subscription model automotive deloitte

Analisi

Subscribe & Drive

How to boost monetization leveraging the subscription economy trends in the Automotive sector. A new report by Deloitte Digital and Zuora.

The extended global automotive industry is undergoing an unprecedented transformation into a new mobility ecosystem. The changes taking place in the automotive sector - driven by the automotive market macro-trends impose a profound rethinking of the role and concept of the 'car' itself and the logic behind the purchase and use of vehicles by end users.

In this context, subscription services are an emerging global trend in the Automotive market. In the future this business will grow considerably, reaching $12bn by 2027, as highlighted in the new study issued by Deloitte Digital in collaboration with Zuora.

Read the full report

About the research

Zuora and Deloitte issued a new paper to develop an analysis and collect insights on the state-of-the-art of the subscription business in the automotive market, with a focus on:

  • Market trends: an overview of the main automotive trends and consumer needs;
  • Benchmark & best practices: a comparison of the subscription models among industries and identification of the main best practices;
  • Automotive capability map: a framework of the capabilities relevant for the automotive sector;
  • Use cases library: a list of the most valuable automotive use cases;
  • Business KPIs: Identification of the main business KPIs automotive companies need to target and monitor;
  • Architecture: design of the high-level IT architecture needed to manage subscription business.

Global Automotive Industry: an evolving Market

In recent years, global factors like Brexit, Covid-19, China slowdown and vehicles progressive electrification impacted automotive companies, which responded by redesigning business models, sourcing strategies and data analysis. Other macro-trends are now influencing the relationship between OEM and customers, with the raise of AI, the Agency Model and Servitization.
Among the main market trends, Servitization is becoming increasingly important to Consumers.

Towards to the subscription model: a change of paradigm

Consumer’s mobility preferences are changing: there is a general decline in the appeal of car ownership in favor of flexible models of car usership like vehicle subscriptions.
Customers' needs are shifting from a product-centric business, focused on features, to subscriber-centric model focused on values & outcomes. This model brings new trends like Data Monetization and connected services, that can contribute to generate up to +40% in Customer lifetime value.


How can Automotive Players respond to new consumer needs and unlock new market opportunities?

L'hai trovato interessante?