Ottawa, Aug. 05, 2025 (GLOBE NEWSWIRE) — The global car-as-a-service market size stood at USD 170.26 billion in 2025 and is projected to reach USD 309.10 billion by 2034, according to a study published by Towards Automotive, a sister firm of Precedence Research. The car-as-a-service market has experienced significant growth in recent years, driven by high demand for cost efficiency in transportation and a growing need for flexible transportation options. Get All the Details in Our Solutions – Access Report Sample: https://www.towardsautomotive.com/download-sample/1446 Key Highlights of the Car-as-a-Service Market Market Overview The car-as-a-service market has observed a huge boom in recent years due to high demand for flexible, mobile, and cost-efficient transportation means by consumers and firms. The service allows consumers and businesses to get access to different types of vehicles without having traditional ownership. Hence, the consumers can easily travel with enhanced flexibility, efficiency, and a cost-effective method. The market is also observing growth due to rapid urbanization and high demand by the corporate sector for an ideal transportation management solution. The services allow the consumers to have access to different types of vehicles along with various packages inclusive of insurance, maintenance, fuel or charging costs, repairs, and multiple other related charges. Major Players in Car-as-a-service Market & Their Contribution: What are the New Trends of the Car-as-a-Service Market? You can place an order or ask any questions, please feel free to contact us at sales@towardsautomotive.com Market Dynamics Drivers What are the growth drivers of the car-as-a-service Market? The growing demand for cost-effective methods of transportation is one of the major growth drivers of the car-as-a-service market. Consumers, especially from the younger generation and urban dwellers, are always in search of flexible and cost-efficient means of transport, allowing the growth of the car-as-a-service market. Car subscription models allow consumers to get access to different types of vehicles as per their needs, along with an array of services covered, such as insurance, repairs, and maintenance. The market is also observing growth due to AI helping to shape the car-as-a-service market, enhancing operational efficiency, optimizing user experience, and enabling predictive analysis. Challenge Regulatory and Data Issues Hampers the Growth of the Market Regulatory issues of different regions, along with data privacy issues of consumers accessed by the vehicle, are some of the issues restraining the growth of the car-as-a-service market. The market also observes restraints in the form of high initial investment, underdeveloped infrastructure in the form of fewer charging stations for EVs, and various other similar issues. Opportunity Integration of Autonomous Vehicles is helping the Growth of the Market in the foreseeable period. Integration of autonomous vehicles in the car-as-a-service market is one of the biggest growth factors in recent years. Autonomous vehicles are ideal for reducing operational costs while enhancing service efficiency. One of the major benefits of introducing autonomous vehicles in the car-as-a-service market is that it allows the market to cut the costs of human drivers, which holds a significant economic portion of the market. Autonomous vehicles also help the market to efficiently meet the higher demands of the densely populated areas. More Insights of Towards Automotive: Segmental Analysis By Propulsion Type The IC-powered vehicles Segment dominated the Car-as-a-service Market, whereas the Electric Vehicle Segment is expected to grow in the forecast period. The IC-powered vehicles dominated the car-as-a-service market due to their high consumer acceptance for multiple reasons. Although the consumer shift is higher towards EVs these days, many consumers still prefer to choose IC due to their developed infrastructure, high acceptance and trust, along with faster refueling time compared to EVs. Hence, EVs are also the least preferred option in areas with the least EV charging infrastructure. Hence, the car-as-a-service market prefers IC vehicles due to their high reliability for longer trips as well. The electric vehicle segment is expected to grow in the foreseeable future due to its high acceptance by consumers in recent times. EVs are also cost-efficient for short trips and hence are preferred by consumers, further fueling the growth of the market. Developing EV infrastructure is also adding to the growth of the market. They also provide high cost-efficiency to consumers in the form of economic subscription-based models. By End Use The private segment dominated the car-as-a-service market due to its convenience factor, allowing consumers to choose the type of vehicle as per their preference for short or long trips. Consumers can easily book a vehicle and track it as well for enhanced convenience. Hence, the private segment dominated the market due to enhanced overall experience. The segment also helped the growth of the market due to customers who do not need a vehicle regularly for traveling but are in need of one on special occasions, certain days, or for consumers who need to travel for special events. The corporate segment is observed to be the fastest growing in the foreseen period due to multiple benefits aiding the growth of the car-as-a-service market. Cost-effectiveness, flexibility, efficiency, and growing adoption are some of the major reasons for the growth of the market in the foreseeable period. Consumers in search of vehicles to travel to their workspace form a huge consumer base for the car-as-a-service market, as they need cost-effective methods to travel regularly. By Vehicle Type The executive car segment dominated the car-as-a-service market due to high demand by consumers for flexible, cost-efficient, and mobile means of transport for regular traveling purposes. Consumers in search of flexible and cost-efficient methods for traveling to their workspaces regularly form a huge base for the car-as-a-service market and aid in its growth as well. Consumers these days are opting for car-as-a-service rather than owning a vehicle to avoid multiple costs related to owning a vehicle in terms of its maintenance, repairs, insurance, and various other costs. The Multi Utility Vehicle (MUV) is expected to grow in the foreseen period due to its capability to transport consumers and goods from one place to another in a cost-efficient manner. Such vehicles are high in demand by the car-as-a-service market due to their capability of transporting consumers and goods by using cost-effective and flexible methods, helping the growth of the market. Get the latest insights on automotive industry segmentation with our Annual Membership: https://www.towardsautomotive.com/get-an-annual-membership Regional Insights Which Region Dominated the Car-as-a-service Market in 2024? Europe dominated the car-as-a-service market due to the array of benefits of the service for the growth of the market. Cost-effectiveness, flexibility, mobility, and technological advancements are some of the major factors adding to the growth of the market. Consumers in the region are in search of cost-effective means to travel from one place to another for shorter and longer distances, which further helps the growth of the market. Consumers in the region are highly avoiding traditional ownership of a vehicle to eliminate multiple costs related to it, such as repairs, maintenance, and insurance costs, which can be a huge burden. What Makes North Ameirca the Fastest Growing Region for the Market? North America is observed to be the fastest-growing region with the highest CAGR in the foreseen period due to a high shift of consumers towards subscription-based services, rising urbanization, and increasing demand for corporate fleet management services. Consumers in the region are in search of cost-effective and flexible means to travel and hence are avoiding the burden of owning a vehicle to eliminate the multiple costs related to the procedure. The young generation and urban dwellers make a huge consumer base for the market in the region, helping the car-as-a-service market grow in the foreseeable period. Elevate your automotive strategy with Towards Automotive. Enhance efficiency and achieve superior results – schedule a call today: https://www.towardsautomotive.com/schedule-meeting Recent Developments in the Car-as-a-Service Market Car-As-A-Service Market Key Players Car-As-A-Service Market Segments By Propulsion Type By End Use By Region Invest in Premium Global Insights @ https://www.towardsautomotive.com/price/1446 Become a Valued Research Partner with Us – Schedule a meeting: https://www.towardsautomotive.com/schedule-meeting Request a Custom Case Study Built Around Your Goals: sales@towardsautomotive.com About Us Towards Automotive is a leading research and consulting firm specializing in the global automotive industry. We deliver actionable insights across key segments such as electric vehicles (EVs), autonomous driving, connected cars, automotive software, aftermarket services, and more. Our expert team supports both global enterprises and start-ups with tailored research on market trends, technology, and consumer behavior. 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