Car-as-a-Service Market: Introduction

  • Car-as-a-Service, or CaaS, is a long-term, subscription-based mobility solution; for instance, vehicle leasing with integrated services. Several industries have transformed in the last few years, from selling standalone products to providing consumer-oriented full-service solutions, driven by the surge in digitization and connectivity.
  • The vehicle leasing industry is no exception, shifting away from its traditionally asset-oriented and fixed-leasing-period paradigm toward flexible, service-oriented mobility solutions. This movement is creating new opportunities for fleet management solution providers.

Key Drivers of Car-as-a-Service Market

  • Emergence of a subscription economy and accelerating trends toward usership rather than ownership is a major trend driving the automotive industry across the globe. CaaS solution is used by OEMs, dealers and service providers. This solution enables customers to gain access on demand to a vehicle of their choice, based on their specific needs. This solution is expected to help OEMs maximize the reach of their vehicles, and initiate generating revenue.
  • Ride sharing has been a key feature to increase customer adaptability in developing nations such as India. Low flat rates and discounted per mile price are offered for ride-sharing; however, booking a cab for a single-individual is expensive. The introduction to shared rides is, however, altering the market situation, particularly in developing countries where citizens choose convenience offered at an economical price. Thus, ride-sharing is a major driver of the global car-as-a-service market.

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Challenges in Car-as-a-Service Market

  • The COVID-19 pandemic has affected car-hailing services. Post first wave of COVID-19, car-hailing service operators have resumed their operations gradually, thus the COVID impact on the industry seems to have reached a state of normalcy; however, a resurgence in COVID-19 cases in countries across Europe has prompted governments to impose a second round of lockdown restrictions and hence, the uncertainty in the car-as-a-service industry endures. However, a gradual recovery in the demand for automotive and ancillaries is anticipated in the next few months despite concerns around risk of second wave of infection in several countries.

Opportunities in Car-as-a-Service Market

  • Growing passenger car prices acts as an opportunity to the car-as-as-service market. Passenger cars prices have been rising owing to an increase in commodity prices and various other input costs for the last few years. Therefore, in this scenario, the mediocre economy class is likely to exhibit interest toward usership model over ownership model due to affordability of customers get effected, which is projected to offer considerable opportunity for the car-as-a-service market.

Car-as-a-Service Market in Asia Pacific to expand at a notable growth rate

  • The market in Asia Pacific is anticipated to expand at a high growth rate due to increasing population and business operations, which demand effective mobility in the region. Moreover, car-hailing services are less expensive, as compared to owing and maintaining a car, especially to individuals who use car occasionally. These factors are estimated to fuel the car-as-a-service market in the region in the next few years. Major carmaker of India, Maruti Suzuki India Limited (MSIL) has made an entry into car-as-a-service industry for individual customers in order to capture the expanding car-as-a-service market in India.

Key Players Operating in Car-as-a-Service Market

The global car-as-a-service market is highly concentrated due to the presence of top manufacturers. A few of the key players operating in the global car-as-a-service market are:

  • Didi Chuxing Technology Co
  • Uber Technologies, Inc.
  • Lyft, Inc.
  • Grab Holdings Inc.
  • Daimler AG
  • Careem
  • Taxify
  • OLA
  • Grab
  • Cabify

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Global Car-as-a-Service Market: Research Scope

Global Car-as-a-Service Market, by Type

  • Ride sourcing
  • Ride-splitting
  • Ridesharing
  • Others

Global Car-as-a-Service Market, by Passenger Car Type

  • Hatchback
  • Sedan
  • SUV

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
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

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
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

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?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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