Autonomous Car-as-a-Service (CaaS): Introduction
- Cars-as-a-service refers to a forthcoming car rental service that enables city drivers to engage in ride-sharing service. Car-as-a-service model is being touted to be an improvement over the existing car leasing model. The current model is heavily focused on assets. The contract binds the customer with the vehicle for a long period of time. The lease period agreed upon at the beginning of the lease is not flexible.
- The car-as-a-service program provides flexibility in the hands of customers. They can change and upgrade their vehicles as and when they want. Simply put, the car-as-a-service program works like a Netflix subscription. Thus, customers can subscribe to cars on a month-to-month basis.
Key Drivers of Global Autonomous Car-as-a-Service (CaaS) Market:
- The automobile industry is witnessing expansion due to increased expenditure in countries such as India, Brazil, and China. These developing economies are constantly increasing their spending, by accepting advanced technologies. This increase in consumer spending is inspired by the revenue model of the automobile industry from the supplier side, thereby driving adoption of services such as the car-as-a-service. This is likely to drive the autonomous car-as-a-service market across the globe.
- Key OEMs in the autonomous car-as-a-service market are directing and integrating advanced technologies, such as electric cars, self-driving cars, and wireless car charging, in order to assist customers to leverage the benefits of this merged technologies, thereby reducing the cost of using these advanced technologies. This, in turn, is likely to propel the autonomous car-as-a-service market across the globe.
- Investments in advanced technologies in autonomous vehicles by several key players and governments across the globe is likely to augment the autonomous car-as-a-service (CaaS) market. For instance, private and public stakeholders have invested more in advanced technology such as car-as-a-service start-ups.
- Millennials in developed countries want different cars for different occasions. They prefer an SUV when going on a vacation. On the other hand, a hatchback may be preferred for intercity driving. The car-as-a-service model provides consumers with high flexibility. They can change their car each month if they wish to. This is likely to drive the autonomous car-as-a-service (CaaS) market across the globe.
Global Autonomous Car-as-a-Service (CaaS) Market to Offer Attractive Opportunities:
- Increase in number of value added services is fueling the demand for such vehicles. People are looking forward to choose such a type of vehicle that results in a rise in the production of the vehicle in the market place. This, in turn, is likely to boost the demand for autonomous car-as-a-service (CaaS) market across the globe.
Global Autonomous Car-as-a-Service (CaaS) Market to Hamper Market:
- The car-as-a-service model is a more expensive. From the company point of view, they run a huge risk of obsolescence, as technology is highly dynamic and changes at a rapid pace across the globe. If the new version of a car becomes available in the market, customers would not want to subscribe to older cars. Consequently, the automaker might end up with a huge inventory of cars that it is not able to lease out. This factor is projected to hamper the global autonomous car-as-a-service (CaaS) market across the globe.
Asia Pacific Autonomous Car-as-a-Service (CaaS) Market to Expand Rapidly:
- The autonomous car-as-a-service (CaaS) market in Asia Pacific is estimated to expand significantly during the forecast period, followed by North America and Europe. Expansion of the market in Asia Pacific can be attributed to the high rate of adoption of autonomous car-as-a-service in countries such as China, which manufactures the highest number of vehicles across the globe.
- The development of autonomous vehicles and adoption of car-as-a-services by automotive OEMs have fulfilled the requirements from the car-as-a-services market in India, thus India also contributed to the expansion of the autonomous car-as-a-service (CaaS) market in Asia Pacific.
Key Players Operating in Global Autonomous Car-as-a-Service (CaaS) Market
The global autonomous car-as-a-service (CaaS) market is highly fragmented with top manufacturers across the globe. Some of the key players operating in the global autonomous car-as-a-service (CaaS) market are:
- Automovill Technologies Pvt. Ltd.
- Carxpert Garage
- Vahan Motors Pvt. Ltd.
- Groupe Renault
- Honda Motor Co. Ltd.
- Hyundai Motor Company
- Mahindra First Choice Services
- Meineke Car Care Centers, LLC.
- Midas International, LLC
- Robert Bosch GmbH
- Tilden International Inc.
- Toyota Motor Corporation
- TVS Automobile Solutions Private Limited
- Volkswagen AG
Global Autonomous Car-as-a-Service (CaaS) Market: Research Scope
Global Autonomous Car-as-a-Service (CaaS) Market, by Requirement Type
- Passengers Vehicle
- Compact Passenger Cars
- Mid – Sized Passenger Cars
- Premium Passenger Cars
- Luxury Passenger Cars
Global Autonomous Car-as-a-Service (CaaS) Market, by Services Type
- Subscription Management
- Asset Management
- Vehicle and Status Monitoring Service
Global Autonomous Car-as-a-Service (CaaS) Market, by Sales Channel
Global Autonomous Car-as-a-Service (CaaS) Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
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The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
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The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
8. How will the emerging political and economic scenario affect opportunities in key growth areas?
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10. What will be the barrier to entry for new players in the market?
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