Generation Z could propel the rise of car subscriptions

The global automotive industry faces two challenges as it seeks to consolidate future vehicle sales: restrictions on consumer spending caused by the cost-of-living crisis, and the rise of mobility-as-a-service platforms. One potential solution is subscription services—typically a monthly payment that covers not only a car but associated costs such as insurance and repairs for a pre-agreed period of time. Global Market Insights projects that the total car subscription market will grow from US$5bn in 2022 to more than US$100bn in 2032—a CAGR of 35%.