicles, synchronization with smartphones and digital payment systems, and the increasing role of big data and analytics.

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What new trends are reshaping the vehicle as a service market and its opportunities?
Prominent entities in the vehicle as a service market are focused on the creation of adaptable and tailored mobility solutions like car subscription platforms, leveraging their existing capabilities and frameworks to expand service offerings and draw new clientele. A car subscription platform provides a service that lets consumers access an array of vehicles on a flexible, short-term agreement that usually encapsulates costs such as insurance and maintenance in one monthly payment. For example, in June 2022, Spain-based firm Santander Consumer Finance unveiled its technology platform known as Ulity. This platform's distinctive feature is its white-label SaaS technology, deftly designed by Santander Consumer Finance to facilitate the creation of vehicle subscription-focused solutions in the mobility service sector. This platform equips automotive firms, private transportation businesses, car hire services, leasing corporations, large-scale businesses, and automobile marketplaces with the ability to quickly and cost-effectively break into the vehicle subscription market, enlarge their commercial footprint, and garner new clients without the necessity for investment in creating their individual solution.

What major market segments define the scope and growth of the vehicle as a service market?
The vehicle as a servicemarket covered in this report is segmented -

1) By Service Type: Subscription Management, Asset Management, Vehicle And Status Monitoring Service, Other Service Types
2) By Engine: Electric, IC Engine
3) By Vehicle: Passenger Cars, Trucks, Utility Trailers, Motorcycles
4) By Service Provider: Automotive Original Equipment Manufacturer (OEM), Auto Dealerships, Auto Tech Startups, Car Subscription Software Providers
5) By End-User: Enterprise Users, Private Users

Subsegments:
1) Subscription Management: Fleet Subscription Services, Short-Term Subscription Services
2) Asset Management: Vehicle Tracking and Maintenance, Inventory Management
3) Vehicle And Status Monitoring Service: Real-Time Monitoring, Diagnostic Services
4) Other Service Types: Route Optimization, Customer Support Services

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Which geographical regions are pioneering growth in the vehicle as a service market?
North America was the largest region in the vehicle as a service market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the vehicle as a service market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Which key market leaders are driving the vehicle as a service industry growth?
Major companies operating in the vehicle as a service market are Volkswagen AG, Toyota Motor Corporation, Tata Group, Ford Motor Company, Mercedes-Benz Group, General Motors, Bayerische Motoren Werke AG (BMW Group), Hyundai Motor Group, accenture* Plc, AB Volvo, Porsche AG, Uber Technologies Inc., AutoNation, Nokia Corporation, DiDi Chuxing, LeasePlan Corporation NV, Hertz Corporation, Orange Business Services, Lyft Inc., Sixt SE, Kelsian Group, CarNext B.V., Zoomcar, Cluno GmbH, Bipi

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What Is Covered In The Vehicle As A Service Global Market Report?

•Market Size Forecast: Examine the vehicle as a service market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the vehicle as a service market for a structured understanding.
•Key Players Overview: Analyze major players in the vehicle as a service market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the vehicle as a service market.
•Segment Contributions: Evaluate how different segments drive overall growth in the vehicle as a service market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the vehicle as a service market.
•Industry Challenges: Identify potential risks and obstacles affecting the vehicle as a service market.
•Competitive Landscape: Review strategic developments in the vehicle as a service market, including expansions, agreements, and new product launches.

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